Capcom Revenue and Profit Fall Due to Lack Of New Games
Resident Evil publisher reports sales drop of 51 percent while profit dips 39 percent.
Resident Evil publisher Capcom has announced financial performance for the first half of its financial year and the results were down overall. The publisher hauled ¥25.9 billion ($239.6 million) in revenue during the period, which is down 51.3 percent compared to the same period last year. Profits were down as well, coming in at ¥2.9 billion ($26.8 million), a drop of 39.9 percent compared to last year.
The earnings reflect sales in the six-month period from April 1, 2014 to September 30, 2014.
Capcom attributed the downturn in part to having no major titles released during the period, compared to last year, when it launched 3DS game Monster Hunter 4 to strong sales. Some bright spots during the quarter, however, were Ultra Street Fight IV and Phoenix Wright: Ace Attorney Trilogy, which posted "steady sales." Meanwhile, Dead Rising 3 "continued to do well" across Xbox One and PC, Capcom said.
Other titles that performed "solidly" were Monster Hunter Frontier G and iOS game Monster Hunter Freedom Unite. "However, no major new titles were released in this period, so sales focused on existing products," the publisher explained.
Capcom's video game business unit, which it calls "Digital Contents," posted even worse results than the company did overall. Revenue was ¥13.5 billion ($124.9 million), down 64.1 percent compared to last year. Meanwhile, operating income was ¥2.1 billion ($19.4 million), a drop of 60 percent compared to last year.
All of Capcom's other businesses (Arcade Operations, Amusement Equipments, and Other) also posted year-over-year declines.
Looking ahead, Capcom has a number of high-profile games in the works, including free-to-play PlayStation 4 title Deep Down, as well as Resident Evil: Revelations 2 and a Resident Evil remake for consoles and PC. A new Resident Evil movie and TV show are also in production.