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Capcom posts financial decline in online while mobile profits soar

Thursday, 2nd February 2012 16:04 GMT By Stephany Nunneley

Capcom has posted its financial results for the fist nine months of its fiscal year, and for the period, both profit and revenue decreased year-over-year. Profits were down 52.6% to ¥3.2 billion ($42.6 million) compared to ¥6.8 billion ($89.8 million), and revenue was down 29% to ¥50.3 billion ($660.6 million) compared to ¥70.8 billion ($930.0 million).

For the period ending December 31, revenue for the firm’s online games division declined 41.3% to ¥31.7 billion ($416.8 million) compared to ¥54.1 billion ($710.4 million) year-over-year.

The firm said the financial decline was due in part to “a decrease in sales” of online titles, compared last year’s “mass release of major consumer online titles.” The firm said consumers were not as bullish toward online releases during the quarter, resulting in losses for the firm.

A bright spot for the firm was Monster Hunter 3G which moved over 1 million copies on 3DS, and the firm noted that Dead Rising 2: Off The Record and Ultimate Marvel VS. Capcom 3 also fared well. In Japan, the Monster Hunter Frontier Online series also showed “steady growth” and “stable popularity.”

“The video game industry enjoyed a lively year-end holiday shopping season with the market showing increased activity for the first time in a long while, owing to the release of popular software in addition to the launch of new mobile game consoles and the price reduction of some hardware,” said the firm in the financial release.

“Meanwhile, the trend of structural change washes over the video game industry, with the rapid growth of affordable and easily accessible social games attributable to the rise of mobile phones and smartphones.

“Under these circumstances, Capcom enhanced the consumer online game business, which is our core business segment. At the same time, we endeavored to operate our business in line with changes in the market environment, taking in a social game company, which had been an affiliate of our US subsidiary, as our direct subsidiary in order to achieve Group agility, as well as focusing our business resources on boosting the mobile contents business.”

Revenue for Capcom’s mobile division increased 68.2 % to ¥4.0 million ($52.7 million) compared to ¥2.4 billion ($31.3 million) year-over-year. Titles Snoopy’s Street Fair and The Smurfs’ Village were both successful, as the firm’s mobile developer Beeline “contributed greatly” to the division’s earning capacity.

The total number of mobile game downloads during the period came close to 46 million.

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6 Comments

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  1. LOLshock94

    release cannon spike and power stone 1-2 hd and you will make a profit

    #1 3 years ago
  2. OlderGamer

    Or make new IP as good as the old ones.

    Never stops amazing me how many times JP companies can recycle old games. And often times, its not like they are new games in old franchises(ie a new CoD). They are just old games. Often times not even improved upon, just upscale the graphics(sometimes depends on platform), and let it fly.

    That being said sure Cannon Spike and Power Stone where great(I owned em on DC), but putting out touched up versions on PSN/XBL is not the answer imo. Neither is cranking out a 3DS version.

    #2 3 years ago
  3. ManuOtaku

    # OG “Or make new IP as good as the old ones”, As soon as they close clover i got the feeling that capcom will not make any new good IPs, at least it wouldnt be their main focus, well right now they have assuras warth and dragon dogma, both of which iam really interested, well i think they are trying to make new IPs, although we need to wait to see if they are good or not.

    #3 3 years ago
  4. OlderGamer

    I am looking forward to Dogma alot myself.

    Maybe its a investment(time and cash) vs profit when it comes to Console vs mobile. Todays trip A games are not easy or cheap to crank out.

    #4 3 years ago
  5. FeaturePreacher

    Hey Stephany,

    Could you please use the term portable when talking about portable systems like the vita and 3ds instead of mobile? A distinction needs to be made between platforms that can play real games and those that are filled with phoney games that race to bottom.

    #5 3 years ago
  6. Stephany Nunneley

    @5 ?? They don’t differentiate between handheld games and console games as they are lumped in the same section – Consumer Online Games division. The mobile sector for the firm (aka phone games) did well, so it was reported. I may be an airhead at times but I know the difference between a mobile and a handheld. Unless my Android is disguising itself as a 3DS, then you may be on to something, and I need to have a discussion with the thing, pronto, and pick up Ocarina of Time 3D.

    #6 3 years ago