Capcom Q3 financials: profits up despite Resident Evil 6 “failure”

Monday, 4 February 2013 08:38 GMT By Dave Cook

Capcom has posted its Q3 nine-month financial report, revealing a profit surge for the company, despite its admitted “failure” of Resident Evil 6. Digital sales and social titles have also rocketed, resting on a prosperous period for the Japanese player. Its projections remain unchanged.

In a report published by Capcom this morning, the business posted net sales of ¥72.69 billion for the period between April and December. It’s an increase of 44% year-on-year, accounting for net income of ¥6.64 billion. The company’s operating income rose to ¥9.83 billion, an increase of 45.9% year-on-year.

Capcom’s ‘Digital contents’ department – which handles PC releases, digital console releases, and mobile saw great success, with total revenue of ¥35,73 billion, an increase of 39.2% year on year. Titles like Smurf’s Village, as well as mobile editions of Street Fighter and the publisher’s efforts on Steam have seen it become more visible in the smartphone space.

Software next, and Resident Evil 6 has been branded a “failure” in Capcom’s own press release, despite shifting a less-than-expected 4.8m units worldwide. Dragon’s Dogma and Monster Hunter 3 Ultimate enjoyed surprising success.

The statement reads, “Despite recording brisk sales when it debuted, [Resident Evil 6] subsequently lost its momentum, resulting in the failure to achieve planned sales and fulfill its role as a driver of sales expansion.

“On the other hand, “Dragon’s Dogma” (for PlayStation 3 and Xbox 360) enjoyed popularity exceeding expectations in the more profitable domestic market, becoming a million-seller unprecedented among recent new brand games developed and published by the Company. Additionally, the lower-priced ‘Monster Hunter 3 (Tri) G Best Price!’ for Nintendo 3DS also enjoyed steady growth.”

Capcom’s social game operations have now hit 7.2 million registered users in the Japan alone, although the statement adds that there seems “to be ample room for growth”. GREE’s “Resident Evil: Outbreak Survive” sits at 2 million registered users, while Smurf’s Village and Smurf Life continue to see active players.

Once a bastion of arcade gaming, Capcom’s arcade business fell 6.9% to ¥8.8 billion. Capcom’s statement added, “the lack of sales-driving products and our inability to avoid the backlash of increase in demand after the Great East Japan Earthquake, sales remained weak.”

Through it all Capcom’s projections for the end of this fiscal year remain unchanged, a positive piece of news considering Nintendo and EA slashed its projections last week. At the time of writing Capcom predicts net sales of ¥93.5 billion, and net income of ¥6.5 billion.