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Capcom: year-end profits to be half of what investors expected

Thursday, 18 April 2013 10:14 GMT By Dave Cook

Capcom has issued an insight into its year-end financial report ahead of the document’s full release. The Osaka-based company will announce that restructuring efforts have resulted in half of the profits originally projected in its previous report.

Update: As a result of the figures below, Capcom has now confirmed that it has cancelled several overseas projects that it has deemed, “no longer compatible with the current business strategy”. We’ll update once we know which games have suffered the axe.

Original Story: CVG reports that the restructuring drive has cost Capcom around £46 million, and added in a statement, “In view of the sudden and significant changes in the operating environment of the digital contents business, Capcom reviewed its business expansion strategy for the sector and restructured its game development organization.”

Originally, Capcom had projected a profit of £43 million, although off-set against re-structural costs, yearly game sales of over £625 million and expense among other areas of the business, the actual figure is likely to be around £19 million.

We’ll know more about where this total figure has come from once the company releases its full report, so don’t wade in and start tearing apart the maths just yet. All will become clear soon.

Moving forward, the company expects stronger performance in FY 2014, where it hopes to amass some £648 million in game sales. Could this have something to do with PS4 game Deep Down?

What do you think of Capcom’s past year? Was it a success, or could it have been better?

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41 Comments

  1. SameeR_Fisher

    Somehow Capcom is in a decline, Resident Evil 6 was a success but not that great, then DmC -it was a quality title YES- but it didn’t sell that much, then there is the upcoming Remember Me which may blow, same goes for Lost Planet 3, I don’t see Capcom having any huge titles, sadly.

    This my opinion of course but I think Capcom needs to focus, bring back Onimusha and make it something special, bring back Dino Crisis and make it like DC2 Survival Action, it must be like DC 1or2, turn Resident Evil back to its roots of being Survival Horror, focus on digital when it comes to fans, for example bring RE:Remake to PS3/X360/PC and bring back Megaman as HD all in digital form to maximize profit, if they are really profitable then go to solid copies, bring back Dark Void and really do something about to make it appealing, introduce MP it would be crazy, I don’t know what else could be done.

    I am not a fan of digital stuff to be honest, I would rather have REremake on my hand, but I can see this a thing of concern to Capcom.

    #1 2 years ago
  2. loveaya

    CRAPCOM, you deserve this

    #2 2 years ago
  3. MarcoosVGC

    I swear to god, Ace Attorney 5 localisation better still be happening.

    #3 2 years ago
  4. Mjorh

    This is what u get 4 being greedy ! Capcom is truly screwed up n surely its bcoz of their strategy

    @2 Perfect!

    #4 2 years ago
  5. SameeR_Fisher

    That Update, I wonder what are those titles.

    #5 2 years ago
  6. salarta

    I bet the titles they’ve canceled are all the wrong sorts of titles. Probably ones they’re not hyping like crazy but people actually want, while still pushing forward with things nobody asked for that they expect will bring them easy money as part of major IPs they own.

    They were pretty much asking for a loss of profits with their antics over the past couple years. Canceling Megaman Legends 3 and blaming the fans supposedly not having enough interest (after actually considering making fans pay for a demo of it to “prove they want it”), trying to reboot DmC when nobody asked for it along with Ninja Theory insulting fans of the original IP as well as Dante, and excluding Jill and Claire from Resident Evil 6 while they were pushing the game as the biggest part of the series’ anniversary. This is on top of general practices nobody likes concerning DLC, things like having the content on the disc and needing a key to unlock it, or an endless procession of costume packs.

    If I had to pinpoint the one thing hurting Capcom’s sales, it’s that the people making the core decisions clearly don’t like fans of their games and think of them as gullible idiots that will buy anything they put out. Even if they were doing everything perfectly, such an attitude can easily turn people away.

    I’d say to turn things around, they need to start treating their fans better. Listen to feedback from the fans, actually give them what they want and don’t try to do some underhanded con job to bilk money out of them in the process. They don’t need to cater to every single whim of fans, that would be absurd, but when your fans say “We like the Dante we’ve been playing and want to continue playing games with him,” the answer shouldn’t essentially say that fans are overreacting losers and the old Dante was a loser too.

    In terms of specific projects, I think they need to re-launch Mega Man Legends 3 (albeit probably for a home console, not just 3DS), get to work on a Devil May Cry 5, and personally, I’d say announce a Resident Evil 7 starring Jill and Claire with none of the playable characters from RE6 in it except maybe Sherry. The DLC approach needs to be worked on too. I think that things like MML3, DmC and RE6 ultimately hurt other projects that show promise such as Remember Me, by those consumers not wanting to try those games because of their association with Capcom.

    #6 2 years ago
  7. ActionGameKing

    @6 You are absolutely on Point.

    They have split the Devil May Cry fanbase, split the Resident Evil fanbase, given the middle finger to Megaman fans for half a decade. Plus On-Disc DLC and Terrible PR, I could go on and on.

    Focus on the fans Capcom, we pay your bills. Don’t pander to us, just make us proud for once. Deep Down is the only good thing you have going for you right now. I’m typing like I’m talking to them directly LOL

    #7 2 years ago
  8. Clupula

    @6 – For the last time, the lack of Jill and Claire had NOTHING to do with Resident Evil 6′s sales. In fact, it actually would have sold rather well if Capcom didn’t go insane with their budget and sales projections. The series sells in the millions. It does not sell in the tens of millions which is what they were hoping for with the emphasis on action.

    Your Jill and Claire thing is just your particular weird imaginary woman fetish. Every single person who is not you complained about the action emphasis. You, on the other hand, are upset that they took away your waifu! Sales lost because of a lack of Jill and Claire probably number in the triple digits.

    What did hurt the game, however, was that Chris’ campaign played like the worst parts of RE5. It’s was pure action, without a single bit of horror in there. Jake’s campaign played almost like a James Bond movie, set in the Resident Evil universe. I did like Leon’s campaign, though, but I know some people were upset that the last boss had about 200 forms. Capcom were looking at the sales of games like Call of Duty and thinking that by putting such an emphasis on the military aspects of the game, that they could bring that audience in, only people who buy Resident Evil titles don’t buy them for that. We buy them for the horror aspect, which was completely missing from RE5 (except for the Lost in Nightmares DLC) and RE6 (except for the early parts of Leon’s campaign). It’s very simple, Capcom. Stop trying to make everyone happy. Focus on the people who buy the title: horror fans. Don’t reboot the series and throw out all those years of continuity. Just make it smaller. Set RE7 in a single location and focus on making it scary. We don’t need to go globe-trotting. We don’t need the fate of the world resting on our shoulders. Just make us worry about the fate of our characters.

    As for the rest of Capcom’s bad fortune, I’d say DmC was a huge mistake. I think Lost Planet 3 is going to flop. Remember Me is probably not going to do very good either.

    Capcom have some titles that will sell immensely if they bring them out, but they have to, you know, bring them out. DMC5 will be a big hit if it completely erases the stink of DmC. In fact, the teaser trailer for that should directly insult DmC, as a way of apologizing to the original fans. Street Fighter V will be a huge hit, provided they make it very clear they are not going to release another retail update in six months, and instead, stick with DLC-updates (THAT ARE NOT ON THE DISC). And, as I said, a horror-emphasized RE7 will be a big hit.

    As for their other titles, Megaman will not be huge, but if they keep their sales projections realistic, will work on console. Same goes for Darkstalkers. Onimusha, Breath of Fire (as much as I’d like to see it), Dino Crisis, and a lot of their other mid-level action games will not sell very well. I’m not sure why anyone even suggested bringing back Dark Void, because that was a giant, giant flop. And since your fighting games are one of the few things that actually sell, here’s a crazy idea…why not make a new fighting game franchise?

    #8 2 years ago
  9. Clupula

    @7 – Honestly, Deep Down didn’t do anything for me.

    #9 2 years ago
  10. SlayerGT

    @9 Did you enjoy Dragons Dogma?

    #10 2 years ago
  11. Clupula

    @10 – Played the demo. Didn’t do much for me.

    #11 2 years ago
  12. salarta

    @7: That’s the core issue with most games lately. Companies are doing things that divide the fanbase, or else cause fans and potential consumers to turn away. Most of these companies are operating under the assumption that there’s a huge untapped market of potential consumers that will ONLY buy games if they fit current popular trends and gimmicks, and that this potential market is far, far bigger than the already existing base of people that like or have liked the franchise in the past. They interpret this to mean things like “Silent Hill should stop being survival horror and become an action series.” It works if the majority of people don’t understand the good qualities of a franchise and have so little respect that they’ll accept anything, but it doesn’t work if people remember why the franchise became popular in the first place. The smart thing to do is progress a franchise with new developments while sticking to the franchise’s roots, like Mortal Kombat 9 did. That seems an impossible task for most publishers and developers these days.

    @8: Regardless of what you think for how well RE6 would have done by sales with other factors, it’s a fact that the lack of Jill and Claire hurt their sales. There was a big enough uproar about their exclusion that the game director actually had to respond to it, and I know that I and many others completely avoided the game for that very reason. These are not talking points. These are facts.

    There may have been and probably were bigger problems than that, but it’s a mistake to pretend Jill and Claire left out meant next to nothing. I’ll consider possible other issues when we stop pretending Jill and Claire’s entirely unnecessary exclusion from RE6 had no meaningful impact when it very clearly did.

    #12 2 years ago
  13. Clupula

    @12 – No, it’s not a fact. Please do direct me to articles where millions of people boycotted the game because Jill and Claire aren’t in the game. Come on. Show me something that isn’t just a couple hundred really loud and obnoxious otaku whining that their spank fantasy imaginary girlfriends aren’t in the game.

    Quite honestly, from a storyline perspective, Claire shouldn’t be a playable character anymore, since she doesn’t want any part of that life anymore. She was only involved in RE2 and Code Veronica because she wanted to find her brother. She found him. And then in Degeneration, that was mostly because no vehicle on earth can avoid crashing when Leon is near it. But during that movie, she acknowledges that she’s getting an office job, so she never has to deal with things like that again. Fine, end of Claire’s place in the RE universe.

    Jill, I imagine would either be assigned elsewhere, or dealing with therapy after what Wesker did to her.

    There’s no storyline reason for the two of them to be involved in RE6, at all.

    It was all about the gameplay, which you never, ever, ever, ever, ever talk about. I almost think you’d be happy to just watch cutscenes all day.

    #13 2 years ago
  14. SlayerGT

    @11 So so funny cause now that I think about it, I felt the same way :) but after reading Jeff Cork’s review in GameInformer I asked him about the loot in the game compared to Skyrim. Long story short I love DD.

    #14 2 years ago
  15. Bomba Luigi

    I really don’t Buy Capcoms Games for quite a while now. They pissed me off with all that On Disc DLC, there are better Ways to spend my Money.

    More good Games out there than I can play, I can’t play them all. And when you make me dislike you, I will buy from the other Guy over there.

    #15 2 years ago
  16. OmegaSlayer

    DmC – No comment, it should have NEVER existed

    RE6 – above everything…the controls are BAD, STUPID and SHITTY, and that’s insane for Capcom standards.

    MH should have been multiplatform both on handheld and home consoles.

    DarkVoid, BionicCommando and ResidentEvilOperationRaccoon didn’t have to exist.

    #16 2 years ago
  17. deathm00n

    @15 Sorry, but I find it simply stupid to avoid a company bacause they did something you didn’t like. If they have a game I like I will buy it. Or can you buy Dragon’s Dogma, for example, from Ubisoft?

    Not that I’m saying they were right, they are really wrong about On Disc DLC.

    #17 2 years ago
  18. salarta

    @17: I don’t think it’s stupid at all. When a company does enough terrible things, at some point it seems better to just not give the company any money and hope some other companies buys them out and gets them to start making good things again. The only possible issue I see is that completely avoiding a company means that you also aren’t moving them in the right direction by giving money on stuff they do that actually doesn’t suck. But, your mileage may vary.

    #18 2 years ago
  19. Clupula

    @18 – I’m still waiting, btw, for your proof that millions of people held off on buying RE6 because of a lack of Jill and Claire. Where are those articles? You did use the word “fact.” So facts, need to be backed up. Unless you want to apologize for mistaking your creepy opinion as fact.

    #19 2 years ago
  20. Bomba Luigi

    @17: Like I said, there are more good Games then I can play. When there are two Good Games, one with stuff I don’t like (On Disc DLC) and one without that stuff, and I only have time to play on of them – why should I buy the one that has stuff I don’t like and don’t wanna support?

    #20 2 years ago
  21. deathm00n

    @20 Ok, now you make sense. But if they have a very good game and you want it you will not skip it just because of Capcom right? I have friends who would, and I find it stupid.

    #21 2 years ago
  22. SplatteredHouse

    I guess all one can do is sigh, express regret at the loss of the fallen and move on.

    #22 2 years ago
  23. Bomba Luigi

    @21: I will not Buy a Game wit locked Content on the Disc I have to pay to Unlock, no matter how good the Game ist, thats for sure. When they get rid of that with some sort of Whatever-Edition, I probably buy it.

    All I have as a Customer is the Vote with the Wallet, I will not Support stuff like that with my Money I have to work my Ass off.

    #23 2 years ago
  24. chaoszage

    well,RE6 is went to wrong direction,action + shooting COD-like instead of survival horror. DMC is great but the sales is not what you expected(good). Tired of monster hunter or dragon dogma or whatever. Just revive Onimusha series and Megaman(X) series in HD and Clock Tower series(my all time fav game).

    @2 exactly!

    #24 2 years ago
  25. Gheritt White

    @13: “It was all about the gameplay, which you never, ever, ever, ever, ever talk about. I almost think you’d be happy to just watch cutscenes all day.”

    HEAR, HEAR!

    @16: Grin’s take on Bionic Commando is one of my favourite games this gen, def in my top 5. Yes, I played the original on the NES on its release, too. It wasn’t a perfect game (mainly because of the loading times) but it was oodles and oodles of FUN.

    You know, fun? That thing we have when we’re not obsessing over nonsensical continuity bollocks?

    #25 2 years ago
  26. Djoenz

    Onimusha damn Ive been screaming that for ages now haha.
    RE5 was shite so I did not bother with RE6.
    Streetfighter never really liked it. Always preferred Tekken.
    DMC was cool back in the days, but now nahhhhh..

    CRAPCOM wahaha.

    #26 2 years ago
  27. hitnrun

    @21 You can make a case that boycotting companies you don’t like for various reasons that have nothing to do with the individual game is stupid, though I wouldn’t necessarily agree with that argument.

    But with Capcom, every game they release is a DLC trap whose cupidity far outstrips its worst competitors. If buying a game for $60 only to be immediately taunted with all the cool things you don’t have unless you spend another $30 does bother you, why would you ever, but ever buy a Capcom game? Because that’s what you’re going to get.

    The refrain of the masochists is that if we don’t like it, we shouldn’t buy it. Well, now we don’t buy it. Capcom makes Microsoft look restrained, and I don’t say that lightly.

    #27 2 years ago
  28. YoungZer0

    I hope this doesn’t discourage them from letting NT work on DmC2. We all know DmC is the best game in the franchise and superior to games like Revengeance in practically every way.

    Last time I checked, NT was saying on Twitter that they might announce something soon. Unlike the other DMC titles, It will probably continue where it left off. Maybe they allow the player to play as Vergil from the get go? Two separate campaigns? That would be awesome.

    Anyway, if they make a DMC5 (Which I highly doubt) I won’t buy it. I think Capcom would rather cancel the series, instead of doing another DMC title themselves.

    I’d be okay with that. Not going back to mediocrity.

    I think you could make an interesting study on the DMC Fans and their immature group mentality.

    #28 2 years ago
  29. Clupula

    @28 – Nice job of trying to incite people, but whether you like it or not, the game was a commercial disaster. I’d be very surprised if any publisher lets Ninja Theory handle any of their major franchises ever again, after those sales.

    If they have an announcement, they either have an original IP to announce or something that probably started development before DmC came out.

    #29 2 years ago
  30. DeathMasque

    @28 I’m really glad people like you seem to be a minority. DmC is quite honestly one of the most mediocre and boring games I’ve ever had the displeasure of playing. And no one thinks DmC is the best game in the franchise. No one actually thinks that except for delusional idiots like yourself and ‘journalists’ who post shit like that just to get a rise out off people and get views for their shitty ‘journalism’ websites.

    #30 2 years ago
  31. YoungZer0

    @29: Yep, I made it pretty obvious, still, one caught it.

    I’m not sure if it really is a commercial failure. The best version of the game is still on PC and PC sales are never counted. Neither are digital sales. It probably sold much better than most Plantinum titles.

    Capcom’s – just like Square Enix’ – expectations were way too high.

    Still, the outrage over the game is ridiculous. It simply doesn’t deserve that much hatred. It’s a freaking good game and I truly believe that it’s the best in the franchise. While the other titles got one or two things right and everything else wrong, this has more done more things right than wrong. Our favorite Jill Fan still has to tell me where exactly Capcom/NT insulted the fans.

    @30: Smart people are usually in the minority.

    #31 2 years ago
  32. Juice_Man101

    #25. I thought I was the only person that loved bionic commando. The multplayer was one of the most fun experiences I have ever had

    #32 2 years ago
  33. salarta

    @19: Well, it’s a bit complex. You spent the rest of your comment basically trying to justify their exclusion and doing what I’ve seen far too many people pull, which is to act like there was absolutely no other way the story could have been written, like it came down from on high. That comment was all about trying to make it look like Capcom excluding two of the four most important characters in the franchise from the core game of its 15th anniversary is justified based on imaginary restrictions you came up with based on events that happened in the games. We’ve had that argument enough times, I don’t see the situation changing no matter what I say or do. You’re already set on the idea that Jill and Claire are somehow completely worthless to the franchise and their exclusion had no impact on anything.

    And I have a feeling that when you say “show me evidence,” you are asking for something you know is literally impossible to gather, which would be statistics, given “it was a big enough uproar that the game’s director actually had to respond to it” apparently means nothing to you. Same thing could be pulled about the race controversy of RE5, stupid as that one was. I’m very sure that when you ask for “evidence,” it’s more about getting me to present something for you to say isn’t “good enough” so you can say “see, what you’re saying is wrong” than about actually wanting to know.

    #33 2 years ago
  34. Clupula

    @33 – No evidence = no fact. Period. You said, and I quote, “Regardless of what you think for how well RE6 would have done by sales with other factors, it’s a fact that the lack of Jill and Claire hurt their sales. There was a big enough uproar about their exclusion that the game director actually had to respond to it.” So, where are the facts? You and a bunch of other neckbeards said so on a message board? Ha! Where are articles proving this? Hell, where is the director even responding to it? You have nothing. You bring nothing to the conversion.

    It’s just your sad little wanker opinion. You’re going on and on about how Capcom had to respond to them not being in the game, yet you can’t provide a single link. Until you’re willing to talk like an adult than you should go back to your soiled sheets and let the grown-ups do the talking, okay? You know, the people aren’t all, “Capcom didn’t put my waifu Jill in the game, so I have no one to get a collectable statue of. I hates them!”

    #34 2 years ago
  35. salarta

    @34: https://twitter.com/RE_Games/status/205758815029825537/photo/1

    Also, it was the producer, not the director as I mistakenly said.

    #35 2 years ago
  36. OlderGamer

    Why miss the seemingly obvious things:

    One; another JPN company struggling to stay relevent in an increassingly western focused games market.

    Two; as such, as with many other pubs, they need to bring their dev budgets down. There is only room for a very few top teir mega selling trip a franchises that can support huge budgets. Pubs need to be happy to just sell games. And bring their budgets, costs, and expectations inline with that.

    Edit: even if that means Steam/PSN/XBLA/iOS/Droid/PC. And even if that means targeting medium markets, pandering to fans, and accepting a different role in the market.

    #36 2 years ago
  37. YoungZer0

    Resident Evil 6 should’ve been about Jake Muller and Sherry Birkin and no one else. It should’ve been RE4 in eastern europe. Jake Muller gets hired by a PMC to go to a distant village, plot-twist Neo Umbrella hired him and wants him dead. etc. etc.

    It just doesn’t work with the older characters. They’ve seen it all, they don’t get scared. Why oh why was Leon still talking to Zombie President of the USA? He should know by now that you can’t talk to them.

    That’s why a new protagonist is so important, because he can still be surprised. It works far better for the story.

    They really nailed the gameplay in RE6. It’s incredibly fun to play. So they can keep that, but also adapt the free-roaming from the latest Tomb Raider. Throw in some cameos and the game is done.

    #37 2 years ago
  38. salarta

    @36: Definitely have to agree about the bizarre high expectations most companies have. There’s this obsession with the idea of altering franchises to try and make them sell as much as Call of Duty or higher, instead of accepting what the franchises already have to offer, building on the good of those franchises and keeping budgets and the like minimized to fit. After all, how did Call of Duty become famous in the first place? Was it by trying to be a cheap knockoff of something else that was the most popular game of the time? Nope, it was by doing their own thing as best as they could. Same for Guitar Hero, same for World of Warcraft.

    #38 2 years ago
  39. Clupula

    @35 – Okay, so the producer got a lot of messages from people like yourself. That wasn’t so hard, was it. Although it hardly looks like anything more than a, “We have Revelations coming out soon, but we can’t say it yet,” statement.

    #39 2 years ago
  40. DSB

    @36 Sadly a lot of companies would rather die in the blaze of their own mindless greed than dial back, and make a sustainable living for themselves.

    That kind of business is always a banzai charge into oblivion. You take a few big steps, you do well, right up until the point where you’re cut down by so much fire, no one will remember who you were.

    #40 2 years ago
  41. salarta

    @39: I’ve increasingly not bothered to go out of my way to gather and present evidence because I’ve grown sick of dealing with people that don’t actually want to see the evidence, and are really just trying to find any means available to make every single thing I say look illegitimate. Honestly, if finding what I linked would’ve taken me more than a couple minutes to find, I wouldn’t have replied. It doesn’t seem like it matters when it’s not going to change anything, and people will write it off or forget it by the next day.

    People care far, far more about proving how right they are than anything else, and it’s infected my attitude to the level that I’ve simply lost the will to thoroughly defend my arguments. People that hate characters I love will still hate those characters no matter how much I try to point out good qualities of those characters. Companies obsessed with following popular trends to make as much money as they can will keep ruining IPs and characters in attempts to reach that goal. In the end, nothing I say or do in this manner has any worth. So why waste potentially hours of my time gathering evidence and trying to remain open to meaningful discourse when everything I say will get written off as “Well you hated the game already so anything you say is invalid” or “You’re just an obsessed fanboy.” I’m going to be called names and told to go die in a fire no matter what I do unless I fall in line with the majority.

    #41 2 years ago

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