Thu, Apr 18, 2013 | 12:38 BST
Capcom: year-end profits to be half of what investors expected
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?