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Capcom 2013 financials see $940m in revenue, several console titles fall below sales target

Tuesday, 10th September 2013 12:06 GMT By Dave Cook

Capcom has published its full-year financials for the fiscal year ended March 31, 2013. While the company’s revenue climbed, several games have failed to meet sales targets, and efforts to increase the company’s digital returns have proved largely fruitless.

The short version

Revenue rose year-on-year from ¥82 billion ($820 million) to ¥94 billion ($940 million)

Game division revenue tumbles over 50% to $31 million, accounts for 67.7% of total business.

Aside from 2010, this is the company’s worst performance since 2005.

Software sales totalled 14 million units for the year. Resident Evil 6 and DmC: Devil May Cry fail to hit targets.

Dragon’s Dogma is a surprise hit at 1.3 million units sold.

DLC is now a major focus of the company moving forward.

GI.biz reports that Capcom’s revenue rose year-on-year from ¥82 billion ($820 million) to ¥94 billion ($940 million).

However, Capcom’s Digital Contents business, which encompasses console, PC and mobile titles, saw profits tumble by over 50% at $31 million. This is significant, considering this arm of the company accounts for 67.7% of the group’s total income. Aside from 2010, this is the company’s worst performance since 2005.

Software sales totalled 14 million units for the year, and only three of Capcom’s releases achieved over 1 million in sales. Controversial release DmC: Devil May Cry saw sales of 1.15 million worldwide against an expected 2 million units, while Resident Evil 6 sold 4.9 million units, falling short of a targeted 7 million units. Dragon’s Dogma proved a surprise hit on consoles with 1.3 million units sold.

Capcom now projects that revenue will remain static for the next fiscal year, but added that it expects less profit and software sales at 13 million units worldwide. The company’s current release sate includes Lost Planet 3, Dead Rising 3 and Monster Hunter 4. The latter seems likely to achieve its targeted 2.8 million sales figure by the end of March 2014.

Also, Resident Evil: Revelations should hit its 1.2 million sales target, although Lost Planet 3 – which also needs 1.2 million sales – seems like it’ll be well wide of the mark after a poor launch in all territories.

However, the company’s online games division has fared well, with a 45.9% revenue jump to ¥22.9 billion ($229 million). Capcom expects a further increase of 22.3% by March 2014, bringing that figure to ¥28 billion.

The report suggests that the transition between console generations has caused its packaged figures to stagnate, and GI.biz adds that – at present – Capcom has $152 million in cash, and points out that this isn’t a lot of money for a company seeking to gain a solid foothold in the next generation. Part of Capcom’s plan is to reel back outsourced projects and hire 100 new staff across its PC, digital and mobile divisions. The company also aims to offer more DLC moving forward.

On the DLC issue, Capcom COO Haruhiro Tsujimoto said in a statement, “I regret to say that, up to now, we had few plans for the full-scale implementation of DLC. From here on out, we need to focus on the long-term provision of content starting at the earliest stages of development.

“Furthermore, in terms of user response, if the additional related content we are providing continually to users online is deemed uninteresting from the start, there will be no ongoing business to pursue. This means that, more than ever before, the creation of underlying content is the key to success.”

What do you make of Capcom’s current situation? Let us know below.

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18 Comments

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  1. Bam007

    “The company also aims to offer more DLC moving forward.”

    Yay, more disc-locked content. Glad I have a ‘spare’ Xbox 360 for crap like this.

    #1 7 months ago
  2. slayer

    Dragon’s Dogma wasn’t released on PC.

    #2 7 months ago
  3. YoungZer0

    @2: Indeed very surprising hit. :P

    #3 7 months ago
  4. Dark

    Give me Dragon’s Dogma 2 already.

    #4 7 months ago
  5. Biscuitpants

    should of made dmc5

    #5 7 months ago
  6. wildBoar

    I wanted to, but I could never bring myself to buy Dragon’s Dogma, even with the Dark Arisen stuff. I could never ignore the annoying shit like the idiot-npcs having mouthdiarrhea etc. just to enjoy the good aspects of the game. Sometimes I just want a game to be almost perfect y’know? Instead of always having to lower your expectations.. I hope they make a really good one next time.

    #6 7 months ago
  7. Nappael

    GI article: “Monster Hunter 4, which is scheduled for release this month, seems likely to meet its expected 2.8 million sales by the end of March 2014.”

    This article: “The company’s current release sate includes Lost Planet 3, Dead Rising 3 and Monster Hunter 4. The latter seems unlikely to achieve its targeted 2.8 million sales figure by the end of March 2014.”

    Edit: Anddd corrected.

    #7 7 months ago
  8. MFBB

    #6 well you could just turn the sound off or down and listen to music.

    I do that pretty often with games that are not story driven/lots of talking/cinematic etc.

    Played Dragons Dogma and was annoyed with there talking aswell, you cant even turn that off.

    Listening to music saved me :)

    #8 7 months ago
  9. YoungZer0

    There wasn’t enough music in the game.

    #9 7 months ago
  10. salarta

    The “stop outsourcing our games to other companies” element is a big plus. I mean, as long as the teams working on things don’t go the Resident Evil 6 route. Games like DmC show how bad it is to outsource in the great majority of cases.

    If focusing more on the implementation of DLC means that they’re going to use it for things of actual value and substance, and not make them merely “DLC” that’s locked on the disc waiting for a key, then I’m all for this latest development. Most companies do nothing more than create some new skins for junk and expect people to pay $5-10 for those skins.

    Also, I’m assuming that the Revelations sales are for just the console versions, not for the 3DS version. I expect the total sales for all versions is meaningfully higher, given the 3DS version came out a good year before the console versions, it was cheaper, and the 3DS started to pick up steam around release time of the console versions.

    #10 7 months ago
  11. CyberMarco

    I wonder, that $940m in revenue is excluding the taxes and all the obligations etc. CAPCOM has to pay or is the net profits, the money that will remain in CAPCOM’s owner/CEO/president whatever…

    #11 7 months ago
  12. Keivz

    R.I.P. Capcom.

    #12 7 months ago
  13. Christopher Jack

    Bring back Dino Crisis, we need a decent dino game again. Do so & you’ll have the first preorder I’ve handed out since Halo: Reach.

    Now that I think of it- Wow! 3 years since I last preordered a game. Guess that’s my own little way of boycotting all these shitty different preorder incentives. I guess the lack of games that I’ve been super hyped about is another factor. Wouldn’t be too mad if it were the same incentive across the board but that’s not often the case -_-

    #13 7 months ago
  14. OmegaSlayer

    Capcom is a Japanese company from which people wants Japanese flavoured games.
    They’ll keep failing if they westernize, since they don’t appeal long time fans and fail to appeal younger new audience.

    #14 7 months ago
  15. Gheritt White

    @13: Dino Crisis *and* Power Stone! Where’s my Power Stone sequel, Capcom?!?!

    #15 7 months ago
  16. monkeygourmet

    @15

    Powerstone collection is on PSP / VITA! :)

    Close as you will get though

    #16 7 months ago
  17. Clupula

    @14 – I blame Inafune for that, to be quite honest. When he was in charge, his anti-Japanese feelings colored a lot of their releases and we’re seeing how much that attitude failed the company.

    #17 7 months ago
  18. Unknown_Gamer

    @13
    @15

    The F are you guys talking about , WHERE’S MY ONIMUSHA ლ(ಠ益ಠლ)

    Oh and bring Back Dino Crisis please .

    #18 7 months ago