Capcom has revised its profit forecast for the fiscal year ending March 31, 2011 by 18.8 percent due to less-than stellar sales of Lost Planet 2, Dead Rising 2’s delay, and a strong yen.
According to the publisher, it only expects to report ¥6.5 billion ($78 million) in profit for the full fiscal year, compared to the previously forecasted ¥8 billion ($96 million). The company also lowered its sales estimates by 4.2 percent from ¥95 billion ($1.14 billion) to ¥91 billion ($1.09 billion).
Capcom said the the one month delay of Dead Rising 2 and the inability to “offset the large shortfall in sales” of Lost Planet 2 were contributing factors, as well as the yen’s increase in value to the Euro and US Dollar.
“Due to foreign exchange losses associated with foreign currency-denominated assets and liabilities, first half [profits] are expected to be far below the previous forecast,” explained Capcom in its revised report.
During the first half of the April 1 to September 31 2010 fiscal year, Capcom expects 41.4 percent less profit at ¥1.7 billion ($20.3 million), and 10.6 percent less sales at ¥2.9 billion ($34.8 million).
Capcom earned ¥66.8 billion ($801.5 million) during FY10, and profited ¥2.17 billion ($26 million) during the previous fiscal year.