Capcom cuts earnings forecast in half, due to poor mobile sales
We already knew that Capcom was having problems when it came to tapping the mobile game market
-- but with the news today that the publisher is cutting its full-year earnings forecast in half, we perhaps weren't aware of just how difficult the situation really is.
The company said in a statement today that, while sales of Monster Hunter 4
are still strong, its weak mobile sales are having a grave impact on its bottom line, to the point that revisions have had to be made.
And while Capcom has been working on a comprehensive review of its video game development plans
to tackle these issues, this reorganization hasn't come without penalty.
"These initiatives have not yet started to produce benefits mainly in the Mobile Contents," said the company. As a result, Capcom has been forced to post a "special loss" of 5 billion yen ($48.6 million), due to "business structural improvement expenses."
With all of this in mind, Capcom now expects to record revenues of 101.5 billion yen ($985.8 million) for the full fiscal year ended March 31, 2014, up 4.6 percent compared to the previous forecast, but profits of 3.3 billion yen ($32.1 million), down 51.5 percent compared to the previous forecast.