Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
September 2, 2014
arrowPress Releases
September 2, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Capcom cuts earnings forecast in half, due to poor mobile sales
Capcom cuts earnings forecast in half, due to poor mobile sales
March 31, 2014 | By Mike Rose

March 31, 2014 | By Mike Rose
Comments
    14 comments
More: Console/PC, Smartphone/Tablet, Business/Marketing



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.


Related Jobs

YAGER Development GmbH
YAGER Development GmbH — Berlin, Germany
[09.02.14]

Visual FX Artist (f/m)
Quantic Dream
Quantic Dream — PARIS, France
[09.02.14]

Animation Director
Vicarious Visions / Activision
Vicarious Visions / Activision — Albany, New York, United States
[09.02.14]

VFX Artist-Vicarious Visions
Vicarious Visions / Activision
Vicarious Visions / Activision — Albany, New York, United States
[09.02.14]

Animator-Temporary-Vicarious Visions










Comments


[User Banned]
profile image
This user violated Gamasutra’s Comment Guidelines and has been banned.

Jefferson Moreira
profile image
The exact same thing that I think.
They have a full Android market to explore but, they are still stuck with iOS.

This is beyond my comprehension, some of the games are already available in Japan but they are too lazy to make it available globally.

It won’t be too long before their ship sinks completely.

Jonathan Murphy
profile image
I told you guys! Capcom shouldn't bet on mobile! It's a very difficult market for big publishers. How much money did Capcom make in 2013? I'm looking at their releases, Dead Rising 3 and retro games didn't make them $900 mil?

Jacek Wesolowski
profile image
Resident Evil 6 was released in October 2012, so some sales probably happened in 2013 (which is also when the PC version was released). Two fairly high-profile 2013 releases that I can think of are "DmC: Devil May Cry" and "Remember Me". None of the two was particularly well received, though (and in case of DmC I think that's a pity). Capcom is also quite keen on re-using their older but not ancient titles, e.g. there was an HD version of RE4 in the works if I remember correctly. Last but not least, arcade cabinets remain popular among Street Fighter fans, particularly in Japan.

It appears the effects of scale (especially in marketing) are quite powerful on mobiles, so big publishers are actually at an advantage if they know how to play their cards. That being said, the mobile market does require a shift in the way development projects are handled. I used to work for one of Capcom's subcontractors, and while I'm obviously not going to share any specific stories, I would definitely describe Capcom as a Waterfall company, and not an Agile one, hence my educated guess is that they might have a hard time adjusting.

Jonathan Murphy
profile image
Ah. I forgot about RE6. I know at launch RE6 did not make Capcom the money they desired, but long term they did make the money back. It may have come from the arcade cabinets? I recall Sega getting a similar boost in their pachinko, arcade parlors. Yes, your analogy of Capcom's business method is exactly why I thought they'd be a bad fit for mobile, at least for a while.

If they are financially afloat again that's good. Capcom sank a lot of money into their new game engine, which will make it debut in a year or two. Make no mistake, the mobile market will shift hard once the new hardware makes market. People will be playing Vita/DS type games on their phones soon. You can't keep betting on pay to win, and Angry Birds models for success.

Michael Meier
profile image
DmC came out in January of last year. As the article states, the fiscal year ends on March 31st, therefore DmC was not part of last year's fiscal year. It was instead with RE6 in that year's fiscal.

Brian Devins
profile image
My wife and I have been dying to buy the Phoenix Wright series on our Android phones, even though we already own them all for NDS. We'd buy 2 copies on launch day, sight unseen! Capcom, why on earth do you ignore 75% of the mobile market?

Jarod Smiley
profile image
^Yeah, I agree. I don't think the Mobile market is taking over anything, it's just another avenue to get some game time in.

There are titles that would work perfectly fine on mobile. Slower paced Strategy RPG's, Puzzle games, and adventure titles like Ace Attorney. Mini Games like Wario Ware as well would work. This is what I think the big companies are missing out on--the passion of creating something designed for mobile, not just porting a watered down console game to make money.

Also, why was DMC sales a pity? Game is a far-cry away from the pinnacle of the series and took a nose dive in quality IMO. The Americanized story also felt ill-placed trying to create a script with a serious tone in an over-the-top action game filled with cliche and one-liners for the players amusement. They absolutely butchered the series, one can only hope Capcom takes the franchise back and reboots it. Heck, give it Sony Japan or SSM or something...Playstation fans would embrace a return of the original Dante, I would imagine the HD remake sales for PS3 were probably comparable to the DMC.

Theresa Catalano
profile image
Yeah, I'm glad DmC did badly too. They really did butcher DmC with that god-awful story and mediocre action game that throws away everything good about the series. Hopefully Capcom will stop farming out their series to companies that don't get it.

I do hope things start looking up for Capcom, though... we could really use more Phoenix Wright games! C'mon Capcom, don't let us down!

Ujn Hunter
profile image
Dragons Dogma 2 (PS4) all your problems will be solved. You're welcome Capcom. :)

Theresa Catalano
profile image
I hope so!!

Eric McConnell
profile image
Don't worry Capcom, you're about to sell the FGC a $40 game that has 4 models and stages from another game and 1 new character that is a re-skin of another character

Tuomas Pirinen
profile image
Monster Hunter G was also mentioned as under-performing by Capcom.

Jonathan Murphy
profile image
That's because Capcom made a great game with horrible global distribution. There's a youtube video called, "Did gamers ruin the industry?" done by Game Theory. I argue on there the real values are in distribution(how much space you occupy), social trends, and marketing. The Gamecube would have sold 10-25% more if it changed the controller, and color of the console. U need to how to market yourself. Wii U.


none
 
Comment: