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Capcom's Profits Plummet,  Lost Planet 2  'Substantially' Disappoints
Capcom's Profits Plummet, Lost Planet 2 'Substantially' Disappoints
July 29, 2010 | By Leigh Alexander

July 29, 2010 | By Leigh Alexander
More: Console/PC

Poor console game sales and a strong yen continue to challenge Capcom. After closing 2009 with a 73 percent profit drop, its results for the fiscal first quarter ended June 30 were also weak, with profits down 90 percent to 2.2 billion yen ($25.3 million). Sales fell 2.4 per cent to 19.03 billion yen ($217.7 million).

While in its game segment alone (Capcom has multiple businesses, including arcade operations) sales were slightly up, it had little impact on the profit declines. In particular, the company said Monster Hunter Tri for the Wii has been "sluggish".

Further, "While U.S. and European markets are shrinking under the stagnating economy, performance of our flagship title Lost Planet 2 struggled to grow in these regions," the company claimed -- adding that Lost Planet 2 "underperformed its projection substantially." Capcom said Monster Hunter Online and Super Street Fighter IV were growing, however.

The company pointed to the "rapid growth of network games and new devices" driven by smartphones and devices like iPad: "Under these circumstances, Capcom focused on the development of games targeted for overseas markets and online games," it explained.

It exemplified this strategy through Resident Evil 4 iPad Edition, which it says has seen downoads "increasing gradually", and iPhone/iPad releases of Phoenix Wright: Ace Attorney and Street Fighter IV, which "achieved their projected sales."

Recently, Capcom discussed its console sales challenges and said it planned to square off against market declines by releasing editions of its most popular brands, like Resident Evil and Street Fighter, more frequently.

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Ian Fisch
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It's never about the quality of the game is it? Lost Planet 2's poor sales were due to shrinking markets and economic stagnation, not because the game was terrible.

That kind of excuse may work in the movie industry, but we've seen many studies showing that game purchasers are heavily influenced by review scores.

Lo Pan
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When I played LP2, I kept asking myself...what this game focus and usability tested with outside gamers? There are so many basic problems with the game, I think the team (or the Creative Director) essentially said 'this is how we want the game - deal with it'. I really hope the lesson has been learned by Capcom...I pray the mistakes aren't repeated with Dead Rising 2.

Dedan Anderson
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I dug lost planet 2 as well but it seemed to be hated on out of the gate. The reviews are all over the place but i seriously question those that gave it less than a 65... one reviewer gave it a 16 and that's just so wrong it borders on stupidity... that's too bad we'll probably never see the next iteration on the franchise.

Ujn Hunter
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I admit that I canceled my pre-order for Lost Planet 2 as soon as I found out it was geared towards multiplayer instead of a single player experience. Capcom also isn't doing itself any favors with all the DLC wankery either.

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Thomas Lo
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Lost Planet 1 hit at a time in the 360's life when it really had no games on it. It did well by being better than crap. I played it and it was a mediocre shooter with some interesting if unrefined gameplay. Now, the market is way more competitive. It's not surprising that the game didn't do that well given the market and also mixed reviews.

Douglas Rae
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@Ujn - "DLC wankery". You are a god for coming up with that phrase

Release games, not a half assed attempt at "the next iteration on the franchise"....ahem.. in real, human, words... A SEQUEL; then release DLC because a minority of the people you coaxed into buying your game with clever marketing might accidentally get it in the hope of living out their expectations.

DLC wankery... brilliant!!