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Capcom Closing Arcades In Favor Of Family-Friendly Centers

Capcom Closing Arcades In Favor Of Family-Friendly Centers

November 14, 2007 | By Leigh Alexander

November 14, 2007 | By Leigh Alexander
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Capcom's recently-announced results for its half-year financial announcement saw sales rise both overall and in its home video game division -- but profits slumped. Results for the company’s arcade divisions were particularly lackluster, with net sales for the company’s various arcade parks down 1.4 percent to ¥6,466 million ($58.1m) and operating income down by as much as 40.0 percent to ¥1,137 million ($10.2m).

According to Bloomberg, Capcom will improve arcade earnings -- which account for 18 percent of sales -- by closing unprofitable arcade centers in favor of larger and better-positioned locations that target women and families, a gaming market segment wherein the company appears to have lost ground in favor of Nintendo's Wii.

The company’s forecasts for the full fiscal year, ending March 31st 2008, suggest net sales of ¥78,000 million ($701.4m) on net income of ¥6,200 million ($55.7m). Now, looking ahead, Capcom is apparently aiming to boost its profitability to a seven-year high in 2009, on sales of that same arcade division.

Capcom president Haruhiro Tsujimoto told Bloomberg in a recent interview that the company's operating margin may rise to from 12.8 percent in March 2008 to 15 percent next fiscal year.


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