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Capcom First-Half Declines Despite Mobile Game Gains

Capcom First-Half Declines Despite Mobile Game Gains

October 26, 2011 | By Mike Rose

Capcom has posted financial results for the first half of the 2011 fiscal year, noting a decline in both revenue and profits year-over-year.

Although the overall company saw decreased results compared to the same period in the previous fiscal year, its Mobile Contents division, which houses its mobile games initiatives, actually saw a significant increase in both revenue and profits.

The company cited its success in the social game market as the reason for the increase, noting that the popularity of its title The Smurfs' Village has been "the driving force" overall.

It also explained that the iPhone release of Monster Hunter: Dynamic Hunting and the Gree release of Resident Evil: Outbreak Survive helped drive the increases in the division.

Overall, the company posted revenue of 29.3 billion ($385.9 million) for the fiscal six month period, down 28.1 percent compared to last year. In terms of profits, it saw income of 906 million ($11.9 million), down 49.2 percent year-over-year.

Capcom said a tough comparison to a sales surge last year, driven by strong sales of Dead Rising 2 and Super Street Fighter IV, led to the year-on-year decline. The publisher said that it still beat its internal sales and profits forecasts.

The company's Arcade Operations division also saw increased results compared to last year, with Capcom citing the fact that game arcade machines provide entertainment that is "inexpensive, nearby and short-duration."

Elsewhere, Capcom noted that releases such as Resident Evil: The Mercenaries 3D, Monster Hunter Freedom 3 HD Ver., Super Street Fighter IV: Arcade Edition and Sengoku BASARA: Chronicle Heroes had all performed solidly, while online title Monster Hunter Frontier Online Forward. 1 had also enjoyed success.

For the half-year ended September 30, 2011, the Mobile Contents division saw revenues of 2.6 billion ($34.2 million), up 89 percent year-over-year, and operating income of 903 million ($11.9 million), up a staggering 201 percent compared to the same term in the previous fiscal year.

Its Arcade Operations division saw revenues of 6.1 billion ($80.3 million), up 2.3 percent year-over-year, and operating income of 1.2 billion ($15.8 million), up 67.1 percent compared to last year.

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