Low Sales And Higher Development Costs To Blame For 90% Decrease In Capcom Income

By Ishaan . July 29, 2010 . 1:24am

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Capcom’s new fiscal year isn’t kicking off quite as they’d like. Net income for their first fiscal quarter, the April – June period, dropped by 90.4% compared to the same period in 2009, the company reported today.

 

Primarily to blame are sales of Lost Planet 2, which Capcom say underperformed substantially. Sluggish growth on the part of Monster Hunter Tri overseas and the struggles of Ghost Trick in Japan contributed as well.

 

Furthermore, an increase in development of new flagship titles as compared to last year — when sales were driven primarily by the continued growth of Resident Evil 5 and Monster Hunter Freedom Unite — resulted in higher development costs, which was only made worse by currency exchange rates.

 

Capcom also feel that the American and European markets are shrinking in the face of a “stagnating economy.” Regardless, Capcom are not changing their forecast for the remainder of the fiscal year, which ends in March 2011, as they believe the second half of the year will mark an upward trend for them due to major new releases.


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  • http://www.themogblog.com/ Edward Walton

    I did my part and got Lost Planet 2, amazing game. Also got SSFIV for my loss. :/ I don’t even want it anymore.

    • raymk

      your what we like to call an casual gamer as you shouldn’t ever want to trade in a fighting game.

      • http://www.themogblog.com/ Edward Walton

        I’m far from casual. I find SSFIV to be less feature filled and a not as engaging as BlazBlue: Continuum Shift. I have already stated that when BlazBlue came out I will be quiting SSFIV. More and more people are starting to fall off as well here.

        • cowcow

          I dont see the big deal with BB. I think the animation is too choppy, the characters not memorable enough and the gameplay doesn’t do it for me.

          • http://www.facebook.com/profile.php?id=1472407455 Charles Lupula

            Can I ask both of you why someone actually has to CHOOSE which fighting game to support? I mean, I happen to enjoy both BB: CS and SSFIV. I don’t see why we have to form factions over this.

          • malek86

            Maybe for the same reason why people choose consoles to support. Remember, mine is better than yours!

      • Serge73

        >__>

  • urbanscholar

    This is going to do a complete 360 once the release of Monster Hunter 3 portable hits Japan. It’ll be like low sales never even happened with the obscene amount of $$$ that will be made.

  • http://ofurotaimu.dreamwidth.org shirokiryuu

    What’s the deal with Ghost Trick as a game overall? I rarely hear anything about it. I mean I preordered it and tried out the demo, but I don’t know the actual response from it.

    • http://www.facebook.com/people/Tommy-Lee/518924335 Tommy Lee

      http://www.siliconera.com/2010/06/25/this-week-in-sales-ghosts-samurai-and-doctors/

      23k in the first week. It may have gotten #2 with that, but that’s a pretty low number. Maybe there needs to be a special Amazon Curve about it so we can see why exactly it’s struggling.

      • http://www.siliconera.com/ Ishaan

        There will be. We just choose to do Amazon Curves on games closer to their U.S. releases, when interest in them is relatively higher. :)

  • malek86

    Well, that’s just about what I expected for LP2. Ahah.

    Also, somehow I had the hunch that MH3 was going to underperform. Apparently we just don’t care about the series. Who knows if MHF3 is even going to be localized.

    Too bad about Ghost Trick, but then, it didn’t look like it was going to sell much from the beginning. Maybe a bit more would have helped…

  • http://www.myspace.com/effluentrainfall Effluent Rainfall

    I’m confident Capcom won’t deprive North American fans of Monster Hunter; they’re well-attuned to their fanbase and their US branch is more realistic than many of its contemporaries, like, say, Namco Bandai. (Yeah, another Namco Bandai jab! Right on!)

    But seriously, Tri’s sales are plenty acceptable assuming a smartly-budgeted localization effort (there’s a reason Atlus and XSEED can continually treat us to obscure titles) and Japan’s stalwart support of the series ensures it isn’t going anywhere. Lost Planet 2 errs more on the “disaster” end of the scale, however, especially considering the art assets that were no doubt involved in its development process. Pity, that.

    Truthfully, I’m not surprised. I haven’t the foggiest what led them to believe it might recoup its development costs. They far overplayed their hand with LP2′s shipments.

    • malek86

      I think they expected more off MH3 because it had way more advertising than any other game in the series (well, they were helped by Nintendo).

      If another Mh game does come, I don’t think it will receive the same kind of advertising budget. They’ll probably play it safe next time.

      • lostinblue

        I think Monster Hunter 3 got well accepted overseas for what it is, now they just need to take those sales into account when calculating what’s the bare maximum audience they can expect for such game when they localize the next one (I’m sure it’ll be quite higher than before). They really should keep them coming now, and perhaps starting to tweak the game further for westerners, talking feedback from them.

        • cowcow

          The problem was they made it for the Wii which too many Western Wii owners care more about Mario Zelda Metroid Wii Fit/Sports to care.

          • jarrodand

            If you haven’t been paying attention, Capcom hasn’t exactly been banking on PS3 and 360 either the past year either. Bionic Commando, Dark Void and Lost Planet 2 have all massively underperformed. Next up, Dead Rising 2…

          • malek86

            Well, at least SSF4 seems to be doing okay.

            We can probably expect a Hyper SF4, SF4 Turbo, etc.

          • lostinblue

            Marketing is marketing, and the game was marketed well.

            Such was not the case with the PS2 for instance, and the game still sold turd. I doubt MH3 sold turd, just not the half million sales they were expecting. Which is way too much for the game it is (I still haven’t purchased mine, for that reason, for instance, not because I don’t care… My backcatalog got a little too big too)

            The Wii demographic doesn’t care only for those things, the thing is those things are pretty much the only thing being advertised and apropriatedly marketed for it.

      • http://www.myspace.com/effluentrainfall Effluent Rainfall

        Its marketing budget was probably Capcom testing the waters to see if there was an existing market for Monster Hunter in America they hadn’t previously tapped into. The answer seems to be “no,” so I’m sure they’ll revert to their former ways, especially since they had Nintendo’s assistance for this particular foray.If they budgeted Tri under the staunch assumption that people are sheep drawn to dazzling marketing campaigns, that’s another matter altogether and cause for concern. :P

        • malek86

          Judging from their overall results and LP2 sales, it wouldn’t surprise me if they did.

          • http://www.myspace.com/effluentrainfall Effluent Rainfall

            At the end of the day, I expect they’ll just have to accept that there’s little love in the West for a bastard hard video game series that requires extensive resource management and has (deliberate) control eccentricities for the player to grapple with.

        • jarrodand

          Tri’s marketing built more on Freedom Unite, which also had a fairly decent western promotional push complete with print and television ads (in America at least, dunno about Europe). I doubt Capcom’s going to revert entirely to zero promotion for Monster Hunter , though I do doubt Freedom 3 or Frontier 360 get a Tri-level push (unless Microsoft or Sony pony up for it, like Nintendo did).

          For people keeping track, MHTri shipped 690,000 units in NA+EU this quarter, bringing the worldwide total to 1.84m (just 160k short of the 2m Capcom expected originally, before the western delay). Compared to Lost Planet 2′s epic tumble (1.5m shipped, 2.2m expected, revised down from 2.7m expected last year, which was also down from 3.7m expected originally) that’s pretty small potatoes.

  • jarrodand

    Shipment figures for the quarter…

    Lost Planet 2 (360, PS3) 1,500,000
    Super Street Fighter IV (360, PS3) 1,350,000
    Monster Hunter Tri (Wii) 690,000 (1,840,000 ltd)
    Monster Hunter Frontier Online (360) 130,000

  • http://www.pixiv.net/member.php?id=2704923 Buntar0

    So will the be a wakeup call for them? I miss their “let’s throw *you know what* at the wall and see what sticks” games:
    This lead to games like the MM Legends Series, Dino Crisis, Shadow of Rome, Haunting Ground/Demento, Zack & Wiki.

    Most of these were great!

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