Capcom Cut Profit Forecast By 50%, Owing To Mobile And Monster Hunter Frontier G

By Ishaan . March 31, 2014 . 2:20am

Capcom have revised their operating income forecast for the fiscal year from 12 billion yen to 10 billion yen, the publisher announced today. Additionally, Capcom’s net income forecast has been reduced from 6.8 billion yen to 3.3 billion yen—a decrease of approximately 50%.

 

However, Capcom mentioned, the company’s sales are expected to increase from 97 billion yen to 101.5 billion yen.

 

The reason for the drop in operating income and profits, the company says, is due to the company’s Mobile Contents business and PC Online business—specifically Monster Hunter Frontier in the case of the latter—both of which performed below expectations.

 

Regarding Mobile Contents, due to changes in the games market, Capcom have been reorganizing their development framework and improving upon their development processes. However, they say, the company’s Mobile Contents division has yet to reflect the benefits of these changes.

 

As a result, Capcom has posted an extraordinary loss of 5 billion yen, related to “structural improvement expenses” pertaining to their Mobile Contents.

 

Meanwhile, sales are expected to improve as a result of Monster Hunter 4 seeing strong sales and the “highly successful” pachislot title Monster Hunter Gekka Raimei.

 

Late last year, Capcom president and COO Haruhiro Tsujimoto emphasized the importance of the company’s Consumer Games (the Japanese term used for traditional packaged games) division, and its role in growing the Mobile Contents business.


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  • malek86

    I wonder if they’ll eventually make a proper multiplatform MH. People don’t seem to appreciate MHF much. Of all of Capcom’s decisions, I still don’t see the point of keeping their biggest property as a single-platform exclusive, even if that platform is the most successful one in Japan.

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

      I feel the question isn’t why they don’t, but rather, what they would gain from doing so. For example, one can think of two primary reasons for MH4 not being multiplatform:

      1. Optimization and cost-effectiveness: MH4 is able to be what it is because it’s optimized for a single, low-cost platform. The game runs at a silky smooth framerate, makes use of the dual screens most effectively, and is able to squeeze a lot of out the 3DS, which is relatively underpowered compared to every other games platform at the moment.

      Even if the game were to go multiplatform—let’s say on 3DS and any other platform—one can assume that the 3DS version is where the vast majority of long-term sales would come from. As an example, we know that 3DS and Vita both use very different architectures and compromising the main version of your game for a second version isn’t necessarily a smart decision.

      2. The audience and cost-effectiveness: Where is the Monster Hunter audience? I think there are two segments of the audience for a mainstream game like MH—the “hardcore” Monster Hunter audience that will follow the series no matter where it goes, and the more casual audience that will play the game because they already own the platform it’s on, and all their friends keep talking about it.

      Logic dictates that the hardcore audience is more important to early sales, whereas the casual audience is more important to long-term sales. So, the question here is, would putting it on another platform actually prove beneficial when measured against the costs involved (and the aforementioned optimization issue)?

      How many people do we think there are, who wouldn’t buy MH on 3DS, but would buy it on another system? I would hazard a guess that we’re talking a few hundred-thousand. Why pursue those people when you could instead dedicate the team to making something like a “G” title on the same platform, allow people to transfer their save data, and have it sell another 2 million?

      Now, let’s say that in the future, there are two portable systems on the market that are closer to each other in terms of specs. I think there’s a higher chance of Monster Hunter going multiplatform in that situation. There are still issues to think about—such as splitting the community, given the focus of local co-op play—but it would at least prove more cost-effective if optimization were easier.

      • malek86

        Mmh, you know, there was a time when I thought we would see a lot of PSP/3DS multiplatform releases, due to the closeness in power and the not-so-different target. That didn’t happen for some reason though, even when the PSP was still popular.

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

          That’s probably because Sony provided tools to easily port games from PSP to Vita.

  • http://shadious.tumblr.com/ Vince

    Step it up and get your act together, Capcom. It would be unfortunate to see a company like you that introduced popular brands that were associated with pop culture sink further into stagnation.

  • Phasmatis75

    It amazes me that Capcom thinks it can turn a profit while alienating their core audiences with each new game release. Then we get articles about they cutting forecasts that I can only call delusion and based on vein hope of achieving the dollar they don’t have while forsaking the dollar they do have.

  • https://www.youtube.com/channel/UChAgYzpMfD0X9n_9uj6Zghw Jeremy

    cough cough, bring the MMO here already. Missing a prime oppertunity with PSO2 being AWOL for 2 years.

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

      I think relatively few people would care for MHFG in the west, and certainly not enough to pay a subscription fee for it.

      • 하세요

        I’m a die-hard MH fan and I wouldn’t touch MHF/MHO with a 12 yard stick. Main franchise is eons better.

  • Göran Isacson

    As someone who hasn’t played MHF, is there anyone here who can speculate why it isn’t doing very well? Wrong format for the game? The game itself is just not very good?

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

      The game itself has been doing reasonably well, at least on Xbox 360 and PC; however, it may not be doing as well as Capcom had hoped on PS3 and Wii U, since its release on those platforms. Perhaps PC/360 subscribers have dropped off in the interim as well.

      • Göran Isacson

        I see. How much does it cost in upkeep, what with being online and having servers and all that? I wonder because (judging by what little I’ve seen of it) it didn’t seem like an expensive game that would require much to recover it’s costs. But maybe being developed for HD consoles and PC and such meant it had to make more money than one would think?

    • KuroNathan

      Having played a little bit when I was staying with my cousin, the game is… eh. Worse then all of the MH3 games in terms of frame rate, hitbox detection, grindiness (oh god so much worse as in 50 kills for one drop off a 20 min boss fight and you need 8 of them) load times and pretty much everything except for the MMO part.

  • Elliott Moon

    did everyone not say to capcom that putting money into mobile is a bad idea

  • PreyMantis

    Here’s a good idea, Capcom: revive Megaman, reboot your other franchises like Resident Evil and Devil May Cry to their roots, stop making games just for the “graphix,” and get rid off of DLCs.

    • Kaihedgie

      1: Bringing back Mega Man isn’t going to help anyone.

      2: When did they make games “just for the graphix”?

      3: Unlikely. No other company will stop doing them, either

      • Haganeren

        Capcom did make a lot of bad decision concerning DLC though… They could just change their politics with that.

        • Kaihedgie

          Are we still only just talking about Street Fighter X Tekken? Because aside from that, I haven’t seen anything DLC-related that people actually should be complaining about.

          But it doesn’t matter how many suggestions people throw out there. Considering everyone’s attitude towards the franchise; damned if they do, damned if they don’t.

          • Haganeren

            You’re right, i was more thinking of the Street Fighter 4 franchise as a whole. (Including MvC3)

            I guess for other franchise it’s not that bad.

          • Kaihedgie

            Rarely is anyone but the most vocal nay-sayers are complaining about Street Fighter IV. At the very least, the DLC and version updates are cheaper and plentiful than what you’d expect from other companies. If we’re talking about MVC3/UMVC3′s alternate costumes, then you must also turn your attention to other games such as Dissidia 012 and Mortal Kombat 9 which did the exact same thing, but didn’t get any flak for it.

          • Haganeren

            Oh, no, at the contrary, all these version are quite confusing for the casual gamer. Super ? Ultra ? Arcade Edition ? And they don’t see the interest to reinvest money for another version when they have already one. The fact that the first SFIV wasn’t compatible with the DLC stuff like arcade edition was very disappointing from Capcom.

            The Super was cool to be honest, but the Arcade Edition didn’t have much more (4 characters and two which have the same animation model than two existing one ?) and seem as irrelevant than Blazblue Continuum Shift Extend… But on the contrary, the hardcore fans have bough it. (Of course, it’s different on PC)

            I had the same case for MvC3 that i have bough 60€ at the time… I was awful to see the Ultimate with some of my favorite character (Phoenix…) announced mere month after i have bough that one. I swore it would be the last time i have bough any fighting game from Capcom. And the DLCs from MvC3 isn’t even included on the Ultra !

            And then, Tekken versus Street Fighter comes out… Of course, right now, we all (?) know it’s the last version of those games we should afford and it’s quite cheap… But think about the past ! As you can see, it’s a mix between disappointment from the fan and incomprehension from the public. I think they should revisit their politics of DLC/Version because of stuff like that.

            As you said, it will not prevent people from complain but i think it would be better for them on the long term… Only my 2 cents.

          • Kaihedgie

            If they started on Super Street Fighter IV and beyond, all they need to do is pay an extra $15 to upgrade to the next update but if they want to start on the newest version, they can buy it at retail for a discounted price.

          • Haganeren

            Yes, all those little update is confusing for the non hardcore fan. So he doesn’t complain… But he don’t buy that much.

            They should make more significant entry i think, because even if i can understand a game need to be balanced in order to be competitive, they lost a lot of people on it.

            It’s not even a matter of price but a matter of “is it worth it ? It seem complicated”. Of course, for you and me, it’s not that complicated and we can even compare with the concurrence… But you were talking about the mass public and they don’t really push the question too far.

            And for the hardcore fan, it’s a lot more complicated in fact. I think the different version Capcom want to push is aren’t worth it to be honnest. (Apart from the Super maybe…) Even the Ultra, they have 4 characters from TxSF and one which have the animation model from Cammy… (even if, god thanks, it plays differently)… Is it really worth all these commercials then ? It didn’t really convinced me…

            And for the “versus” games, we can all agreed it’s a big failure in general. Also, the retail at discounted price isn’t really part of Capcom plan to make money you know…

          • Kaihedgie

            Ultra has the option of letting you play as characters in their previous edition incarnations and I think Arcade Edition let you do the same thing with the entire game.

            It’s not really a failure because Capcom’s fighters are the ones filling in the seats at tournaments all the time.Tournaments generate hype and hype leads to potential sales. Many other fighters come and go but none get the kind of attention and coverage Street Fighter gets and many are wishing there was another update to MVC3

          • Haganeren

            But… In this case… What do you want to talk about ? Do you want to talk about the hardcore fan which whine against Capcom that you mentioned earlier ? Or do you want to talk about the confused non hardcore fan ? The hardcore fan buy but whine, the non hardcore don’t say anything but don’t buy, in each case there is something bad for Capcom… Because yeah, of course, Street Fighter IV is still doing great in tournament.

            But if Capcom won something from hardcore fan in term of sales, they lose a lot when it come to their reputation… (and from sales of the non hardcore fan) So, yeah, i’m in favor of all the whinning against them in fact. So they could change their politics about version and DLC. Less and more significant… Or maybe just making Street Fighter 5.. It’s been 5-6 years after all !

            And yeah, now that it’s been 3 years since the last Marvel vs Capcom 3. I have not too much problem for having another (not that i will buy it… I mean, maybe there will be ANOTHER one in 6 months)… But the time between the first and the Ultimate was way too short !

          • Kaihedgie

            Reputation has been as mixed as always. Most of the whining comes from no Mega Man and the DmC reboot (strangely enough, the people new to DMC actually liked that game, some even disapproving of the original series). Monster Hunter and the Ace Attorney series have done consistently well then there’s the Strider remake that came out not too long ago and that was greatly well-received. Personally, I think people are overblowing it because it’s trendy, like how people whine about Sonic and Sega.

            Oh, and regarding updates, Ultimate Mortal Kombat 3 came out 6 months after the original MK3, three months shorter than the time between MVC3 and UMVC3. Street Fighter II received at least one or two updates each year, so this isn’t really all that different.

          • Haganeren

            Yes, like i said at the beginning, you were right, i think i was more thinking about the Street Fighter (and the versus) franchise when i talked about the DLC. For the other things, Capcom didn’t really lose his feet.

            And for Mortal Kombat, i don’t know really to be honest because i kind of don’t like this game so I didn’t followed it but i know Blazblue was heavly criticited for his DLCs too (and i kind of liked them this time). Nobody complained about having Iori with flames as DLC which is a very cheap new character… But i think it’s more about not beating an already dying horse…

          • Ninjagoon

            In defense of UMvC3, they were planning to make that dlc but their HQ was affected by the earthquake/tsunami. As for SF5, i would rather them stop for second until they can get a good grasp on what they want to do with the sf franchise. Maybe actually give Street Fighter a coherent in-game story. That would be even more revolutionary for the fighting game genre.

          • Haganeren

            A coherent in-game story ? Capcom would be late in the game then. Soulcalibur, Blazblue or Mortal Kombat (as i have heard of for the last one) seems to have totally coherent in game story. Even the King of Fighters series had some good plot event (like the Orochi Outburst in KoF 97)…

            I don’t think it would be as revolutionary as you said since it already exists but… Yes… I think i would find a real story mode in Street Fighter quite attracting to be honest..

          • Ninjagoon

            as a big SC fan, i can say that SC5′s attempt at making a main story line was horrible. Blazblue’s, while great, is more of a visual novel than anything and i know alot of people would not find that interesting. Now Mortal Kombat’s was pretty good, the problem is that you would want to play through it on mute with subtitles on. I can’t say anything about KoF since i havent played it. What i mean by coherent is take all of the established lore of street fighter and tie everything together without making it too convoluted or cringe worthy. I dont want another SC5 where you only change between Patroklos and Pyrrha and it doesnt even explain why many of the characters are missing. SF5 needs something big and a good, well thought out, fleshed out story with effort put into it would be whats needed for Street Fighter (and fighting games in general) to succeed now.

          • Haganeren

            Hummmmm, i don’t know if that’s what you meant… I was thinking about “the character we all know and love versus a new enemy with a more interesting plot that what we had for now.” Also, if it’s not like a Visual Novel, how do you want to have it ? Only cinematic ? Hummm…

            If it’s something that clear out all the universe, i think Capcom shouldn’t do this… I mean as a player i want to see it but having this kind of stuff only appeal to the guys which love Street Fighter and in ADDITION is interested by the story which… isn’t really that much in fact.

            Blazblue said “ok, we will make an anime-ysh scenario and it will appeal to anime fan”… And it worked, a lot of people follow the series for the story (like me) and of course, that mean it doesn’t please everyone. But the basic fan of Street Fighter is more interested with combo than the story right now.

            If Capcom want to do this, i would suggest making a brand new licence like ARC System Works did OR doing like Shenmue : A RPG about their fighting licence in order to appeal the public which like story and universe.

            But that’s only my opinion.

          • Kaihedgie

            Soulcalibur V’s story was only a quarter done. Many of the introduced characters ended up with either one or two scenes while others, particular the familiar female cast, was shafted for being “too old”. Mortal Kombat left a bad taste in fans’ mouths for unceremoniously killing off several fan favorites in the most stupid way possible, all in one cutscene. And Blazblue is anything but coherent by default of the entire franchise being based on time travel and changing the past.

          • Haganeren

            The only thing i can talk about is Blazblue… And it’s coherent enough for me to wanting knowing what happened next ! It’s quite rare to see twist plot in those kind of game… And having a battle after that as a climax il really something good to me !

            A lot of things isn’t quite explained in Blazblue for now anyway but i am only on the second opus on four planned. That mean a end is already written and that mean i have a lot of confidence in this.

            And you know, I would say if there is ONE type of story which absolutely need to be coherent, it’s one with time travel and changing the past…

          • dra6o0n

            *cough*ultra sf4*cough*

          • Haganeren

            … yeah, ultra sf4 is on.. The Street Fighter 4 franchise i though ?

          • Hound

            Asura’s Wrath not giving you the end of the game unless you bought the DLC was rather snarky. Dragon’s Dogma also had a pay wall for a lot of on-disk content which its NPCs went out of the way to try to sell you on.

            But I think people are just generally discontent with the idea that such policies may one make them think “Am I actually receiving a satisfying full game, or is much of it stripped from the experience in the hope that I would want to buy more?” And if that’s the case, “is the content even any good” (which is hard to say since individual DLC isn’t reviewed as often as retail and download games.)

            It’s an odd method of making short-term profit that would likely slowly harm the trust between a consumer and the developer each time that it wasn’t worthwhile or seems unfair. Especially since it’s mostly an added feature or map and not an entire experience..

          • Kaihedgie

            Been over this dozens of times before: the DLC was originally suppose to be the sequel. The lack of sales was what led it to the story being concluded.

            And I still don’t agree with or even understand this “incomplete game” nonsense. By that logic, we’ve been playing incomplete games long before DLC was a common thing.

          • http://twitter.com/puchixseda puchinri

            I think the difference is how soon DLC is announced versus how much later you’d see other versions of a game.

          • Haganeren

            I forgot about Asura and didn’t knew about Dragon’s Dogma. And yeah, like puchinri said, it’s all a matter of “how many time between versions or between when the game is out and the first DLC”

    • http://twitter.com/puchixseda puchinri

      They’ve definitely been flip-flopping on what they want some of their titles to be. It’s good that they’ve left MH alone, but they need to figure themselves out with the other stuff. (And as much as I liked RE6 for how ridiculous and silly it was, it didn’t feel entirely like a RE game.)

    • dra6o0n

      Nope, too late on that. They scared every single devs away so no one wants Capcom as a employer again. I’m surprised konami hadn’t grabbed them… At least they are growing their yakuza and music games franchise.

  • Eder García

    Squarenix learned his lesson, hope Capcom realizes that pursuing the COD/GTA/Sports games audience will make nothing but failures in delivering games

    • dra6o0n

      The reason why those games work is due to cultural livelihood with those franchise. Introducing new ones to that environment is asking for an ass kicking.
      COD/GTA/EASports all grown with years of culture. In a franchise battle. It comes down to age.

  • Alejandro A

    I just want to see a Monster Hunter that takes advantage of a home console’s hardware. Upping the resolution from old PS2 textures is getting old. Not that the games are bad but updating the gameplay and physics would be nice.

  • Yan Zhao

    SquareEnix just showed us their learned their lesson. Let see how long it takes Capcom, cause it seems they still havent yet.

  • Ace Trainer Chris

    Remember when Capcom used its profits from Monster Hunter 4 to fund a new mobile games research studio? Yeah, that totally didn’t back fire.

  • Hector Velar

    Oh this is good news… no really. Oh please Capcom keep making mobile games, oh yeah, easy money everyone is doing it, you can do it too! Yup you are going down Capcom all your good developers but Ono are gone. Titanic going down here, get out Ono while you can. This is a lesson of what happens when you have a company that makes game and then they switch their love for making game to making money. money becomes their focus and then they get too greedy and they die. Make games for the love of making games not for the love of money. Specially DO NEVER EVER screw your fans OR kill the franchise we all grew up loving. This is great news because I hope that other Titanic out there who are watching this will turn away from dishonest business models with DLC’s and Pay2Win mobile games.

  • Nintendojitsu

    Capcomdoomed

  • http://www.siliconera.com/ Ishaan

    The same statement holds true for MHO as well.

  • Judgephoenix

    Once you are pass the $60 mark for a game like MH :/ kind of defeats the purpose.

  • Heisst

    So why is MH4U also exclusive to 3DS as well then? 2 new systems have been out since MH4 (3 if you count the start of the game’s development) and MH3U proves that enhanced editions can be multiplat.

  • Satori Satya

    Try and get yourself a dictionary so you understand what “gimmick” means. The 2 screens are not a gimmick since they add a lot to the core gameplay of the MonHun games. Having 2 screens on a device is a useful feature that feels right at home in the MonHun series.

    The 3D effect can be called that, but no one bought the games for that. Nor did they continued to sell in the millions either because of that.

    They sold a lot because the 3DS was in fact the most viable platform for MonHun in the current generation. For all the reasons that Ishaan mentioned.

  • http://www.siliconera.com/ Ishaan

    MHO, to my knowledge, is partly based on Frontier and, like Frontier, is not developed by the Monster Hunter team.

  • J_Joestar

    have you?

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