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

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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.

Ishaan Sahdev
Ishaan specializes in game design/sales analysis. He's the former managing editor of Siliconera and wrote the book "The Legend of Zelda - A Complete Development History". He also used to moonlight as a professional manga editor. These days, his day job has nothing to do with games, but the two inform each other nonetheless.