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

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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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Author
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.