Capcom profits drop despite digital game success

Capcom released detailed information regarding the company’s financial results from April to September, showing a decrease in income despite a rise in sales volume. The company continues to see success with its Street Fighter, Monster Hunter, and Resident Evil franchises, while new products impact revenue.The report boasted $262 million in net sales, which is a 22 percent increase over $214 million net sales over the same period in 2014. The company’s net income, however, only hit $16 million. This is 34 percent down from the $25 million result in 2014. It is somewhat unusual for a company to release a six-month report. Generally, quarterly results are given, though businesses do this at times to cover-up a weak quarter.

Capcom released detailed information regarding the company’s financial results from April to September, showing a decrease in income despite a rise in sales volume. The company continues to see success with its Street Fighter, Monster Hunter, and Resident Evil franchises, while new products impact revenue.

The report boasted $262 million in net sales, which is a 22 percent increase over $214 million net sales over the same period in 2014. The company’s net income, however, only hit $16 million. This is 34 percent down from the $25 million result in 2014. It is somewhat unusual for a company to release a six-month report. Generally, quarterly results are given, though businesses do this at times to cover-up a weak quarter.

Major contributors to the company’s profit include Monster Hunter 4 Ultimate and Resident Evil Revelations 2, which sold “firm, particularly in overseas markets.” Dragon’s Dogma Online and the mobile game Monster Hunter Explore were said to have an “excellent start.” On the other side, pachinko and pachislot equipment “higher costs and some sales shortfalls” impeded profitability “as well as slower sales of existing” PC and mobile products.

Capcom notes that high-definition remasters of its legacy titles are a key area of growth for the company and indicated they will be publishing more HD remakes. Resident Evil HD Remaster was released January 20 for consoles and PC and broke Capcom sales records. It became the fastest selling digital title in the company’s history in North America and Europe. To follow up on this success, Capcom announced Resident Evil Zero HD Remaster in May, which will remaster the 2002 GameCube exclusive title. The game’s release date is set for early 2016 on current and previous generation consoles as well as PC.

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