Game Sales Drive Huge Capcom Profits
Capcom’s profits for the last fiscal year rose 257.6 per cent to ¥2.16 billion ($97.13 million), thanks largely to sales of console games.
The firm’s consumer online games division reported sales revenue of ¥70.2 billion ($880.7 million) for the 12 months to March 31, an increase of 60.8 per cent on the previous year.
Capcom’s best-selling game was PSP title Monster Hunter Freedom 3, with the firm shipping 4.6 million copies of the game during the fiscal year. Dead Rising was also singled out for praise, with 2.2 million units shipped, with Marvel Vs Capcom 3 (2 million units), Super Street Fighter IV (1.6 million) and Lost Planet 2 (1.5 million) also performing well.
The firm’s mobile business also improved, with sales revenue rising 13.3 per cent to ¥4.02 billion ($50.4 million), an increase of 13.3 per cent year on year driven largely by iOS successes Smurfs’ Village and Zombie Café.
Total sales revenue was ¥97.7 billion ($1.2 billion), a 46 per cent increase on the previous year, despite Capcom incurring restructuring costs of ¥1.4 billion ($18.2 million) and a loss of ¥105 million ($1.3 million) due to the Tohoku earthquake and tsunami.
Despite an excellent year, Capcom remains cautious in its outlook for the year ahead, with the earthquake recovery effort and ongoing market instability both causes for concern. In a statement accompanying its financial results, the firm said: "The situation is expected to remain unpredictable as we face the greatest challenge, with the damages from the great earthquake and possible implementation of rolling blackouts resulting in immeasurable economic losses.
"In the videogame industry, a downturn in consumer confidence is feared as the consumer mindset voluntarily moves away from spending and leans excessively towards self-restraint. Accordingly it is believed that time will be required for the domestic game market to recover."
To offset its concerns about the Japanese market, Capcom will step up its efforts overseas, pointing to the acquisition last September of Canadian Dead Rising 2 developer Blue Castle Games as evidence that it is committed to releasing "appealing software that caters to the preferences of overseas users."