According to a recently released financial statement by Capcom, the publisher has seen net income fall by 53.6%. Net income for the nine months ending December 31, 2011 fell 52.6% to ¥3,242 million (approx. $42.35 million USD). Operating income fell 47.2% to ¥6,744 million (approx. $88.1 million) while net sales fell 29% to ¥50,270 million (approx. $656.63 million). “Strategic postponement” and a “drastic overhaul of business” were blamed as the main contributors to the poor financials.
The video game industry enjoyed a lively year-end holiday shopping season with the market showing increased activity for the first time in a long while, owing to the release of popular software in addition to the launch of new mobile game consoles and the price reduction of some hardware.
Meanwhile, the trend of structural change washes over the video game industry, with the rapid growth of affordable and easily accessible social games attributable to the rise of mobile phones and “smart phones”.
Under these circumstances, Capcom enhanced the consumer online game business, which is our core business segment. At the same time, we endeavoured to operate our business in line with changes in the market environment, taking in a social game company, which had been an affiliate of our US subsidiary, as our direct subsidiary in order to achieve Group agility, as well as focusing our business resources on boosting the mobile contents business.
Net sales at its consumer online games division fell 41.3% to ¥31,721 million (approx. $414.34 million) and operating income dropped 54.1% to ¥5,943 m (approx. $77.63 million).
Monster Hunter Tri G has been stated to have sold over 1 million copies for the Nintendo 3DS, and Ultimate Marvel Vs. Capcom 3 and Dead Rising 2: Off The Record have been described as “faring fairly well overseas.”
Analysis: I’m not surprised in the slightest by any of these statistics released by Capcom. After having a year where many avid fans of Mega Man have been toyed with, the quick cash-in on Ultimate Marvel Vs. Capcom 3 and the over all dodgy DLC practices, the figures were never going to be that great. Capcom has become a company many have turned away from over the last few months.
Monster Hunter Tri G has always done well for Capcom, especially in Japan as they tend to eat them up like hot cakes, and nothing has changed with the newest edition. Combined with Super Mario Land 3D, sales improved exponentially for the 3DS after the somewhat subpar start.
This year, however, I would expect them to make some sort of turn around, with three Resident Evil games getting released (Resident Evil: Revelations, Resident Evil: Operation Raccoon, and Resident Evil 6) along with a new Devil May Cry title all within the year. If they somehow also manage to resurrect the Mega Man franchise and do something for the fans, I wouldn’t be surprised if they had a big bounce back by this time next year.