Capcom Reeling From Disastrous Financials

Huge profit turns into terrible loss for Japanese games firm.

Posted by Staff
A stern looking man from Killer 7, or is it Capcom's bank manager?
A stern looking man from Killer 7, or is it Capcom's bank manager?
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Capcom Japan has released a revised set of financials for the year in which the company backs away from its impressive profit forecasts made last year, in perhaps the most staggering reversal of income expectations seen anywhere within the industry of late.

Last year, Capcom posted profit projection of around 21 million, which overnight in Japan has been revised to an expected loss of somewhere in the region of 48.5 million.

It is thought that Capcom's somewhat lacklustre release schedule over the past year, combined with a seemingly rudderless green-light rationalisation process, is to blame. Slow sales in the home software sector have been compounded by under-performance in the firm's arcade division.

Indeed, Capcom's decision-making process has seemed at times bizarre to say the least. Offloading Red Dead Revolver and the outright canning of Dead Pheonix - both of which were highly anticipated titles - baffled fans, as did the company's decision to force the multi-platform roll-out of the dire Auto Modelista. Games such as Capcom Fighting All Stars, believed to be at an advanced stage of development for both the System 246 arcade platform and PlayStation 2, were also cancelled.

However, this may not be as disastrous as the surface presentation suggests for Capcom. The firm is expected to split arcade and home divisions at some point this year, coinciding with a quality-focused home console line-up that includes Killer 7 and Resident Evil 4 - without question two of the most anticipated games of this year.

Though Capcom will still make its 'traditional' mistakes, such as forcing a pointless release of Street Fighter III 3rd Strike and denying PAL gamers the chance of online play in Resident Evil Outbreak, it does appear that a very distinct strategy is emerging. Capcom is still backing innovative producers and financing their needs with a goal of releasing some of the best software the world has ever seen.

Comments

sue_raas 31 Mar 2004 14:27
1/5
They're gonna regret dismissing RDR. Have you seen the trailer? It's gonna be rootin' tootin' as they used to say in the wild west.
Stryfe01 31 Mar 2004 16:04
2/5
Yeah that and taking the resident evil series exclusive to gamecube. it has not sold well for the m and is a stable of income for them. well all great giants fall.
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Joji 31 Mar 2004 16:59
3/5
Capcom has a similar plan to Sega before Sammy took the lion shares, by realeasing different games on different systems. Moving the Biohazard series from PS1 to GC made sense, due to the ease of getting a game up and running on the GC. Also at that time GC was fairly new tech. Whether it's paid off for them is another question? Biohazard Remake and Biohazard 0 are superb games nonetheless. Biohazard Online for PS2 should have been online in the u.k, I still don't understand why (even when we had DC SF3) when we have broadband, and Xbox is doing well online with it. Big mistake Capcom, especially when FF 11 might be due for PS2 soon. Mo' money lost. RDR looks cool, and could have bought Capcom more money, but not any more. Fairplay to Rockstar.

Capcom, bring back some classics and grab some mo' retro money. If Nintendo can make money out of it, why can't you lot. Another dose of Area 88 and Captain Commando would rock.
Joji 31 Mar 2004 16:59
4/5
Capcom has a similar plan to Sega before Sammy took the lion shares, by realeasing different games on different systems. Moving the Biohazard series from PS1 to GC made sense, due to the ease of getting a game up and running on the GC. Also at that time GC was fairly new tech. Whether it's paid off for them is another question? Biohazard Remake and Biohazard 0 are superb games nonetheless. Biohazard Online for PS2 should have been online in the u.k, I still don't understand why (even when we had DC SF3) when we have broadband, and Xbox is doing well online with it. Big mistake Capcom, especially when FF 11 might be due for PS2 soon. Mo' money lost. RDR looks cool, and could have bought Capcom more money, but not any more. Fairplay to Rockstar.
Capcom, bring back some classics and grab some mo' retro money. If Nintendo can make money out of it, why can't you lot? Another dose of Area 88 and Captain Commando would rock.
Alan is my first name 1 Apr 2004 01:38
5/5
To be fair, Capcom's Megaman games for the GBA are selling in Final Fantasy numbers in Japan.

It's just pretty much else that seems to be lacking.

Although I have to admit, Viewtiful Joe was one of the best games I have EVER played. Much more this last year. It may in fact just be their advertising stratedy, because Capcom isn't exactly just throwing out crap.

Let's hope they advertise Resident Evil 4 to the point that even my grandma wants it.
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