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Capcom Halves Profit Forecast, cancels internal & external titles, less outsourcing

S

Saty

Member
Osaka based publisher Capcom has warned investors that its profits for the financial year just ended will be half of what it originally expected.

Capcom's board of directors made a surprise announcement that it is preparing for a company-wide restructure that will cost it about £46 million. The decision comes from a mandate to modernise the business, as the group explains:

"In view of the sudden and significant changes in the operating environment of the digital contents business, Capcom reviewed its business expansion strategy for the sector and restructured its game development organization."

Company-wide expenses (particularly the figure set aside for restructuring) have resulted in profits halving for the financial year. The company initially targeted a profit of £43 million, though now says its net income will in fact land closer to £19 million.
Click to expand...

http://www.computerandvideogames.com/401730/restructuring-capcom-halves-profit-forecast/

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Samir Sedlar said:
Update:

As a result of the figures below, Capcom has now confirmed that it has cancelled several overseas projects that it has deemed, “no longer compatible with the current business strategy”. We’ll update once we know which games have suffered the axe.

Source: http://www.vg247.com/2013/04/18/capcom-year-end-profits-to-be-half-of-what-investors-expected/
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Road said:
http://www.capcom.co.jp/ir/english/data/pdf/explanation/2012/full/explanation_2012_full_01.pdf

capcomfy2013revisedkjla9.png


capcomfy2013revised_gqjbly.png


capcomfy2013revised_l2caoq.png
Click to expand...

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miladesn said:
couple more slides;

capture9qzyh.png

rip DmC.

capture2q7ll4.png

yeah, LP3 is still alive.
there are other 'major' titles for this fy not announced yet, duh their fall games.
I see no "Remember Me" oh ouch?!!
Click to expand...
 
O

Oersted

Member
Hope the restructuring will pay off. Otherwise they are in trouble, big time.

koenigtee said:
release your MH on psv, problem solved
Click to expand...

0/0

Meisadragon said:
It's due to restructuring which will cost them $70 million.
Click to expand...

Read the OP.

Company-wide expenses (particularly the figure set aside for restructuring) have resulted in profits halving for the financial year. The company initially targeted a profit of £43 million, though now says its net income will in fact land closer to £19 million.
Click to expand...

Kouriozan said:
Can't wait for the AAA market to crash, even big company are losing money on that now.
Click to expand...

Sad thing is, if things continue like that, japanese AAA dies first.
 
M

monome

Member
Capcom doesn't need a company restructure.

what they need to do is rework their production pipeline.

Make great games, poor devils, not sellable products...

can you imagine Capcom using efficiently great artists, coders, designers?! they have so much potential and a great history to be proud of as means to push their luck into the future rather than become a stagnant business giant dancing on its last legs as the economic crisis devours them with Hellfire...

I understand they are not an art house, but games are great when a little special.

also, Kansai <3
 
P

Pie and Beans

Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
DECLINE IN QUALITY DUE TO EXCESSIVE OUTSOURCING.

QN9Fox4.jpg
 
Y

Y2Kev

TLG Fan Caretaker Est. 2009
Lol at the "decline in quality" line. I know it's not referring to DmC but that's funny.

For the record, I think a bunch of people called DmC's forecast getting revised downwards again, which is lulzy.
 
H

Hours Left

Member
Capcom seems to be really bad at forecasting anything.

The "excess outsourcing" line is pure gold. They should put it on a plaque.
 
Bruno MB

Bruno MB

Member
Resident Evil 6 (Forecast for Fiscal Year 2012 ended in March 31, 2013 - 7,000,000)

- Initial Shipment - 4,500,000 as of October 2012
- 3rd Quarter Fiscal Year 2012 - 300,000 / 4,800,000 as of December 31, 2012
- 4th Quarter Fiscal Year 2012 - 100,000 / 4,900,000 as of March 31, 2013

As we can see the game had terrible legs and it missed its initial forecast by 2,100,000 units.
 
M

MrT-Tar

Member
koenigtee said:
At leat a vita or ps3 version will help a lot , there must be a huge amount of mh fans still waiting for a vita (ps3) version in JP.
Click to expand...

The thing is that MH is dependent on local multiplayer, which is best served by a single huge portable userbase, rather than a divided one, as they would all be able to play together.

Plus, one has to take into account the 'favours' Nintendo might have put in place.
 
P

Pooya

Member
couple more slides;

capture9qzyh.png

rip DmC.

capture2q7ll4.png

yeah, LP3 is still alive.
there are other 'major' titles for this fy not announced yet, duh their fall games.
I see no "Remember Me" oh ouch?!!
 
K

koenigtee

Neo Member
Herb Alpert said:
I was wondering how long could it take to blame Nintendo. That was quick!

Or you're just sarcastic and if so, my apologies.
Click to expand...

not blame at all, i truely think a vita version or a ps3 version will help the revenue alot.
Even the mhp3 hd version on ps3 had sold more than half million( do not remember the exact number...), and i remember when the mhp first came to psp, the userbase of psp was small, mhp3 sold more than 4 millions. There are still a huge amount of potential hunters there...
 
SmokedMeat

SmokedMeat

Gamer™
Kouriozan said:
Can't wait for the AAA market to crash, even big company are losing money on that now.
Click to expand...

I don't understand this way of thinking. I personally enjoy and appreciate games with high production values. I don't want a world of gaming where everyone's trying to make simple retro style games complete with shitty looking pixeled sprites.
 
O

Oersted

Member
ShinUltramanJ said:
I don't understand this way of thinking. I personally enjoy and appreciate games with high production values. I don't want a world of gaming where everyone's trying to make simple retro style games complete with shitty looking pixeled sprites.
Click to expand...

Those higher production values are rather invested into a "cinematic experience" than in better/unique/new gameplay experiences. Gamers are trained now to preferred that.
 
A

airmangataosenai

Member
Given the data we have for DMC, how the fuck were they able to ship over 1.1 million units? Even if you were to award some insane number of unit sales to the game for the game on Steam PC and make it the best-selling version of the game and make the game sell better in Europe than any other territory and inexplicably have it sell as well as it did in March as well as it did in February that still would leave a shit ton of units, a couple hundred thousand, in the wild. And again, that's with ridiculously generous estimates for the digital PC version.

And unless the plan was to release MH4 March 24th or later, that projection is comically low. They have no faith in it.
 
H

Hsieh

Member
Considering the current state of the Japanese market, MH4 to PSP would outsell PS3 and Vita versions by a lot.
 
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