The lights are on
'Tis the season for financial reporting. Capcom has released its results for the year ending March 31, 2013.
The past twelve months saw a significant decline in operating income in the amount of 10.1 billion yen ($103 million), a decrease of 17.6 percent from 2012. Capcom's net income was also down by more than half, despite a boost from improved currency exchange.
Unexpectedly, Resident Evil 6 sales dropped off quickly in response to less than overwhelming critical and fan response. Dragon's Dogma has sold more than one million copies in Japan, and Devil May Cry is reported to have posted "solid sales" despite Capcom's recently stated desire to dramatically shift away from outsourcing.
Of concern is Capcom's outlook for the coming months. The publisher expects that costs for next generation will soar. This is in stark contrast to what we heard from EA yesterday, who will be holding overall operating expenses flat (though moderately increasing R&D with funds that would have otherwise been used to compensate the 10 percent of its workforce laid off last month).
The prime difference seems to be that EA has focused on creating in Frostbite 3 an engine that will support a variety of different genres and titles. Furthermore, by unifying development on a single, flexible platform, the body of support across internal studios grows. The economies of scale are a critical piece of EA's strategy.
Capcom did not share news of anything comparable, and the documents do not mention the Panta Rhei engine displayed at the PlayStation 4 reveal. Additionally, a statement regarding the coming months before the release of next generation hardware is concerning.
Even though a full lineup of new home video game consoles will eventually be released, the industry is likely to be in a period of scant new product releases over the near future, awaiting the full-scale launch of the next-generation machines. In the meantime, development costs are projected to soar as advanced and multiple functions are added to hardware. Business alliances and consolidations may therefore occur in increasing numbers.
Capcom only mentions two titles in its forward-looking statements regarding fiscal year 2014: Monster Hunter 4 for 3DS (Japan only) and Lost Planet 3. The passage above seems to indicate that Capcom will be forgoing cross-generation development in favor of strictly focusing on new hardware.
This is counter to the approach taken by EA, Ubisoft, and Activision. Cross-generation development enables publishers to tap into the install bases for current generation consoles rather than relying strictly on consumer adoption of new technology.
We expect Capcom to reveal more about its next-generation plans at E3, but for the time being, the company's slate of upcoming titles is looking a little thin.
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You don't have to be an industry analyst to know Lost Planet 3 isn't going to sell several millions of copies.
Most people who never played the first two give you a confused look when you say "Lost Planet" then after some memory coaxing they say "oh that one game with the aliens and robots?"
The Japanese developers (other than Sony) seem to be suffering particularly bad right now, have been for this entire console generation really, and It's only going to get worse with the new consoles IMO.
How about not spending 100 million dollars making the CGI cut-scenes look realistic. Just work on making sure the game is fun to play.
not a capcom fan but they need to follow some footsteps.
Make another Dragon's Dogma game!
Would have had more success if they would listen to their audience.
If they are putting their faith in Lost Planet 3 they are going to be looking at some hard times in the future. That game looks fun, but average, it likely will not sell very well. Also if they expect development costs to rise then they are doing something seriously wrong. That opinion is contrary to the opinions held by others in the industry, in fact, development friendly hardware like the PS4 should actually help to lower costs.
Capcom doesn't seem to be doing that well. And they are putting so much hope on Lost Planet 3. It would suck to see them keep digging themselves deeper.
Release Dead Rising 3 and then Dead Rising 3: Off the Record starring Chuck Greene as DLC obviously
"Here comes the monopoly guy" is what they are trying to say.
funny that the companies doing the worst listen their customers the least. Coincidence?
I really don't get why Capcom is pushing Lost Planet 3 so much right now when they've done hardly anything to advertise this game.
Not the best move..at all. I don't really understand why they would think Lost Planet could get so much. I'll play the game but seriously, I doubt alot of people will buy it in all honesty.
The 20 comment cap needs to end!
I really feel bad for them if they lp3 will save them.