Capcom Seeing Red – Quarterly Profits Fall 90%
Capcom surveyed their current financial situation this morning, revealing that their first quarter net income topped at $2.4 million – a drastic 90 percent drop from the same time last year. As reported by GameSpot, the discrepancy is accredited to the lackluster sales of Lost Planet 2, with Capcom representatives stating that it “underperformed its projection substantially.” Monster Hunter Tri and Ghost Trick were also described as “slow growing” and “struggling.”
The largest contributing factor, however, may be that Capcom simply had a very successful first quarter in 2009. Blockbuster releases such as Resident Evil 5 and Street Fighter IV helped usher in a period of prosperity for the publisher early in the year.
This news is directly in line with Capcom’s recently announced shift in development strategy, which will facilitate and increase the number of top-tier titles released each year and result in quicker turnaround on projects. It’s the quintessential “not putting your eggs all in one basket,” approach – something more and more developers seem to be recognizing with an unforgiving economy making risks much less viable.
Hopefully Capcom’s next investor call will yield better numbers, as the publisher/developer duo has plenty of big-budget games on the docket for late 2010 and early 2011.