Capcom Slashes Net Income By Half To Account For Slow Shift To Mobile

by Mike Futter on Mar 31, 2014 at 03:10 AM

Capcom has announced that it will be taking a ¥9.3 billion ($90.5 million) special loss in light of changes in the market. Today marks the final day of the publisher’s fiscal year, and it claims the move to reduce net income by half will yield financial consistency in future periods.

Capcom states that its changes to development processes have not yet yielded the desired effects, particularly in the mobile arena. The publisher is calling the special loss a “business structural improvement,” indicating that this is a one time occurrence.

The Street Fighter publisher will still post a positive result for the fiscal year, despite dropping net income from ¥6.8 billion ($66.1 million) to ¥3.3 billion ($32.1 million). Net sales were also up this year, largely on the back of Monster Hunter 4 in Japan, but income is down because of missed targets on the mobile side. This includes a mobile Monster Hunter title, indicating that there is more to the mobile woes than just offering the right franchises.

[Source: Capcom]


Our Take
Cutting through the jargon, Capcom pinned a lot on a shift to mobile that has not yet yielded results. At the same time, its traditional markets (packaged games and pachinko) have benefitted from Monster Hunter. Additionally, Dragon’s Dogma, Duck Tales Remastered, and Dead Rising 3 all surpassed expectations just as the company began to look away from console games in favor of mobile titles. In short, Capcom seems to be bobbing when it should be weaving.