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Friday, 30 July 2010 09:57

Profits drop at Capcom

Written by David Stellmack


Company blames title performance
Capcom has apparently reported what can only be described as some disappointing financial results. The company has reported that profits are down almost 90% versus the same time last year. Capcom did provide the standard excuses (the bad economy in North America and Europe as well as an unfavorable exchange rate) as contributing significantly to the poor sales.

What is perhaps more telling is that Capcom admitted that poor performance of key releases such as Lost Planet 2 and Ghost Trick (still not available outside of Japan) had not performed nearly as well as they would have thought. In addition, core IP stable titles such as Street Fighter and Monster Hunter have also not sold as well as they might have expected. Not surprising, the iPhone/iPod titles that the company released as part of their move to add iPod titles also did not pan out as expected.

The news means there is a lot riding on the success of Dead Rising 2. Capcom will be monitoring the sales of this title very closely and will be looking for an indication of a rebound by seeing good sales from this title. Going forward, the company says that it will be sticking to more of their established IP than taking risks with new IP in the wake of these results.

Some are suggesting already that Capcom might pull the plug on some titles that are in development; but our sources tell us that the company will be conducting a review of titles as well as looking at some cost cutting in the short term while they look at the results from Dead Rising 2 before making a decision in which direction to go moving forward. Our sources also are claiming that reports of the company pulling the plug on additional iPhone/iPod development at this time appear to be false.

David Stellmack

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