Capcom Cancels Games, Plans to Sell More DLC, Shifts Development Back to Japan

Do you think Capcom sells too many DLC? Well, too bad, because if the documentation following the Earning Forecast Revision released today is to be believed, we’re going to see more of them.

The Japanese publisher announced today that the previous net income forecast for the fiscal year ended on March 31 (6,500 million Yen, $66 million) has to be sliced down to 2,900 million Yen ($30 million). The main reason cited is an extraordinary loss (as usual, in financialese this means a loss happening just once, not an big loss, even if it’s big all right) of 7,287 Yen ($74 million) due to the restructuring of its game development organization to reflect changes in its game development strategy. Interestingly enough this is exactly the same reason that brought to a radical reduction in Square Enix’s forecast.

The company also blames market-related reasons like drastic changes in the industry’s market environment and concentration of AAA titles in the hands of few foreign competitors, but more importantly it identifies a delayed response to the shift to digital media in the home video games business and a decline in quality of titles outsourced to overseas developers.

So, what is Capcom going to do in order to address the situation? First of all they canceled a few games in the works (the terminology used is “strictly re-evaluated”) due to the restructuring of the business. We still have no solid information on the titles of the games affected.

Secondly, and this isn’t going to make many people happy, they’re going to sell more DLC. Yes. You heard it well: we can expect more costumes and similar nickel-and-dime tactics in the future.

Thirdly, they’re going to shift development back in house (IE: In Japan) in order to “increase quality”, due to the lack of performance of titles developed by foreign studios.

In addition to that, they’re also going to improve the coordination between the development and marketing divisions.

The only hints we have about the canceled games is that some shown “delays in responding to the digital contents and the resulting inability to address market needs” (which seems to indicate that they weren’t structured to sell enough DLC), while others were “titles outsourced overseas that are no more compatible with the current business strategy”.

I honestly have to scratch my forehead a bit (well, more than a bit) at the idea that shifting more towards DLC will increase the company’s income that much, considering that its public image isn’t exactly stellar on that front. The only hope is that they actually understand that the small, nickel-and-dime DLC aren’t exactly the way to go in order to make their customers happy, triggering a shift to bigger DLC expansions like they did with Dragon’s Dogma: Dark Arisen. I’m not holding my breath on this one, though.

On the other hand, if you were hoping for a DmC 2 you may want to keep that expectation in check. As a matter of fact I feel this may be a relatively good thing (while it’s never a happy moment when development studios lose work), as it’s about time for Japanese publishers to wake up from their infatuation for the west and restart working on their own local talent. Diversity is a value to be cherished in the gaming industry, and the rampant westernization was starting to jeopardize it.

How do you feel about this hot financial mess? Let us know in the comments below.

Join the Discussion

  • Nick Perry

    Yes. Let’s blame everything but ourselves and continue to do everything wrong!


    Oh capcom… seriously?

    Sales =/= Quality.

    Also: 1.2 million for DMC after pissing off virtually the entire core fanbase, I would consider that a victory. Especially after you insulted us all by creating a Dante Skin as DLC for Donte.

    I suppose moving your titles back to japan won’t increase the shitty FMV quality either over DMC’s crappy, 360 bottlenecked FMVs. Playing the PC version at 4 x times the resolution of the 360 version and then jumping to a cutscene in 720p is awful. Let alone that it’s not even good 720p quality.

    • Giuseppe Nelva

      While some of the changes to DmC were initiated by Capcom, Ninja Theory went *seriously* out of its way to piss off the fans on its own in the game itself (white mop? really?) and in basically every single public outing they did, going as far as basically dissing the original developers and doing way too much chest thumping for a game that in the end wasn’t really anything exceptional.

      Sorry, while it’s always the easy way out to blame the publisher, I really don’t think Ninja Theory is free of blame there.

      • eric

        The game was good, you’re just a weaboo, get over yourself, and I laughed at the mop thing.

        • Giuseppe Nelva

          You’re entitled to your own opinion, but insulting people that don’t share it won’t exactly make it more solid. As a matter of fact, it shows how weak it is. Maybe I’m not the one that should get over himself. 😀

        • Ritsujun

          I bet you’re a huge fan of Justin Bieber and the Twilight series.

  • Annoyed

    Well great, finally a game in the series that I actually enjoy a lot, and now it looks like we won’t get another one. Fantastic. Congrats guys, I hope the next one is full of all the white hair and tedious e-peen stroking bullshit you all crave.

    • Giuseppe Nelva

      I’m not exactly sure where the new one lacked in tedious (and extremely juvenile) e-peen bulls*it stroking mate…

    • Ritsujun

      I bet you’re a huge fan of Justin Bieber and the Twilight series, LMSAO.

      • zomg bbq

        And I bet… No wait, you ARE a Troll. DmC was a revelation compared to number 4. I don’t really see where you kids who probably weren’t even old enough to play the first 3 DmC games come from with your idiotic criticism just because they changed his hair and made the gameplay (IMO) BETTER.

        • Giuseppe Nelva

          They also turned the dialogue (that was already quite over the top) into an absolute mess, making Dante sound like an incredibly annoying angsty teenager that can’t say four words without spouting some kind of out-of-place profanity.

          Turning a relatively likable protagonist into an absolutely annoying one (at least annoying for anyone with some grey matter between his ears) isn’t exactly a good idea. The same has been done with basically every other character.

          Actually Gygyg’s comment just below is the perfect example of the level this kind of character and script caters to.

          You could replace every word with “Durrr”, and you’d get almost the same effect.

  • Will Wiggins

    Another big part of the issue when it comes to their sales is how developers or publishers are viewed in the publics eyes. Capcom haven’t done a very good job with quality assurance with street fighter x tekken and the last resident evil games (aside from revelations, which is apparently really good) It’s not that they make “Bad” games, but they’re just not to the level of which we remember Capcom growing up. They’re not living up to their potential in mang gamers eyes, and the nickel and dime tactics don’t help their image at all. And then there’s Ninja Theory, who have pretty terrible PR. I remember a member of their team damning/insulting the ps3 crowd by saying something along the lines of “We didn’t sell enough copies of our game because of the PS3, and don’t see the value of focusing on the platform”. These are just things you don’t say or do if you want to be liked by the gamers, the ones consuming your product. Look at what YOU are doing wrong first before making accusations and assumptions, and stop expecting every game to sell billions of copies. Games are expensive, and many gamers have to pick and choose what they spend their money and time on. Make it worth it for us, and maybe you’ll see a return in investment. Just sayin

  • Gygyg

    Fuk, i wana see more games been made in USA, not this bs japanophole weeabo editiond of games, BETTER QUALITY? MY ASS, im sick of these whole japanese underaged tentscles porn bs that comes from there, btw not trolling, just cuz i have a different opinion than you doesnt mean “OMG TROLL”

    • Giuseppe Nelva

      Maybe you should widen your horizons a bit you know?

      Variety is a good thing. At least it’d help you avoid extremely ignorant comments like this.

  • benbenkr

    They had it coming.
    Fans and gamers warned them time and time and time and time and time again not to hand off their core franchises to someone else.
    Told them not to milk a game with an over abundance of DLC, told them to freaking bring back franchises that will make money — hello? Megaman?

    They either didn’t want to listen or they just waited too long. The result is this.

    Fans of RE (and there are A LOT of them) wanted RE6 to be the saving grace for the series. Make IT intense, scary, how effin’ hard is it for them to understand? Instead they continue with the mantra of wanting to rake in more casual gamers, a shooter than will appeal to a broader audience.

    The audience isn’t coming to try it out if the horde of fans says it sucks, it’s that simple. I hope they learn with this mistake finally, I see it as a good thing that they are scaling things back and not wanting to become the EA of Japan (although they already are).

  • Jonathan Stoffregen

    well atleast well get more dragons dogma dlc 😛

  • dakan45

    “The company also blames market-related reasons like drastic changes in
    the industry’s market environment and concentration of AAA titles”

    What if i told you no one is happy on which linear scripted 2 weapon shooter is considered AAA today?

    Seriously stop trying to appeal to that market and make games FOR YOUR FREAKING FANS.

  • Matt

    The old dmc never looked good to me, i even played a demo of one of them and I got bored and gameplay was boring as well. When I heard about the new dmc I thought wow, more of something I will not play or care about and that’s ok with me because I got other games I’m interested in, but I played a demo of the this new one and that same day I bought it lol. The game is much better then before and it just felt right as I was playing it, so my opinion on this is that a remake was needed for the game and I know others will have there opinion too. All I’m saying is that if they go back to the old way of doing this franchise then I already know I will not be buying it 😉

    • John Ferreira

      well noob, i got newsflash for you, DMC gameplay was made by capcom, only the story and art style was done by NT, so how about u take your ignorant ass out, the true fans of Devil May Cry will prob buy the new one seeing as this bastardize DMC, while having a good story no doubt, sucked as a devil may cry.

      • Matt

        You act like NT ruin your life lol shut up and bloody get over it an stop acting like a damn cry baby nerd. Also calling me a noob? Seriously? Smh hahaha… But for real dude just enjoy what games you like and stop worrying about what developers do or don’t do. It shouldn’t be there job to make a game you or anybody wants, if you want that kind of power then get a job making your own games. Because at the the end of the day its all you really can do, yet I guess it’s more fun bitching on the internet

        • Ritsujun

          You act like Justin Bieber and those sissies in the Twilight series.

          • Matt

            Who and what? goodnight.

  • DEO エリヤデボンオットリ

    LMAO oh boi… what will think of next …

  • Dingo

    and yet when they give their retro titles to Iron galaxy studios (MvsC origins and Darkstalkers resurection) they get rave reviews from critics. I really wonder what happened to Capcom, even with this much criticism they don’t seem to look at these forums to listen to the fans which could in turn help them out. Fans are demanding the old resident evils, they brought out 4 and veronica, why not remake 1,2,3 in HD, that would sell, also another snk vs capcom edition which fans are begging for. Maybe they should fire whoever is in charge of marketing there.

  • Ritsujun

    Yup, Beeburr-ish Twilight-like DmC2 should be cancelled.
    Give us Japan-developed DMC5, please.
    It’s too late for Lost Planet 3. So, please at least give us Japan-developed LP4.

    • zomg bbq

      Please explain, how is DmC anything like Justin Beiber and Twilight?

      I detest Beiber and his army of mindless followers, just as much as I hate the over commercialisation of the Twilight series. I see no way to compare the two :/

      • Giuseppe Nelva

        While the comparison is a tad out of place (Justin Bieber and Twilight are actually more bearable even if not by much) I’d say his point is that the new Dante was an highly stereotypical insufferable angsty and angry potty-mouthed overgrown teenager, which made him absolutely unlikable and the dialogue a pain to hear.

        • Anon

          Disappointed to hear you say this Mr. G.

          • Giuseppe Nelva

            It’s ok, life’s full of disappointments. Not exactly sure how you expected me to support turning a relatively cool character into an potty mouthed angry dips*it though 😀

          • Anon

            But Bieber?! What is worse than Bieber?

          • Giuseppe Nelva

            Bieber didn’t start decent and then become worse. Not by much at least.

  • bibop

    Yay!!!!!!!!!!!!!,hopefully this means no more shitty western games.

  • GeorgeofTGN

    Excluding the original writer of the article, and a few other sensible comments will you all please just shut the hell up? You are arguing like toddlers at recess over why something is or isn’t better. It is fine to have a different opinion from someone else but you are behaving as if your way is the ONLY way, and everyone else can go screw off.

    How unbelievably immature can you be? You know what don’t answer that.

    What I say next I don’t say to brag just to give some perspective, and insight. When I say I am not bragging I mean it as this is a crippling addiction for me not a hobby. I have played games for the past 25 years obsessively, I work in video game retail, and review games on the side (though I haven’t done so for awhile) so I can give you first hand perspective from myself, developers themselves, and my customers as to the “state of the industry”

    Someone mentioned something about games cost so much for us to buy. You know how much they cost to create? Once upon a time AAA titles only cost a few hundred thousand to a few million to make. Now games cost 20 times that on average. More staff is needed, more hardware is used.

    Let me ask you a question. Have you checked out that new Atari game coming out? No? What about 3DO? Ngage? The vast majority of videogames originated from Japan for consoles and all over the world for PC.

    There is a very specific appeal to Japanese videogames. The US however has always been ahead as far as the resources they can contribute to a project. We almost always have more access to specific technology as well. That didn’t always used to be the case, but ever since honestly I guess the Xbox started to come around that landscape has shifted.

    We used to love specific staples of japanese games. Now we are sick of them. We don’t want turn based combat anymore, we don’t want a grind, we want everything to be more and more visually impressive, and eye popping. God forbid a game doesn’t have trophies or doesn’t hand out enough achievement points. I am constantly asked “how long is this game?” Not whether it is any good or not, but can I sink 50 hours in to it at least?

    Once upon a time in a land I would now refer to simply as “will never be again” we used to care more about the quality, controls, and originality of a game. Now? “Why doesn’t this game have 500 sidequests? If they do give you those sidequests then the question becomes “Why do all these sidequests suck?” If a game is too short? “Why aren’t there any additional missions?” If it is too long? “Why can’t they just focus on a single idea and not worry about all this extra stuff?”

    You wonder why developers have difficultly catering to an audience that consistently (overall not individually) changes it’s mind back and forth on what it does or doesn’t want in a game?

    So Japan saw all of this nonsense going on over here in the states. They saw how their games got ragged on by reviewers for being unorginal and not Oblivion or Call of Duty like enough.

    As gamers we claim we want something different (keep in mind every time I am using we I refer to over all not individuals thankfully there are a few who haven’t lost their minds, but we don’t make up the majority anymore sadly) then when we get something different we complain it isn’t similar enough. So Japan caved in and adapted they started westernizing all their titles. Since their games also had a very specific appeal westernizing them obviously doesn’t work. Gaming culture there and here is vastly different. Check out the all-time sales for Xbox 360 in Japan, and you will understand what I mean.

    Every developer is trying to make all of their games appeal to everyone. The problem is that the landscape is so divided into different little demographics now that they spread themselves to thin and focus too much on changing their original creation to appeal to the masses instead of sticking to their guns. Quite a few of the customers who a few years ago were complaining about turn based games, and not having enough games like Call of Duty (seriously?) Are now begging me for an old school RPG recommendation.

    Essentially the gaming landscape is starting to shift backwards. It was like the “shooters were cool for a bit but now we are sick of it and want to go back to playing some real games” Unfortunately since those numbers are so insanely high for all of those shooters don’t expect it to happen any time soon.

    Oh ya one more thing.

    Digital instruction manuals, forcing me to buy a game digitally, DLC, GOTY, HD releases? Go F**k yourself. Seriously. I know you aren’t going anyway anytime soon but you don’t piss me off any less by butchering the packaging, and releasing half the game at retail and the other half through dlc. There are a handful of worthy exceptions. Borderlands/Fallout/GTAIV the vast majority of these “releases” don’t offer anything close to what they should to warrant a purchase. Some HD collections are great others are crappy ports.

    (steps down from soapbox)