Capcom Axes Sales Prediction for This Year, But Income Remains Stable Due to Digital Download
Capcom announced with a press release that the sales forecast for the fiscal year ending on March 31st has been slashed quite radically. On the other hand, the prediction for operating income remains stable and net income will be slightly higher than previously predicted:
The sales forecast has been reduced mainly because of delays in the launches of some titles in the Digital Contents and Amusement Equipments businesses.
There is no change in the operating income forecast because of strong digital download sales, which have a high profit margin, and cost-cutting measures in all business segments.
The ordinary and net income forecasts are higher because of foreign exchange gains.
The press release also mentions that the digital download gains were localized mostly in the US and in Europe.
One thing is for sure: the digital download market is definitely proving more and more effective to keep profit margins up for publishers, as production and distribution costs are definitely lower.
Hopefully physical sales are still going to remain a thing for a long while longer, but it’s not surprising to see more and more publishers focusing their effort on digital distribution.