Capcom is Back: Quarterly Earnings Show Growth in Sales and Profits Thanks to Resident Evil, Monster Hunter, and DMC
Capcom's success is boosted by the enduring popularity of key franchises Resident Evil, Devil May Cry, and Monster Hunter.
In Capcom’s financial report for the past three months, the company has reported a 4.3 percent increase in net sales and a 38.9 percent increase in profits (~$49.9 million). The company attributes much of this success to the “expanding base of fans” for its key franchises: “… sales continued to grow for hit titles from the previous quarter Resident Evil 2 (for PlayStation 4, Xbox One and PC) and Devil May Cry 5 (for Xbox One, PlayStation 4, and PC), driven by an expanded user base. Flagship title Monster Hunter: World (for PlayStation 4, Xbox One and PC) has also continued to sell well over an extended period, supported by enduring popularity.”
“Selling well” is an understatement when it comes to the gargantuan success of Monster Hunter: World. Since its release in January 2018, the title has shipped more than 12.4 million units. The Resident Evil 2 remake has also sold well. It came out somewhat recently–January 2019–but the game has already sold 4.2 million units. And though Devil May Cry is traditionally a bit more of a niche franchise, the well-received Devil May Cry 5 has sold 2.1 million units since March. As people have been saying here, there, and everywhere: it looks like Capcom is back.
However, what all of these numbers don’t tell you is that the quality of Capcom games is much improved of late. All three of the games mentioned above are critically acclaimed and contain the sort of fun that was once synonymous with the company. There were lean years in between, however, and through some predatory DLC practices, rehashing old material, and publishing games without staple content, there was at one time genuine fear for Capcom’s future. If there’s one lesson I hope they’ve learned through all of this, it’s that their fans, as well as their profit margins, respond to high-quality products.
Anyway, those concerns look to be a thing of the past, and it seems like Capcom has finally righted the ship. Moving forward, the company has a positive view of its financial forecast: by the end of the fiscal year on March 31, 2020, Capcom is still expecting $784.7 million in net sales and $129.2 million in profit.
For more information on Capcom’s financial report, check out the press release.