Capcom’s Sales Drop but Profits Improve Due to Digital Download; Solid Financial Results Posted
At the closure of the Tokyo Stock Market, Capcom posted its financial results for the first nine month of the fiscal year until December 31st.
While net sales decreased from the same period of the last year, income figures improved, and all the results are in the positive black.
The company also confirmed its previous forecast for the full fiscal year, which will end on March 31st.
The company saw some signs of recovering within the Japanese game market:
The progress of the consolidated business results including related qualitative information In our industry, though the home video game market was affected by the consumption tax hike, year-end sales were moderately strong. Moreover, while the domestic market continues to mature, it showed some signs of recovery including the high popularity of the Tokyo Game Show 2014 held in September 2014, which attracted over 250,000 visitors, the second-highest number in its history.
On the other hand, the report continues, the social and smartphone markets continued to grow, while arcade sales remained sluggish.
Monster Hunter 4 Ultimate sales are mentioned as “growing steadily,” performing as expected, while efforts have been made to reduce development costs.
The Company also worked to streamline and reinforce its development function in order to shorten the development lead time and cut development costs for video game software by, for example, introducing a large 3D scanning system.
The increase in profitability is mostly chalked to digital download sales (that are naturally more profitable) and “successful implementation of profitability improvement measures such as cost reduction efforts.”
Ultra Street Fighter IV sales are defined as “solid” and “satisfactory” are also sales of Dead Rising 3, while Gaist Crusher God performed below expectations. The downturn in overall sales was mostly due to lowering performance of the original Monster Hunter 4.