Capcom just announced its financial results for the first nine months of the fiscal year 2016, ended on December 31st.
While the figures show a drop year-on-year across the board, they’re all in the black.
The company also released an in-depth statement talking about the performance of the business in the past fiscal quarter. Notable is the reorganization performed by the company, and he attention to “VR year one.”
“During the nine-months period ended December 31, 2016, signs of major changes to our industry became evident, such as the successive releases of VR (virtual reality) devices that are highly compatible with games. With an eye to creating a new market we entered a new era many are calling “VR year one.”
Under such circumstances, the Company has carried out reorganization and strengthened its management structure aiming to reform its development divisions, which are the core of the Company’s business operations. At the same time, the Company promoted group-wide optimization, including its subsidiaries, by clarifying reporting lines and responsibilities to ensure speedy decision-making and agile business development.
Moreover, through a mixed media strategy leveraging its rich content assets, the Company strove to enhance its presence and increase its brand value by generating synergy with its popular games, such as with the airing of the animated TV program Monster Hunter Stories (Fuji Television Network) from October 2016; the musical theater performance of Resident Evil: Voice of Gaia in Tokyo and Osaka, which is the first musical theater performance based on a survival horror game in the world; and the Japanese release of the latest title in the Resident Evil Hollywood film series, Resident Evil: The Final Chapter, on December 23, 2016.
The resulting consolidated net sales for the nine-months period ended December 31, 2016 were 53,507 million yen (down 6.2% from the same term in the previous year) partly due to a dip following Monster Hunter X (Cross) (for the Nintendo 3DS family of systems), which was a smash-hit in Japan during the same term in the previous year. Regarding profitability, operating income was 5,119 million yen (down 51.7% from the same term in the previous year), ordinary income was 4,147 million yen (down 61.0% from the same term in the previous year), and net income attributable to owners of the parent was 2,762 million yen (down 60.6% from the same term in the previous year).”
The press release also included more details on the Digital Contents business, which focuses on the publisher’s video game releases.
We hear about “firm” sales of Dead Rising 4, compared to “soft” sales of “Monster Hunter Stories.” Last, but not least, Capcom mentions an “aggressive sales campaign” in the current quarter for Resident Evil VII and Monster Hunter XX.
“In the Digital Contents business, sales of Dead Rising 4 (for Xbox One and PC), which was released in December 2016, were firm, while the sales of Monster Hunter Stories (for the Nintendo 3DS family of systems), which targeted younger audiences, were soft. On the other hand, re-releases of popular titles Resident Evil 5 (for PlayStation 4 and Xbox One) and Resident Evil 4 (for PlayStation 4 and Xbox One) performed steadily thanks to a stable fanbase for the brand. Additionally, Monster Hunter Generations, known as Monster Hunter X (Cross) in Japan and Asia (for the Nintendo 3DS family of systems), achieved solid sales overseas thanks to Capcom’s established brand capabilities.
Moreover, in online games and mobile phone contents, the Company broke new ground amidst ongoing efforts to achieve progress in this static sub-segment by reviewing its development framework and operation methods. This led Toraware no Paruma, an enterprising romance game for smartphones (for Android devices and iOS) developed primarily by female staff, to reach the top of the App Store paid application rankings on its release date.
The resulting net sales were 28,428 million yen (down 21.2% from the same term in the previous year), and operating income was 1,461 million yen (down 84.9% from the same term in the previous year).In the fourth quarter of the fiscal year ending March 31, 2017, the Company plans on an aggressive sales campaign with the release of two major titles for the quarter RESIDENT EVIL 7 biohazard (for PlayStation 4, Xbox One and PC) and Monster Hunter XX (Double Cross) (for the Nintendo 3DS family of systems) in Japan.”
It’s worth mentioning that despite the mention of “firm” sales, Dead Rising 4 did not pass the million shipments milestone as of December 31st, 2016. On the other hand, Monster Hunter Generations (Monster Hunter X) shipped 4.2 million units by the same date.