Capcom's net sales for the first three months of this fiscal year are down 24.9% compared to the same period last year according to a press release from Capcom Investor Relations.
The consolidated net sales were ¥10,927,000,000 - a bit over $107,000,000 at current exchange rates. Capcom's operating loss was ¥726,000,000 (around $7,100,000). The company also lost ¥2,080,000,000 (about $20,000,000) due to changes in the exchange rate for the Yen. The Yen's value has raised since the British referendum to leave the European Union and resulted in a dip in the Japanese Stock Market.
The company attributes the losses for their quarter to their overall business strategy. Like most game companies, Capcom tends to release their strongest titles towards the end of the year. While the sales of Phoenix Wright: Ace Attorney - Spirit of Justice largely met their expectations, the sheer amount of income from that and other titles released in Q1 (such as Umbrella Corps) wasn't enough to keep them in the black. Super Street Fighter IV "Amusement Equipment" also performed in line with their projections and suffered an expected sharp decline in sales that typically follows the release of a new title. The report classifies "Amusement Equipment" as Pachinko and Pachislo (slot) machines.
Capcom's business is split into four parts: Video games, Arcade games, Pachinko & Pachislo (regular slot) machines, and other businesses. Although video game sales were not overly strong they were nonetheless healthy. Arcades performed well and may have benefited from a change in a law that relaxed nighttime entrance requirements for arcades. The Amusement Equipment department (Pachinko & Pachislo machines) saw 72.5% lower net sales as compared to last year. This department was the only one of the four to show a decrease in net sales.
Despite the losses, Capcom expects that the remainder of this fiscal year will meet their projections.
Do you think the reduction in net sales is just regular business operation or is it indicative of problems at Capcom? Which upcoming Capcom titles are you most looking forward to? Do you think they are making good use of their existing IP? Let us know in the comments below!