Capcom revealed today at the financial results meeting for the first quarter of 2019 that they are doing just fine. In the video below (only available in Japanese unfortunately), they […]
Capcom revealed today at the financial results meeting for the first quarter of 2019 that they are doing just fine. In the video below (only available in Japanese unfortunately), they explain how the company performed in the first quarter of the fiscal year of 2019. There is a chart under the video that puts it in writing for you.
One of the reasons behind this massive influx of profit is the release of the three stellar hits which keep selling. Monster Hunter: World, Resident Evil 2 Remake and Devil May Cry 5 are all selling well. Especially Monster Hunter: World which first released January 2018 and came to PC later that year, it’s impressive that it’s still holding its own.
A Capcom representative had these two quotes:
“In this business, as the first quarter corresponded with a transition period between major titles in the overall release cycle, new game launches were limited to a select number of rerelease titles. However, driven by an expanded user base, sales continued to grow for Resident Evil 2 (for PlayStation 4, Xbox One and PC) and Devil May Cry 5 (for Xbox One, PlayStation 4, and PC), both of which are hit titles from the previous quarter. 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. These catalog titles boosted profit significantly by driving high-margin digital download sales.
The resulting net sales were 13,977 million yen (up 1.4% from the same term in the previous fiscal year) and operating income was 7,733 million yen (up 34.8% from the same term in the previous fiscal year) primarily due to contributions from catalog titles.”
“During the three months ended June 30, 2019, with the tangible roll-out of the 5G era on the horizon, the industry saw a wave of structural changes coming in anticipation of new business opportunities. For example, IT giant Google unveiled its plan to enter the cloud gaming business (a market in which dedicated gaming consoles are unnecessary), while Microsoft also announced similar services.
In such an environment, the Company focused on improving our development structure, which is the source of our competitiveness, by concentrating management resources on the development of home video games in order to meet diverse customer needs both in Japan and abroad. At the same time, the Company endeavored to expand sales by focusing on marketing and promotion activities that are consistent with market trends, in addition to promoting its multi-platform strategy to provide games for a range of different hardware.
The Company also advanced the selection and concentration of management resources through restructuring unprofitable businesses, such as scaling down the Arcade Games Sales sub-segment, as well as allocating funds and human resources to the eSports business, which has future growth potential. In such a situation, profit improved due to the continued popularity of major catalog titles overseas and the growth of highly profitable digital download sales.”
Exciting times at Capcom, they still have a few untouched franchises that could get the Resident Evil 2 treatment. Although the next game to get this treatment is probably Resident Evil 3, stuff like Dino Crisis, Onimusha or something like that. Capcom have turned it around in recent years and I’m sure we look forward to seeing what they have up their sleeves in the future.