Capcom predicts decline in profits, outsourced titles are to blame
Capcom predicts this year’s profits to be only what it was initially forecast as it announced a company-wide restructure.
According to Capcom, the reason for the imminent decline in sales is due to the “drastic changes in the industry’s market environment,” the “concentration of AAA titles in the hands of few foreign competitors” and their “delayed response to the shift to digital media in the Home Video Game business.”
Capcom has also explained how there has been a “decline in quality of titles outsourced to overseas developers,” primarily Western developers, which has now prompted the company to utilize internal R&D and produce more post-release DLC.
Their latest high-profile title, DMC: Devil May Cry, was developed by UK based studio Ninja Theory. It was the first ever in the series to be developed by foreigners and did not live up to commercial expectations.
The company also revealed that “work in progress in game software” has been “strictly re-evaluated for business restructuring” which is business-talk for they’re starting to cancel games.
Capcom previously predicted a net income of ¥6,500m for the year ending on March 31. They have since changed it to ¥2,900m
Source: MCV UK