Capcom has announced a major restructuring that will see the Japanese games publisher return their focus to in-house games development --a restructuring that will incur a reported ¥7.2 bn (US$73.3m) loss due to the cancellation of several unannounced games that were in the works at licensed third party Western studios (from GI International
The publisher of Devil May Cry and Resident Evil has more than halved profit forecasts for the financial year ended March 2013 from ¥6.5bn ($66.2m / £43.4m) to just ¥2.9bn ($29.5m / £19.4m).
Presentation material to investors shows that the publisher singles out a "decline in quality of titles outsourced to overseas developers". As a result the company has cancelled in-progress projects farmed out to third parties as part of a "strict" review that has found games incompatible with a new focus.
It also acknowledges the company had a "delayed response to the shift to digital media" in its home video game business.
Sales of Resident Evil 6 across consoles during the financial year are expected to be around 4.9 million - way off the original 7 million target, while DmC Devil May is expected to have shifted 1.1 million units of the estimated 2 million.
Remember Me, the Capcom-published title from French studio Dontnod, is still on track for a June 2013 launch.