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Post by Eorl @ 11:23am 09/05/13 | 0 Comments
Capcom has released their FY 2012-13 Proposed Budget, posting a 14.6 percent increase in sales for the year to 94.07 million Yen ($950M) however their net income has suffered a 55.8 percent drop to 2.97 million Yen ($30M). The company states that the significant drop in net income is due to recent restructuring costs as the company shifts focus for a future in which it expects development costs to rise on next-generation consoles.
As a result, consolidated financial results for ended March 31, 2013 increased in net sales but decreased 17% in operating income from the previous year due to increased cost of sales and higher selling, general and administrative expenses. Also, net income decreased due to special loss relating to the cost of business restructure that was necessitated by the overhaul of the development system.
Digital sales for the company saw their flagship title Resident Evil 6 selling 4.9 million units, however subsequently plateaued. As a result of this, the title did not meet Capcom's projection which were initially 7 million but was then downgraded to 5 million, however saw another shift from 5 million to 4.9 million. In contrast though the newest Dragon's Dogma franchise has become a "greater-than-expected hit product in the domestic market, which has high profitability, and became an unprecedented million seller in the recent years as an original title."

Titles "Minna to Monhan Card Master" and "Resident Evil: Outbreak Survive" also saw a large increase thanks to the increasingly widespread smartphone market, with both titles reaching more than two million memberships each. Capcom's first Wii U title, Monster Hunter 3 Ultimate, was also a "smash hit" however its package sales were generally soft.

Capcom also revealed future forecasts, with the company expecting a high profit at the next fiscal year ending March 31, 2014 with 97,000 million yen in net sales and 12,000 million yen in operating income. Development will also take a new direction, moving resources to growing area of "online games (mobile, PC online and downloads for consumer games)," but also ensuring large-scale titles such as Monster Hunter 4 and Lost Planet 3 are focused on domestic and overseas markets. A shift of focus will also be implemented in preparation for higher development costs in the next-generation console lineup.

capcom2012/2013 fiscal yearnext-gen development costs

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