Capcom revenues up, profits down after Q2 fiscal 2007
Capcom‘s scorecards for the first half of fiscal 2007 is in and interesting results were found. Total revenues were up from last year but profits are down. Find out why as we discuss how Resident Evil 4: Wii Edition, Monster Hunter Freedom 2, Lost Planet: Extreme Condition and Capcom’s arcade division affected financial growth.
Company outlook and term achievements, as well as operating net income and launched title performances are at the full article.
Japanese game developer and publisher Capcom has made its financial report for the first half of fiscal year 2007 and it was evident that the company is experiencing some mixed harvest turn-ups. According to the company’s latest press release, the total gross revenues were up 6.6 percent from last year, but net profit has dropped 16.3 percent from what it was in the same period in fiscal 2006.
Roughly translated, Capcom says it raked in some US$ 276.3 million in total returns, where net earnings amounted to US$ 14.2 million. Capcom explains that profits are down due to several factors, with its arcade division taking big blows.
Total arcade revenues were down 68.9% with the continuing deterioration of that game market area. From US$ 38.2 million, arcade-related business plummet ted to US$ 12.4 million in fiscal 2007’s first half. Thankfully, software sales for consoles were a lot better than expected.
Making big save was Monster Hunter Freedom 2 for the Sony PlayStation Portable and Resident Evil 4 Wii Edition for the Nintendo Wii. Both titles surpassed company forecasts and benefited from the growing bases of both platforms. Lost Planet: Extreme Condition for the PC, however, soaked up miniscule numbers stacked against its Microsoft Xbox 360 counterpart which launched in fiscal 2006. The two versions sold 12,620 and 652,951 units respectively.
“Consumer game software is one of our core business segments, and the favorable performance of this segment played a leading role in overall sales growth,” says Capcom.
The company is looking at better times ahead with the holidays looming larger and sales expecting to pick up. The company also expects a strong finish to fiscal 2007 with the launch of anticipated titles Devil May Cry 4 and possibly Resident Evil: The Umbrella Chronicles in early 2008.