Capcom Cancels Games amid Slashed Profit Forecasts

capcom restructuring

Capcom has revised its forecast for revenues for fiscal year ending March 31, 2013, and the results are not great. The publisher has slashed its profit projections in half, expecting roughly $29.5 million, and is canceling a number of projects—though it’s not clear what projects are getting axed at the moment. In all, Capcom is going to begin a restructuring of its company, which it expects will cost a “special loss” of about $73 million.

The company has decided to pull the plug on projects being developed in third party studios “due to delays in responding to the digital contents and the resulting inability to address market needs.” In short, having games developed in other studios has resulted in a drop-off in quality, and lowered sales as a result. One of the titles that’s helped the company in terms of big sales and reliable revenue is Resident Evil 6, which was developed internally. According to Capcom’s explanation of the revised forecasts, RE6 was initially forecast to move 7 million units. In December, that number was reduced to 5 million, and this latest report has revised that forecast only slightly to 4.9 million.

Ninja Theory-developed DmC: Devil May Cry, by contrast, was originally projected at moving 2 million units, had its forecast revised to 1.2 million in December, and revised in this report to 1.15 million. While that’s not too far off the original mark, the fact that it couldn’t hit that 2 million mark in the first place perhaps speaks to Capcom’s assertions that games made by external studios suffer in quality. While DmC was really well-received by critics, its sales clearly weren’t where the company would’ve liked.

Going a bit further, last year’s Resident Evil: Operation Raccoon City—developed by Slant Six—was pretty universally panned by critics, though it still managed to move about 2 million units. Could the fact that ORC and DmC managed to hover in the 2 million range while RE6 moved 5 million be Capcom’s justification for cutting externally developed games?

Another question: where will this leave Remember Me, one of the more anticipated games from Capcom, being developed externally by Dontnod Entertainment? It seems unlikely that the game will get canceled as a result of this restructuring because of how close it is to release. But will this affect the future of the franchise? Of course, this kind of question is pointless, since the game hasn’t even come out yet. Maybe it’ll be a smash hit, and reinvigorate Capcom’s trust of external studios.

At this point, it’s not clear what the longterm effects of the restructuring will be. Though, if it’s anything like Square Enix’s restructuring from earlier this year, expect news of layoffs to hit sooner or later.

[Via Joystiq, CVG, Capcom]

  1. Looks like that mega man game they were thinking about will be canned too like always :(

  2. I hope a sequal to DmC doesn’t get cut, if anything capcom needs to have third parties some more time to put more quality into their games

    • Quality. DmC. Hahahahahaha oh you.

      You know what the real shame is? If they just got a GOOD developer to make DMC5 it would have sold enough units.

  3. All they need to do is release a “new” Street Fighter 4, DONE, problem solved.

    Anyway, I’m glad that they are acknowledging that third party developed games are not to their standards, because they aren’t, even the good ones are inferior to their previous iterations.

  4. Now that they’re making changes to SFIV:AE I don’t think that we will see SF5 anytime soon.

    But yeah, looking forward to that Remember Me, hope it won’t get scrapped or anything. Also, all those “good ratings” from critics, I just hope that Capcom learned that they need to stick to making DMC games without third-party developers.

  5. The problem is that Raccoon city was okay, and they pretty much made RE6 a rentable game unlike RE5. Street Fighter is another problem. Who would want to buy this game if its terrible as it is? It has no replay value besides “fight this guys, this guy, and this guy”. It’s another Tekken. There’s no value to fighting without story, cutsomization, and/or replay value. Capcom is dying because of their own development team. Their newer games are stale. They do not see the more modern idea of “upgrades, perks, customization, and letting the user be the controller of every aspect”. Their idea is story, story, story. Or maybe theirs is making old games into newer games like Street Fighter? RE is the only one I play really. Some other games I play also of theirs. But RE6 removed the fun factor of upgrades and gem finding. So, unless RE7 brings that. Then I have lost hope.

    • The upgrade system on RE5 was a terrible addition, it worked on RE4 because it was single player, on 5 it completely broke the coop idea they had because you or your partner would always be extremely overpowered making it meaningless to even play with someone.

      Not to mention how the entire system could be exploited to death by simply restarting the same level over and over again to farm gems, making it boring and even more pointless.

  6. Remember Me just appeared on Steam pre order, so its safe to say it’s still going to be released.

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