So, what's keeping the rest of Capcom down? Arcade operations were particularly weak; Capcom said, "The number of customer visits and average customer spending grew at a sluggish pace reflecting market stagnation and declining customer confidence, forcing us to struggle." Ouch! That unit had an operating loss of ¥73 million, versus an operating income of ¥261 million in the same period last year. Arcade Games saw an increased operating loss "due to an increase in development costs" while "character-related licensing royalties" were up 25.7%.
So, what's the lesson? More developers should target the PSP because, really, people just want some games for it. And second, arcade games aren't even doing well for Capcom ... in Japan.