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Capcom announces special loss, 50 percent reduced profit forecast


Capcom has reduced its profit forecast by half due to a restructuring and having sales below expectations. The company has reduced its ¥6.8 billion ($65 million) expectation to ¥3.3 billion ($32 million) for the fiscal year ending March 31, 2014. Counting the frames of this profit pummeling begins with a "structural improvement" expense of ¥9.3 billion ($90.1 million).

"Due to rapid changes taking place in the market for games, Capcom is building a sound base for earnings by reorganizing the product development framework and improving development processes. These are two core elements of the company's operations," said Capcom in its forecast note. Boiled down, it means the company is trying to be more efficient about making good games at lower expense. "The objective of these activities is to earn consistent earnings in each fiscal year. However, these initiatives have not yet started to produce benefits mainly in the Mobile Contents."

And that last part about mobile is the other hit in this one-two punch. The company notes the primary reason for the decline in profits was the "below expectation" performance of Monster Hunter Frontier G and mobile contents. Capcom is still trying to figure out how to mobile right.

[Image: Shutterstock]

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