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Capcom hits record earnings because sales of games are rising



Capcom is doing very well at the moment: sales, operating income and total profits are at a record annual level.

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Capcom just reported stellar results for its FY2018 period, showing strong growth in its multi-party business games. The sale of dedicated games was up to a new three-year high of 25.3 million units, of which nearly half of Mr. Hunter's sales in the world amounted to 12 million. Other games like Resident Evil 2 REmake sold 4 million units, and Devil May Cry 5 pushed 2 million copies.

Thanks to the advanced Capcom strategy that complements digital, online monetization, DLC and the physical selling of full games together in a cohesive plan, the company has managed to increase its revenue to new record levels. Thanks to the quick sale of games, Capcom made an impressive 100.03 billion yen ($ 901.99 million) in net sales during the fiscal year, which ended on March 31, 2019. Operating revenues rose 13.1% year-on-year to 18.14 billion yen ($ 163.6 million). The total profit for the year was 12.51 billion yen ($ 113.17 million), up 14.8 percent year-on-year.

In this business, the popular title Resident Evil 2 (for PlayStation 4, Xbox One and PC) exceeded expectations and drove the company's business operations. The devil can cry 5 (for PlayStation 4, Xbox One and PC) targeted foreign markets and also perform strongly, supported by consistent demand.

Additionally, the Hunter Hunter series significantly contributed to improving profits: the Monster Hunter: World (for the PlayStation 4 and Xbox One), which was a phenomenal success in the previous fiscal year, has kept its popularity by expanding its user base, while the Steam version for the computer also has done firmly, increasing profits; Meanwhile, Monster Hunter Generations Ultimate (for Nintendo Switch) enjoyed steady sales through its release on markets outside of Japan.

Furthermore, Mega Man 11 (for PlayStation 4, Nintendo Switch, Xbox One and PC) and the 30th anniversary Street Fighter collection (for PlayStation 4, Nintendo Switch, Xbox One and PC) was well held. In addition, the titles of highly marginal catalogs, including Biohazard Resident Evil 7 (for PlayStation 4, Xbox One and PC), have increased sales through their long-standing popularity.

As a result, net sales amounted to RMB 82,982 million (11.9% more than the previous fiscal year) and operating income was 23,315,000 yen (an increase of 22.0% from the previous fiscal year)

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This fiscal year, FY2019, sees Capcom slow down significantly as long as gaming releases.

The company plans to release just one big game throughout the year, but it's great: Mass expansion of Iceborne in the world. The DLC will be $ 40 and is expected to freeze the content of the main game while re-involving the primary users.

Capcom seems to be struggling on bars and waiting for a storm of next-gen consoles. Currently, there are several major AAA games in development, but none of them will come out by March 2020 and should accompany the release of the next generation Sony PlayStation 5 and Microsoft's Xbox Scarlett's family of hardware.

We wrote an expansive article detailing all the clues behind the next generation of Capcom.

This thin release layer will not affect the end cap of Capcom. In fact, it expects profit jump 11.5% to 14 billion yen (126.23 million dollars) in February 2019, and operating income is expected to increase. The company says its stronger emphasis on digital engagement through Monster Hunter, DLCs for existing catalog games and a multitude of re-releases based on digital digital devices will help these high levels.

There are no details about what Capcom works and which games will release them out of Iceborne in FY 2019, but we can assume. Capcom needs to open some digital based re-editions, bunch new DLCs for older games, and maybe even a couple of collections or two over PS4, Xbox One, PC and Switch.

Soon on the Capcom market for FY2018

Net sales – 100.03 billion yen (901.99 million dollars), which is 5.8% per annum

Operating income – 18.14 billion yen ($ 163.6 million), which is 13.1% annually

Total profit – 12.51 billion yen ($ 113.17 million), down 14.8% year on year

Forecast of Capcom's revenue for FY2019

Net sales – 85 billion yen ($ 766.4 million), down 15% year on year

Operating income – 20 billion yen ($ 180.3 million), up to 10% per annum

Total profit – 14 billion yen ($ 126.23 million), an increase of 11.5%

The devil can cry 5 – PlayStation 4


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