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Capcom has cut its earning forecast for its current fiscal year by more than half, slashing its net income expectations from 6.8 billion yen (~£39.5m) to 3.3 billion yen (~£19.2m).
The publisher blames the revision on the “decline in profitability” of its mobile and online division, which has seen its mobile catalogue and online title Monster Hunter Frontier G perform “below expectations”.
It’s also set aside 5 billion yen (~£29m) to improve the structure of the business and “recover the cost of certain fixed assets”.
“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,” the publisher said. “These are two core elements of the company’s operations. 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.
“As a result, Capcom has decided to post business structural improvement expenses of approximately 5,000 million yen in consolidated, and approximately 4,300 million yen in non-consolidated forecast, following a comprehensive examination of prospects for recovering the cost of certain fixed assets.”
Despite the cut in expected profits, however, Capcom has actually raised its revenue forecast by 4.5bn yen to 101.5bn yen, largely due to the success of Monster Hunter 4.
Capcom has yet to confirm when it will announce its fiscal year 14 results.
Source: capcom.co.jp
