Following Nintendo’s disappointing financial results, Capcom have also reported “sluggish” results, with a 90% decrease in profit down from the same time last year — though the company still managed a profit; admittedly a mere 213 million yen, or roughly 2.4 million dollars.
As with Nintendo, Capcom blamed an unfavourable exchange rate, particularly as a result of “US and European markets shrinking under the stagnating economy.” However, the poor results may have some wide-ranging results for Capcom’s future release schedule. The company recently announced that they intend to increase the output of releases in their most popular franchises, and their financial report squarely places the “drastic decline” in profitability on the “increase of new flagship titles release from the same term of the previous year, when most sales were made of repeat titles.” This “resulted in higher game development costs.”
