Sometimes things just work out
It’s good news and bad news for Capcom, but more good than bad. Even though sales tumbled, profits still reached an all-time high.
Capcom posted its results from the 2019 fiscal year, showing a dip in revenue as total sales dropped 18.4 percent year-over-year to¥81.59 billion (approximately $765 million). Despite this, Capcom ended the year with record profits of¥15.95 billion (approximately $149.5 million). Capcom attributes this to “success in streamlining [its] profit structure,” which is incredibly vague. There is, however, mention that a greater percentage of digital sales rather than physical is partially responsible.
Even though revenue dropped sharply, Capcom had some overachievers that helped anchor the ship. Monster Hunter World: Iceborneshipped more than 5 million copies and was the major sales earner over the past year. However, Resident Evil 2, Devil May Cry 5, and Monster Hunter: Worldall continue to perform well considering none of them released during the 2019 fiscal year. (And, Resident Evil 3isn’t included because it launched three days into the current fiscal year.)
The forecast is sunny for Capcom despite challenges posed by the ongoing pandemic. Capcom predicts another record-breaking year, currently estimating sales of $797 million and profits of $168.76 million.
Consolidated financial results for the year ended March 31, 2020 (Unaudited) [Capcom]