• Welcome to the Angry Joe Show Army!

    Join our community of gamers passionate about our community and our hobby! Whether it's playing, discussing, or watching games, regardless of platform, genre, or location, we have a place for you, always!

  • PS4 Forum

    The AJSA Playstation 4 Division: Game Nights and More!

    The AJSA is on Playstation 4! Join us for weekly Game Nights with a selection of the best games the PS4 has to offer!

  • XBO Forum

    The AJSA Xbox One Division: We Got You Covered!

    The AJSA Xbox One Division is ready to connect with you on XBox Live with a ton of events for the best Xbox games!

  • News Archive

    The Best News from the Best Sites, Every Week.

    The AJSA News Collection Team is hard at work condensing a week's worth of news into one giant-sze digest for you to chew on and discuss! Links to source articles are always provided!

  • More Info

    The AJSA Expeditionary Force: Deploying to Play the Best PC Games!

    The elite vanguard of the AJSA, the Expeditionary Force (EF) chooses a new PC game every week! Join us for weekly events and help decide if the game has a future in the AJSA.

  • The Team

    Streaming Now: The AJSA Stream Team

    Joe can't stream every game, but our talented AJSA Stream Team covers a wide variety of games and personalities! Check them out, and show them some AJSA Love!

  • The Tube

    The AJSA Community YouTube Channel

    Featuring news, gameplay clips, and more from the community! The Community is a chance to showcase the best moments in AJSA Gaming!

Globalnet

Capcom only has 152 Million US Dollars in liquid assets.

44 posts in this topic

Source: http://www.gamesindustry.biz/articles/2013-09-10-capcom-looks-towards-big-changes-after-difficult-fy13

 
Capcom looks toward big changes after difficult FY13
By Matthew Handrahan
Capcom looks toward big changes after difficult FY13
TUE 10 SEP 2013 10:01AM GMT / 6:01AM EDT / 3:01AM PDT 
PUBLISHINGDEVELOPMENT
 
Mobile growth, DLC and an end to outsourcing all on the agenda as Capcom struggles to move with the times
 
Capcom
capcom-europe.com
 
Capcom's fiscal 2013 report has stressed the need for sweeping change in the company, as it rebounds from a difficult period straight into the costs of a new hardware generation and an increasingly competitive mobile market.
 
While revenue actually climbed from ¥82 billion ($820m) to ¥94 billion ($940m) in the year ended March 31 2013, the company's attempts to pivot in virtually every aspect of its Digital Contents business - which comprises console, PC and mobile development, and accounted 67.7 per cent of all revenue - saw profits fall by more than half to just $31 million. Barring 2010, when it made a profit of $22 million, that makes fiscal 2013 Capcom's least profitable year since 2005.
 
In total, Capcom sold 14 million units of its games at retail, and only three releases passed 1 million sales. Indeed, two of that group performed well short of expectations: Resident Evil 6 sold 4.9 million against expectations of 7 million, and DmC: Devil May Cry sold 1.15 million units on expectations of 2 million. Capcom's single biggest success story in the console/PC space was Dragon's Dogma, a new IP, which sold a relatively modest 1.3 million units.
 
"If the DLC we are providing to users is deemed uninteresting from the start, there will be no ongoing business to pursue"
Haruhiro Tsujimoto, COO, Capcom
 
Nevertheless, Capcom expects revenue to hold next year and profits to roughly double, bringing it back in line with fiscal 2012's results. If it meets those expectations, however, it's unlikely to be down to packaged retail releases.
 
Capcom has forecast even slimmer returns for the next fiscal year, with only 13 million unit sales expected from a line-up that includes Lost Planet 3, Monster Hunter 4 and Dead Rising 3. Monster Hunter 4, which is scheduled for release this month, seems likely to meet its expected 2.8 million sales by the end of March 2014. The console release of Resident Evil: Revelations, launched in May, should also hit its relatively lowly 1.2 million target. But Lost Planet 3 is another matter - it may only need to sell 1.2 million to meet expectations, but it is off to a poor start in Japan, and its sales in the UK suggest that it will be among the calendar year's most notable failures. Between them, Capcom's three biggest console releases for the rest of this fiscal year are not expected to sell more than an under-performing Resident Evil 6 managed in six months.
 
Capcom's annual report notes the sluggish performance of the all-important console market on several occasions, and it certainly isn't the only company to feel the negative effects of that slowdown. However its performance throughout this generation has rarely been more than solid, leaving it in a difficult position for the challenges ahead. At present, Capcom has just over $152 million in cash, which isn't much for a company attempting to navigate the costly transition to a new hardware generation and the company-wide implementation of a service-based infrastructure.
 
Any console titles that fail to perform in the next two years will be increasingly difficult to bear, and Capcom now has two mid-term strategies in place to mitigate that risk. First, to push for quality by bringing previously outsourced work back into the company, pledging to hire 100 new staff in each of its consumer, mobile and PC online teams by the end of fiscal 2014.
 
The second is a stronger commitment to DLC with its consumer releases, with an aim of maximising the profitable life of each product. In this area, Capcom has exemplified the common criticisms of Japanese console and PC companies by falling dramatically behind the times. By Capcom's data, the DLC ratio for consumer releases last year was 39.7 per cent, but it managed just 14.1 per cent with its own products.
 
"I regret to say that, up to now, we had few plans for the full-scale implementation of DLC," said COO Haruhiro Tsujimoto. "From here on out, we need to focus on the long-term provision of content starting at the earliest stages of development. Furthermore, in terms of user response, if the additional related content we are providing continually to users online is deemed uninteresting from the start, there will be no ongoing business to pursue. This means that, more than ever before, the creation of underlying content is the key to success."
 
"Today's mobile game industry is a world apparently full of dreams about making a fortune off a hit game. But if the hit is just a one-off, success is transient"
Haruhiro Tsujimoto, COO, Capcom
 
Capcom's other mid-term goals are associated with the high-growth market for mobile and online games. The company's online content was one of the few aspects of the business to show healthy growth, increasing 45.9 per cent to ¥22.9 billion ($229m). By March 2014, that is expected to increase a further 22.3 per cent, reaching ¥28 billion.
 
Exactly how Capcom intends to accomplish that is more difficult to pinpoint. Beeline's Smurf's Village has been the golden goose of the company's mobile and online strategy for almost three years, and the pressure is on to create another hit. Indeed, Capcom lists that very task as one of its key priorities for fiscal 2014, but the company is clearly aware of how fickle the mobile market can be, even to those building from existing success. For now, Capcom will concentrate on developing apps based on its existing brands.
 
"With Smurf's Village, we learned that there are not as many core users in this market as there are in the consumer market. Outside of Japan, people spend less money on mobile games, particularly in Europe and North America, making it a low-margin, high turnover business," said Tsujimoto.
 
"Today's mobile game industry is a world apparently full of dreams about making a fortune off a hit game. But if the hit is just a one-off, success is transient. For Capcom, it is crucial to maintain and deepen the user support we have worked so hard to earn up to now. We believe we can outperform other companies as long as we are able to continue this approach. This kind of strategy is already beginning to be implemented in Europe and North America, and we don't intend to be left behind. I keep coming back to this point, but the essence of a game's value is derived from it content-its worldview and characters, etc.
 
"Only companies that understand this and are able to continue providing customer satisfaction will be able to survive."

 

Note: Technically old news, but news that hasn't been posted yet.

 

Robz Gamez likes this

Share this post


Link to post
Share on other sites

No one struck them old news get out with that

Share this post


Link to post
Share on other sites

Capcom screwed up with Dead Rising 3 making it an Xbox One exclusive. That's lost sales from PS4, which would probably have doubled it's sales without even touching PC.

 

I have no sympathy for them at all.

 

A history of terrible decisions and sub par games. 

 

Another year like this one and they will go the way of THQ. And as far as i'm concerned .... not a single fuck will be given (I don't buy Capcom games).

Akirasolid likes this

Share this post


Link to post
Share on other sites

Kinda stopped paying attention to whatever games Capcom puts out for awhile now.

anubist800 likes this

Share this post


Link to post
Share on other sites

You know, Capcom. Maybe if you didn't spend so much money on development costs, you wouldn't have these problems. Like how Resident Evil 6 cost so much that even shifting six million copies was considered a disappointment?

Share this post


Link to post
Share on other sites

I've only got 80 quid in my back pocket, so capcom has it better than me.

 

Ok seriously. i remember hearing Capcom had no plans on releasing a next gen fighting game any time soon. I think this is a big mistake, there is practically no competition for fighting games there right now. KI and injustice. I'm not a huge Streetfigher fan but i know many are. and that game has always been a cash-cow for Capcom

Share this post


Link to post
Share on other sites

Capcom screwed up with Dead Rising 3 making it an Xbox One exclusive. That's lost sales from PS4, which would probably have doubled it's sales without even touching PC.

 

I have no sympathy for them at all.

 

A history of terrible decisions and sub par games. 

 

Another year like this one and they will go the way of THQ. And as far as i'm concerned .... not a single fuck will be given (I don't buy Capcom games).

 

You do realize that you're talking about the company responsible for the Street Fighter, Mega Man, Resident Evil and Devil May Cry series, yes? "Sub-par games and terrible decisions" indeed.

Share this post


Link to post
Share on other sites

You do realize that you're talking about the company responsible for the Street Fighter, Mega Man, Resident Evil and Devil May Cry series, yes? "Sub-par games and terrible decisions" indeed.

All games that have gone downhill over the years.

 

Devil May Cry hasn't had a decent one since 3.

 

Resident Evil 2 was the last good one I played of that.

 

Street "lets see how many times we can release the same game and add words on the end to milk people and put characters on DLC" Fighter.

 

You will forgive me if I don't marvel in amazement over a company who's games have been shit for the past several years and won't be missed should they crumble into the gaming abyss.

 

The IP's they own will be bought by others. It's not likely that Capcom will do great things in the future.

Glaice likes this

Share this post


Link to post
Share on other sites

All games that have gone downhill over the years.

 

Devil May Cry hasn't had a decent one since 3.

 

Resident Evil 2 was the last good one I played of that.

 

Street "lets see how many times we can release the same game and add words on the end to milk people and put characters on DLC" Fighter.

 

You will forgive me if I don't marvel in amazement over a company who's games have been shit for the past several years and won't be missed should they crumble into the gaming abyss.

 

The IP's they own will be bought by others. It's not likely that Capcom will do great things in the future.

 

Your displeasure with the direction the company has taken recently doesn't discount 15 years of industry shaping releases and video game excellence. Capcom brought arcade gaming into the living room. Capcom cemented Nintendo's success in North America. Capcom basically invented the action-horror genre of video games. They don't have a history of sub-par games. They have been experiencing difficulty adjusting to recent radical changes in the market, just like every other veteran development studio. Stop with the irrationaly hateful hyperbole.

Share this post


Link to post
Share on other sites

Your displeasure with the direction the company has taken recently doesn't discount 15 years of industry shaping releases and video game excellence. Capcom brought arcade gaming into the living room. Capcom cemented Nintendo's success in North America. Capcom basically invented the action-horror genre of video games. They don't have a history of sub-par games. They have been experiencing difficulty adjusting to recent radical changes in the market, just like every other veteran development studio. What's with the irrationaly hate filled hyperbole?

I don't hate them I just won't miss them.

 

What they did years ago was great .... then.

 

The industry left them behind and they don't show any signs of being able to catch up. See, people abuse CoD for being the same thing every year but Street Fighter 2 has been going for nearly 23 years and what they bring out now isn't vastly different to what came out then.

 

I don't "hate" anything in the gaming industry. There are things I like, things I don't and things i'm indifferent to. Hate is a bit of a strong emotion and one I juct don't have the energy to dredge up with regards to a company that just isn't relevant anymore.

Share this post


Link to post
Share on other sites

The problem is Capcom is trying to change their game series from what they were when they were established to something else entirely. Look at Resident Evil 6 and DMC as examples. I'm fine with updating your gameplay or rebooting the story, but don't go completely off the rails that you upset your fan base.

Share this post


Link to post
Share on other sites

Gomly and Spartan:

 

I agree with both of you in principle. I suppose the thing is that I still have faith in the veteran studios that shaped this industry. It's been a strange past several years, in that the pressure to SELL has overtaken the desire to produce quality titles. They are all experiencing this, from Capcom to Blizzard to Square Enix. I don't think it's fair though to pull the trigger on these groups and call them bygones. The developers know who their core audience is, and what we want, and I'm quite convinced that they want the same things we do. But until the current corporate feeding frenzy subsides, they will continue to pump out sub-par garbage for mass consumption. This trend will turn over, just as it did in the late 90s.

 

As obvious sports fans both, I think you can appreciate the idea of maintaining faith in a franchise inspite of distasteful episodes and long periods of disappointment.

Knighthawk23 and GTONeko like this

Share this post


Link to post
Share on other sites

It would be very sad to see Capcom go away. Whatever your opinion about the company is, you can't deny that it's a company that did a lot for the gaming industry and without it, the gaming industry would be different. They're not as influential these last years as they once were, but they're still making good games. I, for one, liked the latest DmC. SSF4 is an excellent game and so is Street Fighter X Tekken. I'm also looking foward to Deep Down, so here is hoping they stay around for long enough. 

Knighthawk23 likes this

Share this post


Link to post
Share on other sites

Oh I can certainly appreciate where you are coming from with Kami.

 

My problem with some of the "veterans" if you will, of the gaming industry is they still seem to be stuck in the mid 2000's. We don't see much in the way of moving forward. It seems like they know what their core supporters liked from the start and then stuck with it.

 

Resident Evil is the easiest way of showing how out of touch they are now. Resident Evil fans don't a third person action shooter, they want survival horror as it used to be (but without the shit controls).

 

I don't want any company in the industry to go under. Not only is the idea of people losing their jobs not a good one but the industry does need diversity and Capcom has been responsible for some of my favourite games (mainly in DMC 1 and 3).

 

My main thought is, if they faded into obscurity now I wouldn't miss them based on how they have performed recently.

 

I do hope i'm wrong and they bounce back. I'll be one of the first to come back to this thread, hold up my hands and admit I was wrong.

 

And that is why I don't hate anything in this industry. Even terrible games incredibly talented people behind them and they deserve a chance to shine. 

Share this post


Link to post
Share on other sites

Your displeasure with the direction the company has taken recently doesn't discount 15 years of industry shaping releases and video game excellence. Capcom brought arcade gaming into the living room. Capcom cemented Nintendo's success in North America. Capcom basically invented the action-horror genre of video games. They don't have a history of sub-par games. They have been experiencing difficulty adjusting to recent radical changes in the market, just like every other veteran development studio. Stop with the irrationaly hateful hyperbole.

 

Capcom's 15 years of glory isn't going to save their ass from the bad decisions they made over the past decade. They've been digging their grave for a while now and the success of Monster Hunter isn't going to carry them alone. They're literally one major fuckup away from having to file for bankruptcy.

Share this post


Link to post
Share on other sites

Capcom's 15 years of glory isn't going to save their ass from the bad decisions they made over the past decade. They've been digging their grave for a while now and the success of Monster Hunter isn't going to carry them alone. They're literally one major fuckup away from having to file for bankruptcy.

That's true. Monster Hunter is arguably the most popular franchise they have (Next to Street Fighter).

I think (as do many western gamers) that they should bring their Monster Hunter MMO over to the US and EU. More money will surely be theirs!

You know, for a company so focused on their wallet, not bringing the MMO (which is HUGE in Japan. Hold on, I got a picture of Monster Hunter Perfume around here somewhere...) to the west seems like an odd choice.

Share this post


Link to post
Share on other sites

Capcom's 15 years of glory isn't going to save their ass from the bad decisions they made over the past decade. They've been digging their grave for a while now and the success of Monster Hunter isn't going to carry them alone. They're literally one major fuckup away from having to file for bankruptcy.

 

Yes, because Lost Planet, Dead Rising and Okami weren't successful titles in their own right. It seems some people really need to form ficticious narratives around the fortunes and performance of certain game studios; fullfilling some burning desire to relish in someone else's failure. The resultant hyperbole and sensationalism is really quite amusing.

Share this post


Link to post
Share on other sites

Yes, because Lost Planet, Dead Rising and Okami weren't successful titles in their own right. It seems some people really need to form ficticious narratives around the fortunes and performance of certain game studios; fullfilling some burning desire to relish in someone else's failure. The resultant hyperbole and sensationalism is really quite amusing.

I'll be honest, I always expected Okami to make a come back. I know that game has quite a good cult following. I know it had a "sequel" for the DS but I thought it would get more.

 

As for Lost Planet, that's a series that should have sold better than it did. I quite enjoyed those (although I haven't got 3 yet).

 

I'm still annoyed over Dead Rising 3 though.

Share this post


Link to post
Share on other sites

Capcom haven't been making any type of good decisions lately. I did like the fact that they were brining back all the IP that they outsource back into the company but but now they want to focus on dlc? That's even worse. You'd rather spend resources on dlc and not new ips, come on Capcom. And there's a rumor that Capcom might be losing the Marvel license.  

Share this post


Link to post
Share on other sites

Capcom screwed up with Dead Rising 3 making it an Xbox One exclusive. That's lost sales from PS4, which would probably have doubled it's sales without even touching PC.

 

That is exactly what I thought when I read the news.

Knighthawk23 likes this

Share this post


Link to post
Share on other sites

well Capcom. This shit could be avoided if they listen to the Gamers instead of their Manager's and Shareholders. They turned Street Fighter to Street Milk every 6 Months DLC Fighter, they turned Resident Evil to Resident of Duty since RE5, they cancelled Megaman Legends 3 and killed the entire Franchise, they turned Devil may Cry to Emo Dante will Cry with the help of Ninja Theory. Monster Hunter? Never played one. Can't say about that Franchise but Capcom is not like Capcom of the SNES/PS1 era. If Capcom continues to go this way they will end up like THQ.

Akirasolid likes this

Share this post


Link to post
Share on other sites

That is exactly what I thought when I read the news.

Its easy to say they screwed up with Dead Rising 3, but to be fair nobody knows how much Microsoft paid them for the exclusivity. the money that Microsoft paid maybe all that is keeping them afloat now for all we know.

Share this post


Link to post
Share on other sites

Oh I can certainly appreciate where you are coming from with Kami.

 

My problem with some of the "veterans" if you will, of the gaming industry is they still seem to be stuck in the mid 2000's. We don't see much in the way of moving forward. It seems like they know what their core supporters liked from the start and then stuck with it.

 

Resident Evil is the easiest way of showing how out of touch they are now. Resident Evil fans don't a third person action shooter, they want survival horror as it used to be (but without the shit controls).

 

I don't want any company in the industry to go under. Not only is the idea of people losing their jobs not a good one but the industry does need diversity and Capcom has been responsible for some of my favourite games (mainly in DMC 1 and 3).

 

My main thought is, if they faded into obscurity now I wouldn't miss them based on how they have performed recently.

 

I do hope i'm wrong and they bounce back. I'll be one of the first to come back to this thread, hold up my hands and admit I was wrong.

 

And that is why I don't hate anything in this industry. Even terrible games incredibly talented people behind them and they deserve a chance to shine. 

I love the view you've got here as I've said in another topic "Hating a videogame achieves nothing, it is an inanimate object it cares nothing for your hate. And it has no qualities with which are deserved of such an emotion as hate."..... or it was something to that effect anyway, I do seem to remember it being more succinct than this version.

Gone likes this

Share this post


Link to post
Share on other sites

Its easy to say they screwed up with Dead Rising 3, but to be fair nobody knows how much Microsoft paid them for the exclusivity. the money that Microsoft paid maybe all that is keeping them afloat now for all we know.

I like it when people realize that exclusivity isn't something any dev team hands out for free, consider Halo for a moment will you? it isn't exclusive to the Xbox because M asked nicely, its exclusive because M paid for its development.

Share this post


Link to post
Share on other sites

tbh the best case scenario is that they go completely out of business like THQ did, and competent companies pick up the better IPs. DR3 seemed like it was okay, though I'll never have an xbone so I don't really know for sure, and I guess japan loves the shit out of monster hunter, but other than that it's been 100% incompetence for a while now.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now