Capcom Reports Second Full Year Loss

Officials from Capcom have announced the company’s fiscal full year results, which show losses amounting to ¥9.16 billion ($81.3m) for the year – less than half the loss reported in 2002. Operating profit, however dropped by a massive 79% to ¥1.4 billion ($12.4m). The poor performance is blamed on the failure of several key products in North America and Europe – specifically Dino Crisis 3 and Viewtiful Joe – with global sales dropping by only 15% to ¥52.7 billion ($467.7m). Sales in North America, however, dropped by 50% to ¥4.6 billion ($40.8m), with European sales down by 35%. By comparison sales in Japan were buoyant with a profit of ¥8 billion ($71m), with significant growth seen in both the console and arcade sectors. Apart from the unexpectedly poor performance, and delay, of some key products the company’s losses are largely due to its restructuring in the light of its previously massive losses from its banking operations. The company expects to return to reprofitability next year, with a projected net profit of ¥3.9 billion ($34.6m). Source: gamesindustry.biz