Capcom announced, for the first six months ending 9/30/22, sales were down 30% to 49,067 million yen from the previous year period. Net income was down 27% to 16,142 million yen. Despite the decline, Capcom raised its forecast for the fiscal year ending 3/31/22 from 120,000 million yen to 125,000 million yen.
Analysis
Capcom is a relatively small Japanese publisher that has a long history in the video game business. The company has some premiere game franchises such as Resident Evil, Street Fighter, and Monster Hunter. Like many companies, Capcom faced a tough comparison with a strong first half of the previous year when revenue was up 66%.
The Resident Evil 4 remake is scheduled for release on March 24, 2023, right before the end of the fiscal year. Capcom is aiming for 10 consecutive years of operating growth, despite the decline.
Over the years Capcom has gone from being a provider of arcade and amusement equipment to primarily a home video game provider. For the full fiscal year, Capcom is expecting 78% of revenue to come from its digital content business (aka video games). Only 3% of the digital contents revenue is expected to be mobile content.
