Capcom Halves Their Profit Forecast – Impending Restructure
At the end of 2012 it was looking like Capcom was going to have a strong year based on their 2013 release schedule. Now things aren’t looking so hot. Capcom has posted several figures that show Resident Evil 6 and DMC Devil May Cry under performing. This has caused the publisher to cancel several overseas projects, and internalize development on future titles. They have cited several reasons for adjusting earnings.
- Decline in product quality due to excessive outsourcing
- Communication failure between marketing and development teams
- Delayed response to digital markets (meaning they’re behind the times)
Capcom still has several titles scheduled for release in 2013. The third person action game Remember Me is another risky move on the publishers end, but it may just pay off in the end. Monster Hunter 4, Lost Planet 3, and Resident Evil Revelations: Unveiled Edition are still looming for the mid and latter half of 2013.
How does Capcom plan to fix their financial woes? It seems DLC is the answer, it’s what’s making them money after all. They’re strategy here on out will rely even heavier on post launch content. It’s a practice they’ve come under fire for in the past, but who can blame them? People complain about CoD as well, but it still generates more money than any other franchise on the market. It’s consumers that are perpetuating this trend, and complaining isn’t going to help. If you want publishers to adjust their business practices, you need to hit them in the wallet. Large publishers have a form letter for every possible consumer complaint, but as we’ve seen lately, they don’t have a form letter to explain losses to their board of directors.
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