Capcom says the reason why the company’s sales have dropped recently is due to the success of Resident Evil Village.
Releasing some of the game industry’s most popular franchises including Resident Evil, Street Fighter, Monster Hunter, etc., Capcom has an incredibly powerful IP portfolio. While the future of Capcom games looks bright for the gaming community as titles like Street Fighter 6 and Exoprimal are due out in 2023, the company recently shared some information not related to your game. Capcom showed off the company’s financial intentions for the coming years and how it plans to mark its tenth year of earnings growth.
Capcom has stated that they are on track for ten consecutive years of growth despite the recent decline in sales. For the second quarter of 2022 ending June 30, Capcom saw a 47.9% drop in net revenue year over year. Operating income fell 48.9% and ordinary income also fell 46.4%. However, Capcom believes that this decline compared to the quarter of 2021 is mainly due to the launch and success of a major title, Resident Evil Village. The latest game from the Resident Evil series has achieved a large number of sales and as of January 2022 the game has sold 5.7 million copies. It seems Capcom thinks Resident Evil Village has eclipsed the company’s other titles.
Having an explanation for this drop in earnings doesn’t mean Capcom isn’t looking to improve from its revenue decline. The company still claims it’s on track to hit its expected full-year earnings, which will likely recoup lost revenue through other major titles released in the second half of fiscal 2022. The Resident Evil 4 Remake, for example, will release at the end of March 2023, just a week before the end of Capcom’s fiscal 2022.
Prior to the release of Resident Evil 4 Remake, Capcom had already begun to have some success. 2 million of the company’s 11.7 million units sold came from Monster Hunter Rise: Sunbreak. This latest expansion for Monster Hunter Rise brings new monsters, regions, and more to fans, helping the title grow in popularity. Sales of Monster Hunter Rise: Sunbreak and other titles are projected to boost net profit by 9% in fiscal 2023, helping to increase wages and further improve employee benefits.
There are also a number of other major titles that could help Capcom’s sales reach its 2023 target. Currently, Street Fighter 6 and Exoprimal have an undetermined release date of 2023, which means when When these games come out, Capcom will drastically increase its revenue with those games in addition to Resident Evil 4 Remake. There’s also the Resident Evil Village DLC to also potentially generate a lot of revenue for Capcom.
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