Quarterly revenue saw Capcom’s content business drop 55% to $146 million, with games down 49%.
Specifically, Capcom announced financial results covering the three months ended June 30, reporting a year-over-year decline in revenue and operating income. The company said net sales were $184 million, down 48% year-over-year.
Operating income fell 49 percent year-on-year to $87.6 million. For Capcom’s digital content business — which includes video game production — the company reported a 55 percent drop in revenue. % to $146 million.
The company attributed their drop in sales to a tough comparison with last year’s lineup, which saw the release of Resident Evil Village but pointed to strong performance from the Monster Hunter series.
Monster Hunter Rise: Sunbreak, the latest expansion, has sold 2 million copies. While Rise, to date has reached 10 million copies globally. Going forward, the company reiterates its forecast for the full financial year.
Capcom expects net sales of 120 billion yen ($876 million), which would be a six-year record high. Operating revenue is forecast at $350.5 million, marking 10 years of consecutive operating income growth.
Despite the drop, Capcom says its digital content sales have remained steady, thanks to Monster Hunter Rise Sunbreak, which has sold 2 million copies. Arcade activity is also doing well as more and more people venture to malls and arcades to play games, and the Entertainment segment is mostly flat. Capcom said it is confident it will achieve record operating income growth through fiscal 2022.
Capcom has been around for a long time and has been successful for two decades. However, even such successful companies need to innovate to make money and stay afloat. Recently, the Japanese game developer did just that and is now seeing the results.
A recent report detailing Capcom’s last fiscal year tells us that the company’s Steam sales grew 62.5%. It made a whopping 17.2 billion yen from Steam sales last year, or about $126 million. This number accounts for nearly 15.6% of the company’s total revenue in 2022.