Capcom has revised expected net profits for the current fiscal year down sharply from 6.8 billion JPY to 3.3 billion JPY. The Japanese publisher attributed the 50 per cent reduction to expected costs related to major structural changes in the company’s mobile business.
“Due to rapid changes taking place in the market for games, Capcom is building a sound base for earnings by reorganising the product development framework and improving development processes,” said Capcom in a statement to shareholders. “These are two core elements of the company’s operations.”
Capcom has earmarked 5 billion JPY for ‘business structural improvement expenses’ in the company’s latest fiscal year forecast. Despite also revising net sales up 4.6 per cent on the strong global performance of Monster Hunter 4 for Nintendo 3DS, Capcom noted that mobile revenues and the multiplatform MMORPG Monster Hunter Frontier G both performed well below expectations.
“Today’s mobile game industry is a world apparently full of dreams about making a fortune off a hit game,” said Capcom earlier. “But if the hit is just a one-off, success is transient. For Capcom, it is crucial to maintain and deepen the user support we have worked so hard to earn up to now.”
