Smurfs and dragons: Capcom's recipe for a strong financial quarter
"Sluggish." That's how Capcom categorized its financials
for its last fiscal year, which ended in March 2012. Sales were down. Profits were down. Resident Evil: Operation Raccoon City
was the bright spot...
But Capcom's turning over a new leaf this fiscal year. The Osaka, Japan company today said social games (that's Japanese for "mobile games") and the open world game Dragon's Dogma
have set a strong foundation for record high profits this year.
The numbers do the explaining: Revenues for the quarter ended June 30 hit 18.62 billion yen ($283.13 million), up 56 percent. Profits were up a beefy 290 percent to 1.32 billion yen ($16.88 million).
And with Resident Evil 6
due later this year, the company reiterated that it expects annual revenues to rise 27.9 percent to 105 billion yen ($1.31 billion), and profits to increase 45.7 percent to 9.8 billion yen ($122.6 million).
While established franchises like Resident Evil
are expected to perform well and boost Capcom's numbers, it was Dragon's Dogma
that was a real surprise hit for Capcom.
It's Capcom's first effort at a large-scale, open world game; it's a new intellectual property; it launched near the end of the console cycle; and it shipped over a million units
, exceeding Capcom's expectations. True, it didn't sell that great in Western territories, but its success in the more profitable domestic Japanese market means that the game will expand into a proper Capcom franchise.
Driving profits and revenues along with Dragon's Dogma
were Capcom's mobile games such as Minna to Monhan Card Master
, Resident Evil: Outbreak Survive
, The Smurf's Village
and Snoopy's Street Fair
, which were "steady" revenue drivers for the company.