Capcom’s latest financial report reveals the company has cut their predicted profits for their 2012 fiscal year by over 50 percent.
Their analysis of sales issues lists a “concentration of AAA titles in the hands of few foreign competitors” and a “decline in quality of titles outsourced to overseas developers” as a contributing factor.
The company also cited a “delayed response to the shift to digital media in the Home Video Game business.”
As a result, Capcom’s projected net income of 6,500 million yen has dropped precipitously to 2,900 million yen.
Perhaps the most unsettling news of all to come out of this financial report is that “work in progress” games were “strictly re-evaluated for business restricting.”
The financial report also included a title lineup for the fiscal year ending March 31, 2014. Monster 4, Lost Planet 3, and Resident Evil Revelations are specifically mentioned, along with “other major titles.”