Huge drop in profits compared to this time last year.
Capcom have reported a net income of 216 million yen ($2.4 million) for the quarter ending June 30, 2010. Compared with the same period in 2009, this is a 94.8 percent drop. While profits are down, net sales are similar to last year, with just a 2.4 percent drop to 19,037 million yen ($219 million).
The shrinking US and European markets due to the state of the economy and the strong yen are large factors in the profit decrease. Titles such as Super Street Fighter IV and Monster Hunter Frontier Online showed steady sales growth, but Lost Planet 2 sales failed to match projected earnings, leading to overall stagnant sales. The slow sales rate of Monster Hunter Tri for Wii and the struggle of Ghost Trick for DS in the Japanese market has contributed to the figures.
New franchises have high development costs, yet risk worse sales performance compared to established franchises. Recent reports from Capcom have stated the company's intention to release more titles of their more profitable franchises.
The interim results do not affect predicted income for the year ending March 31, 2011, an expected net income of 8,000 million yen ($92 million).