Capcom Halves Forecast, Blames “Excessive Outsourcing”
Capcom has revised down sales forecasts for its big games of the last year, blaming “excessive outsourcing” for hindering the quality of the finished products, among other factors.
In a note to investors, the company reports that it’s halving its profit forecast due to planned restructuring of the company in a bid to modernise the business.
It explains, “In view of the sudden and significant changes in the operating environment of the digital contents business, Capcom reviewed its business expansion strategy for the sector and restructured its game development organization.”
An accompanying presentation reveals that this will mean “the discontinuation of development of titles” that have yet to be announced, including overseas outsourced projects that are “no more compatible with the current business strategy.”
The other factor behind the downcast of profits is revised sales figures for the likes of Resident Evil 6, Monster Hunter and DmC: Devil May Cry. The company now predicts it’ll shift 4.9 million copies of Resi 6; when the game first launched, this number was 7 million. For DmC, the number’s gone down to 1.15 million when it was originally 2 million.
Three reasons were given for the disappointing sales: a “delayed response to the expanding digital contents market”; “insufficient coordination between the marketing and the game development divisions in overseas markets”; and, most interestingly, a ”decline in quality due to excessive outsourcing”.
While we don’t know whether Monster Hunter 4 will be released in the west, the company still has a number of exciting projects due to release this financial year including Remember Me and Deep Down.
Luke Karmali is IGN’s UK Junior Editor. You too can revel in mediocrity by following him on IGN and on Twitter.
By Luke Karmali