Capcom Revaluates Its Business To Counter Quality Decline

Capcom Revaluates Its Business To Counter Quality Decline

Capcom has revaluated its fiscal year 2013 profit forecasts in light of a "special loss" that resulted from "the sudden and significant changes in the operating environment of the Digital Contents business" as well as the cancellation of several high profile in-development titles.

The company’s original estimates forecasted revenues of 93.5 billion yen ($950.0 million) and profits of 6.5 billion yen ($66.0 million) for the fiscal year that ended on March 31, 2013. However, it ended up reporting a loss of 7.3 billion yen ($74.0 million).

In wake of those losses, the company revaluated its operations and initiated a company-wide restructuring. As part of this restructuring, the company decided to change its strategy to increase focus on DLC and in-house development.

The company acknowledged that there has been a "decline in quality of titles outsourced to overseas developers." As a result, some in-development outsourced games will be brought in-house while others will be outright cancelled.

According to Capcom’s revisited estimates, the company now forecasts reduced profits of 2.9 billion yen ($29.6 million) for the year, down 55.4 percent compared to its previous forecast.