Capcom announces 50 percent reduction to profit forecast

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Capcom announces 50 percent reduction to profit forecast
Capcom has announced that their profit forecast for the fiscal year, ending March 31st, 2014, has been reduced by half due to internal restructuring and below expected sales.

According to an announcement by Capcom, the company has had to reduce its profit forecast for the fiscal year, which ends March 31st, 2014, by half due to lower than expected sales and internal restructuring. Originally forecasting a profit of around ¥6.8 billion ($65 million), their new forecast measures around ¥3.3 billion ($32 million). One of the major reasons for this reduction in profit comes from "structural improvement" expenses of about ¥9.3 billion ($90.1 million).

"Due to rapid changes taking place in the market for games, Capcom is building a sound base for earnings by reorganizing the product development framework and improving development processes. These are two core elements of the company's operations," stated Capcom in the forecast note.

To put it more simply, Capcom's restructuring efforts have gone primarily to improving their efficiency in developing games, making sure not to compromise the quality of the end products. "The objective of these activities is to earn consistent earnings in each fiscal year. However, these initiatives have not yet started to produce benefits mainly in the Mobile Contents."



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