Here's just a few of the things Capcom said in their latest report, there's more if you read the report.
Specifically, the cost to sales ratio (59.7%) in the year under review improved by 11 percentage points compared to the previous fiscal year(70.7%), which effectively reduced the cost of sales to 7 billion yen. The main contributing factor was cost of sales improvements in the Consumer sub-segment, which included (1) improvements to title outsourcing consisting of the discontinuation of unprofitable title outsourcing in the previous fiscal year, which stopped losses with a 2 billion yen rebound.
Factors Influencing Performance Results and Missed Targets:
rather than rising development costs associated with each title, the decline in operating income was due to major titles whose sales fell short of their targets or were postponed, resulting in sales of 14 million units (down 10.8% from the previous fiscal years), adversely affecting consumer (package and DLC) profitability.
Resident Evil 6 4.9 million
DmC Devil May Cry 1.2 million
Monster Hunter 4 2 million
etc.
As stated in the CEO Message (see Q2 on page18), the consumer
market is currently going through major changes due to DLC market expansion and market oligopolization by certain titles. Capcom was late responding to the rise of DLC and we had quality issues with titles outsourced overseas, all of which has impacted earnings. Furthermore, popular “DmC Devil May Cry”, created by overseas development company Ninja Theory in an attempt to fuse overseas tastes with Capcom’s taste, fell short of its targeted 2 million units to sell only 1.2 million units resulting in losses in the Consumer sub-segment.
Based on internal and external analyses, the reasons these targets
were missed included the late DLC response within the Consumer
business, the framework of our growth strategy, and the low
quality of titles developed overseas.
Regarding titles developed overseas, remarkable technological
innovations in the market further exacerbated differences in the
level of quality among overseas development companies. Sales were lower than expected because of development company quality issues and frequent deviation from schedules.
Alright guys, sorry if it looks a little fractured, there was a lot of copying and pasting going on above but I put in some of the things in the report that I could find real quick. There's more in the reports that Capcom has at their Capcom Investor Relations website. They have all the fiscal years so you can go back and forth through the reports on all of the years you want, even previous to recent years if you want to see what led up to what. And just for the record, I like DmC, I'm not one of those people that just hates on it because it's not the original series, if DmC2 was being made right now, I'd be hyping it up and saying how it will be awesome. So please don't just assume I'm making stuff up because I don't like DmC, I do. Go read the reports, there's a lot of info in there that is eye opening. By the way, looking at my previous post, maybe the word "blaming" was the wrong word to choose but they did throw them under the bus I think.
