Capcom 19 Apr

Capcom has announced that they are planning to restructure, a move which will cost them around £46 million (approx. $70 million).

“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.” the publisher explained.

Capcom has also told investors today that multiple projects have been cancelled “due to delays in responding to the digital contents and the resulting inability to address market needs”. The publisher also stated that outsourced overseas projects have also been cancelled, claiming they are “no longer compatible with the current business strategy”. Capcom has issued a blanket “no comment” to press asking for confirmation of which titles have been canned.

Capcom criticized development operations for “a decline in quality due to excessive outsourcing”. The publisher’s main goals now are to strengthen its digital strategies and “raise game quality by moving more game development in-house”. Capcom was initially targeting a financial year profit of £43 million (approx. $65.8 million). Due to the restructuring cost and other expenses, they have re-evaluated their net income to be around £19 million (approx. $29 million).

Despite major sales success in their 2013 fiscal year, driven largely by Resident Evil 6, Capcom believes its current financial outlook is even bigger; targeting sales of about £648 million (approx.$993 million) , as opposed to FY 2013’s £625 million (approx. $958 million).

(via CVG)