Capcom in Dire Financial Straits, Entering Next Gen With Only $152 Million

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According to a recent report by GameIndustry, Capcom is in rough financial shape, with only $152 million in the bank as of the time of this writing.

While that might sounds like a pretty big chunk of change to all of you Powerball dreamers out there, it’s a perilous position to be in for a developer, where just one big-budget dud could risk breaking the bank  forcing dramatic measures like internal studios shuttering, projects being cancelled, and massive layoffs to help stem the financial bloodletting. Putting things in perspective, Nintendo has earned roughly the entirety of what’s in Capcom’s coffers in a three month period.

Capcom may have to resort to some desperate measures if they want to claw their way out of the hole they’ve gotten themselves into and remain a major force in the games industry.

Unfortunately, this could very well mean we’ll be seeing more of Capcom’s much maligned DLC exploitation that turned off many of the company’s fans in the first place in order to maximize profits from their upcoming releases.

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Gamer’s lukewarm reception of Lost Planet 3 certainly isn’t helping matters

“I regret to say that, up to now, we had few plans for the full-scale implementation of DLC,” said COO Haruhiro Tsujimoto. “From here on out, we need to focus on the long-term provision of content starting at the earliest stages of development. Furthermore, in terms of user response, if the additional related content we are providing continually to users online is deemed uninteresting from the start, there will be no ongoing business to pursue. This means that, more than ever before, the creation of underlying content is the key to success.” COO Haruhiro Tsujimoto

In addition to the much ballyhooed DLC, the company also plans to win over more casual gamers with lower-budget mobile releases.

“Today’s mobile game industry is a world apparently full of dreams about making a fortune off a hit game. But if the hit is just a one-off, success is transient. For Capcom, it is crucial to maintain and deepen the user support we have worked so hard to earn up to now. We believe we can outperform other companies as long as we are able to continue this approach. This kind of strategy is already beginning to be implemented in Europe and North America, and we don’t intend to be left behind. I keep coming back to this point, but the essence of a game’s value is derived from it content-its worldview and characters, etc.

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Could mobile titles be the linchpin of Capcom’s survival?

“Only companies that understand this and are able to continue providing customer satisfaction will be able to survive.” said Tsujimoto.

We expect to see Capcom diligently milking some of their biggest properties in the mobile market in order to earn that green, such as the recently announced Street Fighter X All Capcom, currently slated for mobile devices in Japan.

Hopefully Capcom is able to pull off a hail Mary and get themselves back on some sure financial footing, because the cost of developing games for Sony and Microsoft’s next-gen platforms seems all but sure to skyrocket.

While we hate to see Capcom struggle, it’s no mystery what got the once revered company into the rut they currently occupy. Major exploitation of core franchises, the overabundance and downright shady integration of  shipping on-disc DLC with their games and the blatant abandonment of the company’s longtime mascot, Megaman, all served to strain relationships with even their most stalwart longtime supports.

Can Capcom pull themselves up by the bootstraps and become a compelling force in the videogame industry again? Let us know what you think in the comments below.

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