Capcom 3rd Quarter Financial Results: Fiscal Year Ending March 31, 2014

Capcom’s financial results for the third quarter of the fiscal year ending March 31, 2014, reflect a period of growth in net sales alongside a decline in operating income. The company reported net sales of 75.2 billion yen, a modest increase over the previous year, while operating income fell to 8.5 billion yen. This earnings contraction is primarily attributed to a difficult year-over-year comparison in the Amusement Equipments segment, which benefited from the high performance of the Resident Evil 5 pachislo machine in the prior period.

The Digital Contents segment served as a primary driver of activity, bolstered by the successful launch of Monster Hunter 4, which exceeded 4 million units shipped, and Dead Rising 3, which surpassed 1 million units. While packaged software sales remained relatively stable, the company saw significant growth in digital distribution, with full-game downloads reaching 3.6 million units. Conversely, the Mobile Contents division underperformed due to a lack of new hit titles, prompting a strategic shift toward launching new applications to regain momentum.

Geographically, the company’s performance remains heavily concentrated in Japan, which accounted for the majority of sales. The Arcade Operations segment experienced a 5% decline in existing store sales, though the company maintained profitability through rigorous cost control measures and the optimization of its facility footprint. Looking ahead, the company maintains its full-year forecast, focusing on the continued monetization of major titles through repeat sales, the expansion of online content, and the introduction of new amusement equipment, including the Monster Hunter Gekka Raimei pachislo machine. The overall financial outlook remains stable, supported by a favorable foreign exchange environment and a commitment to dividend payouts.