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Capcom
Distilling the key insights…
Capcom revised its financial outlook for the fiscal year ending March 31, 2015, citing operational delays across multiple business segments. The primary driver for the downward adjustment in revenue is the postponement of a pachislo machine launch, alongside delays in the release of several small-scale consumer titles and the rescheduling of PC online game distributions. Consequently, the company lowered its net sales forecast from 80 billion yen to 65 billion yen, representing an 18.8 percent decrease.
Despite the significant reduction in top-line revenue, the operating income forecast remains unchanged at 10.5 billion yen. This stability is attributed to the high profit margins associated with strong digital download sales and the successful implementation of company-wide cost-cutting measures. Furthermore, ordinary income and net income projections were revised upward by 3.0 percent and 4.9 percent, respectively, due to favorable foreign exchange gains.
The scope of these revisions encompasses the company’s global operations, specifically impacting the Digital Contents and Amusement Equipments divisions. Within the consumer sub-segment, the revised unit sales plan reflects a reduction in both physical package sales and digital full-game downloads. The company acknowledges that performance in the entertainment industry remains inherently volatile, influenced by shifting consumer needs, the success of specific hit titles, and broader market conditions. These projections are based on current information and reasonable assumptions, though actual results may vary due to the unpredictable nature of the global gaming market.
Capcom · 2016