Capcom reports 44% decline in game sales for Q1 FY25 – London Business News | Londonlovesbusiness.com

According to Capcom’s financial report for the first quarter of the fiscal year ending on March 31, 2025, the company’s game sales have seen a dramatic decrease of 44% compared to the last financial year.

However, Capcom has stated that “all business segments outperformed the company’s plan.”

Key Highlights:

• The Digital Contents (video games) division of Capcom generated ¥21.4 billion ($139.2 million) in revenue, a 44% decline from Q1 2023.
• Other segments performed well: Arcade Operations increased by 18%; Amusement Equipment sales surged by 147%.
• Capcom’s revenue for the first quarter was ¥29.6 billion ($192.6 million), a 32.5% decrease compared to the same period last year.
• Net income decreased by 45.1%, totalling only ¥9.97 billion ($65 million).
• Operating income dropped by 46.4% year-over-year, totalling ¥12.9 billion ($84 million).
• Digital sales, despite a 38% decline, remained the primary distribution channel with ¥17.8 billion ($115.8 million) in revenue.
• Physical game sales decreased by 73%, amounting to only ¥2.4 billion ($15.6 million).
• Mobile revenue saw significant growth, increasing by 150% to ¥1 billion ($6.5 million).
• The company projects net sales of ¥165 billion ($1.07 billion) for the fiscal year ending March 31, 2025, which is an 8.3% increase from the previous year.

Syed Arham, an author at TheSolitaire.com, expressed his concern over the company’s performance this year by stating: “While it’s reassuring to hear Capcom state that their progress toward meeting their full-year plan for the segments concerning video games is generally on track, it’s clear how the lack of new Resident Evil, Monster Hunter, and Street Fighter has taken its toll.”

“At the same time, I don’t believe that fans should take this drop in performance as a bad omen for Capcom. The company’s nonchalant attitude to this situation should be a good indicator that they have a good grip on the situation and were totally expecting this hiccup”.

The company is down generally in terms of revenue, hitting ¥29.6 billion ($192 million) in net sales for the quarter ending on June 30, 2024. This is a significant drop of 32.5% from last year’s performance. Capcom’s total net income of ¥9.97 billion ($64.7 million) and operating income of ¥12.9 billion ($84 million) have also taken significant hits of 45.1% and 46.4% respectively.

While the Monster Hunter games on mobile showed a strong performance, with the franchise surpassing 15 million downloads, the game sales totalled only 9.53 million units in Q1 FY25, down from 13.5 million units in the same period last year, which undoubtedly had the advantage of Street Fighter 6 and the recent release of Resident Evil 4 Remake.

Capcom did release older Monster Hunter titles, such as Monster Hunter Stories and Monster Hunter Stories 2L Wings of Ruin, on new platforms during the quarter. This helped the series reach over 100 million sales in total.

On the bright side, Capcom has lots of great figures to show this quarter in the arcade operations and amusement business. Arcade net sales reached ¥4.9 billion ($3.7 million), and the amusement sector achieved ¥2.2 billion ($14.2 million), reflecting increases of 18.1% and 147.2%, respectively. The company’s success with ARPG Dragon’s Dogma 2 also contributed to its performance, exceeding expectations for Q1 FY25.