Capcom has claimed that it is on track for 10 consecutive years of operating income growth, despite the fact that its latest sales and revenue have declined year over year.
For the three months ended June 30, 2022, net sales fell 47.9% year-on-year to 25.232 billion yen, operating income fell 48.9% to 12.061 billion yen, and ordinary income fell 46.4% to 12.802 billion yen.
The company attributed the decline to the release of “a major new title” in the same period last year: Resident Evil Village.
However, Capcom said it is on track to meet its full-year earnings forecast and said it will “focus on upcoming major title releases in the second half of the year,” as well as the continuous promotion of digital sales.
The Resident Evil 4 remake is set to release a week before the end of its current fiscal year in March 2023, while Street Fighter 6 and Exoprimal have vague 2023 release windows.
In the last quarter, Capcom sold about 11.7 million units of game software, including 2 million sales for Monster Hunter Rise: Sunbreak. As is customary for the company, its performance was also boosted by continued digital sales of its back catalog titles.
Capcom previously said it expected a 10th consecutive year of record growth for its current fiscal year 23, with “significant new titles” including Monster Hunter Rise: Sunbreak expected to increase net sales by 9% for the year.
The company reiterated that it is working to increase its development staff and expand its game portfolio using existing IP and creating new properties. The publisher announced its first new IP in 8 years, Pragmata, in 2020.
Capcom also said it will prioritize improving its work environment to drive its growth goals. This includes previously announced plans to raise Japanese base salaries as part of broader changes to its human resources operations.
In May, the company confirmed it will also overhaul its compensation system, tie bonus payments more closely to performance, improve its employee benefits and wellness program and create a new chief human resources position.
The company also said it would look at the diversity of its board of directors to achieve “stronger management capabilities”.