Q1 2022 brings an end to growth momentum
Capcom has released its financial results forthe first quarter of 2022, which sees the developer/publisher record year-on-year losses for the first time in recent memory.
The company recorded a revenue drop of 48% when compared to the same period in 2021, with a net sales figure of around ¥25.2 billion, (or roughly $184 million USD). Additionally, Capcom’s operating income dropped by a huge 49%, with a total of ¥12 billion (or around $87.6 million).
The 2022 quarter was the first in some years where Capcom did not release a new or remade entry in its dominantResident Evil franchise, which definitely carries some of the fiscal deficit in the new report. To date, Capcom’s only major releases for 2022 are the PC port of 2021 releaseMonster Hunter: Riseand its DLC expansionMonster Hunter Rise: Sunbreak. The company has also released two new retro compilations in the form ofCapcom Arcade 2nd Stadiumand theCapcom Fighting Collection— though the sales of these titles would not count toward the company’s Q1 results.
Despite the slump in sales revenue, Capcom remains walking the golden mile for the time being, the publisher has seen huge success since the launch of its best-ever seller,Monster Hunter World, back in early 2018. Releases such asDevil May Cry 5, Resident Evil 2, Resident Evil 3, andResident Evil Villageall saw resounding success, with the coffers further bolstered by retro releases (such asGhosts ‘n Goblins Resurrection) and various paid DLC expansions for franchises includingMonster HunterandStreet Fighter.
Speaking of which, Capcom is looking ahead to turn the sales decline around. This coming fall will see the arrival ofResident Evil VillageDLC “Winters’ Expansion,”alongside the repeatedly delayed multiplayer componentRe:Verse. In early 2023, Capcom will be looking to capitalize on the quarter with the highly anticipated launch ofStreet Fighter 6,which is on deck to spearhead the company’s fighting and esports sector. This major release will be followed up later in 2023 by multiplayer dino shooterExoprimal,and epic sci-fi adventurePragmata.
As such, the reported decline in sales is like to be a minor bump in the road in regards to the bigger picture of Capcom’s future projections for 2022 and beyond.
