The company attributes the decline to the lack of releases of new major titles in the quarter.
Capcom has released its financial results for the three months ended June 30, 2022, reporting a significant decline in both net sales and operating income.
According to the report, the company's net sales amounted to 25,232 million yen ($184 million) which reflects a year-on-year decrease of 47.9%. Capcom's operating income for the quarter was 12,061 million yen ($88 million), down 48.9% compared to the same period last year.
Net sales of Capcom’s Digital Contents unit (video games) also fell – by 54.8% year-over-year reaching 19,860 million yen ($145.3 million), and operating income in the segment decreased by 48.7% to 12,541 million yen ($91.76 million).
In total, Capcom sold 11.7 million copies of gaming software during the quarter, thanks to the release of Monster Hunter Rise: Sunbreak, as well as the sales of catalog titles mainly comprising of past entries in major series such as Monster Hunter Rise.
Capcom attributes the massive decline in revenue to the lack of releases of new major games in this period. Around the same time last year, the company released Resident Evil Village and Monster Hunter Rise – both games showed good results generating substantial revenue for the company.
However, despite the significant decline, the company hopes to achieve its expected full-year earnings expecting its annual net sales and operating income to reach 120,000 million yen ($875 million) and 48,000 million yen ($350 million), respectively.