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Capcom Slips Back into the Red
03.31.04 - 6:55 PM

Capcom has revised its projections for the full fiscal year 2003/2004, which has ended on March 31st. Instead of the previously projected net profit of 4.2 billion yen ($39.77 million US), the company now predicts a loss of 9.4 billion yen ($89.01 million US) . Compared to the previous fiscal year, sales were down from 61 billion yen ($577.60 million US) to 53 billion yen ($501.85 million US). The two main reasons for today's downgraded projections can be found not in Japan, but in the US and Europe, where Capcom's profit ratio has declined as a result of increased sales promotions for its market inventory and a changed release schedule in the US. Furthermore, Capcom had to act on behalf of an affiliated subsidary, which resulted in costs of 3.5 billion yen ($33.14 million US) for loans and damage insurance payments.


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Chris Winkler




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