RPGFan


Capcom Lowers Profit Projections
04.01.06 - 1:53 PM

Capcom today announced that it has lowered its financial projections for the full fiscal year 2005/2006 that ended on March 31st. While the Osaka-based company stuck with its sales forecast of 70 billion yen ($595.56 million US), net profit is now expected to reach only 6.5 billion yen ($55.30 million US) instead of the previously projected 8.9 billion yen ($75.52 million US).
While Capcom acknowledged the negative impact of the current slump in the North American game market and weak sales of several new releases in Europe as reasons for the altered projections, the biggest reason behind the announcement had nothing to do with the performance of its game software.

The Osaka branch of the National Tax Bureau had concluded that Capcom had failed to pay taxes on the transactions between its Japanese headquarters and various overseas subsidiaries from 2000 until 2005. Hence the agency ordered the makers of Mega Man and Breath of Fire to pay an additional 1.7 billion yen ($14.46 million US). The company has called the agency's decision "regrettable" and plans to launch a complaint.


Back

Chris Winkler





Featured Content
Pillars of Eternity Review
Pillars of Eternity
Review
Blackguards 2 Review
Blackguards 2
Review
Random Encounter Episode 93
Random Encounter Episode 93
Podcast
Story of Seasons Review
Story of Seasons
Review
Xenoblade Chronicles X Preview
Xenoblade Chronicles X
Preview
Etrian Mystery Dungeon Review
Etrian Mystery Dungeon
Review
Music of the Year 2014: Day Seven
Music of the Year 2014
Day Seven
RSS Feeds & More
Complete Feed
Reviews Feed
Media Feed
Random Encounter
Random on iTunes
Rhythm Encounter
Rhythm on iTunes