Capcom Expects Record loss Of 4.5 Billion Yen Due To Terminated Projects

In recent news, it looks like Capcom expects to record losses of approximately 4.5 billion yen due to the act of terminating untitled projects that were in development at Capcom Vancouver. This information was disclosed on September 18th, 2018 on Capcom’s fiscal year 2018 press release.

Back on February 6th, 2018, we reported that Capcom sent out a letter explaining its Vancouver studio had been hit by a 30% layoff. The Vancouver studio is the same as the Dead Rising studio, which is the team that made Dead Rising 4 for PC, PS4 and Xbox One.

The most recent report can be found on capcom.co.jp/ir, which details two points about expected record losses of 4.5 billion yen.

In addition to the above, the termination of developmental projects in its consolidated financial results for the six months of the fiscal year ending March 31st, 2019 (from April 1st, 2018 to September 30th, 2018) reads:

“Capcom Game Studio Vancouver, Inc., a consolidated subsidiary of Capcom, primarily carries out development of home video game software for markets outside of Japan; however, Capcom is currently reviewing the allocation of its development resources that support the production of world-class content.

 

In consideration of this process, as a result of reviewing titles in development at Capcom Game Studio Vancouver, Inc., Capcom now expects to record losses from the termination of development projects of approximately 4.5 billion yen under cost of sales in its consolidated financial results for the six months of the fiscal year ending March 31, 2019.”

The second read lists that Capcom’s consolidated business results will remain the same as projected at the financial results announcement on May 8th, 2018. Additionally, there are no changes to the amounts of the interim dividend or year-end dividend that were announced on May 8th:

“Regarding Capcom’s full-year business forecast, due to factors including the continued robust performance of the PC version of Monster Hunter: World exceeding the company’s expectations since its release on the Steam platform in August, following the blockbuster performance of the title after its initial release in January of this year, the forecast for Capcom’s consolidated business results remains the same as what was projected at the financial results announcement on May 8, 2018.

 

Further, there are no changes to the amounts of the interim dividend or year-end dividend that were announced on the same day.”

Update: Website gamedaily.biz received information from a Capcom spokesman. The information sent to the outlet reads:

“Capcom is currently reviewing the allocation of its development resources that support the production of world-class content. Capcom has been focused on increasing the efficiency and growth of its game development operations. To support this objective, new R&D facilities and annual hiring have been underway at the Osaka headquarters. In consideration of this process, as a result of reviewing titles in development at Capcom Vancouver, Capcom has decided to cancel the development projects at this studio and will concentrate development of major titles in Japan.”

In other words, Capcom will be moving its operations back to Japan while closing the doors of the Vancouver studio. You can read the full report over on capcom.co.jp/ir.


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