Q1 2022 brings an end to growth momentum
Capcom has released its financial results for the 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 dominant Resident 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 release Monster Hunter: Rise and its DLC expansion Monster Hunter Rise: Sunbreak. The company has also released two new retro compilations in the form of Capcom Arcade 2nd Stadium and the Capcom 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 as Devil May Cry 5, Resident Evil 2, Resident Evil 3, and Resident Evil Village all saw resounding success, with the coffers further bolstered by retro releases (such as Ghosts ‘n Goblins Resurrection) and various paid DLC expansions for franchises including Monster Hunter and Street Fighter.
Speaking of which, Capcom is looking ahead to turn the sales decline around. This coming fall will see the arrival of Resident Evil Village DLC “Winters’ Expansion,” alongside the repeatedly delayed multiplayer component Re:Verse. In early 2023, Capcom will be looking to capitalize on the quarter with the highly anticipated launch of Street 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 shooter Exoprimal, and epic sci-fi adventure Pragmata.
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.