Capcom Adjusts Year-End Profits, Cancels Multiple Projects
Another game publisher was hit with some dramatic financial results well below expectations, which will lead to a company-wide restructuring.
2013 hasn't exactly been a banner year for video game developers or publishers thus far, and things are seemingly getting worse before they get better. On Thursday, Capcom revealed a massive $70 million restructuring plan in an effort to modernize the company.
"In view of the sudden and significant changes in the operating environment of the digital contents business, Capcom reviewed its business expansion strategy for the sector and restructured its game development organization," the publisher said in a statement posted to CVG.
As part of the new strategy, Capcom is ceasing all overseas development, as it has been deemed, "no longer compatible with the current business strategy." Investors were also notified projects were being cancelled, "due to delays in responding to the digital contents and the resulting inability to address market needs." No titles were actually named specifically, though it's possible more details on what was pulled from the development slate will surface later in the year.
The company's expenses have halved profits for the fiscal year 2013, though Capcom is still expecting 2014 to be an even bigger financial success. That seems to indicate Capcom has at least one major title it expects to provide a windfall, though it's unclear at this time just what that game may be.