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Capcom Q&A for 1st Quarter FY3/2018

G

ggx2ac

Member
Finally in English. Will highlight some questions, the rest are in the following link:

http://www.capcom.co.jp/ir/english/data/explanation.html

Regarding their sales forecast for New Titles and Monster Hunter World:

Q: The full-year unit sales guidance for new Consumer titles of 10.3 million units is on par with the previous fiscal year; however, considering Resident Evil 7 biohazard was launched last year, is this number not bullish? What is your outlook going forward, including your expectations for this year's Monster Hunter: World?

A: We are confident that we will be able to achieve this number because the full-year unit sales guidance for new games consists of 37 titles (counted on a SKU-basis) that include re-releases of catalog titles for current-generation hardware. Further, we have received positive feedback on Monster Hunter: World, which was well received when announced at E3. Going forward, we will maximize sales by carrying out proactive measures not only in the Japanese market, but in the North American and European markets as well.
Click to expand...

Regarding Ultra Street Fighter 2, Nintendo Switch and Profit margins:

Q: What were the regional unit sales for Ultra Street Fighter II: The Final Challengers? (Ultra Street Fighter II, below)

A: 100 thousand units in Japan, and a combined 350 thousand units in Europe and North America.

Q: Following the sales results of Ultra Street Fighter II, what will Capcom's approach to the Nintendo Switch be going forward?

A: The Nintendo Switch seems to be doing very well, and we look forward to further growth in its install base. Beginning with Monster Hunter XX (Double Cross) Nintendo Switch Ver. for Japan, we are evaluating how we will support this platform in the future.

Q: The profit margin in Consumer for this first quarter seems high; why is that? Further, will it be possible to maintain this level in the future?

A: Our profit margin received a boost because, in addition to Ultra Street Fighter II, which was released this quarter, being a re-release and having lower-tier development costs, its actual sales outperformed our unit sales plan for the title. Going forward, we will work to achieve continuous sales in Consumer via pricing strategies, including seasonal discounts and other measures.
Click to expand...

Regarding regulations in the Pachislot market for Capcom:

Q: Stronger regulations in the pachislo market have been announced. What is your policy and future outlook for the PS business?

A: The overall market here has been shrinking, and we believe the situation will grow more severe due to these new regulations; however, we do not intend to revise our plan at this time, as there remains room for us to display ingenuity here with improved entertainment as well as through cost reductions via utilization of used materials.
Click to expand...

A rather embarrassing question about mobile:

Q: When will Capcom experience real growth in mobile?

A: We are currently taking the appropriate steps to position ourselves for growth from the next fiscal year onward. If efforts, including approaching new genres, proceed smoothly, it is possible we will start to see some results beginning this fiscal year.
Click to expand...

Why the Resident Evil Umbrella Chronicles HD Collection will surely come to Nintendo Switch:

Q: How do you determine which game to release on which platform?

A: As platform trends are in a constant state of flux, we consider everything from the content of the game to our users' tastes in order to make the optimal choice for each title.
Click to expand...
 
L

Lonely1

Unconfirmed Member
Q: Following the sales results of Ultra Street Fighter II, what will Capcom's approach to the Nintendo Switch be going forward?

A: The Nintendo Switch seems to be doing very well, and we look forward to further growth in its install base. Beginning with Monster Hunter XX (Double Cross) Nintendo Switch Ver. for Japan, we are evaluating how we will support this platform in the future.
Click to expand...

Aka, we were caught with our pants down and didn't had any plans prior.
 
J

Jawbreaker

Member
Capcom will be OK if they can continue to find enough people to buy their overpriced, half-assed ports. From the way things look, they will be fine on that front.
 
O

oti

Banned
I like how Capcom, a company that overestimates sales for EVERYTHING, actually underestimated the success of USFII.

Japan's initial expectations for Switch must've been real bad.
 
L

Lonely1

Unconfirmed Member
From the wording, SFII was never a test. It was a how in the world did that that thing sold? product that was made so cheaply that single handled boosted Capcom's profits.

They will start testing with MHXX.
 
G

ggx2ac

Member
SinCityAssassin said:
A lot of questions regarding their mobile front, has their mobile division really been that abysmal?
Click to expand...

I'm going to assume yes since they ended up absorbing their mobile division recently.

As in, it's possible they absorbed their mobile division so it doesn't get listed as a subsidiary which means they can try to hide from investors how it's actually performing. Like with how Microsoft no longer mentions Xbox Hardware sales and instead uses Monthly Active Users of Xbox Live to show how the platform is doing.
 
A

Akiller

Member
Lonely1 said:
From the wording, SFII was never a test. It was a how in the world did that that thing sold? product that was made so cheaply that single handled boosted Capcom's profits.

They will start testing with MHXX.
Click to expand...


So RE Revelations 1+2 was just a bonus? Oh well hope Switch will complete the MHXX quest and unlock the next Capcom
ported
game.
 
W

WhatNXt

Member
Q: The profit margin in Consumer for this first quarter seems high; why is that? Further, will it be possible to maintain this level in the future?

A: Our profit margin received a boost because, in addition to Ultra Street Fighter II, which was released this quarter, being a re-release and having lower-tier development costs, its actual sales outperformed our unit sales plan for the title. Going forward, we will work to achieve continuous sales in Consumer via pricing strategies, including seasonal discounts and other measures
Click to expand...

We charged as much as we could for low effort games like USFII and people actually bought them!
 
M

marmoka

Banned
If MHXX is another test, I guess they will be very surprised when seeing many people outside Japan downloaded the demo..
 
D

dragonzdogma

Member
I'm reading the answer to re7 as in " we know the game won't perform like we wantec to but the re-releases will get us to our goal"


It's 3am i might be wrong , i need some sleep.
 
G

ggx2ac

Member
dragonzdogma said:
I'm reading the answer to re7 as in " we know the game won't perform like we wantec to but the re-releases will get us to our goal"


It's 3am i might be wrong , i need some sleep.
Click to expand...

Capcom have a sales forecast similar to last year which had Resident Evil 7 which was their big IP last year.

This year, they have MvCi and Monster Hunter World so their answer was that they are confident in Monster Hunter World due to the response at E3 and that they are trying to make re-releases of other games to cover up for their sales forecast i.e. Resident Evil Revelations and Dragon's Dogma Dark Arisen releasing on current consoles this year.
 
C

Chinner

Banned
I'm interpreting Capcoms answer as: "we don't want to support the Switch, and we will drop it as soon as we get a dud. However, we are surprised that we made money so we will continue release titles while we are able to make money but we will bail out as soon as we can "
 
S

Sesha

Member
dragonzdogma said:
I'm reading the answer to re7 as in " we know the game won't perform like we wantec to but the re-releases will get us to our goal"


It's 3am i might be wrong , i need some sleep.
Click to expand...

No. Capcom's expectations this year for new titles is about in line with their performance last year. The investors are saying "isn't this too aggressive?" since there's no RE7 this time around, and asked what's Capcom's outlook, including for MHWorld. Capcom's response is that they feel they can make it because they have 37 titles (this number includes regional and platform releases, I believe), which includes re-releases of old titles, lined up. For MHWorld they are encouraged by the reception at E3, and they will optimise its sales in each major region through "proactive measures" i.e. marketing.
 
SinCityAssassin

SinCityAssassin

Member
Chinner said:
I'm interpreting Capcoms answer as: "we don't want to support the Switch, and we will drop it as soon as we get a dud. However, we are surprised that we made money so we will continue release titles while we are able to make money but we will bail out as soon as we can "
Click to expand...

Friendship ended with Nintendo, now Nintendo I still need to act as best friends with because he helps pay for my house.
 
S

spelen

Member
Profit margins are high why is that! We sold 450k copies of a game for 40 bucks with zero marketing we spent a dollar porting over. Ok great what are your future plans for the platform? Not sure still trying to evaluate the platform.


Any sane person would be fired after that. (Assuming they are honestly still evaluating) it's a fricking Nintendo platform they have such an obvious market it's crazy !
 
S

SatoAilDarko

Member
Q: The profit margin in Consumer for this first quarter seems high; why is that? Further, will it be possible to maintain this level in the future?

A: Our profit margin received a boost because, in addition to Ultra Street Fighter II, which was released this quarter, being a re-release and having lower-tier development costs, its actual sales outperformed our unit sales plan for the title.
Click to expand...

WhatNXt said:
We charged as much as we could for low effort games like USFII and people actually bought them!
Click to expand...

Seriously. They straight up admit it's a rerelease and it was super cheap to make hence so much profit.

A rerelease of a game that debuted 8 years ago at $15 and that was on sale on PSN during USFII launch week for $3.75.
 
G

ggx2ac

Member
spelen said:
Profit margins are high why is that! We sold 450k copies of a game for 40 bucks with zero marketing we spent a dollar porting over. Ok great what are your future plans for the platform? Not sure still trying to evaluate the platform.


Any sane person would be fired after that. (Assuming they are honestly still evaluating) it's a fricking Nintendo platform they have such an obvious market it's crazy !
Click to expand...

They're trying to do... something.

Here's what they said back in October 2016:

Q: What is Capcom's stance with regards to developing for the Nintendo Switch?

A: It is excellent to have the market invigorated with new hardware launches. As a software publisher, we endeavor to develop games that offer enjoyment best suited to each piece of hardware's features and target users. Following first party, in order to introduce our own content we are currently moving forward with internal planning and analysis as a partner company.

Q: Is it possible to develop multiplatform titles on the Nintendo Switch?

A: We are currently carrying out research with regards to multiplatform implementation of software for PlayStation 4 and Xbox One on to the Nintendo Switch and thus are unable to comment at this moment. However, we do feel that there are differences in the desired direction and the play-style of the Nintendo Switch and those of the PlayStation 4 or Xbox One. At Capcom, we determine which platform to release a title for after considering the features of both our software and the hardware in question, believing we must bring the enjoyment of our games to their maximum potential.
Click to expand...
 
O

OrbitalBeard

Member
Capcom. Let me give you some free advice on how to handle the Switch.

Create compilations of your NES and SNES titles.

Release them digitally and at retail.

Charge $30-$40 for each release.

You will make a lot of money with minimal effort. The market is there for the taking. Embrace it. This really shouldn't be all that hard.
 
T

The Last One

Member
Q: What were the regional unit sales for Ultra Street Fighter II: The Final Challengers? (Ultra Street Fighter II, below)

A: 100 thousand units in Japan, and a combined 350 thousand units in Europe and North America
Click to expand...

Huh? According to Media Create this title bately sold 30k in Japan. Guess digital sales are pretty big for this then?
 
M

Magicpaint

Member
The reward for passing a test is more test.

Afterall if we can make bank on cheap stuff why put in actual effort next time?
 
Z

Zedark

Member
The Last One said:
Huh? According to Média Create this title bately sold 30k in Japan. Guess digital sales are pretty big for this then?
Click to expand...
It's likely that the Japan number includes Asia. Digital won't take 30K to 100k, but the game is still retailing for full price in Japan, so there isn't an overshipment.
 
SinCityAssassin

SinCityAssassin

Member
OrbitalBeard said:
Capcom. Let me give you some free advice on how to handle the Switch.

Create compilations of your NES and SNES titles.

Release them digitally and at retail.

Charge $30-$40 for each release.

You will make a lot of money with minimal effort. The market is there for the taking. Embrace it. This really shouldn't be all that hard.
Click to expand...

Alternatively go whole hog into the eventual virtual console and just dominate it. Even less effort. Even more money.
 
O

OrbitalBeard

Member
SinCityAssassin said:
Alternatively go whole hog into the eventual virtual console and just dominate it. Even less effort. Even more money.
Click to expand...

I honestly think they should do both. I think there's strong potential for a nice retail market of retro content on the Switch.

I also think Nintendo should repackage the NES and SNES Classics as $60 Switch carts at some point in the future. All the game content of the plug-and-play devices, packaged as retail Switch software.
 
Eolz

Eolz

Member
SinCityAssassin said:
Friendship ended with Nintendo, now Nintendo I still need to act as best friends with because he helps pay for my house.
Click to expand...

Ahahaha.
More seriously, it's weird seeing Capcom being back to the Wii strategy after being one of the 3DS's biggest supporters.
 
R

Rncewind

Member
OrbitalBeard said:
I also think Nintendo should repackage the NES and SNES Classics as $60 Switch carts at some point in the future. All the game content of the plug-and-play devices, packaged as retail Switch software.
Click to expand...


Honestly, i would be paying more then 60 $ for that (yes i know i am insane).

I would kill for pysical releases of VC (or old titles, in general).
 
poodaddy

poodaddy

Member
Champion said:
Get that money, Capcom! By any means necessary.
Click to expand...

Hmmmm. I err....eehhh.

Capcom needs to start just releasing more ports of their great older games to current platforms. MM Legacy 2 and the supposed upcoming SF collection are cheap, safe bets that damn near everyone wants. Megaman X Legacy, then Megaman Legends Legacy, CVSNK 2 port with online, Final Fight Legacy, Ghouls and Ghosts Legacy, and Breath of Fire Legacy collections would all be much cheaper than making new IP's and if Ultra SF2 is anything to go by, cheap nostalgia cash ins are pretty damn profitable. They seem to be realising this with the upcoming RE Revelations port announcement. Speaking of which, is that coming to Switch? Kinda silly if it's not, it's money on the table and the game debuted on a portable Nintendo platform.
 
G

Gren

Member
SatoAilDarko said:
Seriously. They straight up admit it's a rerelease and it was super cheap to make hence so much profit.

A rerelease of a game that debuted 8 years ago at $15 and that was on sale on PSN during USFII launch week for $3.75.
Click to expand...
I wouldn't have bought it, but let other people spend their money as they like. I buy SFV season passes & I'm sure there's no shortage of people who'd admonish me for doing so.

Given their *years* of rocky operations, I'm just waiting for the other shoe to drop with Capcom though :p
 
ItalianJoe83

ItalianJoe83

Member
I consider this a "bad news" for old "real Capcom" fans like me: the more they earn money with their shitty dlc powered politics the less the will be "loved" by people like they were used to be in the past
 
L

Lonely1

Unconfirmed Member
NSESN said:
A region exclusive test.
Click to expand...

FY2019 report:

While sales were within expectations in Japan, MHXX showed a decline on sales with respect to previous entries world wide, therefore we have decided to concentrate our efforts on the market established by MHW going forward.

On other news, despite our best efforts, Ultra Darkstalkers Resurrection Switch was very profitable and made up for the less than expected sales of MHW.
 
S

Stairouais

Member
-SNK is doing pretty good on Switch with their old games, we should look into that!
-You know what Tanaka-kun, you're right. Let's port 2 mediocre Resi games, you know, as a test.
 
1

13ruce

Banned
If MHXX does well i am sure they will port over MHW and release it after major sales period of that game on PS4/XBOX/PC is done.

Atleast surely in Japan and hopefully west.
Nintendo is still a big part of why MH is so succesfull these days and the Switch is still a handheld like device.
 
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