Capcom revealed that its game sales declined 44% in its Q1 Fy2024 Financial Results Presentation. Not only did its game sales decline, but its overall sales declined 33%.
A screenshot from Street Fighter 6 (2023), Capcom
The company revealed that its game sales for the first quarter fell to around $142.2 million compared to the previous quarter where its sales were approximately $251.1 million.
Furthermore, the company’s overall sales declined by 33% to around $196 million from $291.1 million.
A screenshot of Capcom’s Q1 FY2024 Financial Results Information
While sales declined by 44%, the total number of units sold declined by nearly 30%. Capcom reported its unit sales only clocked in at 9.534 million units down from 13.5 million. Of note 82% of all sales were done overseas while only 18% were done in Japan. A whopping 92.6% of all units sold were done digitally compared to just 7.4% done physically.
Finally, 97.1% of all sales were catalog units compared to just 2.9% of sales being new titles. Catalog sales declined 5.5% from 8.8 million units.
A screenshot of Capcom’s Q1 FY2024 Financial Results Information
Despite the decline in sales, as shown above, Capcom does not appear to be worried and noted, “All business segments outperformed plan, making good progress toward achieving full-year target. YoY net sales and operating income growth in Arcade Operations, Amusement Equipments, and Other Business.”
A screenshot from Resident Evil 4 (2023), Capcom
In the company’s report it appeared to tout the Monster Hunter Stories franchise as a success noting, “Monster Hunter Stories and Monster Hunter Stories 2: Wings of Ruin were released on additional platforms in June, and thanks to support from a wide range of users, sales of Monster Hunter Stories 2: Wings of Ruin surpassed a cumulative total of 2 million units. In addition, sales of catalog titles Monster Hunter World: Iceborne and Monster Hunter Rise continue to grow, contributing to an improvement in the brand value of titles in the series, with cumulative sales now over 100 million units worldwide.”
While the company had high praise for the Monster Hunter franchise it was more subdued on Street Fighter stating, “Regarding catalog titles, the Company continued working to enhance brand recognition and increase the number of users for Street Fighter 6, the major new title in this flagship series that was released in the previous fiscal year, by strengthening collaborations with esports activities.”
A screenshot from Monster Hunter Stories 2: Wings of Ruin (2021), Capcom
It had a much more positive outlook on Dragon’s Dogma and Resident Evil, “Sales of Dragon’s Dogma 2, released in March, progressed in line with expectations. In addition, the Company conducted proactive promotional campaigns to gain wider recognition of its IPs and acquire new fans, focusing primarily on series title sales, such as Resident Evil 4. As a result, sales of catalog titles got off to a solid start thanks to promoting pricing measures, amounting to 9.26 million units, compared to 9.8 million units in the same period of the previous fiscal year.”
The company concluded, “Consequently, progress toward achieving the full-year plan was generally in line with plans, though sales volume for the three months ended June 30, 2024, decreased compared with the same period of the previous fiscal year when Street Fighter 6 was released.”
Dragon’s Dogma II (2024), Capcom
As noted in the company’s financial results released in May, Capcom aims to achieve “10% annual growth in operating income” has a “long-term aim of selling 100 million units annually.”
As for how it aims to do this, it detailed, “It looks to accomplish this by expanding its user base and maximizing profit opportunities via enhanced country/regional marketing while working to understand user needs. In addition to continuing to develop the Arcade Operations and Amusement Equipments businesses by using popular IPs and major content, the Group will also aim for sustainable growth and strive to enhance brand value for its IPs by leveraging them in film and television productions, licensed merchandise, and esports.”
A screenshot from Monster Hunter Stories 2: Wings of Ruin (2021), Capcom
What do you make of Capcom’s massive decline in sales?
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