Today Capcom announced its financial results for the third quarter of the fiscal year 2018, related to the period between Oct. 1 and Dec. 31, 2018.
As you can see from the table below, sales increased considerably year-on-year. Yet, it’s income figures showing massive growth, over 90%.
We get to hear more about the performance of the business during the quarter, and the first nine months of the fiscal year.
We hear that Monster Hunter: World keeps selling strongly. We also hear that the upcoming Monster Hunter movie alongside a Mega Man one are being produced with the goal of “creating synergy with the popular games through a greater overseas presence and an increase in branding value.”
“During the nine months ended December 31, 2018, our industry witnessed steady yet uneven growth in the market for home video games, while mobile games showed signs of slowing down. In the major growth market of China, underlying anxiety over the future prevailed due to the tightening of regulations on games, as evidenced by the suspension of review of all new games for which applications for approval were filed in or after March 2018.
Meanwhile, esports, which was featured as a demonstration event at the 2018 Asian Games last year, continued to increase in popularity around Japan with the start of league matches and the launch of pro teams domestically in an effort to expand the fan base.
In such an environment, Monster Hunter: World (for PlayStation 4, Xbox One and PC), which shook up the market last year, continued to report strong sales, with total shipments breaking 10 million units and marking a record high for any single title in the Company’s history. Furthermore, at the Japan Game Awards 2018, in addition to Monster Hunter: World receiving the Grand Award, Mega Man 11 (for PlayStation 4, Nintendo Switch, Xbox One and PC), Resident Evil 2 (for PlayStation 4, Xbox One and PC) and Devil May Cry 5 (for Xbox One, PlayStation 4 and PC) were selected for awards in the Future Division. In addition, the Company announced last October that live-action film adaptations of Monster Hunter and Mega Man are scheduled to be produced in Hollywood, with the aim of creating synergy with the popular games through a greater overseas presence and an increase in branding value.”
We also hear more specifically about the Digital Content business, which includes video games. Apparently, the Steam version of Monster Huner: World returned “strong performance” boosting profits.
That being said, even Monser Hunter Generations Ultimate on Switch enjoyed “robust sales.”
Mega Man 11 also enjoyed “strong sales” (alongside Red Dead Redemption 2, which Capcom distributed in Japan). Sales of Onimusha Warlords are also marked as positive.
The same can be said about the legacy collections for Street Fighter and Mega Man X.
“In this business, the Monster Hunter series served as the driving force in improving the Company’s business performance. Feature title Monster Hunter: World (for PlayStation 4 and Xbox One) was a phenomenal success in the previous fiscal year, and continued to maintain popularity through the expansion of its user base, while the strong performance of the Steam version for PC boosted profits. Further, Monster Hunter Generations Ultimate (for Nintendo Switch), which was released in markets outside of Japan, enjoyed robust sales owing to its consistent popularity.
In addition, Mega Man 11 (for PlayStation 4, Nintendo Switch, Xbox One and PC) and Red Dead Redemption 2 (for PlayStation 4 and Xbox One), a distribution title, reported strong sales, while sales of Onimusha, (for PlayStation 4, Nintendo Switch and Xbox One), which was released at the end of 2018, were also off to a good start.
Furthermore, Street Fighter 30th Anniversary Collection (for PlayStation 4, Nintendo Switch, Xbox One and PC) performed strongly, while Mega Man X Legacy Collection, Mega Man X Legacy Collection 2 and Mega Man X Legacy Collection 1+2 (for PlayStation 4, Nintendo Switch, Xbox One and PC for all three titles) performed well thanks to a dedicated fan base and strong brand power. In addition, high-margin catalog titles steadily increased sales and contributed to improving profitability.”