Capcom Q1 FY 2018-2019 Results : Most Profitable Q1 , MHW at 8.3M

CyberNeon

Member
Oct 25, 2017
1,356
Capcom has released the Fiscal Report for the First Quarter for the Fiscal Year 2018/2019 that ends on March 2019

Their title for the press release was

" After closing its most profitable first quarter since the company began disclosing quarterly results, - Capcom aims to achieve six consecutive years of operating income growth and most profitable full-year ever "

Here is the Press Release

http://www.capcom.co.jp/ir/english/news/html/e180730b.html

Some highlights from the Press Release

- Most Profitable First Quarter Since Company began disclosing quarterly results

Further, in addition to healthy sales growth of high-margin catalog titles, the Digital Contents business drove earnings, resulting in the highest operating income for a first quarter in company history.
- Regarding Monster Hunter World Performance

This quarter, Monster Hunter: World (released in the previous fiscal year) maintained its popularity, backed by an expanding base of fans, and achieved cumulative sales of 8.3 million units total; also in the Digital Contents business, which has continued to growth steadily in recent years
In this business, the phenomenal success of Monster Hunter: World (for PlayStation 4 and Xbox One) from the previous fiscal year continued, with the title gaining further popularity through the expansion of its user base. In scoring a worldwide smash hit, the series solidified its position as an international brand and strengthened our base of IP (intellectual property)
- Regarding Street Fighter 30th Anniversary Collection and Mega Man Legacy Collection, Mega Man Legacy Collection 2 and Mega Man Legacy Collection 1+2 for Nintendo Switch Performance

the new Street Fighter 30th Anniversary Collection gave a solid performance, outperforming expectations
Furthermore, Street Fighter 30th Anniversary Collection (for PlayStation 4, Nintendo Switch, Xbox One and PC), a new title released in markets outside of Japan, performed strongly, while Mega Man Legacy Collection, Mega Man Legacy Collection 2 and Mega Man Legacy Collection 1+2 for Nintendo Switch also maintained robust sales thanks to a loyal fan base and strong brand capabilities.
- They said that their Forecast for this Fiscal Year is the same as before

The forecast for the consolidated business results for the current fiscal year ending March 31, 2019 remains the same as what was projected at the financial results announcement on May 8, 2018.
And here is More from the Report

http://www.capcom.co.jp/ir/english/finance/review.html

Highlights from that Review Report

- Their Comments of RE2 and DMCV reveals

In such an environment, the Company holds high expectations for the two major titles it will release next year, in Q4 of the current fiscal year: Resident Evil 2 (for PlayStation 4, Xbox One and PC), which was announced at E3 (one of the world’s largest trade shows for computer and video games held in Los Angeles, U.S.A.) and created a sensation among the show-goers, and Devil May Cry 5 (for Xbox One, PlayStation 4 and PC), the series’ first mainline release in ten years, which also attracted strong interest.
- Their Q1 Operating Income compared to Last Year's Q1



Edit : Presentation Slides got added

http://www.capcom.co.jp/ir/english/data/html/explanation/2019/1st/1.html

There is one interesting Slide Here



Firstly their main forecast now became merging of New SKU forecast and Catalog titles forecast instead of separating them like recently , They still separate their forecast for catalog prediction and New SKU Prediction in the catalog titles ratio , but it isn't the main forecast like before and is hidden now and became a side thing inside the main front Merged Forecast , I personally bet that this is their answer to counter MHW "not-as-expected" legs and them seeing the reception for RE2 and DMCV makes them believe that they will overperform in New SKU Forecast ( Which Was 7.4M) and Underperform in Catalog Titles Forecast ( Which was 17.4M )

They made ratios for Overseas , Digital and Catalog titles , which would be very helpful in calculating things , They applied those ratios for the same quarters in the previous two years

Capcom sold 4.3M Copies in this 3 months both New SKU and Catalogs titles , Which was 85.1% Overseas and 14.9% Japan , Digital was 62.1% , Catalog Titles were 74.7% and New SKU 25.3%

Technically , u still can know the predictions of Catalogue and New SKU if you went the trouble of making a little math , But What Capcom did is sneakily hiding the separation into a side row and brought the merging as the main front Prediction , so at the end of the year Capcom will be asked for the combined 25K instead of being asked about New SKU and Catalogue forecasts separately So Even if they failed in either of New SKU or Catalogue , the Merged result is the important one now , It looked like there is no chance in hell they will make that ridiculous 17.4M for Catalogue SKU , but if you added Remake2 and DMCV Sales to it , then it might be possible to even make the combined prediction , and thats what Capcom did here

Platinum page is yet to be updated until now , I will update it as soon as it launch
 
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Nov 3, 2017
2,008
Remember nearly a year ago a Japanese analyst predicted incredibly strong sales for MHW and all the armchair analysts on Era shat on him?

Does anyone remember what lifetime sales he predicted?
 

ezekial45

Member
Oct 25, 2017
785
Capcom must be seriously kicking themselves for not bringing the game to home platforms sooner. I don't know if MHW just came to consoles at the right time or what, those numbers are ridiculous.

I'm really happy to see them do well. They've always been my favorite company, and while they made some dunder-headed decisions in the past, they really know how to bounce back. I can't wait to see how next year looks for them after REmake2 and DMC5 launch
 

Shadoken

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Oct 25, 2017
2,301
Remember nearly a year ago a Japanese analyst predicted incredibly strong sales for MHW and all the armchair analysts on Era shat on him?

Does anyone remember what lifetime sales he predicted?
https://www.resetera.com/threads/hirokazu-hamamura-monster-hunter-world-could-sell-10-million-copies.14121/

He said 10m over a long term with PC sales. But I think the game will hit those numbers as soon as the PC version is out. It reached 8.3m on consoles and 1m pre orders in China alone.
 

Deleted member 5535

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MHW continues to grow. I wonder how the final number will be. It's probably going to surpass RE5

In the Pachinko & Pachislo sub-segment, while the Company launched Okami -Kaidouhen- in a weak market environment, demand declined and sales struggled due to the downturn in consumer confidence and dampening investments by the Pachinko/Pachislo hall operators.
Oh boy, that's bad.
 

Shadoken

Member
Oct 25, 2017
2,301
Capcom must be seriously kicking themselves for not bringing the game to home platforms sooner. I don't know if MHW just came to consoles at the right time or what, those numbers are ridiculous.
I don't think they are. This is one of those times where its good that the game was able to build a strong foundation and fanbase on handhelds and they were able to bring it over successfully.
 

foxuzamaki

Member
Oct 25, 2017
11,515
Capcom must be seriously kicking themselves for not bringing the game to home platforms sooner. I don't know if MHW just came to consoles at the right time or what, those numbers are ridiculous.

I'm really happy to see them do well. They've always been my favorite company, and while they made some dunder-headed decisions in the past, they really know how to bounce back. I can't wait to see how next year looks for them after REmake2 and DMC5 launch
The series started out on home platforms, its that when they built the brand up with Nintendo that they were able to get to this point
 
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eathdemon

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Oct 27, 2017
2,281
https://www.resetera.com/threads/hirokazu-hamamura-monster-hunter-world-could-sell-10-million-copies.14121/

He said 10m over a long term with PC sales. But I think the game will hit those numbers as soon as the PC version is out. It reached 8.3m on consoles and 1m pre orders in China alone.
sefe bet. while its only pre registrations, not pre orders, over 1 million in china alone shows heavy interest on the pc side. my guess pc sells at least 2 million. I could totaly see pc catch up to and pass the console version of the next year, if those numbers from china are anything to go by.
 

Neoxon

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Oct 25, 2017
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Good to see that the Street Fighter 30th Anniversary Collection did well. And of course, MHW continues to print money for Capcom.

With that said, I'm curious about which version of the 30th Anniversary Collection sold better. I'd imagine that it was PS4, but the question is by how much.
 
Nov 3, 2017
2,008
So, Monster Hunter sales really stalled after launch window
I don’t know if stalled is the right word here. MHW followed the traditionally front loaded product life cycle of non service games.

If anything, it’s a clear lesson for why publishers and developers are so keen on service games with sustained revenue generation. Can you imagine how much more money Capcom would have made if MHW had a sustained revenue source that also helped fund more regular content that better kept the game in the public consciousness?
 

Platy

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Oct 25, 2017
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Brazil
Weird that they don't mention SF5 since they are still offering updates for the game and evo is just around the corner

Also ...

In the Pachinko & Pachislo sub-segment, while the Company launched Okami -Kaidouhen- in a weak market environment, demand declined and sales struggled due to the downturn in consumer confidence and dampening investments by the Pachinko/Pachislo hall operators.
Does that means that ... pachinko is DOOMED ? =O
 

SolidSnakex

Member
Oct 25, 2017
5,451
Capcom must be seriously kicking themselves for not bringing the game to home platforms sooner. I don't know if MHW just came to consoles at the right time or what, those numbers are ridiculous.

I'm really happy to see them do well. They've always been my favorite company, and while they made some dunder-headed decisions in the past, they really know how to bounce back. I can't wait to see how next year looks for them after REmake2 and DMC5 launch
I think World was really the perfect time for it. Western consumers have started to show more attention toward Japanese games this generation in comparison to last gen. And you have the PS4 doing really well worldwide. So this was really a perfect storm for World. If MH was going to take off in the west then this was its best shot.
 

Shadoken

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Oct 25, 2017
2,301
I think World was really the perfect time for it. Western consumers have started to show more attention toward Japanese games this generation in comparison to last gen. And you have the PS4 doing really well worldwide. So this was really a perfect storm for World. If MH was going to take off in the west then this was its best shot.
This.

If this came out during the PS3 era I don't think it would have been as well received. People would have heavily criticized the "jank" and not to mention the game would have run even worse on PS3/360.
 

ASarafanov

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Oct 31, 2017
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Capcom must be seriously kicking themselves for not bringing the game to home platforms sooner. I don't know if MHW just came to consoles at the right time or what, those numbers are ridiculous.
Do you understand that MH was an annual franchise? Capcom released new and updated games almost every year, and they were making bank. I don't believe people on Xbox One and PS4 gonna buy millions of copies of re-releases and games based on World every year. They sold World to the new audience, and now the novelty is gone, sales are dropped like a rock, legs are terrible. Again, good luck with selling almost the same game every year on high end HD platforms.
 
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eathdemon

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Oct 27, 2017
2,281
I think World was really the perfect time for it. Western consumers have started to show more attention toward Japanese games this generation in comparison to last gen. And you have the PS4 doing really well worldwide. So this was really a perfect storm for World. If MH was going to take off in the west then this was its best shot.
I still think the pc delay is weird. I get it, that team has never made a pc game, but given everything we has seen so far, mhw is going to be very big on pc.
 

Deleted member 5535

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Weird that they don't mention SF5 since they are still offering updates for the game and evo is just around the corner

Also ...



Does that means that ... pachinko is DOOMED ? =O
It means that Capcom is kind of in a bad situation here, almost like on their mobile offering which is terrible
 

Raide

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Oct 31, 2017
7,645
Great new for MHW. Moving to home Consoles massively paid off. Interested in seeing how the Switch version of Gen X sells in comparison.
 

ASarafanov

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I don’t know if stalled is the right word here. MHW followed the traditionally front loaded product life cycle of non service games.

If anything, it’s a clear lesson for why publishers and developers are so keen on service games with sustained revenue generation. Can you imagine how much more money Capcom would have made if MHW had a sustained revenue source that also helped fund more regular content that better kept the game in the public consciousness?
There was a report few weeks ago about MHW losing popularity. A lot of new players already tired of MH and quit. Post-launch support were terrible. And sales, again, dropped hard. I expect PC version follow the same trajectory - hype from the new audience from the start, and then falling.
 

eathdemon

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Oct 27, 2017
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Do you understand that MH was an annual franchise? Capcom released new and updated games almost every year, and they were making bank. I don't believe people on Xbox One and PS4 gonna buy millions of copies of re-releases and games based on World every year. They sold World to the new audience, and now the novelty is gone, sales are dropped like a rock, leags are terrible. Again, good luck with selling almost the same game every year on high end HD platforms.
yup they need to figure out how to do post launch monitization for it. maybe they should try a $30 xpack or something with a bunch of new areas, monsters, wepons, and gear.
 

eathdemon

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Oct 27, 2017
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There was a report few weeks ago about MHW losing popularity. A lot of new players already tired of MH and quit. Post-launch support were terrible. And sales, again, dropped hard. I expect PC version follow the same trajectory - hype from the new audience from the start, and then falling.
true except I think pc players are more acepting of the kind of game monster hunter is. complex systems heavy wiki games are fairly popular on pc. if anything mh makes more sense on pc, than ps4/xb1 for the kind of game it is.
 

Kirblar

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Oct 25, 2017
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That's surprising but welcome news on SF 30th since it didn't seem to be charting.
b. The Arcade Games Sales sub-segment also struggled and business was generally weak, due to a lack of new products.
This one likely translates as: "The Literal SFV Arcade Edition was supposed to be here and isn't ready yet."
 

Deleted member 5535

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Do you understand that MH was an annual franchise? Capcom released new and updated games almost every year, and they were making bank. I don't believe people on Xbox One and PS4 gonna buy millions of copies of re-releases and games based on World every year. They sold World to the new audience, and now the novelty is gone, sales are dropped like a rock, legs are terrible. Again, good luck with selling almost the same game every year on high end HD platforms.
That's very true. They need to do some live service things to renew interest on the games if they want it to get some new legs.
 

UsoEwin

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Do you understand that MH was an annual franchise? Capcom released new and updated games almost every year, and they were making bank. I don't believe people on Xbox One and PS4 gonna buy millions of copies of re-releases and games based on World every year. They sold World to the new audience, and now the novelty is gone, sales are dropped like a rock, legs are terrible. Again, good luck with selling almost the same game every year on high end HD platforms.
Wow, look at this handheld shitter angry that the console team hit it out of the park. MHW sold more than 4U and XX combined. You will be proven wrong once again when G rank pack comes out.
 

Shadoken

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Oct 25, 2017
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They’re counting it as a separate SKU even though it has the same content?
Yup. If you look at the number of titles for the SF series in the "Game series sales" section it went up after AE released.

They actually are. SFV Vanilla is on the new Sony $20 Greatest Hits line alongside AE.
Ah completely forgot about that. That might bring in numbers. But I think it will be a really slow burn , since anyone interested would just get AE.