Capcom’s Q1 2022 financial report shows a massive decline

The Japanese video game developer and publisher is going through a rough period but expects to close the fiscal year with a profit.
Capcom Logo

The Japanese video game giant shared the financial report for its Q1 2022, and the report shows a significant decline in both net sales and operating income. According to the official statement, Capcom’s net sales were down by nearly 48% year-over-year to $184 million and its operating income fell by 48.9% year-over-year to $88 million.

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The company’s main income in the three-month period that ends on June 30 was digital content units (digital sales of games and expansions), and this area saw a decline of 54.8% year-over-year to $145.31 million. Capcom sold over 11.7 million units globally during this term.

Monster Hunter Rise: Sunbreak is the main revenue generator

Monster Hunter players fighting against a dragon-like creature

Developed and published by Capcom itself, Monster Hunter Rise is the sixth main game in the series and it originally launched on Nintendo Switch alone in 2021; a PC version followed in early 2022.

Monster Hunter Rise: Sunbreak is an expansion pack the Japanese giant released on 30 June 2022, and it immediately became the main revenue driver for the company in Q2, having sold over three million copies within two weeks of its release. Capcom says the original game sold over 10 million units since its launch back in March 2021.

Capcom believes the massive decline in revenue generated is due to the company not releasing any new major games in this period and it’s a solid observation one can easily back up. Last year this time around, Capcom released Resident Evil Village and Monster Hunter Rise, two big releases for the Japanese firm. Both games did well and generated significant revenue.

The company’s Q1 2022 performance is actually stronger than the previous three quarters, as well as compared to the prior Q1s in 2020, 2019, 2018, and 2017. The report shows a major decline, simply because Q1 2021 for Capcom was a big success.

Neither Capcom nor its partners are worried too much and rightly so. The gaming giant states that they’re expecting the net sales to reach over $875 million in the fiscal year 2022 and break a record. You can find the full report here.

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