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Capcom: "Decline In Quality Due To Excessive Outsourcing"

Jonathan Lester
Capcom, Financials

Capcom: "Decline In Quality Due To Excessive Outsourcing"

Multiple Unannounced Games Cancelled Due To Halved Profit Forecast

As part of a major restructuring effort to counter another gloomy sales forecast, Capcom has revealed that they're axing a number of as-yet unannounced projects, and will seek to move more development in-house rather than outsourcing to Western partners.

In their latest note to investors [via MCV], Capcom detailed another gloomy sales forecast that will lead to a "special loss." Resident Evil 6 projections have been cut from 5 million to 4.9 million copies (which is still an enormous amount, but nowhere near enough to cover the mindboggling cost of employing 600 developers), while DmC: Devil May Cry is expected to attract 1.15 million sales during this financial year, down from an expected 2 million. Total expected profits for FY2013 have been halved from £43.4 million to £19.4 million.

Capcom blamed the revised forecast on "insufficient coordination between the marketing and the game development divisions in overseas markets (read: rubbish trailers and advertising), "delayed response to the expanding digital contents market" (read: too much focus on boxed games rather than smaller downloadable titles) and "decline in quality due to excessive outsourcing."

This "excessive outsourcing" was once deemed to be a key strategy for Capcom, who tasked Ninja Theory with developing DmC and loosed Spark Unlimited on Lost Planet 3 (not to mention the mess that was Resident Evil: Operation Raccoon City). Sadly, while DmC actually turned out rather well indeed, it failed to inspire even a fraction of the sales of Devil May Cry 4.

Going forward, Capcom plans to "strengthen digital strategies" by increasing the amount of DLC and downloadable titles that they publish, and "raise game quality by moving more game development in-house." Which means, of course, that we'll see far fewer collaborations with Western studios. Several unannounced projects have also been culled as part of the restructuring effort.

Add a comment3 comments
Breadster  Apr. 18, 2013 at 14:42

An increased focus on dlc? So more keys to unlock disc content then?

Still, I'm glad they've finally realised that western developers don't make good Japanese games. The games may be of decent quality sometimes but they lose that Japanese feel. That quirkiness that sets them apart from western games.

Late  Apr. 18, 2013 at 14:54

An increased focus on dlc? So more keys to unlock disc content then?

Gut reaction here, too. That said, I imagine they're fully aware that if their name becomes synonymous with "day one on-disk dlc" they'll alienate a lot of people - and I don't think alienating people is top of their "to do" list.

So make the full game, section part of it off, and deliberately leave it off the disk instead of putting it on there. Same end result for them, same costs to us, but longer download times - and the folk who don't like on-disk dlc are appeased.[/cynic]

N.B. I haven't really ended cynic mode. I think it's on by default these days. ;)

Breadster  Apr. 18, 2013 at 17:23

Yeah that's pretty much what they're likely to do, I'm sure there's other studios doing that as well.

I tend to be quite cynical these days as well. It's hard not to be when most of the big studios are just constantly trying to screw gamers over. I simultaneously love and hate gaming.

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