Capcom Co. reported a steep drop in profits as game sales slowed ahead of its next major release, highlighting the gaming giant’s dependence on blockbuster titles. Net income fell 33% to 23.1 billion yen ($156 million) in the nine months through December.
The Osaka-based creator of Monster Hunter and Street Fighter saw digital content sales decline 28% to 58.5 billion yen, with unit sales dropping to 30.5 million from 32.6 million a year earlier. The company maintained its full-year forecast, banking on the upcoming Monster Hunter Wilds release in February to boost results.
While legacy titles like Monster Hunter World: Iceborne showed sustained demand, the absence of major new releases weighed on performance. The company’s mobile game Monster Hunter Now has surpassed 15 million downloads since launch.
The gaming giant’s arcade business provided a bright spot, with revenue climbing 20% as post-pandemic tourism recovery drove foot traffic. Capcom opened new locations in Tokyo and other cities, expanding to 52 venues.
The company kept its fiscal year profit target of 46 billion yen unchanged, projecting an 8.3% revenue increase to 165 billion yen through March 2025.
