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Forums - Gaming - Capcom Has Only $152 Mil in the Bank

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johnlucas on 12 September 2013
BasilZero said:

According to GameIndustry, Capcom has a total of $152 million dollars in the bank.

To those who may not be so knowledgeable when it comes to the financials of these gaming companies, that is not a lot of money by any means. That’s actually a dangerously minuscule amount. To put things into perspective, Nintendo made roughly more than this in their 3 months alone. This leads to Capcom making huge changes for this upcoming gen, including an even bigger focus on DLC than before.

“I regret to say that, up to now, we had few plans for the full-scale implementation of DLC.” From here on out, we need to focus on the long-term provision of content starting at the earliest stages of development. Furthermore, in terms of user response, if the additional related content we are providing continually to users online is deemed uninteresting from the start, there will be no ongoing business to pursue. This means that, more than ever before, the creation of underlying content is the key to success.” - COO Haruhiro Tsujimoto

If we all thought that Capcom’s sneaky on-disc DLC practices were bad, well, it’s only going to get worse for now on. This could also mean that hardly and “exclusive” Capcom games will stay exclusive. Don’t be surprised if Deep Down comes to the Xbox One, seeing how Capcom is really in need of the cash right about now.

Even worse, of course, this is a next-generation transition. Going into the next gen with higher-budgeted projects and only $152 in your back pocket is very dangerous.

But in all honesty – and I’m sorry to say this – but I can’t feel sorry for Capcom. This is what happens when you nickel-and-dime gamers and sellout your most beloved franchises in the attempt of appealing to the masses. Capcom has continually betrayed their fans and have even buried their own beloved mascot, Megaman. They may finally get what’s coming to them.

Could this mark the beginning of the end for Capcom?

Source: http://gaminrealm.com/2013/09/10/capcom-152-mil-bank/


It begins.

Capcom had better wise up.
Like in The Wonderful 101 if they UNITE with Nintendo, they'll be alright.
But if they keep it up with this 3rd Party Rebellion they'll eventually join the rest of the flushed companies down the toilet.

The choice is theirs. I hope they make it a wise one.
John Lucas



Words from the Official VGChartz Idiot

WE ARE THE NATION...OF DOMINATION!

 

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mysticwolf on 12 September 2013

It'd be nice if I had a fraction of that.



 Been away for a bit, but sneaking back in.

Gaming on: PS4, PC, 3DS. Got a Switch! Mainly to play Smash

Proxy-Pie on 12 September 2013
johnlucas said:
BasilZero said:

According to GameIndustry, Capcom has a total of $152 million dollars in the bank.

To those who may not be so knowledgeable when it comes to the financials of these gaming companies, that is not a lot of money by any means. That’s actually a dangerously minuscule amount. To put things into perspective, Nintendo made roughly more than this in their 3 months alone. This leads to Capcom making huge changes for this upcoming gen, including an even bigger focus on DLC than before.

“I regret to say that, up to now, we had few plans for the full-scale implementation of DLC.” From here on out, we need to focus on the long-term provision of content starting at the earliest stages of development. Furthermore, in terms of user response, if the additional related content we are providing continually to users online is deemed uninteresting from the start, there will be no ongoing business to pursue. This means that, more than ever before, the creation of underlying content is the key to success.” - COO Haruhiro Tsujimoto

If we all thought that Capcom’s sneaky on-disc DLC practices were bad, well, it’s only going to get worse for now on. This could also mean that hardly and “exclusive” Capcom games will stay exclusive. Don’t be surprised if Deep Down comes to the Xbox One, seeing how Capcom is really in need of the cash right about now.

Even worse, of course, this is a next-generation transition. Going into the next gen with higher-budgeted projects and only $152 in your back pocket is very dangerous.

But in all honesty – and I’m sorry to say this – but I can’t feel sorry for Capcom. This is what happens when you nickel-and-dime gamers and sellout your most beloved franchises in the attempt of appealing to the masses. Capcom has continually betrayed their fans and have even buried their own beloved mascot, Megaman. They may finally get what’s coming to them.

Could this mark the beginning of the end for Capcom?

Source: http://gaminrealm.com/2013/09/10/capcom-152-mil-bank/


It begins.

Capcom had better wise up.
Like in The Wonderful 101 if they UNITE with Nintendo, they'll be alright.
But if they keep it up with this 3rd Party Rebellion they'll eventually join the rest of the flushed companies down the toilet.

The choice is theirs. I hope they make it a wise one.
John Lucas


Monster Hunter 4 :P



bananaking21 on 12 September 2013

those poor babies



JWeinCom on 12 September 2013

Ugh. Ridiculousness.

A company's health is not measured in dollars in the bank. Money is but one type of asset a company can have. Cash in the bank is a very low yield investment. Conservative companies like Nintendo like to have a lot of money in the bank. Other companies prefer to invest in riskier propositions that have a higher payoff.

A company does not go out of business the moment that they run out of money. Companies have many other liquid assets that can be sold off. Furthermore, companies can operate, often for a long time, in a state of debt. Marvel for instance was heavily in debt throughout most of the 90s, and eventually recovered when their movie business took off.

I can't say how healthy Capcom's business is (I'm too lazy to go through their numbers), but I can say that the analysis presented in that article shows that the author has the business acumen of a toddler. But, if Capcom does wind up going out of business, I'm sure Comcept would be willing to buy Mega Man...



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johnlucas on 12 September 2013
MohammadBadir said:
johnlucas said:

It begins.

Capcom had better wise up.
Like in The Wonderful 101 if they UNITE with Nintendo, they'll be alright.
But if they keep it up with this 3rd Party Rebellion they'll eventually join the rest of the flushed companies down the toilet.

The choice is theirs. I hope they make it a wise one.
John Lucas


Monster Hunter 4 :P


Good first step.
Next step: Street Fighter, Mega Man, Resident Evil, & every other franchise they refuse putting their main version on Nintendo systems.

John Lucas



Words from the Official VGChartz Idiot

WE ARE THE NATION...OF DOMINATION!

 

trixiemafia86 on 12 September 2013

wow, that hyper super ultra street fight IV turbo 2 must have cost too much to produce. Damn. it finished their whole money.



Smartest nam evila

Current Platforms: HighendPC[rip]/PS4/PS3[rip]/Vita[rip]

ishiki on 13 September 2013
JWeinCom said:
Ugh. Ridiculousness.

A company's health is not measured in dollars in the bank. Money is but one type of asset a company can have. Cash in the bank is a very low yield investment. Conservative companies like Nintendo like to have a lot of money in the bank. Other companies prefer to invest in riskier propositions that have a higher payoff.

A company does not go out of business the moment that they run out of money. Companies have many other liquid assets that can be sold off. Furthermore, companies can operate, often for a long time, in a state of debt. Marvel for instance was heavily in debt throughout most of the 90s, and eventually recovered when their movie business took off.

I can't say how healthy Capcom's business is (I'm too lazy to go through their numbers), but I can say that the analysis presented in that article shows that the author has the business acumen of a toddler. But, if Capcom does wind up going out of business, I'm sure Comcept would be willing to buy Mega Man...

I wish people would listen to you, or others. I understand people want to hate capcom. But, compared to a lot of companies this gen they're doing dandy financially speaking. This is the thing for the last 11 years.  http://www.capcom.co.jp/ir/english/data/pdf/annual/2013/annual_2013_03.pdf

-In 2013 their Revenue is the highest it's ever been (Which isn't really that good of an indicator of a whole lot. But it indicates a few things).
-They had a net income of 31.6 million dollars, but this was a 1/2 as much as every year this gen except for 2009. But, they have profited every single year this generation.
-they have assets worth 1.11 billion dolars which is the highest it's been in that time span except for in the single years of 2003 and 2009. During those years which the assets were valued less than 2% higher. From 2012 to 2013 their assets actually grew 4%.

Despite this, they had many underperforming games during that time period. With these underperforming games they still made a profit. People can take that as a good thing, a bad thing, or both. The cash easily could have been spent on a numerous amount of other assets (IE future game development), etc. It didn't just disappear and become worthless.



Fusioncode on 13 September 2013

Capcom has too many massive franchises to go out of business right now. Monster Hunter is huge in Japan, Resident Evil is still a very strong seller, and Street Fighter is as solid as always. They'll be fine , at least for the foreseeable future.



Sigs are dumb. And so are you!

NobleTeam360 on 13 September 2013
kowenicki said:

What an overly simplistic and amateurish article. Gaming journalists..... stick to playing games, please!

and... rumour? its a publicly listed company, just look at the accounts.

and... comparing them with Nintendo?  really?

I was thinking the sae thing on that part.