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Forums - Gaming - Rumor: Capcom Europe to lay off more than half its staff

Mr Khan on 04 October 2013
famousringo said:
JGarret said:
famousringo said:
I've got them pegged as the next publisher to fall. It's between them and Square Enix, I think.


fall, as in...close the doors for good and sell the IPs?

Are you quite pessimistic about the 8th gen?...how big a contraction will the console market suffer?


Liquidation, acquisition, merger... they're all fundamentally the same. Rich company buys less fortunate company and strips out the unproductive bits.

I expect things to continue much as they have in the 7th gen. Blizzard was quite profitable when Vivendi decided to get out while the getting was good and sell to Activision. Eidos had fought its way back to break-even and seemed like it might be poised for profitability before selling to Square. THQ apparently had its back broken by one single misadventure with peripherals and couldn't even find a buyer without auctioning off the pieces. And now Sega buys Atlus.

Geez, I almost forgot about the Tecmo Koei merger. There's another vulnerable one.

I expect any contraction will be slight, but the lack of growth in home consoles means that consolidation will continue. Some publishers will die and few, if any, new publishers will arise to replace them. Most other media seem to keep this up until five big publishers are left standing. So I'm not so much picking losers as I'm picking the strongest five I expect to survive.

Tecmo-Koei is a big one. Even mergered, i'm not sure where the money is coming from there. Endless Dynasty Warriors milking?



Monster Hunter: pissing me off since 2010.

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Xxain on 05 October 2013
badgenome said:
It's odd to me that so many people are anticipating the demise of a generally profitable company.


My thoughts exactly. Everytime a thread like ths gets put up, you can bet one of the first 10 post will be "Nintendo should buy them". No they shouldn't and neither do they need too. All thebig name Japanese companies will never go bankrupt. Ever. Just to conservative.



phinch1 on 05 October 2013

All they had to do was make a proper resident evil in the style of the first 3/REmake and theyd ahve been golden, instead they made their greatest franchise a survival horror into a steriod fueled action shooter



ishiki on 05 October 2013
Xxain said:
badgenome said:
It's odd to me that so many people are anticipating the demise of a generally profitable company.


My thoughts exactly. Everytime a thread like ths gets put up, you can bet one of the first 10 post will be "Nintendo should buy them". No they shouldn't and neither do they need too. All thebig name Japanese companies will never go bankrupt. Ever. Just to conservative.

Like I put in my post above... people just dislike some companies, and that makes them a bit irrational. Any bad news and they throw a party.

Here's a table of company's quick ratio taken from 2013 financial reports. It's more complicated than this, Revenue, Profit, direction, etc is all important.

But the quick ratio is a good  indicator on how likely they are to go belly up because of their ability to meet financial obligations. Despite all this bad news for Capcom they still made a profit unlike SE and Take 2. They made a profit despite having an underperforming year! (Though, SE has had FFXIV: ARR be more successful than expected and Take 2 has Grand Theft Auto 5 which are not indicated from 2013 financial reports.).

Company Assets Liabilities Quick Ratio (Higher Is Better)
Nintendo 16.3 Billion 3.5 Billion 4.65
Actvision Blizzard 13.4 Billion 3.2 Billion 4.19
Capcom 1.04 Billion 410 Million 2.53
Sega Sammy 528 Million 208 Million 2.53
Square-Enix 1.59 Billion 807 Million 1.97
Take 2 1.277 Billion 689 Million 1.85
EA 5.07 Billion 2.8 Billion

1.81
Sony 155 Billion
 125 Billion

1.24


Nem on 05 October 2013

Yeah the people to blame for the failure are the execs that decided upon the strategy. Those guys are probably staying at capcom and the low tier workers are getting slaughtered. Usual corporate crap.



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famousringo on 06 October 2013
ishiki said:
Xxain said:
badgenome said:
It's odd to me that so many people are anticipating the demise of a generally profitable company.


My thoughts exactly. Everytime a thread like ths gets put up, you can bet one of the first 10 post will be "Nintendo should buy them". No they shouldn't and neither do they need too. All thebig name Japanese companies will never go bankrupt. Ever. Just to conservative.

Like I put in my post above... people just dislike some companies, and that makes them irrational. Any bad news and they throw a party.

Here's a table of company's quick ratio taken from 2013 financial reports. It's more complicated then this, Revenue, Profit, etc is all important.

But the quick ratio is a good  indicator on how likely they are to go belly up because of their ability to meet financial obligations.. Despite all this bad news for Capcom they still made a profit unlike SE and Take 2. They made a profit despite having an underperforming year! (Though, both SE has had FFXIV: ARR be more successful than expected and Take 2 has Grand Theft Auto 5 which are not indicated from 2013 financial reports.).

Company Assets Liabilities Quick Ratio (Higher Is Better)
Nintendo 16.3 Billion 3.5 Billion 4.65
Actvision Blizzard 13.4 Billion 3.2 Billion 4.19
Capcom 1.04 Billion 410 Million 2.53
Sega Sammy 528 Million 208 Million 2.53
Square-Enix 1.59 Billion 807 Million 1.97
Take 2 1.277 Billion 689 Million 1.85
EA 5.07 Billion 2.8 Billion

1.81
Sony 155 Billion
 125 Billion

1.24


Good post. It's honestly hard to believe that Capcom can produce so many bombs without it hitting their bottom line, but they seem to have a good skill for "failing fast," as the tech startups say these days. Perhaps I'm overly pessimistic about their prospects.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

Ronster316 on 06 October 2013

Saddens me to see one of the three GREATEST GAMING COMPANIES of all time in this state.

What kind of crappy games are the youth of today buying for this to have happened?

Get off those damn flash PC & mobile phone games, support the companies that made this industry as great as it is today, and get down to your local retailer........ NOW...!!!!!!