Capcom First Quarter Profits Drop 90%

Japanese developer and publisher Capcom has reported a staggering 90.4% drop in net income for its 2011 fiscal year's first quarter compared to the same period last year.

'Underperformer' Lost Planet 2 and "sluggish" sales beast Monster Hunter Tri.

Capcom's net income between April 1 and June 30 was 213 million yen (around $2.4 million US), down roughly $23.2 million US from the previous fiscal year's first three months. The blame is pinned on factors including shrinking US and European markets, exchange rate changes, poor sales and an increase in development costs.

Capcom reports that its "flagship title" Lost Planet 2 "underperformed its projection substantially" while Monster Hunter Tri "grew at sluggish pace" and Ghost Trick: Phantom Detective--due to hit North America this winter--"struggled." Lost Planet 2 faltering must doubly sting as Capcom pinned a portion of the blame for its 73% drop in profits last year on the fact that the shooter was delayed until its 2011 financial year.

On the bright side, Capcom's mobile versions of Street Fighter IV and Phoenix Wright: Ace Attorney have "achieved their projected sales." The company also has recently announced a slew of new projects, including Street Fighter III: 3rd Strike Online Edition, Street Fighter X Tekken, Mega Man Universe and the Nintendo 3DS title Resident Evil: Revelations--though of course all are only drains on income until they are released.