Even as the global economy stumbles in the wake of the continued spread of the novel coronavirus, some industries have actually seen businesses increase their bottom lines. In the video game industry, certain companies are still making a virtual killing in the form of digital sales of popular software titles. According to a report on Friday, Capcom is one such company, revealing record profits for the year ended March 31.
Per Gamesindustry.biz, the Osaka, Japan-based publisher and developer of multi-million-selling game franchises like Mega Man, Street Fighter, and Resident Evil posted its year-end financial results and reported record profits for the third consecutive year.
Although revenues were down 18.4 percent year-over-year, Capcom's net profits ballooned over 27 percent to ¥15.95 billion, which converts to approximately $150 million.
The company is giving much of the credit for its strong showing to Iceborne, the 2019 expansion to Monster Hunter World, which has reportedly shipped more than 5 million copies worldwide. Capcom also enjoyed strong sales from catalog games, including the original Monster Hunter World-- its best-selling game of all time -- as well as Resident Evil 2 and Devil May Cry 5.Earlier this year, Capcom found itself atop the gaming space once again with the release of its long-awaited Resident Evil 3 remake. GI.biz had previously reported that the remake shipped more than 2 million copies within five days of its April 3 release. It was noted at the time that nearly half of those sales were digital -- the growing shift toward higher-margin digital sales has been a major factor in the company's improving profitability.
Fans of the Resident Evil series may have further remakes of past classics to look forward to in the future. As reported by The Inquisitr, work on a Resident Evil 4 remake may have already begun.
Although its popular catalog of games for home platforms has seemingly buoyed Capcom throughout the ongoing coronavirus situation, not every aspect of its operations has shown to be pandemic-proof. The gaming giant did note that its arcade operations and amusement equipment division may ultimately suffer because of the COVID-19 pandemic, as social distancing guidelines and shelter-in-place orders remain in effect worldwide as a means to curb the spread of coronavirus.
Per the May 8 numbers from the World Health Organization (WHO), there have been nearly 3.8 million confirmed cases of coronavirus infection and over 259,000 deaths across the globe since the pandemic began. Clearly, no one is headed to the arcade right now.
However, Capcom expects it will continue to perform well overall in spite of the crisis thanks to the digital distribution of games. As it stands, the company is projecting net profit to rise another 13 percent for the year ending March 31, 2021, to ¥18 billion (or $169 million).