Capcom net profit forecast cut in half after surprise business costs

Capcom slashed its net profit forecast by 50 percent, citing expenses in improving its business structure as a key factor.

A new investor's note from the company confirmed the massive reduction to its forecast from ¥6.8 billion to ¥3.3 billion for the full fiscal year. The company states it experienced an unexpected ¥5 billion in business costs concerning "business structural improvement expenses," designed to improve Capcom's financial performance.

The company has advised shareholders of the need for major structural changes to its business since last year when it noted the difficulties of success in the mobile business.

"Today's mobile game industry is a world apparently full of dreams about making a fortune off a hit game," Capcom said at the time. "But if the hit is just a one-off, success is transient. For Capcom, it is crucial to maintain and deepen the user support we have worked so hard to earn up to now."