Capcom released its Q1 earnings report today for the three-month period ending June 30 and the company posted a jump in net sales as well as operating income year-over-year.
With net sales at 23,722 million yen, the company was 32.2 percent better than Q1 last year when it posted 17,938 million yen in net sales. Meanwhile, operating income for the gaming company also grew by more than 30 percent at 10,711 million yen, up from 7,703 million yen in Q1 2019.
The closure of many arcades and in-person entertainment venues resulted in a large drop in net sales for arcade operations, however, down to 1,184 million yen in 2020 from 2,710 million yen in 2019.
“In this business, stores were forced to close temporarily due to the impact of COVID-19,” the report said. “Although they subsequently resumed operation, their performance did not recover to normal levels, and they posted a significant decrease in both sales and profits.”
But digital content for games like Resident Evil carried the company’s sales numbers. Compared to 2019, digital content sales were up 53.7 percent, hitting 21,476 million yen for the quarter. Capcom specifically said that Resident Evil 3 had “solid sales.”
“Additionally, high-margin catalog sales continued to contribute to expansion of the user base while driving profitability growth; this included the continued growth in sales for titles such as Monster Hunter World: Iceborne (for PlayStation 4, Xbox One and PC), released in the fiscal year ended March 2020, and Resident Evil 2 (for PlayStation 4, Xbox One and PC), released in the fiscal year ended March 2019,” the report said.
Going into the rest of the fiscal year ending March 31, 2021, Capcom hasn’t made any changes to its forecast. The company still expects to see net sales of 85,000 million yen with operating income of 25,500 million yen.