Poor Business Decisions Will Render Capcom Bankrupt

Failure is inevitable and the only reason why it exists is because it serves as a learning experience that can be grown upon. It happens every day to individuals and businesses alike and usually better judgment for the future follows; if events happen to go awry, it’s only logical that errors are taken into account and learned from. In contrast, It’s illogical commit the same failures over and over again. When that happens, failures become dumb mistakes. It seems like Capcom isn’t getting that memo.

Last Thursday’s reports concerning the release of CAPCOM’s Earnings Forecast Revision documents had surfaced, and according to these documents, their $47 million dollar loss in sales were caused by drastic changes made in their games and having western developers handle their AAA IP’s, which really meant that they were unsatisfied with the production and reception of Resident Evil 6 and DmC: Devil May Cry .

As a result, the company is looking to drive the development of software back to the Land of the Rising Sun and—this is the kicker—they also plan to try and shove more DLC down the throats of it’s consumers in order to make up for some of the lost earnings.

Obviously, there are two things wrong with those decisions; one of which have been done before and it indicates that CAPCOM has learned nothing from their first failure that they committed last year with their abuse of DLC. But before getting into that, CAPCOM first needs to understand that they cannot blame western developers for their losses, nor can they determine how successful and well-received a game is based on sales alone.

It’s understandable that CAPCOM might have been wary about how the initial reimaging of Dante was received back in Fall 2010. Across the board, nearly every critic and fans of the hack-and slash franchise agreed that the “emo” attributes that were applied to the main character were both laughable and unfavorable. At the time, no one was sure about what to expect from the full game.

Fast-forward to its release and a revision of those attributes and that reception turned into a majority of yays. The long-distance relationship between CAPCOM and Ninja Theory proved to be a fruitful one as DmC: Devil May Cry proved to be a bad-ass action game with a unique, and likeable story line. Sure, Ninja Theory scattered a bunch of blatant disses to fans of the original Devil May Cry series (Google”nice mop hair”), but that was the beauty of it. It had a no nonsense attitude about itself and it didn’t care who it rubbed the wrong way.

This aspect of the game surely garnered positive reviews that it rightfully deserved, but CAPCOM, with their minds on the money, didn’t think so. Based on their forecast document, the company basically deemed DmC a failed project due to its low sales and not by its general reception. In any case, bringing all their franchise IP’s back to friendly grounds is understandable, but since it’s already evident that CAPCOM is in denial of the fact that Westernizing their titles actually helped the company rather than hurt it, it’ll be pretty interesting to pit these “failed” sale rates up against the sales of games that their Japanese developers will handle.

Now, let’s not forget about the company’s abuse of DLC. It’s frustrating to see a company, who has already proven that they can’t be trusted with such add-ons, is shifting their focus back on it again. Are they missing something? Did they not see the negative stigma that they’ve latched onto their cross branded fighting game Street FighterXTekken? Do they not realize that hackers would be more than happy to—once again—exploit their mischievous wallet milking plans? More importantly, is it really all about the money for them and do they know that consumers and even their dedicated fans are no longer that gullible?

I’m going to call it like I see it: very few people will buy any upcoming DLC from CAPCOM and if the company had any smart left in their business noggin, they’d stop dwelling on short-term goals towards quick profit and started focusing on efficiently marketing their products. Scrap any future plans that they have for robbing players with useless pay-to-play attachments and turn their attention on getting people talking about upcoming titles that they have coming up later this year.

Out of all their stupid business decisions that they have made in the past year, their rendition of DuckTales is probably their best decision. Why not throw some more hype around Remember Me, while they’re at it? Why can’t they go back to being the company who made games for their fans rather than being the company that made games that they can make money off of later through cheap add-on tactics.

There’s no denying that CAPCOM is great for sponsoring video game fighting tournaments so why not push some of that hype there? The popularity behind players buying arcade fighting sticks and trying their skills against a Street Fighter virtuoso who lives halfway across the globe is insane and still a better love story than Twilight. Since new consoles are starting to seep into the mind of gamers around the world, it also wouldn’t hurt for them to start working on a new Street Fighter and their subsequent versions.

However, the chances of that happening seem a bit slim. The company is set on keeping this charade going and it’ll be sad when their logic flips the switch on them, causing them to fall in their own trap door of bankruptcy. Only time will tell, but there is one fact that remains: CAPCOM currently ranks first in the leaderboards for dumb business mistakes and will remain in place unless they change their outlook on their goals.

  • layth12

    DmC was HATED by the DMC fans from day one and until the game’s release and all the “yays” came from the critics which means nothing, and then the game did fail MISERABLY in terms of sales , it sold MUCH less than DMC4 which was released 4 years when the userbase for PS3/360 was less than half it is today.

    look at Dragon’s Dogma and how awesome it turned out because it was developed in-house by the same guys who made DMC4. out sourcing games to the west is a terrible idea especially when they choose talentless bunch like Ninja Theory