Capcom Predicts "Severe Contraction" In Packaged Games

Capcom Predicts "Severe Contraction" In Packaged Games

Capcom 2013 annual report image

Capcom says in its 2013 annual report that it expects the packaged game business will shrink by a whopping $5.3 billion in 2017.

I hope this doesn't come as too much of a shock to anyone, but the conventional retail videogame business is struggling. The days of nipping over to your local retailer to browse the shelves and pick up the preorder you placed two months prior are rapidly drawing to a close; today's hip, connected gamers are far more likely to drop a few bucks on a Steam sale or the latest old-time release on GOG. It's a trend that has Capcom gearing up for big changes in the future.

"Analyzing the consumer market by platform, we forecast severe contraction in the package market, which is expected to shrink by 5.3 billion dollars in 2017 (down 28.8 percent from 2012)," the company said in its 2013 year-end report. "At the same time, we forecast significant growth in the DLC market by 7.8 billion dollars (up 109.9 percent). Going forward we will allocate management resources to DLC within the consumer market to ensure sufficient earnings."

The report states that DLC accounted for 27.8 percent of the consumer game market in 2012 but only 11.3 percent of Capcom's sales, "which were still heavily dependent on package sales, revealing the lateness of our response to the rise of DLC." It also notes problems with the company's strategy, announced in 2009, of relying more heavily on overseas developers. As a result, Capcom says it will move toward "migrating DLC development in-house and increasing its proportion within the consumer segment."

"Migrating development in-house allows us to use our accumulated expertise to improve quality and strictly enforce schedules while creating a mechanism enabling development and marketing departments to respond to digital advances in an aim to increase the proportion of DLC and improve profitability," the report states.

Capcom also noted that the increased emphasis on DLC will allow it "to realize long-term, stable additional sales by capturing users with the ongoing distribution of DLC... Specifically, we will (1) provide additional content strategically after the launch of major titles like Resident Evil and Street Fighter to lengthen the product lifetime and (2) expand download-only titles like Dungeons & Dragons: Chronicles of Mystara. We will also establish a development and marketing structure to conform to the DLC business."

Source: Capcom

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So basically expect more of Capcom's "style" of DLC in the future? Is Capcom sure that everyone will face this problem, or only them because I know I don't instantly go out to preorder something from them. XD

How about you just use some of that giant IP pile you squat over?

Because I would seriously buy a new fucking Mega Man.

Sorry, but so long as the term "retail" seems to only mean brick and mortar stores rather than Amazon and other internet retailers disc sales are far from dead!

I haven't bought any physical media from a brick and mortar store since I was in college over a decade ago it's all been either over the phone or internet retailers as they are far more likely to have what you want in stock.

SkarKrow:
How about you just use some of that giant IP pile you squat over?

Because I would seriously buy a new fucking Mega Man.

We've already got a new Megaman. It's called Mighty No.9. It's made by the same guys who worked on Megaman, he looks like Megaman, he steals abilities from enemies like megaman. He's basically megaman. And thats not a bad thing. you know what though, that game is actually going to exist, so they can take my money instead.

"Capture users with DLC"

... HA!

dragongit:

SkarKrow:
How about you just use some of that giant IP pile you squat over?

Because I would seriously buy a new fucking Mega Man.

We've already got a new Megaman. It's called Mighty No.9. It's made by the same guys who worked on Megaman, he looks like Megaman, he steals abilities from enemies like megaman. He's basically megaman. And thats not a bad thing. you know what though, that game is actually going to exist, so they can take my money instead.

Yeah I already know that but at the same time it doesn't really click with me the same.

most of the modern games market probably isn't "hip, connected gamers" :\

"gamers" are the "movie buffs" of moviegoers...

on top of that just pause and consider for a while who actually does the majority of the shopping during the holiday season or on a birthday.

is it the individual for which the item is ultimately destined ?...or it actually someone else ?

ShirowShirow:
"Capture users with DLC"

... HA!

"HA!", indeed!

The problem of CAPCOM is that they doesn't realize that the low income in selling DLCs doesn't happen by the lack of them, but the low quality of it. DLCs are not intrinsically bad, what causes them to be seen as bad by most gamers is how the companies are using them. And that's sad.

ShirowShirow:
"Capture users with DLC"

... HA!

No kidding. User Man isn't weak to the DLC Cannon, he's weak to Good Game Experience.

Of course, if anyone at Capcom still played/knew about Mega Man, they'd know that.

SkarKrow:
How about you just use some of that giant IP pile you squat over?

Because I would seriously buy a new fucking Mega Man.

How silly. You think Capcom would actually use one of the oldest and most beloved IPs in the entire gaming industry? No, they'll just tease you with TronBon in Marvel Versus Capcom 3 and a level featuring servbots all over the place. Who would actually want Megaman Legends 3? And they'll tease an actual Megaman character that looks like the kinda chubby overweight guy on the original Nes case.

Make a Megaman game. You're so silly. Next you'll be saying you want to be able to play your games offline and DRM free.

Remember this is Capcom. They celebrated 25 years of the Blue Bomber with an artbook. Because a compilation of Megaman games would be foolish. They obviously know what they are doing with the character.

ShirowShirow:
"Capture users with DLC"

... HA!

What, you dont know? users are like pokemon. you have to capture them, train them to obey (give you all your moeny) and then force thme to fight for you (internet rage).

And then you get folks like me who wait for all the DLC to be released and grab the entire game on sale on Steam.

Because buying half a game for $100NZD is not acceptable.

No Capcom, you didn't have lower DLC sales because you were late to respond to the rise of DLC.

Its because your DLC is fucking terrible. Nobody wants to buy that shit.

'Spits on users with DLC' is more like it. The more I hear from these publishers, the more I find myself wishing for an industry crash. An Atari level purge of the rotten and incompetent old guard.

ShirowShirow:
"Capture users with DLC"

... HA!

This.

I'm pretty sure DLC never "captured" anyone, because you have to have... you know... the base game.

Unless they're going F2P, obviously. At which point I quit AAA gaming.

Saltyk:

SkarKrow:
How about you just use some of that giant IP pile you squat over?

Because I would seriously buy a new fucking Mega Man.

How silly. You think Capcom would actually use one of the oldest and most beloved IPs in the entire gaming industry? No, they'll just tease you with TronBon in Marvel Versus Capcom 3 and a level featuring servbots all over the place. Who would actually want Megaman Legends 3? And they'll tease an actual Megaman character that looks like the kinda chubby overweight guy on the original Nes case.

Make a Megaman game. You're so silly. Next you'll be saying you want to be able to play your games offline and DRM free.

Remember this is Capcom. They celebrated 25 years of the Blue Bomber with an artbook. Because a compilation of Megaman games would be foolish. They obviously know what they are doing with the character.

Or some kind of Mega Man Generations would have been lovely. BUt alas.

I can only hope at this point that Capcom dies off and it's treasure trove of beloved IP's end up in good hands.

With larger hard drives in the consoles I don't think this is entirely unreasonable of a claim. If console stores start following any kind of sale pattern like Steam Sales do then this would be very true.

We still have a bottleneck in the internet speeds department though. A 40GB+ game (uncharted 3 was 40GB and that's current gen) can take more than half a day to download whereas I can still drive to gamestop and be playing the game within the hour for cheaper than I'd probably see in the PSN or Live store.

 

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