Capcom closing Vancouver studio

Publisher confirms plans to consolidate major development in Japan after announcing $40 million expense on cancelled projects

[UPDATE]: Capcom has confirmed to that it is closing its Vancouver studio. A representative sent the following comment:

"Capcom is currently reviewing the allocation of its development resources that support the production of world-class content. Capcom has been focused on increasing the efficiency and growth of its game development operations. To support this objective, new R&D facilities and annual hiring have been underway at the Osaka headquarters. In consideration of this process, as a result of reviewing titles in development at Capcom Vancouver, Capcom has decided to cancel the development projects at this studio and will concentrate development of major titles in Japan.

"As part of this overall direction, the CV studio will suspend operations, effective today, so the current staff will be laid off and the office will be closed."

The closure will affect 158 employees who will receive severance packages. A "skeleton crew" is expected to stay on board until January to handle the logistics of the closing the studio.

"We appreciate the hard work and contributions of all the studio team members in creating unforgettable gameplay experiences for the Dead Rising series and Puzzle Fighter," the representative said.

The original story follows below:

Capcom lost ¥4.5 billion on projects cancelled at its Vancouver studio, equivalent to $40 million.

The problems at Capcom Vancouver surfaced in February this year, when a rumoured 50 people were laid off as the Japanese publisher restructured its workload.

Capcom later confirmed that 30 per cent of the studio had been made redundant in a, "regular periodic assessment of upcoming projects and overall studio goals." It also said that Capcom Vancouver would continue to work on both the Puzzle Fighter and Dead Rising series.

Today, Capcom has put a hard number on the cost of that restructuring: a ¥4.5 billion ($40.2 million) loss that will be recorded under cost of sales in its Q2 fiscal report.

Despite this significant hit, however, the company has not adjusted its financial outlook. The strong performance of Monster Hunter: World means that Capcom will still hit its targets for the first half of the fiscal year.

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