Capcom has revealed that profits for the nine months to December 31 were down 95 per cent compared to the same period in 2007, to JPY 179 million.
Sales were down 8.6 per cent to JPY 47,223 million with operating income down 57.2 per cent to JPY 2,610 million.
The company blamed slack performance of its arcade operations and contents expansion business, the rise in the yen's exchange rate, and no major videogame releases during the final quarter of the year.
Sales for the home videogame business were JPY 26,709 million, down 13.4 per cent from the JPY 30,852 million for the same period in 2007.
"We were not able to achieve favourable profits, and overall sales remained weak because we were in a transitional period in our product development cycle," said the company. It noted that blockbuster releases – Street Fighter IV and Resident Evil 5 – are not due until the fourth fiscal quarter.
However, there was some success during the period, with Monster Hunter Freedom 2G PSP the Best and Mega Man Star Force hitting sales targets.
Capcom also noted that Grand Theft Auto IV, which it distributes in Japan, also performed well.
Arcade operation sales were up 4.8 per cent to JPY 10,039 million, but the division recorded an operating loss of JPY 113 million, down 80.2 per cent from the same period last year.
Arcade game sales rocketed 120.6 per cent to JPY 4,848 million, with operating income reaching JPY 381 million.
The contents expansion division recorded a sales decrease of 46 per cent to JPY 3,801 million, while operating income also dropped 91.8 per cent to JPY 188 million.
Other business, mainly licensing royalties, decreased to JPY 1,832 million, and operating income increased to JPY 633 million.