Resident Evil 6 which was initially pegged to sell over 7 million copies found itself at a revised forecast of 5 million initially and now it is down to 4.9 million. Same is the case with Devil May Cry which was reduced to 1.2 million down from 2 million and has been further reduced to 1.15 million copies.

Capcom, in a note to investors, warned of a ‘special loss’ which was incurred after the company strictly reviewed the games under development. One of the reasons that the company identified to have played a part in the revision is “decline in quality due to excessive outsourcing”, the other two being “delayed response to the expanding digital contents market”; and “insufficient coordination between the marketing and the game development divisions in overseas markets.”

The first point is a direct assault on third party game developers who develop games for big brands like Capcom. Devil May Cry was developed by Ninja Theory, on request from the Capcom, such that it has a different style as compared to its Japanese counterpart.

Capcom is looking to implement quite a few countermeasures including the likes of increasing DLC as well as shifting research and development tasks to internal teams. Capcom, as a part of business restructure, has also gone ahead with closure of quite a few unannounced titles through the means of strict re-evaluation. This closure has led to a special loss of 7.2 billion yen ($64.5 million) special loss.

Expected profits for the 2013 financial year have also been halved by Capcom to $29.6 million from £66.2 million.