Japanese analysts have noted the strong initial shipments of Capcom's Dead Rising for the Xbox 360, and believe that the game's performance is indicative of recent reforms at Capcom USA.
ImageNikkoCitiGroup raised its forecasts for Capcom due in large part to Dead Rising's "brisk repeat business" as well as "reforms at Capcom USA."
According to the investment firm, Capcom shipped 320,000 copies of Dead Rising in its first week (the game launched August 8 in the US), and Capcom has forecasted shipments to reach 450,000 units by today. Based on the game's better-than-expected performance, NikkoCitiGroup upped its fiscal year (ending March 2007) shipment expectations for Dead Rising to 800,000 units from 660,000.
This initial success of Dead Rising outlines the increasingly important role of digitally downloaded demos. NikkoCitiGroup analyst Soichiro ***uda wrote, "Robust Dead Rising sales suggest the establishment of a successful pattern for US marketing whereby trial version downloads stimulate interest and lead to stronger actual sales." Users downloaded around 300,000 Dead Rising demos over Xbox Live worldwide.
NikkoCitiGroup also expects Capcom's upcoming title Lost Planet for Xbox 360 to utilize trial downloads.
***uda speculated that the "healthy sales" of Xbox 360 titles may prompt Capcom to take currently PS3-exclusive titles multi-platform. He wrote, "If that happens, it will give the company a chance to make the most of its PC-based development program, which aims to enhance efficiency by utilizing PCs through the primary stages of development."
Devil May Cry 4 and a version of Monster Hunter are two Capcom titles that have only been announced for PS3.
***uda commented further on Xbox 360/PS3 ports, saying, "Capcom will conduct the first 5060 percent of the PS3 and Xbox 360 development process on PCs, only in the final stages using a development approach that is optimized for either the Xbox 360 or the PS3."
The aforementioned Capcom USA business reforms ***uda referred to have much to do with Capcom's recently hired North American marketing boss Mark Beaumont. Part of his next-generation strategy is to introduce new IP early on (see Dead Rising and Lost Planet), while still supporting Capcom's catalog of popular franchises. He also places special emphasis on the creation of products with a more global appeal.
NikkoCitiGroup raised its fiscal 2007 earnings forecast for Capcom to 8.2 billion yen ($70.8 million) from 7.8 billion yen ($67.3 million); fiscal 2008 to 10.8 billion yen ($93.2 million) from 9.5 billion yen ($82 million); and fiscal 2009 to 12.5 billion yen ($107.9 million) from 11 billion yen ($95 million).
