Western sales partially to blame
by David Radd on Friday, March 31, 2006
Capcom today revised the financial forecast for the year ending March 31, 2006. This means a reduction in gross income to ¥6.4 billion ($54.5 million), compared to the previously reported ¥7.4 billion ($63 million). Net income has been revised downward as a result, down to ¥6.5 billion ($55.3 million) from ¥8.9 billion ($75.7 million).
Part of this was blamed on a tax audit of ¥1.7 billion ($14.5 million), where local authorities claim Capcom did not report ¥5.1 billion ($43.4 million) in taxable income during a five-year period. Capcom contests this and is appealing the bureau's findings. Capcom also said that weak sales in North America and Europe softened profits.
GameDaily


