Cave Lowers Earnings Forecasts
Publisher puts development of some content on hold and pours resources into social games.
Shoot-em-up maker Cave today announced reduced earnings forecasts for both the first half of the fiscal year, and for the full year as a whole.
For the first half of the year (in Cave's case this spans June 1 through November 30), the company expects sales of 1,303 million yen, down from the 1,400 million yen forecast that was announced on July 14. The company now expects an operating loss of 31 million yen, down from the forecast operating gain of 10 million yen.
For the year as a whole (June 1, 2011 through May 31, 2012), the company now expects 2,800 million yen in sales, down from the 3,300 million yen forecast. It reduced its operating earnings forecast from 310 million yen to 50 million yen.
As reason for the changes to the six month forecast, the company cited difficulties in the consumer games markets. Due to stagnation in this area, retailers were holding off on making purchases, causing new releases to fail to meet expected sales targets.
Regarding the full year forecast, the company said that it has rethought its development plan and will be pouring more resources into social games. As a result, it has put development of some content on hold. A earnings statement announcing the revisions did not provide specifics beyond this.