Games News

Capcom's stock drops 12.9% over Monster Hunter World sales risk

Capcom
Screenshot of Kulve Taroth from Monster Hunter World.
Monster Hunter World - Kulve Taroth

Considering the sort of success that earned Monster Hunter: World the title of best selling Capcom title up to date, we found it quite peculiar that Merrill Lynch's financial analysts would downgrade the company stock for being "a risk".

Bank of America Merrill Lynch therefore downgraded the company's rating from neutral to underperform, citing the reason to be expectations of slowing sales for Monster Hunter: World six months after the game has launched for PlayStation 4 and Xbox One.

That's not to say that Merrill Lynch are ignorant of the fact that Monster Hunter: World is doing far better than any other horse from Capcom's stable. In fact, they're aware that "cumulative sales volume is growing steadily".

However, they also "get the impression the popularity of Monster Hunter is dying six months" into its life cycle. As a result, Capcom's share target price was decreased for "significant risk of sales decline".

Looking at things from Capcom's perspective though, you'd never think there's anything wrong with Monster Hunter: World. Quite the contrary in fact, as the game racked up 7.5 million sold copies by March 2018, which is 15.5 per cent of total sales of the entire Monster Hunter franchises up to date, which currently stand somewhere around 48 million.

Moreover, the game didn't take to become Steam's top seller and that goes both for the vanilla and the Monster Hunter: World Deluxe Edition. Obviously, someone is wrong here and I don't think it's Steam or Capcom. Naturally, don't take my advice on this, since I'm definitely neither financially inclined nor interested in becoming a beancounter.

Having said that, analysing the grindy sort of games in the ilk of Monster Hunter: World and Warframe with the same set of standards you use for other multiplayer games doesn't seem to be doing them justice. Their content is regularly updated and besides - how do you put a time cap on a grind?

CapcomStreet Fighter 5: Arcade Edition RyuStreet Fighter 5: Arcade Edition - Ryu

Nevertheless, we'll see what the market says in the following months but Capcom seems to be going through Nintendo's woes at the moment. Nintendo thinks that kneejerk reactions are not the way to go, choosing to do their thing and let the market realise they were wrong by saying Nintendo can't surprise anymore.

As for Capcom, might we suggest some strategically placed hadoukens?