Marvelous revenues drop as losses rise
No More Heroes 2 publisher predicts return to profit following drastic cut in new titles
Japanese publisher Marvelous Entertainment has seen both revenues and profits take a tumble in the latest full year results, with sales falling by 18.3 per cent to just ¥8.28 billion (£63m/$91m).
Net losses for the No More Heroes and Harvest Moon publisher increased from ¥1.2 billion (£9m/$13m) to ¥1.6 billion (£12m/$18m) for the year ended March 31st, 2010.
These results are slightly above expectations and in the current financial year the company is predicting a return to ¥90 million (£685,000/$991,000) of net profit.
Revenues though are expected to drop by 21.5 per cent by this time next year, as the company plans to ship fewer games. Marvelous released 20 separate SKUs during the 2009 financial year but it intends to ship just 10 in the current year.
According to reports Marvelous executives took pay cuts of between 15 and 17 per cent earlier in the year, in an attempt to reduce costs. The company's CEO allegedly took a 77 per cent pay cut.
The company also sold a 50 per cent stake in European publisher Rising Star Games.