In a cryptic announcement, Capcom has projected massive losses of up to $40 million following restructuring and cancellation of a project at Capcom Vancouver, their video game studio behind the "Dead Rising" series of games.

Layoffs and several cancellations later

True to a fault, Capcom Vancouver saw better times prior to 2018. Earlier this year, the studio was forced to downscale its operations which led to 30 percent of its workforce being laid off from the company.

An unnamed source speaking to Kotaku claimed that this move also led to the cancelation of an unannounced game project that was still in the planning stage. The working title was planned as a third-person action-adventure video game set in an alternate New York.

Kotaku's source also claimed that Capcom's decision was part of a restructuring effort that would help to streamline the company and reduce focus on the next "Dead Rising" game which has become overscored. Unfortunately, the move has instead crippled the studio's profit potential. Capcom analysts are expecting the company to incur a loss of $40 million for the six months of the fiscal year ending on March 31, 2019.

A brief history

Capcom Vancouver started its journey back in 2005 under the title Blue Castle Games. It was formed in Burnaby, British Columbia, Canada with a small staff of 12 before it would eventually grow to over 200 and be renamed to Capcom Vancouver. The studio is best known for its work on the popular "Dead Rising" series, a series of survival horror Video Games similar to "Resident Evil," another Capcom-owned series. The "Dead Rising" franchise consists of four main titles, two remakes, two compilations, and a mobile game. Also similar to "Resident Evil," the franchise made its way to the big screen with three films.

Not all is lost

Despite the ensuing massive windfall from Capcom Vancouver, the company as a whole is expected to maintain its projections for the remainder of the year.

This is due in large part to the recent success of titles such as "Monster Hunter World" with sales exceeding the company's expectations since its launch back in January. The title became Capcom's greatest hit with eight million copies sold on consoles alone.

"Monster Hunter World" was also released for PC via Steam in August and is currently raking in large sales numbers on Valve's distribution service. However, an estimate for the PC port hasn't been mentioned yet. Overall, Capcom has also seen success with its Nintendo Switch exclusives and ports.