Capcom has suffered a 73.1 per cent drop in profits over the last twelve months.
The Resident Evil publisher saw net sales fall to 2.17 billion Yen (£16m), down from eight billion Yen (£60m) the year before.
Sales decreased from 91.8 billion Yen (£679.7m) to 66.8 billion Yen (£494m), a drop of 27 per cent.
Poor sales of recent titles – such as new IP Dark Void – and the international delay of Lost Planet 2, Monster Hunter Tri and Super Street Fighter IV, were cited as reason for the fall.
The firm's Arcade business also saw extraordinary loss as Capcom revises its Arcade development system.
However, the firm does expect a 'sharp rebound' over the next financial year. Capcom predicts it can achieve Net income of eight billion Yen (£60m), with net sales of 95 billion Yen (or £702.7m).