Game publisher Capcom announced that they had lowered expectation of its consolidated gross income from earlier 7.4 billion yen down to 6.4 billion yen,due to poor oversea sales and outstanding domestic tax.

In a statement made to investors, Capcom explained that the revisions are mostly due to a 1.7 billion yen (＄14 million) tax audit based on transfer pricing adjustments from the Osaka regional tax bureau. The bureau ruled that Capcom failed to report 5.1 billion yen (＄43 million) in earnings for March 2000 to March 2005. Capcom disagrees with the assessment and plans to file an appeal to the regional tax authorities.

However, Capcom stated that poor performance in the North American console game market and weak game sales in Europe have also affected its net income for the fiscal year.