Resident Evil 6 "did not meet" their expectations with sales at 4.9 million, falling short of the 7 million they hoped for. DmC: Devil May Cry enjoyed "stable popularity" overseas, with no total sales mentioned.
In April DmC was noted as having sold 1.15 million. Capcom had said back in April that a "decline in quality" was attributable to third-party developers.
That has led Capcom to conclude that more internal development is needed, and that they'll be scaling back on their deals and partnerships with Western development outfits.
"In order to lower development costs and shorten time frame for development, Capcom will restructure its development organisations, which are the core parts of the company's business, increasing ratio of in-house developments by focusing on the overhaul of overseas development companies," wrote Capcom in their report.
"As for future prospects, the industry is expected to find an increasingly mature market of home video games, which is our core business segment. Even though a full line-up of new home video game consoles will eventually be released, the industry is likely to be in a period of scant new product releases over the near future, awaiting the full-scale launch of the next generation machines."
"In the meantime, development costs are projected to soar as advanced and multiple functions are added to hardware. Business alliances and consolidations may therefore occur in increasing numbers."
Capcom are determined not to jump ship and go all casual and mobile gaming on us.
"Faced with this sudden and significant changes in the operating environment, Capcom intends to direct its development resources to the home video game software, which is our core business segment, and the development of online games, which is a growing area, based on its medium-term strategic map," they said.
Only Lost Planet 3 and Monster Hunter 4 for Nintendo 3DS mentioned as titles for the coming fiscal.