Capcom reported today its nine-month fiscal period results. The Japanese publisher’s net sales dropped 8.6 percent to 47.2 billion yen. Their net income also decreased a whopping 95 percent to 179 million yen.

Capcom’s home video game division sales decreased 13.4 percent to 26.71 billion yen. Their operating income was also down by 27.1 percent, which obviously added to the losses.

Capcom explained that the Japanese economy slowed down and started to show an economic downturn during the third quarter of the nine-month fiscal period. Capcom also explained that “the year-end shopping season lacked excitement,” and this was due to portable consoles not selling as much as in previous seasons.

The company blamed some of the weak results on “not having the release of flagship titles until the 4th quarter in the Home Video Games Business.”

Not all was lost though, Capcom had big sellers in the nine-month period like Mega Man Star Force (Nintendo DS), and Monster Hunter Portable Unite (PSP). There is hope on the horizon. The company is set to release many major titles this year including Resident Evil 5, Bionic Commando, and Street Fighter IV.

The company also saw some hope in their arcade game sales. Net sales for the arcade games increased to 123.1 percent to 4.84 billion yen. Their operating income also increased from a loss to a 381 million yen profit. No doubt driven by strong sales of Street Fighter IV Boards in Japanese arcades.

With the big hitters Resident Evil 5, Bionic Commando, and Street Fighter IV coming soon, Capcom financial prayers might be answered very soon.