Is Capcom worried about media and/or political backlash from its upcoming Resident Evil 5?
Buried on page 46 is this nugget:
Some of our popular software titles have provocative graphics and text, such as violent and grotesque scenes. Accordingly, in the event of violent incidents and other criminal cases involving juveniles, we may be subject to a smear campaign by some sections of the mass media which often point out the correlation between crime and games.
Therefore, there is a risk that it may result in having an adverse effect on our business performance, corporate value and narrowed distribution channel under instructions by the relevant authorities.
GP: This is not likely related to RE5 specifically. We’ve seen similar disclaimers in other corporate reports. It’s just good business practice (not to mention a legal requirement) to level with investors about potential risks.