Capcom explained to investors on Thursday that its £46 million restructure costs includes the cancellation of multiple unannounced games across the business.
The corporation said that, for the financial year ended March 31, it has discontinued projects "due to delays in responding to the digital contents and the resulting inability to address market needs".
It also claimed that overseas projects have also been cancelled, marking them down as "no longer compatible with the current business strategy".
Capcom has halved its profit forecast as a result.
Executives at the company suggested that its previous policy of outsourcing work to third-party studios is no longer desirable. It said its two main goals moving forward are to "strengthen digital strategies" and "raise game quality by moving more game development in-house".
It also criticised development operations for a "delayed response to the expanding digital contents market" and "a decline in quality due to excessive outsourcing".
Meanwhile, despite the major sales success of FY13, driven by sales of Resident Evil 6, Capcom expects its current financial year (which ends April 2014) to be even bigger. It has targeted sales of about £648 million.
It means that a major instalment in a blockbuster Capcom franchise is likely to be released before the end of the financial period.