Capcom Annual Report 2002

Key insights

7 takeaways

01
Capcom achieved consolidated net sales of ¥62,743 million for the fiscal year ending March 31, 2002, representing a significant increase from ¥49,083 million in the previous year.See it on page 3
02
The company released over 15 million units of game software during the fiscal year, with overseas markets accounting for approximately 9.5 million units.See it on page 14
03
Net income declined by 18.2% to ¥4,912 million, primarily due to extraordinary losses from the valuation of investment securities amid falling stock prices.See it on page 16
04
The Arcade Games segment experienced a 42.3% decrease in net sales to ¥3,954 million, resulting in an operating loss of ¥456 million due to a slump in personal consumption and arcade operations.See it on page 16
05
Capcom maintains a global R&D strategy with bases in Japan, the United States, and Korea to develop region-specific content while targeting a global audience.See it on page 8
06
Key blockbuster titles driving performance included 'Onimusha' and 'Devil May Cry,' both of which achieved worldwide sales exceeding two million units.See it on page 10
07
The company is shifting toward a multi-platform strategy and exploring online gaming, highlighted by the development of 'Network Resident Evil' and titles for platforms including PlayStation 2, Nintendo GameCube, and Xbox.See it on page 11

Summary

Capcom experienced a period of significant top-line growth during the fiscal year ending March 31, 2002, as consolidated net sales surged by 27.8 percent to reach ¥62.7 billion. This expansion was primarily fueled by the robust performance of the home video game division, anchored by the commercial success of major titles such as Onimusha and Devil May Cry. While the arcade operations segment also contributed to this growth through improved facility management, the arcade manufacturing sector faced substantial headwinds, resulting in a 42.3 percent decline in sales and an operating loss. Despite the strong revenue performance, net income fell by 18.2 percent to ¥4.9 billion, a decline largely attributed to extraordinary appraisal losses on investment securities.

To navigate the evolving console landscape and rising development costs, the company adopted a multi-platform strategy and implemented a rigorous title-based profit control system for its producers. These operational adjustments were complemented by a restructuring of business and geographic segments to enhance reporting transparency across its global operations in Japan, North America, and Europe. The company’s financial position remained stable, with total assets increasing to ¥128.5 billion, supported by a strategic shift in long-term debt structures and bolstered cash reserves.

The company’s long-term financial obligations, totaling ¥37.4 billion as of March 2002, consist primarily of convertible bonds maturing between 2005 and 2009. By streamlining unprofitable operations and focusing on high-performing software franchises, the organization sought to mitigate the impact of a sluggish domestic arcade market. These efforts, overseen by the corporate leadership team based in Osaka, reflect a broader transition toward a more disciplined, globalized business model designed to sustain long-term profitability in an increasingly capital-intensive industry.