Capcom Eyes Mobile Expansion with More AAA Games

Key insights

6 slides

New Focus

Capcom is prioritizing high-end, AAA-quality mobile titles.

This strategy aims to support the company's long-term objective of selling 100 million game units annually. PC and console platforms remain the primary focus.

Market Concentration

Japan accounts for 73% of Monster Hunter Now's total revenue.

The game's performance is heavily concentrated in the Asian market. Japan also shows a significantly higher revenue-per-download rate.

Like a popular local restaurant, the game sees most of its business from its home country.

73%

Share of Monster Hunter Now's total revenue from Japan.

Japan revenue-per-download rate: $7.16
Global average revenue-per-download rate: $2.50

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Summary

Capcom is strategically pivoting toward the mobile gaming sector to support its long-term objective of selling 100 million game units annually. While the company maintains PC and console platforms as its primary focus, leadership has identified high-end, AAA-quality mobile titles as a critical growth driver. This shift is facilitated by recent technological advancements that allow for the porting of major console franchises to smartphones, exemplified by the upcoming release of Resident Evil titles on the iPhone 15 Pro.

The company’s mobile strategy involves a dual approach: direct porting of flagship intellectual property and licensing established franchises to third-party developers. This transition is particularly urgent given that Capcom’s mobile revenue declined by 33% during the fiscal year ending March 31, 2023, totaling ¥2.8 billion ($18.8 million). The recent launch of the augmented reality title Monster Hunter Now, developed in partnership with Niantic, serves as a key indicator of this strategy's potential.

Market data indicates that Monster Hunter Now has achieved early commercial success, generating $11.4 million in revenue and over 4.5 million global downloads shortly after its September 2023 release. The game’s performance is heavily concentrated in the Asian market, with Japan accounting for 73% of total revenue and maintaining a significantly higher revenue-per-download rate of $7.16 compared to the global average of $2.50. By leveraging high-profile IP and expanding hardware compatibility, Capcom aims to revitalize its mobile segment and contribute meaningfully to its broader corporate sales targets.