Company Profile: May 2005

Capcom concluded the fiscal year ending March 31, 2005, with robust financial results, reporting net sales of 65.8 billion yen and an operating income of 7.7 billion yen. This growth was primarily fueled by the commercial success of major software franchises such as Resident Evil 4 and Mega Man, alongside significant contributions from the pachislo LCD business and enhanced operational efficiencies. While the company remains cautious regarding the inherent volatility of the hit-driven home video game market and fluctuating console adoption rates, it maintains a positive outlook, projecting net sales of 70 billion yen for the 2006 fiscal year.

The core strategic objective centers on global expansion to mitigate the maturity of the Japanese market. By implementing a target sales ratio of 2:5:3 across Japan, North America, and Europe, the company aims to diversify its revenue streams through multi-platform development and the aggressive exploitation of intellectual property. This strategy extends beyond traditional home console gaming, integrating arcade operations, mobile content, and licensing for film and pachislo machines to maximize the value of its creative assets.

Research and development efforts are currently prioritized toward the rapid adoption of next-generation hardware, ensuring a balanced portfolio that blends established sequels with original intellectual property. Simultaneously, the company’s arcade division continues to serve as a high-margin pillar of the business, consistently achieving operating margins exceeding 20% by focusing on large-scale commercial venues and high-performing prize and medal games. Through this multifaceted approach, the organization seeks to sustain long-term growth while navigating the evolving landscape of the global interactive entertainment industry.