Capcom FY2007 Mid-Term Financial Results Briefing Session

The Capcom fiscal year 2007 mid-term financial briefing outlines the company’s performance for the six-month period ending September 30, 2007, and provides strategic adjustments for the remainder of the fiscal year. The primary objective is to evaluate segment-specific results and reconcile them against full-year forecasts, balancing strong growth in home video games against operational challenges in the arcade sector.

The home video game segment performed well, driven by the success of the Ace Attorney series on Nintendo DS and the Resident Evil 4 Wii edition, which became the first domestic third-party title to exceed one million units. Despite the lack of major blockbuster releases in the first half, the company successfully shifted its development focus toward new hardware platforms. Conversely, the arcade operations business faced a downturn, with existing store revenues falling to 88% of the previous year’s levels due to increased competition and the popularity of home consoles. Furthermore, the arcade game sales business suffered a significant operating loss, exacerbated by a product recall involving the Donkey Kong Banana Kingdom coin-operated machine, which necessitated a comprehensive restructuring of quality control and development procedures.

Geographically, the company continues to prioritize its multi-platform strategy and international presence, utilizing private "Gamers' Day" events in the U.S. and Europe to bolster overseas marketing. While the first-half results in the home video game segment exceeded expectations, the company maintained its original full-year financial targets. This conservative outlook accounts for the anticipated ongoing weakness in the arcade sector and the costs associated with quality control improvements. Overall, the company remains focused on leveraging its core franchises, such as Monster Hunter and Devil May Cry, to sustain growth across global markets.