Capcom 1st Quarter Report: Fiscal Year Ending March 31, 2010

Capcom’s first-quarter financial results for the fiscal year ending March 31, 2010, demonstrate a period of robust growth driven primarily by the home video game segment. The company reported consolidated net sales of 19.497 billion yen, representing a 19.2% increase year-on-year, while operating income rose by 23% to 3.664 billion yen. This performance was largely bolstered by the sustained success of previously released titles, most notably Resident Evil 5, which achieved a record-breaking 5 million units in global shipments.

The home video game segment served as the primary engine for this growth, generating 14.148 billion yen in sales and a 32.5% increase in operating income. Conversely, other business segments faced significant headwinds. The arcade operations and arcade game sales segments struggled due to intense retail competition and a lack of new product launches, leading to stagnant or negative performance. The contents expansion segment, which encompasses mobile content and pachinko/pachislo machines, also experienced mixed results, with pachislo shipments falling below initial projections.

Despite the strong first-quarter performance, the company maintained its existing full-year forecasts. This conservative outlook is attributed to the strategic decision to delay the release of the title Dark Void to the fourth quarter to avoid market saturation from competitor releases. Management remains focused on future growth through the upcoming release of major titles such as Monster Hunter Tri and Lost Planet 2. The company’s financial position remains stable, characterized by the successful collection of receivables from the previous fiscal year’s major releases, and it continues to explore strategic partnerships, including collaborations with Namco Bandai Games to optimize arcade game distribution.