Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2014

Key insights

6 takeaways

01
Capcom aims for a 20% operating margin by the fiscal year ending March 2018, targeting 75 to 80 billion yen in cumulative operating income over a five-year period.See it on page 5
02
Financial projections for the fiscal year ending March 2014 anticipate 97 billion yen in net sales and 12 billion yen in operating income.See it on page 11
03
The company is transitioning away from packaged software, with unit sales projected to decline to 13 million units from 14 million in the previous year.See it on page 15
04
Revenue growth is being prioritized through a digital-first strategy, specifically focusing on DLC, mobile titles, and PC online games to offset the decline in physical software sales.See it on page 8
05
The 'Single Content Multiple Usage' strategy leverages core intellectual properties like Monster Hunter, Resident Evil, and Street Fighter across mobile, arcade, and pachinko/pachislo platforms.See it on page 30
06
Operational efficiency is being addressed through the consolidation of arcade facilities and the expansion of development staff to support international online and mobile initiatives.See it on page 21

Summary

Capcom’s strategy for the fiscal year ending March 31, 2014, focuses on achieving long-term growth through a digital-first approach and the expansion of online content. The company has set a mid-term goal of reaching 75 to 80 billion yen in cumulative operating income over five years, with an objective to achieve a 20% operating margin by the fiscal year ending March 2018. To support these targets, the company is prioritizing the development of downloadable content (DLC), increasing internal production efficiency, and expanding its online games business, particularly in international markets.

Financial projections for the fiscal year ending March 2014 anticipate net sales of 97 billion yen and an operating income of 12 billion yen. This growth is expected to be driven by a robust lineup of digital content and a strong performance in the amusement equipment sector. While the company expects a cyclical decline in packaged software unit sales—projected at 13 million units compared to 14 million in the previous year—it plans to offset this by increasing revenue from mobile and PC online titles. The company’s "Single Content Multiple Usage" strategy remains central to its operations, leveraging established intellectual properties like Monster Hunter, Resident Evil, and Street Fighter across various platforms, including mobile, arcade, and pachinko/pachislo machines.

The company’s methodology relies on internal market analysis and strategic resource allocation to navigate the volatile entertainment industry. Key operational shifts include the consolidation of arcade facilities to improve efficiency and the expansion of development staff to bolster online capabilities. Geographically, the company is shifting its focus toward the Japanese market for sales growth while maintaining global development infrastructure to support its digital and mobile initiatives.