Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2015

Key insights

6 takeaways

01
Capcom targets a cumulative operating income of 80 billion yen over the five-year period ending March 2018, aiming for a 20% operating margin by that final year.See it on page 5
02
For the fiscal year ending March 31, 2015, the company projects an operating income of 10.5 billion yen on net sales of 80 billion yen.See it on page 10
03
The 2015 strategy prioritizes profitability over volume by reducing the number of major title releases and implementing aggressive cost-cutting measures.See it on page 18
04
The company is leveraging its 'Single Content Multiple Usage' strategy to extend core intellectual property into non-gaming media, including animation, stage productions, and merchandise.See it on page 29
05
Digital content is the primary revenue driver, with a focus on internal development and enhanced marketing for key titles such as Monster Hunter 4 Ultimate.See it on page 13
06
Capcom is shifting its operational focus toward high-performing franchises and the growth of PC online and mobile gaming to navigate industry volatility.See it on page 28

Summary

Capcom’s strategy for the fiscal year ending March 31, 2015, focuses on improving profitability through a more selective title lineup, aggressive cost-cutting measures, and the expansion of digital download content. The company aims to achieve a cumulative operating income of 80 billion yen over a five-year period ending in March 2018, targeting an operating margin of 20% by that final year. This growth strategy relies on a multi-faceted approach that leverages its established intellectual property across home video games, mobile platforms, and arcade operations.

Key financial projections for fiscal year 2015 include net sales of 80 billion yen, representing a decrease from the previous year due to a reduced number of major title releases. Despite lower sales, the company anticipates an increase in operating income to 10.5 billion yen, driven by operational efficiencies and a strategic focus on high-performing franchises. The digital contents segment remains the primary revenue driver, with plans to prioritize internal development and enhance marketing collaboration for major titles like Monster Hunter 4 Ultimate.

The company’s scope covers global operations, with specific emphasis on the Japanese, North American, and European markets. Methodology for these projections is based on internal market analysis, historical performance data, and current industry trends, such as the growth of PC online and mobile gaming. Capcom continues to employ a "Single Content Multiple Usage" strategy, which maximizes the value of its core brands by extending them into various media, including stage productions, animation, and character-based merchandise. By streamlining its consumer business and focusing on high-quality, internally developed titles, the company seeks to navigate the volatility of the entertainment industry while maintaining its competitive edge in global game development.