Capcom Results of Operations and Strategies: First Half of Fiscal Year Ending March 31, 2014

The first half of the fiscal year ending March 31, 2014, reflects a period of growth for Capcom, characterized by record-setting sales and earnings driven primarily by the strong performance of the Digital Contents segment and the Amusement Equipments business. Net sales reached 53.2 billion yen, an increase of approximately 7.7 billion yen compared to the same period in the previous year. Operating income rose to 7.5 billion yen, supported by a weaker yen and the successful launch of key titles.

The Consumer business segment benefited significantly from the release of Monster Hunter 4, which achieved 3 million units in shipments, including digital downloads. While packaged software sales saw a decline compared to the previous year, the company successfully offset this through a strategic emphasis on digital content, with downloadable content (DLC) sales increasing by 150% to 5.4 billion yen. Conversely, the Mobile Contents business experienced a slowdown due to a lack of new hit titles, prompting a shift in strategy toward releasing native apps based on established brands.

The Amusement Equipments segment emerged as a major contributor, with operating income reaching 2.5 billion yen, largely due to the popularity of the Devil May Cry 4 pachislo machine. Meanwhile, the Arcade Operations segment maintained stable earnings through rigorous cost control measures, despite a 5% decline in sales at existing facilities. Looking forward, the company maintains its initial fiscal year forecast, aiming for 97 billion yen in net sales and 12 billion yen in operating income, while continuing to prioritize the expansion of its online and digital business segments to ensure long-term profitability.