Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2016

Key insights

6 takeaways

01
Capcom targets a cumulative operating income of 70 billion yen over the five-year period ending in fiscal year 2017, aiming for a 20% operating margin by March 2018.See it on page 5
02
Financial projections for the fiscal year ending March 2016 anticipate net sales of 76 billion yen and an operating income of 12 billion yen.See it on page 10
03
The company is prioritizing a transition to digital distribution to offset declining physical package sales, specifically targeting growth in North American and European markets.See it on page 13
04
Core intellectual properties like Monster Hunter and Street Fighter are being expanded through mobile applications, PC online titles, and strategic partnerships with companies such as Tencent.See it on page 29
05
The business model leverages a diversified strategy that extends content reach through stage shows, character licensing, and amusement equipment like pachinko and pachislo machines.See it on page 24
06
Operational efficiency is being driven by increased R&D investment and the adoption of advanced software development tools to facilitate multi-platform releases.See it on page 30

Summary

Capcom outlines its strategic growth roadmap and financial objectives for the fiscal year ending March 31, 2016, emphasizing a transition toward digital distribution and the expansion of its core intellectual property across multiple platforms. The company targets a cumulative operating income of 70 billion yen over a five-year period ending in fiscal year 2017, aiming for a 20% operating margin by March 2018. To achieve these goals, the organization focuses on strengthening its digital contents segment, which serves as the primary driver for future profitability.

Key operational strategies include increasing full-game digital downloads to offset the decline in physical package sales, particularly in North American and European markets. The company plans to leverage its established franchises, such as Monster Hunter and Street Fighter, through mobile applications, PC online titles, and strategic alliances with Asian partners like Tencent. Simultaneously, the arcade operations segment seeks to stabilize performance by introducing new customer-facing attractions, while the amusement equipment division targets growth through the release of new pachinko and pachislo machines compliant with updated industry regulations.

Financial projections for the fiscal year ending March 2016 anticipate net sales of 76 billion yen and an operating income of 12 billion yen. This growth is supported by a robust pipeline of major titles and a commitment to efficient development cycles. The company maintains a diversified business model that utilizes its content portfolio across various media, including stage shows and character licensing, to maximize brand value and reach audiences beyond traditional video game players. These efforts are underpinned by a commitment to R&D investment and the utilization of advanced software development tools to facilitate multi-platform releases.