Results of Operations and Strategies: First Half of Fiscal Year Ending March 31, 2015

Capcom’s financial results for the first half of the fiscal year ending March 31, 2015, reflect a period of transition characterized by a year-over-year decline in sales and earnings, primarily due to the absence of a major hit title comparable to the previous year’s launch of Monster Hunter 4. Net sales for the six-month period reached 25,917 million yen, down from 53,234 million yen in the same period of the prior year. Despite lower top-line revenue, the company successfully improved its operating margin to 16.9% through rigorous cost-cutting measures and a strategic focus on high-margin digital download content.

The consumer business segment remains the primary driver of revenue, though it faced a significant reduction in package software sales. To mitigate this, the company prioritized digital download sales, which accounted for approximately 43% of consumer segment revenue during the first half. Key performance indicators included the shipment of 2 million units of Monster Hunter 4 Ultimate in Japan and 500,000 units of Ultra Street Fighter IV globally. Meanwhile, the amusement equipment segment saw increased profitability due to the strong performance of high-margin pachislo machines, specifically Sengoku BASARA 3 and repeat sales of Monster Hunter Gekka Raimei.

Looking ahead, the company maintains its full-year forecast, focusing on the release of major titles such as Monster Hunter 4 Ultimate in Western markets and Resident Evil Revelations 2. Strategic initiatives include expanding digital download ratios, pursuing growth in mobile and PC online gaming through partnerships in Asia, and optimizing arcade operations. The company continues to navigate market volatility by balancing new title development with the sustained monetization of existing intellectual property.