Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2017

Key insights

6 takeaways

01
Capcom targets a 20% operating margin by the end of fiscal year 2018 as part of a five-year plan to achieve 70 billion yen in cumulative operating income.See it on page 5
02
Financial projections for fiscal year 2017 include 85 billion yen in net sales and 13.6 billion yen in operating income.See it on page 10
03
The company plans to ship 16.5 million units of consumer software, with digital downloads projected to account for 29% of total consumer segment sales.See it on page 15
04
Core growth relies on the global release of major franchises, specifically Resident Evil, Monster Hunter, and Street Fighter.See it on page 30
05
A new Mobile Business Division has been established to overhaul mobile and online operations, supported by strategic alliances in Asia.See it on page 8
06
The 'Single Content Multiple Use' strategy aims to expand brand value beyond gaming through film, television, and theme park adaptations.See it on page 26

Summary

Capcom’s strategy for the fiscal year ending March 31, 2017, focuses on achieving sustained growth through the global expansion of major franchises and the aggressive utilization of intellectual property across multiple platforms. The company aims to reach a cumulative operating income of 70 billion yen over a five-year period starting in fiscal year 2014, with a target operating margin of 20% by the end of fiscal year 2018. To support these goals, the company is prioritizing structural reforms in research and development and increasing its focus on digital distribution.

Key financial projections for fiscal year 2017 include net sales of 85 billion yen and an operating income of 13.6 billion yen, representing growth over the previous year. The consumer business remains the primary revenue driver, with a strategy centered on releasing major titles globally and boosting digital download revenue, which is forecasted to account for 29% of consumer segment sales. The company plans to ship 16.5 million units across package and digital formats, supported by a robust portfolio of established brands such as Resident Evil, Monster Hunter, and Street Fighter.

Beyond the core consumer business, the company is overhauling its mobile and online operations by establishing a dedicated Mobile Business Division and pursuing strategic alliances in Asia. While the domestic arcade market faces contraction, the company intends to maintain stable operations through multi-purpose facilities and the integration of character-based merchandise. Additionally, the company continues to leverage its "Single Content Multiple Use" strategy, extending the reach of its game brands through animated television series, film adaptations, and theme park attractions to capture non-gaming audiences and enhance overall brand value.