Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2018

Key insights

6 takeaways

01
Capcom targets 93 billion JPY in net sales and 14.5 billion JPY in operating income for the fiscal year ending March 31, 2018, aiming for five consecutive years of operating income growth.See it on page 25
02
The consumer business is the primary growth driver with a target of 23 million unit sales, supported by a 30 billion JPY R&D investment focused on multiplatform development.See it on page 11
03
The company is shifting its geographic focus toward North American and European markets to compensate for declining sales performance in Japan.See it on page 29
04
Capcom is prioritizing a 'Single Content Multiple Usage' strategy to extend major franchises like Resident Evil and Monster Hunter into movies, animation, and merchandising.See it on page 25
05
Revenue growth strategies include increasing full-game digital downloads and overhauling the mobile segment through strategic alliances and localized content.See it on page 6
06
The amusement arcade and pachinko segments will focus on maintaining stability through profitable facilities and the use of established intellectual property in new cabinets.See it on page 21

Summary

The fiscal year 2018 strategy for Capcom focuses on achieving five consecutive years of operating income growth by prioritizing its Digital Contents business and leveraging its extensive library of intellectual property. The company aims to drive revenue through a dual-pronged approach: expanding its global consumer business via major title releases and digital downloads, and overhauling its online mobile segment through strategic alliances and localized content.

Key financial projections for the fiscal year ending March 31, 2018, include net sales of 93 billion JPY and an operating income of 14.5 billion JPY. The consumer business remains the primary growth engine, with a target of 23 million total unit sales, bolstered by a significant increase in full-game digital downloads. The company plans to capitalize on its established brands, such as Resident Evil and Monster Hunter, by utilizing a "Single Content Multiple Usage" strategy that extends beyond home video games into movies, animation, and character merchandising.

Geographically, the company is shifting its focus toward North American and European markets to offset declining sales in Japan. While the amusement arcade and pachinko segments face market volatility and regulatory challenges, the company intends to maintain stability by focusing on profitable facilities and releasing cabinets that utilize popular franchises. Supported by a robust R&D investment of 30 billion JPY, the strategy emphasizes multiplatform development and the revitalization of back-catalog titles to ensure long-term brand penetration and revenue sustainability.