Overview of Strategies and Plans: Fiscal Year Ending March 31, 2020

Key insights

7 takeaways

01
Capcom aims for seven consecutive years of operating income growth by targeting 20 billion yen in operating income for the fiscal year ending March 31, 2020.See it on page 2
02
The company is shifting toward a high-margin business model with a goal of achieving a 75.4% digital sales ratio within its Consumer business segment.See it on page 10
03
Despite a projected decline in total net sales from 100 billion yen to 85 billion yen, the focus remains on prioritizing profitable digital revenue streams over total volume.See it on page 10
04
Growth strategy centers on global expansion of the Monster Hunter and Resident Evil franchises through new releases and sustained promotion of back-catalog titles.See it on page 6
05
The company is investing in eSports to expand its player base and brand engagement while simultaneously restructuring its Amusement Equipments segment to comply with new industry regulations.See it on page 15
06
Arcade Operations are being optimized through a focus on store efficiency and the development of alternative revenue sources like net catcher services and branded merchandise.See it on page 12
07
Management maintains a risk-aware outlook, citing market volatility, exchange rate fluctuations, and the hit-driven nature of the entertainment industry as primary performance variables.See it on page 2

Summary

The fiscal year 2020 strategy for Capcom focuses on achieving seven consecutive years of operating income growth by prioritizing the Digital Contents business and leveraging its strong library of intellectual property. The company aims to transition toward a model driven by high-margin digital sales, targeting a 75.4% digital sales ratio within its Consumer business. While the overall net sales forecast for the fiscal year ending March 31, 2020, is projected to decline to 85 billion yen from 100 billion yen in the previous year, the company anticipates an increase in operating income to 20 billion yen, reflecting a strategic shift toward more profitable digital revenue streams.

The growth strategy centers on the global expansion of major brands, such as the Monster Hunter and Resident Evil series, through new title releases and the sustained promotion of back-catalog titles. The company is also investing in eSports to broaden its player base and increase brand engagement. In the Amusement Equipments segment, the company seeks to recover from previous losses by releasing new machines that comply with current industry regulations. Meanwhile, the Arcade Operations segment continues to focus on store efficiency and the development of new revenue sources, such as net catcher services and branded merchandise.

These projections are based on internal assessments of the global gaming market, which is expected to continue expanding, driven by mobile and console segments. The company maintains a professional, risk-aware outlook, noting that performance remains subject to volatility due to shifting consumer demand, exchange rate fluctuations, and the inherent unpredictability of hit-driven entertainment markets. By focusing on recurring revenue from digital content and maintaining a disciplined approach to R&D and capital expenditure, the company aims to balance stable base earnings with long-term growth opportunities.