Capcom Financial Results Briefing: Year Ended March 31, 2021

Capcom’s financial results for the fiscal year ended March 31, 2021, highlight a period of sustained growth driven by a strategic focus on digital sales and global expansion of core intellectual property. The company achieved eight consecutive years of profit growth and four consecutive years of record-high profit levels, underscoring the success of its medium-term management objective to increase operating profit by at least 10% annually. This performance was largely supported by the Consumer sub-segment, which leveraged digital distribution and the extended lifecycle of high-quality titles to reach a record 30.1 million units in sales.

Looking toward the fiscal year ending March 31, 2022, the company projects continued momentum with an operating income target of ¥42 billion and net income of ¥30 billion. The strategy remains centered on maximizing revenue from major brands, such as Resident Evil and Monster Hunter, through a combination of new releases, free title updates, and data-driven pricing strategies. Digital sales are expected to exceed ¥50 billion, representing over 70% of total sales, as the company continues to prioritize global PC-market entry and the long-term monetization of its catalog.

While the broader gaming market experienced significant growth during the pandemic, Capcom’s other business segments face varying conditions. The Arcade Operations segment is targeting a recovery from COVID-19 impacts through new store openings and operational streamlining, while the Amusement Equipments segment is adjusting to a shrinking pachislo market by focusing on popular IP and improved cost structures. Additionally, the company is accelerating its Single Content Multiple Usage strategy, utilizing film adaptations and eSports investments to bolster brand awareness and support long-term content sales. Despite the challenges posed by the global health crisis, the company maintains a positive outlook, prioritizing safety while pursuing consistent growth across its diversified business portfolio.