Capcom Overview of Strategies and Plans: Fiscal Year Ending March 31, 2024

Key insights

7 takeaways

01
Capcom projects record-breaking performance for the fiscal year ending March 31, 2024, targeting 140 billion yen in net sales and 56 billion yen in operating income.See it on page 3
02
The company aims to reach a long-term goal of 100 million annual unit sales, with a FY3/24 plan to sell 45 million units, 94.4% of which are expected to be digital.See it on page 7
03
Catalog titles are a primary growth driver, with the catalog sales ratio projected to reach 79.3% of total unit sales in FY3/24 as older, high-quality IP continues to generate revenue.See it on page 7
04
The Digital Contents segment remains the core business, accounting for 106.3 billion yen of the total sales forecast and 58.9 billion yen in operating income.See it on page 13
05
R&D investment is set to increase by 19.3% to 45 billion yen in FY3/24, supporting the development of major titles like Street Fighter 6, Exoprimal, and the mobile game Monster Hunter Now.See it on page 16
06
Capcom is aggressively expanding its brand ecosystem beyond gaming through Hollywood adaptations, eSports, merchandise, and arcade operations to diversify revenue streams.See it on page 22
07
To support growth, the company is increasing its workforce to 3,480 employees and has implemented new retention strategies, including stock-grant ESOPs and profit-linked bonus systems.See it on page 11

Summary

Capcom’s fiscal year 2024 strategy centers on achieving an eleventh consecutive year of operating income growth, driven primarily by the expansion of its Digital Contents business. The company aims to reach a record consumer sales volume of 45 million units, supported by a robust pipeline of new titles, including Street Fighter 6 and the new IP Exoprimal, alongside a strategic focus on maximizing the long-term value of its catalog titles.

The company’s growth model relies on a "Single Content Multiple Usage" strategy, which leverages its intellectual property across various segments, including home video games, arcade operations, amusement equipment, and character merchandising. Digital sales are identified as the primary growth driver, with a target of 42.5 million units sold digitally, representing 94.4% of total consumer unit sales. This shift is supported by global expansion efforts, with the company now reaching 230 countries and regions.

Financial projections for the fiscal year ending March 31, 2024, anticipate net sales of 140 billion yen and an operating income of 56 billion yen. To sustain this momentum, Capcom is prioritizing significant investments in human resources, including increased compensation, expanded employee benefits, and the continued development of its proprietary RE ENGINE technology. These investments are intended to bolster the company’s development force, which consists of approximately 2,550 developers, ensuring the consistent production of high-quality, globally competitive content. The company maintains a balanced portfolio, with approximately 80% of net sales derived from growth-oriented digital content and 20% from stable businesses like arcade operations and amusement equipment.