Consolidated Financial Results: 3 Months Ended March 31, 2025

Key insights

7 takeaways

01
Capcom reported a significant year-over-year decline for the first quarter ending June 30, 2024, with net sales falling 32.5% to 29,597 million yen and operating income dropping 46.4% to 12,889 million yen.See it on page 1
02
Total unit sales for the quarter were 9.53 million, down from 13.5 million in the same period last year, primarily because major new title releases are weighted toward the second half of the fiscal year.See it on page 4
03
The core Digital Contents segment saw net sales decrease 43.5% to 21,416 million yen and operating income fall 48.0% to 12,821 million yen compared to the previous year's launch of Street Fighter 6.See it on page 5
04
Despite the quarterly decline, the company maintains its full-year forecast for the fiscal year ending March 31, 2025, projecting net sales of 165,000 million yen (up 8.3%) and operating income of 64,000 million yen (up 12.1%).See it on page 6
05
Catalog title sales remained a key revenue driver, contributing 9.26 million units sold during the quarter, supported by promotional pricing for titles like Resident Evil 4.See it on page 5
06
The Amusement Equipments segment showed strong growth, with net sales rising 147.2% to 2,220 million yen and operating income increasing 59.7% to 1,083 million yen, driven by the introduction of smart pachislo machines.See it on page 5
07
Capcom continues to invest in long-term growth through human capital initiatives and the July 2024 acquisition of a 3DCG production company to enhance its animation and game development capabilities.See it on page 4

Summary

Capcom Co., Ltd. reports a decline in financial performance for the first quarter of the fiscal year ending March 31, 2025, covering the period from April 1 to June 30, 2024. Consolidated net sales reached 29,597 million yen, representing a 32.5% decrease compared to the same period in the previous year. Operating income fell by 46.4% to 12,889 million yen, while net income attributable to owners of the parent declined by 45.1% to 9,975 million yen. These results reflect a strategic shift in the release schedule for new titles, which are heavily weighted toward the second half of the fiscal year.

The Digital Contents segment, the company’s primary revenue driver, saw net sales of 21,416 million yen, a 43.5% year-over-year decrease. This decline is attributed to a lower volume of new title releases compared to the prior year, which featured the launch of Street Fighter 6. Total unit sales for the quarter reached 9.53 million units, down from 13.5 million in the same period last year. Despite the lower volume, the company maintained steady performance through catalog sales and the release of past titles on additional platforms, such as Monster Hunter Stories.

Conversely, the Arcade Operations and Amusement Equipments segments demonstrated growth. Arcade Operations reported a 18.1% increase in net sales, supported by efficient store management and new openings, while the Amusement Equipments segment saw a 147.2% surge in net sales, driven by the successful introduction of smart pachislo machines. The company continues to prioritize human capital investment and long-term corporate value, maintaining its full-year earnings forecast of 165,000 million yen in net sales and 64,000 million yen in operating income. The financial results were prepared under Japan GAAP, and the company completed a 2-for-1 stock split effective April 1, 2024.