CAPCOM was founded in 1983, when game machines became widely acknowledged as a popular entertainment medium from a niche market.
This trend was a major motivating factor as CAPCOM was founded to create content based on a new kind of entertainment: "people matching wits against computers".
The name CAPCOM is an abbreviation of CAPsule COMputer. This was a phrase symbolic of an internal company objective to create a new gaming experience that would exceed that of rival personal computers which had also been increasing in popularity during the same period.
The "Capsule" segment of the CAPCOM name was based on 2 key concepts: "a container packed to the brim with fun" and "a desire to create securely packaged games to decrease the rapid expansion of pirated materials".