Top page > Capcom's Value Creation Activities > Business Segments Highlights

Latest version is available on the "Online Integrated Report 2016" top page.

Business Segments Highlights

Digital Contents

This business develops and sells package games and digital download content for the Consumer sub-segment. It also develops and manages Mobile Contents and PC Online Games. Consumer games involve creative original content focused on action and adventure. Many of these million-seller titles are used for smartphone, tablet device and PC online games distributed worldwide in an attempt to maximize earnings.

Net sales

45,351 million yen YoY 31.1% decrease

Operating margins

22.5%

Net sales /
Operating margins

Production Capital

Creating a Cutting-Edge Development Environment

Capcom is constructing two research and development buildings near the Osaka headquarters, one of which is already completed. In addition to a motion capture room and a Foley studio for creating and recording sound effects, these new R&D buildings include a multi-purpose space accommodating more than 100 people and incorporate the latest equipment, which will help improve development quality.

Operating Results for This Fiscal Year

Consumer (Package and Digital Download Contents)
  • "Monster Hunter 4 Ultimate" sold 3.4 million units, largely in line with projections.
  • "Resident Evil Revelations 2" sold 1.1 million units.
  • The backlash from "Monster Hunter 4" last fiscal year caused unit sales to decline, resulting in substantially lower net sales.
  • Unprofitable outsourced titles were eliminated in line with development structure revisions, profitability improved significantly due to favorable repeat sales of catalogue title download sales.
Mobile Contents
  • Performance was flat due to a lack of new hits in both the Capcom and Beeline brands.
  • Although the Capcom brand's "Monster Hunter Hunting Quest" did well, the lack of powerful titles made an already bitter competitive environment even harsher.
  • While the Beeline brand's "Smurfs' Village" continued on a stable track, there were no new hit titles.
PC Online
  • Online game "Monster Hunter Frontier G" contributed to stability.

Main Products (Output)

"Monster Hunter 4 Ultimate"

"Monster Hunter 4 Ultimate"

New monsters and a variety of new game elements were added to previous title "Monster Hunter 4". This title became the series' first million-seller title in Europe and the United States. Additionally, "Monster Hunter 4" won the Grand Award in the Games of the Year Division at the Japan Game Awards 2014. "Monster Hunter 4 Ultimate" won an award in the Future Division, in which users vote on upcoming titles they support the most.

"Resident Evil Revelations 2"

"Resident Evil Revelations 2"

Noteworthy for sales measures that focused first on download sales, then disc sales after digital distribution. As with "Resident Evil Revelations", this title also proved popular, selling 1.1 million units.

Arcade Operations

We operate "Plaza Capcom" amusement facilities in Japan. These arcades are predominantly in large commercial complexes and host various events designed to attract families and female customers. We have diligently followed a scrap-and-build policy to maximize our efficiency in arcade operations.

Net sales

9,241 million yen YoY 13.0% decrease

Operating margins

10.2%

Net sales /
Operating margins

graph

Nature Capital

Energy Conservation Initiatives

Electricity usage and other utility expenses are one variable element associated with facility operating costs within Arcade Operations.
We are engaged in proactive initiatives that consider the environment and reduce costs, including the introduction of LED lighting and energy-efficient air conditioning systems in new arcades.

Operating Results for This Fiscal Year

  • We focused efforts on cultivating new customer segments, including free game experience tours for senior citizens and the establishment of a timed rate structured play area for kids.
  • One arcade was opened, one unprofitable arcade was closed.
  • Sales at existing arcades slumped at 90% of those in the previous year.

Main Products (Output)

"Monhan Sweets Airou Crepe Shop"01

"Monhan Sweets Airou Crepe Shop"02

Plaza Capcom Oita

In line with renovations, the "Monhan Sweets Airou Crepe Shop" was opened in collaboration with nationwide crepe specialty chain Harajuku Marion Crepe. This has proved popular, mainly among families.

Amusement Equipments

We are engaged in two businesses based on the contents used for our home video games. The Pachinko & Pachislo (PS) business is involved in the development, manufacture and sales of frames and LCD devices for gaming machines as well as software. The Arcade Games Sales business develops, produces and sells arcade games for amusement facilities, creating synergy between businesses.

Net sales

7,540 milion yen YoY 67.4% decrease

Operating margins

36.3%

Net sales / Operating margins

graph

Intellectual Capital

Popular Game Character Utilization

Gaming machines and arcade game machines are developed using popular intellectual property (IP) from a variety of home video games. For example, the Pachislo machine "Resident Evil 6" made use of the "Movision" movable liquid crystal screen, made popular in "Resident Evil 5", in addition to other elements that convey the world of this game and win user hearts.

Operating Results for This Fiscal Year

  • Although PS sold 20,000 "Sengoku BASARA 3" Pachislo machines, revisions to Pachislo model certification methods resulted in some titles being postponed, which caused annual sales units to decline substantially.
  • Existing coin-operated game machine sales supported arcade game sales.

Main Products (Output)

Pachislo machine "Sengoku BASARA 3"

Pachislo machine "Sengoku BASARA 3"

Achieved solid sales with Consumer games due to the strong popularity of the "Sengoku BASARA" series as well as the brand power and visual technologies that successfully draw in users. Production efficiencies, including the reuse of some materials, contributed to improved profitability.

Other Businesses

Based on a Single Content Multiple Usage strategy of developing game content for various media, we will pursue a variety of copyright-related business opportunities including publishing (walkthrough and strategy guides as well as game settings collections) and licensing (music CDs and licensed merchandise). Furthermore, we are concentrating on developing game content into movie and TV animation programs.

Net sales

2,144 million yen Yoy 17.4% decrease

Operating margins

30.8%

Net sales / Operating margins

graph

Intellectual Capital

Single Content Multiple Usage Strategy

Capcom establishes a business model able to enjoy continuous profits by promoting a Single Content Multiple Usage strategy, whereby the wide range of popular content created by the Consumer business is used for multiple intellectual properties including films and theatrical productions.

Operating Results for This Fiscal Year

  • Maximized earnings and strengthened brand power of proprietary content through execution of lateral development of integrated sales of games based on the Single Content Multiple Usage strategy.
  • Conducted user-participatory events contributing to maximizing sales of major titles "Monster Hunter 4 Ultimate" and "Resident Evil"-related titles.

Main Products (Output)

"Monster Hunter Festa 2015"

"Monster Hunter Festa 2015"

In conjunction with the release of "Monster Hunter 4 Ultimate", we held "Monster Hunter Festa 2015" in five locations across Japan starting in January 2015, which attracted approximately 50,000 people. In addition to holding the user participation-based timed-attack competition "Karioh Ketteisen", for the top parent-child and women hunters we provided a place for a wide range of fans of this series to play in an attempt to increase user satisfaction and cultivate a sense of excitement.

DOWNLOAD Capcom's Value Creation Activities (PDF:2.52MB/14 pages)

DOWNLOAD

  • digg

Online Integrated Report (Annual Report) Archives