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Business Activity Achievements

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.

Graph: [Net Sales/Operating Margin] Net Sales:2,043 million yen, Operating Margin:25.0%
Graph: [Assets/ROA] Assets: 4,926 million yen, ROA: 10.4%

SWOT Analysis

  • Resident Evil The Escape 2
    Resident Evil The Escape 2
  • Monster Hunter The Real 2
    Monster Hunter The Real 2
  • Gyakuten Saiban: Sono"Shinjitsu", Igiari!
    Gyakuten Saiban: Sono"Shinjitsu", Igiari!
    © CAPCOM/Yomiuri TV, A-1 Pictures
  • Monster Hunter Stories RIDE ON
    Monster Hunter Stories RIDE ON
    © CAPCOM/MHST Committee

Operating Results for This Fiscal Year

Net Sales Declined 4.7% Remaining the Same as the Previous Fiscal Year, While Operating Income Decreased 22.7%

Capcom's strength is its ability to utilize its rich library of content across multiple mediums, reaping the benefits of the highly synergetic effects of consumer and online games. In particular, the brand value of our movie-related business has risen through extensive media exposure. This leads to greater sales of video game software and the long-term maintenance of content value, completing a virtuous sales cycle. These projects were implemented across all business segments, with each division involved in the launch of arcade games, mobile contents, walkthrough and strategy guides and character merchandise, as well as movies, TV animation, theatrical productions and other events in a variety of areas in connection with the release of our game software.

This fiscal year, in conjunction with the release of Monster Hunter X (Cross), we held "Monster Hunter Festa '16" in January 2016 in five cities across Japan. We also made efforts to appeal to existing users and acquire new fans through experience-based events including "Resident Evil The Escape 2" and "Monster Hunter The Real 2" conducted in collaboration with Universal Studios Japan at "Universal Cool Japan 2016" held in February 2016. We also continue appealing to non-game users through the Sengoku BASARA series TV animation and theatrical productions.

As a result, net sales were 2.043 billion yen (down 4.7% from the previous year) and operating income was 511 million yen (down 22.7%), reflecting the recognition of amortization expenses in line with our new R&D facility, which was responsible for declines in sales and profit.

Revenue Ranking of Japanese Game Contents
that Have Been Adapted into Hollywood Movies

Title Original writer company Box-office revenue (worldwide)
RESIDENT EVIL: AFTERLIFE Capcom $296,221,663
RESIDENT EVIL Capcom $102,441,078
STREET FIGHTER Capcom $99,423,521
SILENT HILL Konami $97,607,453
SUPER MARIO BROS. Nintendo $20,915,465
HOUSE OF THE DEAD Sega $13,818,181

As of June 30, 2016 (Capcom figures)

List of Our Main Content that Has Been Adapted
into Movies and Theatrical Productions

Street Fighter II Aug. 1994 Movie
Street Fighter Dec. 1994 Hollywood movie
Resident Evil Mar. 2002 Hollywood movie
Resident Evil: Apocalypse Sep. 2004 Hollywood movie
Resident Evil: Extinction Nov. 2007 Hollywood movie
Resident Evil: Degeneration Oct. 2008 CG movie
Resident Evil: Afterlife 3D Sep. 2010 Hollywood movie
Sengoku BASARA –The Last Party– Jun. 2011 Animated movie
Ace Attorney Feb. 2012 Movie
Resident Evil: Retribution Sep. 2012 Hollywood movie
Resident Evil: The Final Chapter Dec. 2016 Hollywood movie
TV animation
Street Fighter II V Apr. 1995 TV animation
Mega Man Battle Network Mar. 2002 TV animation
Sengoku BASARA Apr. 2009 TV animation
Gyakuten Saiban: Sono "Shinjitsu", Igiari! Apr. 2016 TV animation
Monster Hunter Stories RIDE ON Oct. 2016 TV animation
Theatrical production
Phoenix Wright: Ace Attorney –The Truth Comes Back to Life Feb. 2009 Takarazuka Revue Company
Sengoku BASARA Jul. 2009 Theatrical production
Phoenix Wright: Ace Attorney 2 Aug. 2009 Takarazuka Revue Company
Prosecutor Miles Edgeworth: Ace Attorney 3 Jan. 2013 Takarazuka Revue Company
Sengoku BASARA Jun. 2013 Takarazuka Revue Company
Sengoku BASARA vs Devil May Cry Aug. 2015 Theatrical production
BIOHAZARD THE STAGE Oct. 2015 Theatrical production
TV drama
Sengoku BASARA –MOONLIGHT PARTY– Jul. 2012 TV drama

Outlook for the Next Fiscal Year

Further Enhancement of Single Content Multiple Usage Developments

Until now, Capcom has aggressively promoted the horizontal deployment of intellectual properties (contents) based on the Single Content Multiple Usage strategy. In Japan, TV animation "Gyakuten Saiban: Sono "Shinjitsu", Igiari!" will be broadcast in conjunction with the release of Ace Attorney 6. In line with the October 2016 release of Consumer game Monster Hunter Stories, the first Monster Hunter TV animation will be broadcast. In conjunction with the overseas release of RESIDENT EVIL 7 biohazard, the Hollywood movie "Resident Evil: The Final Chapter" will be released in Japan in December 2016, then globally in January 2017. We will endeavor to expand licensing earnings and improve brand value through movies and other media for a variety of other series.

As a result of these measures, the next fiscal year earnings forecast calls for net sales of 2 billion yen (down 2.1% from the previous year)and operating income of 200 million yen (down 60.9% from the previous year). The reason for the decline in profitability is the recognition of amortization expenses in line with our new R&D building.

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