The fitness of Capcom’s growth strategies as seen by External Director Yutaka Mizukoshi

Message from an External Director

The fitness of Capcom’s growth strategies
as seen by External Director Yutaka Mizukoshi

Since being appointed external director at the June 2018 Shareholders’ Meeting, I have closely observed the structure of Capcom’s marketing strategies from my perspective as a management consultant.

Going forward, I will offer my advice and input on formulating and rolling out future strategies as Capcom pursues the business of creating markets around the globe.

Q

One year has passed since your appointment as external director. How do you feel looking back at the year?

A

I get the impression that the environment surrounding Capcom is changing drastically. Even compared to a year ago, the digital strategies on which Capcom focused and promoted have yielded clear results. Furthermore, I have a visceral sense of the possibilities for new business development as the rapid global momentum of esports also spreads into Japan.

In this environment, I think that my role is to help Capcom continue its growth into the future by using my experience and knowledge as a management consultant while—from an independent, outside perspective as an external director—actively providing suggestions and advice to help structure and organize the Company’s management. In particular, I would like to strengthen supervision of the Board of Directors by lending my efforts to building management-based marketing strategies.

Q

How do you feel about the current video game industry compared to the 1990s, when Capcom made its full-fledged entry into developing software for home video games?

A

It feels like just yesterday that a game could be built by a small team of developers over the course of a few months, and that physical cartridges were the only way games were sold. Through the advance of game consoles and PCs, plus the emergence of smartphones and the dramatic evolution of the communications environment, the platforms and sales regions of the video game market have rapidly expanded. Likewise, there has been a major transition in the industry’s business environment, as the method of providing the product is changing from physical packages to digital distribution. Responding to this evolution, and given the longer duration and increasing complexity of developing blockbuster games, I think the industry has become a highly developed area, second to that of the automobile industry.

In this type of business environment, our approach to core marketing practices is of the highest importance for management. We must work out plans for the story of our long-term corporate growth and profit maximization. In my opinion, we must strive for one approach unifying marketing, development, and sales.

Q

From your experience as a management consultant, what elements do you think are necessary for improving corporate value?

A

Management consultant professionals must offer concrete suggestions for transforming the companies we advise. At the same time, we have to provide proposals that the company can execute with its own resources.

In growth strategies, I think that, ultimately, the key elements for video game companies are how human resources are leveraged and how their development structures and environments are organized.

In that sense, I think that Capcom’s key assets are being equipped with world-class development facilities, an environment with an array of high-tech equipment, and a successful track record of making quality games that have won the support of customers. I have seen a continuous stream of young developers who joined Capcom because they sought this sort of environment. Additionally, in terms of management, I would like us to maintain our commitment to creating new value alongside young talent while further creating a comfortable working environment for developers through initiatives such as the on-site childcare facility we have built.

Q

What are the necessary elements for Capcom to grow its global business and what are your goals going forward as an external director?

A

Although video games are now widely recognized as a major industry, this is a somewhat new development.

As 5G, for example, emerges in the future, one of the features grabbing my attention is the elimination of latency in data transmission. This is expected to spur its adoption in various areas, including remote surgery in the medical field. In video games, too, I think there will likely be a revolution in content, through activities such as multiplayer matches over the Internet.

Also, Capcom is carrying out other new initiatives, like esports, which could bring dramatic market transformations. My goal is to see Capcom, who owns globally competitive content, become a leading company in the video game industry.

To that end, as an external director, I would like to provide advice and input from various perspectives addressing Capcom’s framework for advancing its strategies. At the same time, I feel called upon to fulfill the role of managing risk while avoiding opportunity cost, as we strive to improve corporate value.

Going forward, it is my goal to create a framework that yields new business chances for Capcom, while, as an external director, providing encouragement for management strategies aimed at further global growth.

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