CAPCOM | CAPCOM at a glance

Video games have become a common form of enjoyment for people around the world. Many people play these games on mobile platforms like cell phones. Others use online games to compete against players in distant locations. Furthermore, advances in video games have made this a highly artistic form of content that can also be used for movies, animated programs and many other applications.

In this vibrant age of video gaming, Capcom’s central mission is to produce a constant stream of highly original content.

As in the past, we will continue to leverage our position as one of the world leaders in game content development to be a source of enjoyment and excitement that no other company can match.

In the home video game software market, sales of one million units are generally regarded as the standard for a major hit.

Since our inception, we have created Street Fighter, Resident Evil and many other blockbusters. With more than 50 titles that have sold more than one million units, we rank ahead of all other companies in the video game industry worldwide.

The “MT Framework” makes it possible to use the same development process for about 80% of the work required to create a game for the Xbox 360, PlayStation 3 and PC platforms. Using this framework greatly reduces development expenses and can cut the required time by two-thirds compared with the conventional development process.

Capcom has been enlarging the “MT Framework” to cover more platforms as people use a broader array of devices to enjoy games. Currently, the framework can be used to develop games for cell phones and the iPhone as well as for home video game consoles.

Each component of game content is a type of “media art” with a high degree of creativity. Components include images, stories, perspectives, music, interactive capabilities and other elements. As a result, every component has sufficient appeal on its own to be used in other media.

Capcom holds a massive volume of popular content. Our single content multiple usage strategy involves utilizing this intellectual property in many applications. This makes us a company that can generate earnings from the same content again and again.

Pursuing this strategy has allowed us to build on the accomplishments of our Consumer Online Game business to be successful in the fields of mobile content, pachinko and pachislo machines, arcade machines, movies, books, character goods and other activities.

Developing games is becoming more expensive because of the constant advances in the performance of devices used to enjoy games. Growing overseas markets present another challenge. To succeed in this environment, we have used a broad range of initiatives to facilitate the efficient development of high-quality games.

One of the initiatives was a revision in our model for alliances with overseas companies where we outsource some game development work. We reorganized our game development operations in Japan, too. Moreover, we adapted quickly to shifts in our markets. Two examples are the enlargement of our lineup of downloadable content and the introduction of content for the steadily growing smartphone market. By taking these actions, we have established an efficient framework of operations that is capable of sustaining an operating margin of 15%.

As a diversified entertainment group with many types of content, Capcom will place priority on achieving an operating margin of at least 15% while aiming for cumulative sales of 500 billion yen and operating income of 75 billion yen over the five-year period.