Reflecting on the past year it is clear to me that, as I have been saying for a number of years, we have begun a time of fantastic innovation in the game industry due to the Internet.
Digital downloads over the Internet have become widely adopted as a new sales channel within the game industry. And due to greater efficiencies, such as reduced physical inventory as well as lower production costs and, last year saw progressive improvements in profitability across the industry as a whole.
What's more, digital download sales have expanded sales opportunities for us on two fronts. The first was by giving users the ability to purchase games from the comfort of their homes without ever setting foot in a store. Being able to bypass physical distribution and sell games directly to users—especially in the regions where retail outlets hold so much power—should prove to be an enormous business chance. Additionally, consumers in the US and Europe spend a good deal of time at home, where they enjoy downloadable movies, television shows and digital books during their free time on the weekends. I believe our second big chance comes from games now being included as one of those downloadable options for spending free time.
As a game company, to be late in catching this massive wave of growth could be fatal. Hence, we firmly believe that the developmental structure, as well as marketing, promotional and sales activities we have adapted to face this revolutionary change are the key to victory in the game industry. Of course, the three strategies that we have pursued thus far, namely our "Single Content, Multiple Usage," "Multiplatform," and "Global" strategies, remain with us; in addition to these Capcom must also address Internet IT innovations in the game industry.
I believe next year will be one where we step up to the challenge of exceptional growth; a great year in which we can provide joy, emotion and the fun of games to people the world over via Capcom's titles and services.
To all of our stakeholders, I ask for your further encouragement and guidance as we go forward.
January 7, 2016
President and Chief Operating Officer (COO)