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This page contains materials used in earnings presentations and earnings calls with securities analysts and institutional investors. To ensure the fair disclosure of information to investors and shareholders worldwide, this page includes presentation materials, summaries of presentations by speakers and summaries of question-and-answer sessions. Investors can also view Japanese-language webcasts of Capcom’s earnings presentation.

Capcom’s earnings presentation for securities analysts and institutional investors is held following its fiscal year-end earnings announcement, while earnings calls are held quarterly.

FY2025

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    Question and Answer Summary

    Will console price increases have any impact on title sales?
    We do not anticipate any impact on earnings from console price revisions in our plan for the fiscal year ending March 31, 2027. We utilize a multi-platform release to maximize sales opportunities for our titles and will continue to closely monitor trends going forward.
    Will you continue to develop completely new IPs such as PRAGMATA going forward?
    The creation of completely new IPs is an important initiative that supports our sustainable growth, and we intend to continue pursuing it. In addition, the development and sales expertise that we have cultivated through our work on new IPs has also contributed to the success of PRAGMATA, and we will continue to leverage this knowledge in our future business operations.
    What are the reasons behind strong sales of PRAGMATA and is it possible that you will turn it into a series in the future?
    Sales of PRAGMATA reached 2 million units in the first 16 days after its launch, driven by strong recognition of our development capabilities, including its fresh gameplay that combines action and puzzles, as well as its compelling characters and world setting. Based on this strong start, we will continue our analysis and consider the possibility of developing it into a series.
    As you continue hiring more than 100 employees annually, are your development capabilities steadily improving?
    We are working to strengthen our development structure through hiring and other human resource investments and believe that our on-site training and development capabilities are steadily improving PRAGMATA is a good example of how fresh ideas from younger staff, combined with collaboration with experienced employees, led to successful results.
    Why are you using generative AI to improve the efficiency of routine tasks but not in creative areas of development?
    We believe that what games must deliver most is an experience that exceeds users’ expectations, and that the creativity at the core of such experiences should be handled by humans. At this stage, our policy is to use generative AI to improve the efficiency of routine operations so that our developers can devote more time to essential value creation.
    What is the expected impact of foreign exchange rates on earnings for the fiscal year ending March 31, 2027?
    In our plan, we assume an exchange rate of 140 yen to the U.S. dollar, and we estimate that a fluctuation of 1 yen against this rate would have an impact of approximately 400 million to 500 million yen on operating profit.
    Will the strong catalog sales of the Resident Evil series, seen in the fourth quarter of the fiscal year ended March 31, 2026, continue going forward?
    The Resident Evil series accounted for more than half of our total unit sales for the fiscal year ended March 31, 2026, and cumulative sales of the series have now exceeded 200 million units. With the launch of Resident Evil Requiem, catalog sales of the series have continued to perform strongly as well. We are also planning to release additional content for Resident Evil Requiem in the future and believe there is further room for growth.
    Tell us the growth drivers for the fiscal year ending March 31, 2027.
    In addition to PRAGMATA, our new title lineup includes Onimusha: Way of the Sword and other unannounced titles. As for catalog sales, under our flywheel-driven business model, which expands IPs by combing and leveraging multiple usage and marketing measures, we will continue to implement sales expansion measures.
    Given the strong results of the Amusement Equipments business in the fiscal year ended March 31, 2026, the plan for the fiscal year ending March 31, 2027 appears aggressive year on year. Could you explain the background?
    In the fiscal year ended March 31, 2026, performance was driven by repeat sales of two existing machines and the launch of two new machines. For the fiscal year ending March 31, 2027, we are not factoring in repeat sales at this point, and aim to achieve our plan by steadily launching one new machine per quarter, for a total of four new machines. We have already launched the smart pachislo Biohazard RE:3 in May.
    To what extent is generative AI improving efficiency in the development process, where is it being used, and what challenges are involved?
    We are seeing a certain degree of effectiveness from the use of generative AI for improving operational efficiency. At present, we are actively incorporating it into each stage of the development process and are making concrete advancements to fully implement it for some parts of development. However, because the game development process is multifaceted and complex, we expect it will take some time before we can quantitatively demonstrate the results of this improved development efficiency.
    How are mobile games positioned within the Digital Contents business?
    One of our strengths lies in our business model of creating high-quality content and acquiring and expanding users over the long term through serialization and brand-building. Based on this strength, we will continue to focus primarily on the consumer home video game business. Mobile games are effective in expanding awareness of our IP brands and serving as touchpoints with new users. Going forward, as with Monster Hunter Now, we will continue to promote such initiatives through licensing and similar approaches.
    Tell us about your shareholder returns and capital policy.
    Our basic policy is to maintain a dividend payout ratio of at least 30%, and we place importance on stable and continuous shareholder returns. At the same time, we will allocate capital appropriately while balancing this with human capital investment and business reinvestment aimed at sustained growth. As for share buybacks, we have executed these before based on market trends and the stock price, and will make flexible decisions based on market conditions and capital efficiency, among other factors. Regarding net cash, our policy is to secure a level that allows us to maintain our current level of development investment for a certain period.
    Why have you been able to achieve long-term sales for your titles?
    Under our flywheel-driven business model, we are promoting a digital strategy that includes pricing measures. Going forward, our development, sales and marketing, and management divisions will continue working together to enhance our lineup and manage it appropriately, thereby driving ongoing sales expansion.
    What drove the strong sales of Resident Evil Requiem and the effectiveness of your promotional initiatives?
    As with our other series, we believe one factor contributing to its sales performance was that user feedback was reflected in the development of Resident Evil Requiem. In addition, we believe that initiatives such as broad-based collaborations also had a certain effect in generating buzz and expanding awareness among new audiences.
    Will the strong sales performance of PRAGMATA have any impact on future development investment in new IPs?
    Development investment in new IPs is not determined by the sales performance of individual titles. We will continue maintaining a certain level of investment in this area.
    What were the approximate development costs for PRAGMATA?
    The development costs for this title are comparatively lower than those of our major IPs. In addition, we have recorded impairment losses, etc., where appropriate in line with development progress. Even considering the impact of the release delay, we do not expect this title to place a significant burden on future earnings.
    Could you explain why you have been able to port titles to various platforms so quickly?
    One reason is that we have promoted a multi-platform strategy for many years and have had a development structure that actively incorporates the latest technologies, in addition to optimizing for each platform using our proprietary RE ENGINE.
    Is it fair to say that the impairment losses for the fiscal year ended March 31, 2026 were within an appropriate range?
    Regarding impairment losses, we have recorded them appropriately in accordance with accounting standards and in consultation with our audit. Based on past levels, we believe they were generally within the expected range for the fiscal year ended March 31, 2026.
    What is your strategy for catalog sales in the fiscal year ending March 31, 2027 and their sustainability going forward?
    In addition to expanding sales of our major IPs such as Resident Evil and Monster Hunter, catalog sales will continue to grow through coordinated measures linked with new title launches, movie and TV content, eSports initiatives, and other activities. For the fiscal year ending March 31, 2027, we plan catalog sales of 53 million units.
    Could you tell us about the impact of the live-action movie Street Fighter on earnings in the Media business?
    The live-action movie Street Fighter is scheduled for release in October 2026, but at this point revenue from this is not included in our plan for the fiscal year ending March 31, 2027.

    • Financial Results

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    • Financial Results Presentation

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    • Question and Answer Summary

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    Question and Answer Summary

    Please explain why catalog sales of the Resident Evil series performed well in the third quarter, and provide your outlook for catalog titles in the fourth quarter.
    We believe this performance reflects the effectiveness of our pricing measures for catalog titles alongside the launch of new titles, implemented in line with our medium- to long-term title roadmap. In particular, pricing measures for past Resident Evil titles aligned with growing anticipation for the latest installment, Resident Evil Requiem. In the fourth quarter, we plan to continue promotional activities and aim to further expand catalog sales.
    Could you share your views on user reception, sales expectations for Resident Evil Requiem, and the release of the Nintendo Switch 2 version?
    Resident Evil Requiem has received favorable user feedback, and pre-orders are progressing steadily at this stage. In assessing pre-order performance, we reference past titles such as Resident Evil 4 and Resident Evil Village as benchmarks. The title is being developed for multiple platforms, including Nintendo Switch 2, with a focus on maximizing the performance on each platform.
    Is there any impact from rising DRAM prices on development equipment or sales activities?
    At present, there has been no material impact. However, we will continue to monitor potential medium- to long-term effects.
    Is it feasible to achieve the planned catalog sales volume target for the current fiscal year?
    While we are aiming to achieve our unit sales targets for both new and catalog titles individually, our ultimate objective is to reach the annual total sales target of 54 million units.
    From a regional and market-size perspective, do you see further growth potential for the catalog sales market over the medium term?
    There remains ample room for growth, particularly in emerging markets where medium- to long-term economic expansion is expected. This fiscal year, we have seen encouraging results from pricing measures linked to new title announcements and media mix initiatives.
    Despite SG&A expenses remaining largely flat, why did the operating margin of the Digital Contents business improve when comparing the second and third quarters?
    The primary factor was the growth in catalog sales, which carry higher profit margins.
    Do you expect catalog sales of the Devil May Cry series to remain strong in the next fiscal year?
    Sales exceeded our initial expectations in the first half of the current fiscal year, driven by coordinated pricing measures alongside the anime release in the first quarter. Since then, performance has stabilized. With Season 2 of the anime scheduled for release in May 2026, we plan to continue implementing effective promotional measures.
    Will the live-action Street Fighter film scheduled for release this October 2026 have a positive impact on catalog sales?
    We intend to expand sales opportunities by aligning marketing initiatives with the film’s release.
    Please provide an update on Monster Hunter Wilds and your outlook for its long-term sales performance.
    Up to this point, we have been addressing various issues, including technical challenges, on an ongoing basis. A further title update is scheduled for February this year, and we will continue to pursue medium- to long-term sales growth through ongoing improvements and pricing measures.
    What are the key growth drivers for the next fiscal year?
    We will provide details of our strategy for the next fiscal year at the time of our full-year earnings announcement. Within the Digital Contents business, our ongoing focus remains on both new and catalog title sales. In addition to Pragmata, new titles will be announced at a future date, and we will continue related initiatives to expanding catalog sales.
    Are there any plans to recognize deferred revenue associated with the fourth-quarter title update for Monster Hunter Wilds?
    Deferred revenue recognition was largely completed with the title update implemented in December of last year.
    The balance of work-in-progress for game software appears relatively high. Does this pose any risk?
    To achieve our target of a 10% increase in operating profit in the next fiscal year and beyond, we are developing multiple titles, resulting in an accumulation of work-in-progress. However, we manage ROI on a title-by-title basis to ensure investment levels remain appropriate relative to planned sales volumes.
    Could you comment on the title lineup for the next fiscal year?
    Beyond Pragmata and Onimusha Way of the Sword, which have already been disclosed, we ask that you wait for future announcements.
    With your cash balance increasing, how do you view capital optimization and shareholder returns?
    In utilizing cash, we place importance on balancing three elements: reinvestment in the business, returns to shareholders, and employee compensation. This fiscal year, we invested in land acquisition and our Media business. Going forward, we will continue to carefully evaluate investments in technology and initiatives to enhance brand recognition. Our policy of maintaining a dividend payout ratio of 30% or higher remains unchanged.
    Why are catalog sales of Street Fighter 6 performing well, and is there potential for further expansion through media mix initiatives?
    Measures targeting new user segments have been effective, resulting in an increase in teenage users. Additionally, esports events, including those held in Saudi Arabia, have contributed to improved brand recognition. With the live-action Street Fighter film scheduled for release in October 2026, we believe there remains further potential for sales growth.
    What has been the response to the Pragmata demo?
    Feedback has been generally positive. As a completely new IP, we will actively promote the title to further increase awareness.
    Why has work in process increased this fiscal year, and could it become a risk factor going forward?
    The majority of the increase relates to our investment in the live-action Street Fighter film. Given the ability to continue distribution on multiple platforms following theatrical release, we are assuming a longer amortization period than for our game software. We are working closely with our auditors to ensure this does not become a risk factor.
    What is the expected amount of work in process you expect to recognize at the time of the Street Fighter film’s release, and how do you view cost recovery?
    The film is scheduled for release in October 2026, with production costs assumed to be in line with industry averages. Cost recovery assumptions are also set within a reasonable range, referencing comparable films.
    Is Monster Hunter Wilds included in work-in-progress for game software as of the third quarter?
    Yes, it is included. Development costs are amortized over multiple years, consistent with our approach for other titles.
    Please outline the medium- to long-term sales targets and initiatives for Monster Hunter Wilds.
    Over approximately five years, we aim to maximize both unit sales and profitability. In addition to enhancing satisfaction among existing users by resolving technical challenges the game has faced, we will also focus on attracting new users through pricing strategies. Through these initiatives, we aim to exceed past series entries’ sales performance over the medium to long term.
    The Character licensing businesses in Other Businesses is showing growth. What is your strategy going forward?
    We will strengthen IP utilization through merchandise sales and in-game collaborations, with the goal of enhancing brand recognition and expanding unit sales.
    Resident Evil Requiem appears to leverage advanced visual technology, particularly for PC. Could you discuss your PC strategy going forward?
    As of the third quarter, PC sales account for approximately 50% of total unit sales, and we expect this ratio to continue increasing. Accordingly, we will further strengthen our PC development framework. The technical expertise gained from addressing increasing program complexity and performance challenges in Monster Hunter Wilds will be applied to future title development.

    • Financial Results

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    • Financial Results Presentation

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    • Question and Answer Summary

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    Question and Answer Summary

    Please provide an overview of each business segment’s performance during the first half of the fiscal year.
    The Digital Content business progressed largely in line with expectations. The Arcade Operations business also performed well, supported by an increase in average customer spending at existing locations. Additionally, the Amusement Equipments business saw growth driven by repeat sales and strong performance of new machines, resulting in overall revenue and profit growth.
    What measures do you have planned for Monster Hunter Wilds?
    We will continue working sincerely to address user feedback on an ongoing basis by implementing system updates and other improvements in addition to releasing additional content.
    What are your expectations for Resident Evil Requiem and Pragmata?
    Resident Evil Requiem, the upcoming latest installment in the series, has received high praise at various game shows. To begin, we aim to exceed the initial sales performance of the previous title, Resident Evil Village. Pragmata, a completely new IP, has also been well received at events such as Tokyo Game Show, and we will continue promotional efforts to expand awareness among a broad user base.
    What drove the strong catalog sales in the first half of the fiscal year?
    The announcement of Resident Evil Requiem led to increased sales of previous titles in the series, surpassing our initial projections.
    Are there any promotional plans tied to the release of the live-action Street Fighter movie?
    While we have no specific details to share at this time, we are considering several promotional measures.
    What are your expectations for the mobile title Monster Hunter Outlanders?
    The development and operations of this title are being handled by TiMi Studio Group (a subsidiary of Tencent Games) via a licensing agreement for the Monster Hunter brand. We expect the game to further enhance brand recognition both domestically and internationally.
    Is there a risk that Resident Evil Requiem will experience technical issues similar to those seen with Monster Hunter Wilds?
    Resident Evil Requiem differs from Monster Hunter Wilds in terms of gameplay, system architecture, and network features. At present, we do not anticipate similar risks. We are developing the game to provide a smooth gaming experience across a wide range of PC specifications.
    How did new and catalog titles perform compared to the first-half fiscal year plan?
    New titles performed in line with the plan. Catalog titles, particularly past entries in the Resident Evil series, have performed strongly.
    Why has the Amusement Equipments business performed so well?
    A strong reception in pachislo halls for the immersive pachislo machines we released in the previous fiscal year—Monster Hunter Rise and Resident Evil 5—contributed to healthy sales of Devil May Cry 5 Stylish Tribe, which was released this fiscal year. In addition, Shin Onimusha 3, which began operation in October, is the latest release in the highly popular Onimusha series of pachislo machines. This led to orders exceeding our initial plans, the majority of which contributed to revenue in the second quarter of this fiscal year.
    To what degree have the development costs for Monster Hunter Wilds been amortized and is there any risk of an asset impairment?
    While we do not disclose details regarding the amortization status of individual titles, Monster Hunter Wilds is currently being amortized, and we do not foresee any risk of impairment at this time.
    How many new machines are planned for release in the second half of the fiscal year in the Amusement Equipments business?
    We plan to release one new machine in the second half.
    Following its release in the previous fiscal year, Monster Hunter Wilds sales seem to have slowed. Are other catalog titles performing well?
    Catalog titles released two years ago and earlier, including those in the Resident Evil series, continue to perform well. We do not have concerns about the growth potential of catalog sales.
    Given that the release of Pragmata had previously been delayed, how much of its development costs have already been accounted for?
    We have already recorded impairments and other adjustments as appropriate. We do not expect the title to place a significant burden on future earnings.
    Excluding Monster Hunter Wilds, how has the sales performance been for Monster Hunter series catalog titles?
    Catalog sales of the Monster Hunter series have been growing, especially Monster Hunter Rise. We believe there is further room for expansion, particularly in emerging markets.
    Do you expect Street Fighter 6 sales to grow through esports-related initiatives?
    Collaboration with the Esports World Cup in Saudi Arabia has significantly boosted global awareness of Street Fighter 6. Through tournaments such as the CAPCOM Pro Tour and Capcom Cup, we aim to further strengthen its presence in the esports scene. These initiatives are expected to expand the user base and drive long-term sales growth.

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    Question and Answer Summary

    How did each business segment perform against your plans in the first quarter?
    Consolidated operating income exceeded our internal plan. By segment, the Digital Contents business fell slightly short of the plan, however in addition to contributions from Arcade Operations and Other Businesses, the Amusement Equipments business contributed significantly to profits.
    It seems that soft sales of Monster Hunter Wilds in the Digital Contents business were offset by sales of catalog titles from series such Devil May Cry and Resident Evil. Is this correct?
    Sales of Monster Hunter Wilds during the first quarter fell short of our initial expectations. On the other hand, sales for the Devil May Cry series increased due to promotions tied to the release of a new animated series, while sales for the Resident Evil series increased due to promotions carried out in conjunction with the release date announcement for the latest title in the series, Resident Evil Requiem.
    How have sales been for Street Fighter 6 and Kunitsu-Gami: Path of the Goddess, both of which were released for Nintendo Switch 2 in June?
    Sales of both titles are progressing in-line with plans.
    With a greater diversity in PC system configurations and telecommunications environments in recent years, it seems Monster Hunter Wilds was targeted to a wide range of PC users, as well as users on home video game consoles; however, as I understand it, this has resulted in low reviews for the game from certain users. Could you tell me how you plan to respond to this, in terms of your organization and systems for development of major games?
    As a title that sold 10 million units within the first month of release, this has been a valuable opportunity for us to gain many insights. Taking into account the wide range of feedback and opinions we have received from fans, we are working across the entire company—including development, management, sales and marketing, and other departments—to address issues wherever possible and apply these lessons moving forward. First and foremost, we will focus on swiftly working to improve user satisfaction for the game through upcoming updates.
    Will the current work being done on Monster Hunter Wilds affect your future title pipeline?
    Top management and others discuss and formulate our mid-term title lineup schedule with the ongoing aim of achieving an increase of at least 10% in operating income each fiscal year; we do not foresee any particular impact at this time.
    Could you tell me how the average price of new and catalog titles for the first quarter of this fiscal year compared to the fourth quarter of the previous fiscal year?
    Compared to the previous fiscal year’s fourth quarter, during which Monster Hunter Wilds was released, the average price for new titles in the first quarter of this fiscal year was lower, as most of the new titles were ports of existing games. The average price for catalog titles during the first quarter of this fiscal year trended comparatively higher due to low-priced titles promoted in the fourth quarter of the previous fiscal year, which had the aim of sowing seeds for future growth.
    Are you planning to record all deferred revenue within the current fiscal year?
    The current balance of deferred revenue stems mainly from Monster Hunter Wilds, which was released in the previous fiscal year. We plan to record it in conjunction with the release of free title updates, etc., for the game. Currently, we plan to release these updates in September and winter of this year and have not announced any plans beyond that point.
    Could you explain about your strategies to increase future sales of Monster Hunter Wilds, as well as other recovery measures for the full-year catalog unit sales plan?
    Overall, sales of catalog titles are progressing smoothly in line with this fiscal year’s sales plan. For Monster Hunter Wilds, we will aim to encourage sales through free title updates and pricing strategies, while also continuing to focus on expanding sales of other catalog titles.
    Is there a correlation between the increase in sales of the Devil May Cry series and the release of the new anime?
    Catalog title sales for the series have been growing over the long term. The new animated series, released on Netflix in April, was well received, with viewership for it ranking high on the service; unit sales for the games increased in each region globally thanks to discounting carried out in conjunction with the release of the anime. We believe that this promotion successfully stimulated demand among existing Devil May Cry fans while attracting interest from newcomers to the series.
    Why did both new and catalog pachislo titles perform well in the Amusement Equipments business?
    Following the strong performance of Monster Hunter Rise, which was our first immersive machine and was launched in the previous fiscal year, Resident Evil 5 also continued to perform well, contributing to catalog unit sales in the first quarter of this fiscal year. This positive impact also led to strong sales of our new title released in June, Devil May Cry 5 Stylish Tribe.
    How was the reaction to the discount sale for Monster Hunter Wilds conducted in the first quarter?
    We conducted this sale as one of our promotional measures following the various feedback we received and were able to see a response, primarily in Asian regions where price sensitivity is high. We plan to continue implementing promotions, including pricing measures, with the aim of expanding catalog sales over the medium to long term.
    Will the increase in unit sales for the Devil May Cry series continue in the second quarter and beyond, and can we expect similar results from other IPs that are used in movies and animation?
    Linking promotional activities for the Devil May Cry series with the release of the anime led to an increase in sales volume for the games, the results of which we believe have proven more effective than had we conducted these promotions independently. However, we anticipate a slowdown in sales for the series during the second quarter and beyond. While it will also depend on the promotional strategies of the video streaming platforms and distributors, we plan to collaborate our marketing efforts to maximize sales opportunities for other titles as well, including the upcoming Street Fighter movie that has been announced.
    Could you tell me how the reception for Monster Hunter Wilds on home video game consoles has been, as well as the catalog unit sales on these platforms?
    We do not disclose the breakdown of unit sales by hardware for individual titles, but sales for home video game consoles are generally progressing steadily and the game is receiving favorable reviews on these platforms. At the same time, there also continue to be a certain number of catalog sales for the PC version.

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