Overview of Capcom's Business and Outlook for the Future
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.
Operating Results for This Fiscal Year
Despite Progress on Several Projects Involving Popular Series, Fewer Major Game Titles Compared to Last Year Resulted in Lower Sales and Profits
Capcom's strength in this category is its ability to take advantage of the strong synergy with the Home Video Games business by making multifaceted use of its abundant intellectual properties. 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, completing a virtuous sales cycle.
During this fiscal year (ended March 31, 2012), we continued to execute our Single Content Multiple Usage strategy (see "Growth Strategy 3"), conducting various projects based on each game title to enhance the branding of our game content and maximize profits.
These projects were implemented across all business segments, with each division involved in the launch of arcade games, mobile content, walkthrough and strategy guides and character goods, as well as movie and TV animation programs and other events in connection with the release of our home video games.
Specifically, we focused on increasing the "film version of Capcom contents", which strengthens the promotion and sales of home video games. Although other Japanese software manufacturers have made similar moves, the number of Capcom game titles adapted into movies and the attendant box-office revenues demonstrate our clear competitive advantage in this area. This success is a result of (1) our strength in creating original content, underpinned by owning more proprietary content than our competitors and (2) the global popularity of our titles, which are suitable for adaptation into movies for global distribution.
For example, movies that received a great response were "Sengoku BASARA -The Last Party-" drew 210,000 viewers and earned 300 million yen at the box office; in February 2012, the release of the film version of "Ace Attorney" drew 405,000 people and earned 520 million yen at the box office.
Ahead of the release of "Monster Hunter 3 (Tri) G", Capcom held a "Monster Hunter Festa '11" in six cities across Japan and engaged in aggressive promotion activities at amusement park Greenland (Kumamoto Prefecture), Universal Studios Japan (USJ, Osaka) and held related events at the hot spring resort Shibu in Nagano Prefecture.
Furthermore, Capcom made efforts to expand its fan base with a Tokyo Philharmonic Orchestra concert and the opening of the Capcom Bar offering game-related food and drinks.
Capcom is also moving forward with a number of multi-development projects including "Resident Evil", "Street Fighter", "Devil May Cry" and "Dead Rising".
Given the above, as well as lower sales of walkthroughs and related products resulting from the lack of major titles compared to the previous fiscal year, net sales increased to 2,862 million yen (down 26.5% from the previous fiscal year), and the operating income was 877 million yen (down 20.1% from the previous fiscal year).
Outlook for the Next Fiscal Year
Accelerating Collaborations with Other Industries in Pursuit of Synergy between Hollywood Movies and Home Video Games
Looking ahead to the next fiscal year (ending March 31, 2013), we will continue to execute our Single Content Multiple Usage strategy. We will attempt to maximize sales of home video games and promote the "Resident Evil" brand to a wide spectrum of the customer segment with the global release of "Resident Evil 6", Hollywood movie "Resident Evil: Retribution" and CG animation "Resident Evil: Damnation". Also we will continue to try new ideas, including a tie-up with a real escape game and the opening of an official "Resident Evil" restaurant.
As for titles in Japan, we will continue to hold plays and fan appreciation events in addition to the "Sengoku BASARA" television drama. Capcom will also continue the "Monhan" movement with "Monster Hunter" orchestral concerts and a second USJ event in an attempt to develop various events for the casual user.
Functioning as horizontal deployment for game content, these cross-industry collaborations enable our products to reach a wider audience and enhance our brand value.
In light of these efforts, we forecast net sales in the next fiscal year of 3,000 million yen and operating income of 800 million yen.
-The Last Party-"
© CAPCOM/TEAM BASARA
"Ace Attorney" Movie
©2012 CAPCOM / "Ace Attorney"
"Monster Hunter The Real"
"Resident Evil: Retribution"
© 2012 Screen Gems, Inc. All Rights Reserved.
"Resident Evil: Damnation"
©2012 CAPCOM CO., LTD. / Resident Evil CG2 Film Partners