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.
Net Sales/Operating Margin
Capcom's strength in this category is its ability to take advantage of the strong synergy with the home video games 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.
This fiscal year (ended March 31, 2015), we implemented a variety of projects within each title based on our continued Single Content Multiple Usage strategy.
These projects were implemented across all business segments, with each division involved in the launch of arcade games, mobile contents, 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.
List of Our Content that Has Been Adapted into Movies and Theatrical Productions
Specifically, we focused on increasing the "film and visual versions 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.
Revenue Ranking of Japanese Game Contents that Have Been Adapted into Hollywood Movies
|Title||Original writer company||Box-office revenue (worldwide)|
|1. RESIDENT EVIL: AFTERLIFE||Capcom||$296,221,663|
|2. RESIDENT EVIL: RETRIBUTION||Capcom||$240,159,255|
|3. RESIDENT EVIL: EXTINCTION||Capcom||$147,717,833|
|4. RESIDENT EVIL: APOCALYPSE||Capcom||$129,394,835|
|5. RESIDENT EVIL||Capcom||$102,441,078|
|6. STREET FIGHTER||Capcom||$99,423,521|
|7. SILENT HILL||Konami||$97,607,453|
|8. FINAL FANTASY: THE SPIRITS WITHIN||Square||$85,131,830|
|9. SUPER MARIO BROS.||Nintendo||$20,915,465|
|10. HOUSE OF THE DEAD||Sega||$13,818,181|
As of June 30, 2015 (Capcom figures)
This fiscal year, we continued to promote various collaborations with other industries and hold experience-based events for users of each series. Starting in January 2015, we held "Monster Hunter Festa ‘15" events in five cities across Japan to coincide with the launch of core title "Monster Hunter 4 Ultimate" and collaborated with Universal Studios Japan on experience-based events including "Universal Cool Japan" held in January 2015, "Resident Evil the Escape" and "Monster Hunter the Real" to promote existing user solicitation and acquire new fans.
Furthermore, in addition to holding the "Monster Hunter x Shibu Hot Springs Resort in Nagano Prefecture" tourist event, the "Sengoku BASARA" series was developed as TV animation and a stage production in an ongoing effort to promote this title among non-game users.
We are also promoting a number of other multi-development projects involving "Street Fighter", "Dead Rising" and "Ace Attorney".
That being said, this fiscal year we streamlined the number of titles under development in line with development structure revisions in the Consumer business. This resulted in a smaller number of titles, less related merchandise within large products and lackluster product sales.
Consequently, sales and profits declined. Sales were 2,144 million yen (down 17.4% from the previous year) and operating income was 661 million yen (down 34.0% from the previous year).
In terms of business development in the next fiscal year (ending March 31, 2016), we will continue to aggressively promote our Single Content Multiple Usage strategy.
We will continue our successful collaboration with Universal Studios Japan, including "Resident Evil the Real 3" held from July 2015, then in August the "Monster Hunter Orchestra Concert –Shuryo Ongakusai 2015–" now in its fifth year, among other experience-based event projects and developments aimed at expanding user segments
Furthermore, we are strengthening sales development within the "Sengoku BASARA" and "Ace Attorney" series though various collaborations with other industries and participation-based events for users in conjunction with the release of Consumer sub-segment games. We are also making efforts to expand earnings from licensing and enhance brand value globally by developing events and merchandise in conjunction with the release of new titles in series such as "Street Fighter" that are popular overseas.
In light of these efforts, we forecast net sales in the next fiscal year of 2.5 billion yen and operating income of 1 billion yen.
|Business Activities and Future Outlook (PDF:1.19MB/10 pages)|