Financial Results

Quarterly Reports (Japan GAAP)

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.


  • Question and Answer Summary

    3 billion yen was booked during this second quarter causing temporary pressure on operating income. In which business segment was this booked?
    This 3 billion yen is broken down into a write down and deferred revenue, both of which occurred for accounting purposes, as well as expenses accompanying investment in personnel. The write down and deferred revenue were in the Digital Contents business, while investment in personnel was carried out in all of our businesses. Both digital and global sales in our Consumer sub-segment continue to trend well, and there are no concerns regarding our steady growth going forward.
    What was the ratio of PC game unit sales during this second quarter?
    Approximately 40% of digital unit sales were for the PC version of games.
    Tell me about the digital sales trend for this second quarter.
    While the second quarter was relatively quieter than the first quarter, results were in line with our plan. As it will be difficult to quantify the impact of COVID demand going forward, we will continue to monitor customer behavior.
    How do you evaluate the decline in prices for catalog titles in this second quarter?
    We believe that growth in sales of lower priced titles due to expanding our sales regions is the cause of this. Many of our older titles enjoy high margins, and as such a decline in the average sales price will not significantly affect profitability.
    What caused the balance for work in progress for game software to decrease at the end of this second quarter?
    While we have been building up our lineup of titles in development, this decline is due to the release of major titles Resident Evil Village and Monster Hunter Stories 2: Wings of Ruin, as well as a revaluation of unreleased titles.
    Was the 3 billion yen booked during this second quarter that caused temporary pressure on operating income factored into your plan?
    The amounts for the write down and deferred revenue were mostly factored in, however the investment in personnel was not.
    Regarding catalog sales for titles other than Monster Hunter Rise, which regions are driving sales?
    North America and Europe are driving sales, however the market has extended into developing regions in recent years due to sales growth of the PC version of titles.
    I’ve heard that Netflix will enter the video game industry; do you have any plans to collaborate with them on projects other than movies and animation?
    Other than adapting our IP in movies and animation, there is nothing to announce at this time.
    What drove the year-over-year increased sales and profit in Other Businesses in this second quarter?
    The primary driver was licensing revenue from using our IP in film adaptations and in collaborations with popular overseas apps.
    Do you expect the revenue contributions for Monster Hunter Rise: Sunbreak to be on par with those of Monster Hunter World: Iceborne?
    While the two cannot be directly compared as they are for different platforms, we feel the title has potential given the growing popularity of the Monster Hunter brand.
    Tell me why profitability in the Digital Contents business declined during this second quarter as compared to the first quarter.
    This is a temporary decline due to a rise in costs from factors such as the launch of new titles including Monster Hunter Stories 2: Wings of Ruin, deferred revenue, and a revaluation of unreleased titles.
    Why have unit sales for physical packaged games at the end of this second quarter already surpassed their target for the full year plan?
    This is due to both the launch of new major titles Resident Evil Village and Monster Hunter Stories 2: Wings of Ruin, as well as growth in physical packaged sales for catalog title Monster Hunter Rise.
    What are your thoughts on profitability levels for the Arcade Operations business once the pandemic is over?
    While the business environment is trending toward recovery, it is currently difficult to predict what the market situation will be after the COVID-19 pandemic. We will continue to monitor customer trends and take the appropriate measures.
    What is your outlook for the Amusement Equipments business for the second half of the fiscal year ending March 2022?
    While we cannot disclose details regarding orders, external environmental factors related to certification for new machines has stabilized and we are working toward achieving guidance for the year.
    While I presume you are working to keep costs down in the Arcade Operations business during the pandemic, is it safe to assume this will facilitate profitability improvements once the pandemic is over?
    At this point it is difficult to predict the level of expenses or costs associated with an increase in customer traffic. We will continue to monitor customer trends and take the appropriate measures.
    What is your new release sales plan for the second half of the fiscal year ending March 2022?
    The PC version of Monster Hunter Rise, scheduled for a January 2022 release, is being treated as a catalog title, and our new title releases for this fiscal year, Resident Evil Village and Monster Hunter Stories 2: Wings of Ruin, have both already been released. We will work to expand volume through initiatives such as limited-time discounts, focusing efforts primarily on Resident Evil Village.
  • 1st Quarter in FY2021 Presentation of Financial Results

    Question and Answer Summary

    Is the strong performance of catalog titles attributable to industry-wide factors, or factors unique to individual companies?
    In the first quarter of the fiscal year ending March 31, 2022 our strong catalog performance was primarily due to Monster Hunter Rise. We have not carried out comparisons with other companies.
    What is your policy regarding support for the PC platform going forward?
    In following our core strategy of multiplatform development, we continue to provide our content on a variety of devices, including PCs, in order to maximize our user base. As with home video game consoles, we feel that PCs are an important channel.
    Is demand for PC versions of games exceeding that for console versions?
    While demand for PC versions of games did not exceed that for console versions in the fiscal year ended March 31, 2021, we feel that the gap between the two is shrinking.
    How far along are you to achieving your fiscal year targets in each business segment?
    Overall, we are making satisfactory progress in all our business segments.
    Do you think there will be a drop off in COVID demand?
    At this point we have not seen a drop in demand. However, we believe any effects from COVID demand on us will be small, as many of our titles target core game players.
    Do you feel that video games have penetrated the mainstream market?
    In evaluating market trends in recent years, we believe that games, as a form of entertainment, have gained wider traction in the market.
    What can you share regarding the amount of the write down in work in progress for game software?
    We have revalued some unreleased titles by a certain amount, which falls within our internal estimates.
    Tell me the details regarding how much deferred revenue will impact net sales.
    We have recorded a variance of 500 million yen between the reversed portion of revenue for titles released in the fiscal year ended March 31, 2021 and the portion of deferred revenue for new titles in the current fiscal year.
    How do you judge the performance of Monster Hunter Stories 2: Wings of Ruin?
    At this point, the title has only recently been released. We are therefore waiting to evaluate its performance for the entire second quarter. We feel that initial sales have been favorable.
    You have yet to disclose your pipeline for next fiscal year onward. Are you certain you can achieve annual double-digit operating income growth?
    In the interest of our business, it is our policy to make title announcements after we have made certain their release. We believe it is possible for us to achieve double-digital operating income growth annually through leveraging means such as digital marketing while continuing to regularly release multiple major titles each fiscal year.
    What impact has COVID-19 had on development?
    While we are carrying out initiatives suitable to our development structure, such as staggered working hours, there has not been any major impact to the development progress on each of our titles.
    How will the resurgence of COVID-19 affect your Arcade Operations business going forward?
    We will be closely watching trends in the number of guests while adhering to the infection prevention policies of the property owners.
    What is your thinking on the increase in PC gamers worldwide?
    We are conscious of marked growth in emerging markets, as well as existing markets.
    What is your thinking regarding pricing for AAA titles on the new generation of consoles?
    For new titles, we would like to set prices that are appropriate, based on market data.
    Why have technical R&D costs increased year-over-year?
    This is due to booking incentive pay for members of R&D. Further, our policy going forward will be to invest in business infrastructure, beginning with introducing new technologies, in order to be prepared for the drastic changes that we anticipate in the market.
    Your cash balance is soon likely to exceed 100 billion yen. How do you intend to use this cash?
    We carry out approximately 30 billion yen of R&D investment each fiscal year; as such, given the hit-driven nature of the game industry, in the event that the market undergoes drastic environmental changes we feel it is reasonable for us to maintain about 100 billion yen in cash on hand in order to stably continue business operations for a three-year period. Further, we intend to continue investing in new technologies and business infrastructure improvements in order to manage changes in the market going forward.


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