Capcom posted its quarterly financial results today, focusing on the three months that ended on June 30th, and they were definitely positive, with both sales and operating income increasing year on year. This was due to repeat sales of console games (called “consumer” by many Japanese companies) and a new pachislo machine.
The company now plans to strengthen its console business and its online game business. We also learn that Monster Hunter 4 Ultimate is now at over 3.9 million units sold. Sales outside of Japan are also a segment that the company intends to nurture, with Resident Evil Revelations 2 and Devil may Cry 4: Special Edition named as a contributing factors.
In conclusion, the quarterly performance was in line with the full year forecast announced in April.
The company described the current market situation in the accompanying press release, also making an interesting point on the appearance of activities to compete against mobile games, bringing VR for consoles as an example.
“During the three months period ended June 30, our industry experienced major changes. For example, in the home video game market, the market size of mobile games mainly led by smartphone applications exceeded 600 billion yen, driving the domestic market. At the same time, the competition for ruling power in the industry became more intensified than ever.
At this year’s E3, the Electronic Entertainment Expo, the world’s largest trade show for computer and video games being held in Los Angeles in June, Capcom exhibited “Street Fighter V” (for PlayStation 4 and PC) and drew attention of the many visitors thanks to the strong brand recognition established in the overseas market. The trade show also witnessed activities competing against the rapidly growing mobile games such as a series of announcements of virtual reality (VR) for consumer games.
In such an environment, the Company pushed forward with promotion activities to respond to customer demands and marketing efforts in close coordination with development and sales. The Company also steered business operations in a manner to respond to rapid changes in the competitive environment. Additionally the Company launched “Resident Evil 6” as its first pachislo product to conform to the revision in pachislo model certification method by the Security Communications Association in September 2014, which made an excellent start. Furthermore, the Company also focused on improving the development process and revenue management.
The resulting consolidated net sales for the first quarter were 14,541 million yen (up 51.9% from the same term last year). Similarly, profits increased at all levels. Operating income increased to 2,026 million yen (up 59.8% from the same term last year), ordinary income to 2,135 million yen (up 74.5% from the same term last year), and net income attributable to owners of the parent to 1,569 million yen (up 104.9% from the same term last year).”
It’s definitely interesting to see a Japanese company like Capcom move to focus more on console games, and they’re not the only ones.
Other large publishers like Square Enix are moving in the same direction. Hopefully this will revitalize the market in Japan, and bring more games to the west as well as a result.