Capcom Co., Ltd.: history, ownership, mission, how it works & makes money

Capcom Co., Ltd.: history, ownership, mission, how it works & makes money

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A Brief History of Capcom Co., Ltd.

Capcom Co., Ltd., established in 1983, emerged as a prominent player in the video game industry. Initially, it began as an arcade game developer, with its first notable title, '1942', released in 1984. The success of this game laid the groundwork for future projects and expansions.

In the late 1980s, Capcom expanded its portfolio by releasing iconic titles such as 'Mega Man' (1987) and 'Street Fighter II' (1991). 'Street Fighter II' alone became a cornerstone of arcade gaming and significantly contributed to Capcom's financial success, generating over USD 2 billion in revenue from arcade machine sales.

Throughout the 1990s, Capcom continued to broaden its influence through strategic partnerships and noteworthy franchise developments. Notable releases during this period include 'Resident Evil' (1996) and 'Devil May Cry' (2001), which bolstered the company's reputation for high-quality video game design and intense gameplay.

By 2000, Capcom had transitioned into home consoles, leading to a surge in sales across various platforms. For instance, 'Resident Evil 5', released in 2009, shipped over 7 million copies, making it one of the best-selling games for PlayStation 3 and Xbox 360.

The 2010s marked a critical period for Capcom, with a focus on remakes and reboots. 'Resident Evil 2 Remake', launched in 2019, received acclaim for its graphics and gameplay, selling over 5 million copies within one year of release.

In terms of financial performance, Capcom reported consolidated sales of approximately JPY 98.9 billion (about USD 895 million) for the fiscal year ending March 2021, with an operating income of JPY 29.7 billion (around USD 270 million), reflecting a robust growth propelled by strong digital sales and popular game franchises.

As of 2023, Capcom continues to evolve, integrating new technologies and platforms into its operations. The company has embraced mobile gaming, with titles like 'Monster Hunter Now' contributing to an increase in its user base and revenues. This diversification strategy indicates Capcom's commitment to remaining a competitive force in the gaming industry.

Year Key Release Sales Figures
1984 1942 Not Disclosed
1987 Mega Man Not Disclosed
1991 Street Fighter II Over USD 2 billion (in arcade revenue)
1996 Resident Evil Over 6.3 million copies shipped (by 2023)
2001 Devil May Cry Not Disclosed
2009 Resident Evil 5 Over 7 million copies
2019 Resident Evil 2 Remake Over 5 million copies in one year
2021 Fiscal Year Revenue JPY 98.9 billion (approx. USD 895 million)
2021 Fiscal Year Operating Income JPY 29.7 billion (approx. USD 270 million)

Capcom’s agility in responding to changing gaming landscapes, alongside its historical strengths in franchise development and market expansion, solidifies its position as a leading entity in the global gaming market.



A Who Owns Capcom Co., Ltd.

Capcom Co., Ltd. is a publicly traded company listed on the Tokyo Stock Exchange under the ticker code 9697. As of the latest data, the market capitalization of Capcom stands at approximately ¥1.1 trillion (around $10 billion USD).

The ownership structure of Capcom is characterized by a diverse mix of institutional and individual investors. As of March 2023, major shareholders include:

Shareholder Type Ownership Percentage Number of Shares
JP Morgan Asset Management 5.02% 5,672,000
BlackRock Japan Ltd. 4.36% 4,794,000
Nomura Asset Management 4.15% 4,672,000
Capcom's treasury stock 3.50% 4,000,000
Individual shareholders 58.97% 66,000,000

As of the fiscal year ending March 2023, Capcom reported total revenue of ¥108.5 billion (approximately $980 million USD) with a net income of ¥23.8 billion (around $215 million USD), indicating a strong profitability margin.

In terms of institutional ownership, approximately 39% of Capcom's shares are held by various institutional investors, showcasing a significant level of confidence among large financial players in the gaming industry. The voting rights are heavily influenced by these institutional stakeholders, as they can collectively impact corporate governance decisions.

Capcom's management also holds a stake in the company, further aligning their interests with those of the shareholders. Key executives, including President and COO Haruhiro Tsujimoto, own a portion of shares, which adds a layer of accountability regarding the company's performance.

With a focus on franchises like Resident Evil, Monster Hunter, and Street Fighter, Capcom continues to demonstrate robust financial performance. The company reported an operating profit margin of 24.5%, highlighting its operational efficiency and strong brand loyalty.



Capcom Co., Ltd. Mission Statement

Capcom Co., Ltd. is a leading Japanese video game developer and publisher, known for its strong portfolio of franchises including Resident Evil, Street Fighter, and Monster Hunter. The company's mission statement emphasizes its commitment to "producing innovative and engaging content" while striving to create new value in the entertainment industry.

The company actively focuses on four key pillars within its mission:

  • Customer Satisfaction: Ensuring that all products meet high standards of quality and creativity.
  • Global Outreach: Engaging with a diverse audience through multi-platform distribution and localization.
  • Environmental Responsibility: Promoting sustainability and responsible consumption in operations.
  • Innovation: Constantly pushing the boundaries of technology and storytelling in gaming.

In terms of financial performance, Capcom reported significant results in their latest fiscal year ending March 31, 2023. Here are some key figures:

Financial Metric Value
Net Sales ¥120.0 billion
Operating Income ¥35.0 billion
Net Income ¥25.0 billion
Earnings per Share (EPS) ¥122.47
Return on Equity (ROE) 19.6%

Capcom's dedication to innovation is reflected in its investment in content development, reporting a R&D expenditure of approximately ¥30.0 billion for the fiscal year. This strategical investment supports the development of new titles and enhancements of existing franchises.

Capcom also places a strong emphasis on market expansion, with international sales constituting approximately 70% of its total revenue, illustrating the global appeal of its games. The company has also made strides in digital sales, with digital distribution accounting for more than 50% of total game sales in recent years.

The continued success of Capcom can be attributed to its robust game titles, strategic marketing initiatives, and commitment to listening to player feedback. They have achieved an impressive average Metacritic score of 85 across their flagship franchises, indicating high critical acclaim.

In terms of stock performance, Capcom's shares have shown resilience, with a year-to-date increase of approximately 30% as of October 2023. The company's market capitalization reached about ¥700 billion, reflecting strong investor confidence driven by consistent revenue growth and a promising pipeline of upcoming titles.



How Capcom Co., Ltd. Works

Capcom Co., Ltd., founded in 1983, is a leading Japanese video game developer known for its successful franchises such as Resident Evil, Street Fighter, and Monster Hunter. The company operates through various business segments, including digital content, arcade operations, and device and merchandise sales.

Business Segments

  • Digital Content: This includes game sales through digital storefronts. In the fiscal year ending March 2023, digital sales accounted for approximately 75% of total game revenue, reflecting a significant shift in consumer purchasing habits.
  • Arcade Operations: Capcom operates a range of arcade gaming centers. In 2023, total sales from arcade operations reached approximately ¥15.5 billion, significantly impacted by the post-pandemic recovery.
  • Merchandising and Licensing: The company generates revenue from merchandise based on its popular franchises. In the last fiscal year, this segment contributed around ¥8 billion.

Financial Performance

In the fiscal year ending March 2023, Capcom reported total sales of ¥112.082 billion, an increase of 14.0% year-over-year. Operating income was recorded at ¥35.292 billion, marking a year-over-year increase of 13.1%.

Financial Metric FY 2023 FY 2022 Year-over-Year Change
Total Sales ¥112.082 billion ¥98.491 billion 14.0%
Operating Income ¥35.292 billion ¥31.188 billion 13.1%
Net Income ¥24.560 billion ¥20.036 billion 22.5%

Market Trends and Strategy

Capcom continues to adapt to changing market dynamics, focusing on enhancing digital distribution channels and expanding its portfolio in mobile gaming and online services. The company's strategy also emphasizes leveraging existing intellectual properties (IPs) for remakes and cross-media expansions, illustrated by the successful release of Resident Evil 4 Remake in March 2023, which sold over 4 million units in its first week.

Global Presence

Capcom’s games are distributed globally, with a significant market share in both Japan and international territories. In 2023, the North America region accounted for approximately 40% of total sales, while the European market contributed around 30%.

Future Outlook

The company expects continued growth, driven by strong franchise performance and ongoing trends in digital engagement. Projections for FY 2024 anticipate total sales to reach approximately ¥120 billion, bolstered by planned new releases and ongoing support for existing titles.



How Capcom Co., Ltd. Makes Money

Capcom Co., Ltd. is a prominent player in the video game industry, primarily generating revenue through game sales, digital content, merchandise, and licensing. In the fiscal year ending March 2023, Capcom reported a total revenue of approximately ¥101.1 billion (around $781 million). The sales were bolstered by several high-profile game releases and an increasing focus on digital distribution.

Revenue Breakdown

Capcom's revenue streams can be categorized mainly into the following segments:

  • Game Software Sales
  • Digital Content
  • Mobile Gaming
  • Licensing and Merchandise

Game Software Sales

Game software sales are a significant contributor to Capcom's revenue. In fiscal year 2023, Capcom sold approximately 38 million units of games. Major titles, such as "Resident Evil Village," which sold around 6 million copies, greatly contributed to this figure.

Game Title Units Sold (Millions) Release Date
Resident Evil Village 6 May 7, 2021
Monster Hunter Rise 5.5 March 26, 2021
Street Fighter V 6.6 February 16, 2016
Devil May Cry 5 5.6 March 8, 2019

Digital Content

Capcom has made substantial strides in the digital content market. In fiscal year 2023, digital downloads accounted for approximately 60% of total game sales, emphasizing the shift towards online distribution. This segment includes downloadable content (DLC) and in-game purchases, which are increasingly popular among players.

Mobile Gaming

Mobile gaming is becoming a significant part of Capcom's portfolio, with revenues from mobile titles reaching about ¥11 billion (approximately $84 million) in the latest fiscal year. Games like "Monster Hunter Explore" have contributed to this growth.

Licensing and Merchandise

Licensing and merchandise is another vital revenue stream. Capcom has successfully leveraged popular franchises for merchandise sales. This segment generated around ¥7 billion (about $53 million) in the last fiscal year. Collaborations with external partners for merchandise have increased overall revenue.

Recent Financial Performance

Analyzing Capcom's financial performance paints a clearer picture of their operations:

Financial Metric FY2023 FY2022
Total Revenue ¥101.1 billion ¥95.1 billion
Operating Income ¥40.3 billion ¥37.2 billion
Net Income ¥29.7 billion ¥26.3 billion
Earnings Per Share ¥231.20 ¥205.90

The increase in revenue and net income reflects Capcom's successful strategy in diversifying its income sources and adapting to market trends, particularly the shift toward digital consumption. The company's strong portfolio of franchises continues to drive sales, while ongoing investments in mobile gaming and digital content hint at future growth opportunities.

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