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    Capcom Co., Ltd.

    Capcom Co., Ltd.
    3-1-3 Uchihirano-machi, Chuo-ku,
    540-0037 Osaka
    Tel.: ‎81-6-6920-3600
    Fax: ‎81-6-6920-5100

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    Year in Brief  

    year 2012/2013

    Operating Results

    Capcom Co., Ltd. consolidated performance in year ended March 31, 2013 consisted of net sales amounting to 94,075 million yen (up 14.6% from the previous fiscal year). As for profits, operating income was 10,151 million yen (down 17.6% from the previous fiscal year), and ordinary income was 10,944 million yen (down 7.4% from the previous fiscal year).

    Net income for the current fiscal year was 2,973 million yen (down 55.8% from the previous fiscal year) due to the recognition of a special loss on business restructuring in line with development structure revisions.

    Status of Each Operational Department

    Digital Content business

    In the Digital Contents business, which constitutes our core competence, the flagship title “Resident Evil 6” (for PlayStation 3 and Xbox 360) sold at a brisk pace initially when it was launched. Its sales, however, subsequently plateaued. As a result, it did not meet with our projection and thus was not able to play a role in leading the segment’s sales growth. In contrast, “Dragon’s Dogma” (for PlayStation 3 and Xbox 360) became a greater-than-expected hit product in the domestic market, which has high profitability, and became an unprecedented million seller in the recent years as an original title. In addition, “DmC Devil May Cry” (for PlayStation 3 posted solid sales. Furthermore, “Monster Hunter 3 (Tri) G HD Ver.”, which was our first title for the new home video console “Wii U” that was launched in December 2012, also became a smash hit. However, its package sales were generally soft.

    In the meantime, “Minna to Monhan Card Master”, which the Company began to distribute via Mobage in the previous fiscal year, continued to post growth, thanks to the increasingly widespread of smartphones. At the same time, “Resident Evil: Outbreak Survive” for GREE steadily gained new users. As a consequence, both titles enjoyed membership exceeding two million each.

    Additionally, the “Monster Hunter Frontier Online” series has remained a perennial favorite and continued to bring in stable income. Strong results being achieved by the contents segment is leading the Company’s profit structure to undergo a transformation.

    Furthermore, “Smurf’s Village” under “Beeline” brand has securely built stable sales over a long range.

    The resulting net sales were 63,636 million yen (up 6.4 % from the previous year) and operating income was 7,062 million yen (down 45.2 % from the previous year).

    Arcade Operations business

    In the Arcade Operations business, Capcom focused its attention on securely capturing core users by holding various events and providing pleasant facilities in an effort to attract a greater number of customers in the increasingly sluggish market. In addition, the Company concentrated its efforts on building a broad customer base so as to find new customers. In line with this strategy, the Company conducted promotional tours to let middle-aged and older people try their hands at game machines free of charge, and installed machines that parents and their children can play together. Nonetheless, the segment results were soft, partly because of the dispersion of entertainment, resulting from overlapping of arcade game players with smartphone users. The other issues to the weak results were a shortage of sales-driving products and the Company’s inability to avoid the recoiling from an increase in demand in the months following the Great East Japan Earthquake.

    During this fiscal year, new arcade openings were postponed in consideration of the market environment. As three unprofitable arcades were closed down, the total number of arcades became 34 as of the end of the current period.

    The resulting net sales were 10,944 million yen (down 6.7 % from the previous year) and operating income was 1,709 million yen (down 4.4 % from the previous year).

    Amusement Equipments business

    In the Pachinko & Pachislo division, the business scale steadily expanded. This was due in part to the flagship title “Resident Evil 5”, whose sales significantly exceeded expectations in a synergy with home video game software and buoyed profits. The expanding contracted product development business was another factor contributing to the segment growth.

    In the Arcade Games Sales business, “Mario Party Kurukuru! Carnival”, which is a coin-operated game machine, posted solid sales against the backdrop of a gap in the new product supply cycle. Repeat sales of existing products were also sound.

    The resulting net sales were 16,783 million yen (up 119.0 % from the previous year) and operating income was 4,892 million yen (up 449.3 % from the previous year).

    Other Businesses

    Publication of game guidebooks and sales of character-related goods constitute the main component of sales in other businesses. Net sales of the segment were 2,711 million yen (down 5.3% from the previous year) and operating income was 740 million yen (down 15.6 % from the previous year).

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