Capcom Co., Ltd., consolidated performance in the year ended March 31, 2014, had net sales of 102,200 million yen (up 8.6% from the previous fiscal year). Profits included operating income of 10,299 million yen (up 1.5% from the previous fiscal year) and ordinary income of 10,946 million yen (up 0.0% from the previous fiscal year).
Net income for the current fiscal year was 3,444 million yen (up 15.9% from the previous fiscal year) due to the recognition of a special loss on business restructuring expenses related to the sluggishness of mobile contents.
Status of Each Operational Department
Digital Content business
In the Digital Contents business, the aforementioned feature title “Monster Hunter 4” (for Nintendo 3DS) was extremely popular, creating a huge buzz that could be described as a social phenomenon. Moreover, sales of “Dead Rising 3” (for Xbox One) geared toward the European and U.S. markets and “Resident Evil Revelations” (for PlayStation 3, Xbox 360, Wii U and PC) exceeded a million units each, making all three titles million-sellers. In addition, sales of “Dragon’s Dogma: Dark Arisen” (for PlayStation 3 and Xbox 360) were firm while “Phoenix Wright: Ace Attorney –Dual Destinies” (for Nintendo 3DS) generally achieved projected sales. Furthermore, “Monster Hunter 4” sold well as a download in response to changing distribution formats, while sales of overseas title “Duck Tales” exceeded forecasts. Further diversification of our business model and significant growth in Japan and overseas also contributed to the growth in sales. Sales of “Lost Planet 3” (for PlayStation 3, Xbox 360 and PC), failed to meet expectations due in part to intensifying competition in the European and U.S. markets.
Online game “Monster Hunter Frontier G” (for PC, Xbox 360, PlayStation 3 and Wii U) also fell short of expectations, but PC browser game “Onimusha Soul”, which was distributed in Taiwan with the aim of expanding Capcom’s business domain, garnered a great deal of attention and ranked first in popularity. This achievement indicates the subsidiary Capcom established in Taiwan two years ago has begun to gain traction in the market. However, despite the strong performance of “Monster Hunter Hunting Quest”, overall mobile content performance was lackluster due in part to an absence of major titles and a fiercely competitive environment.
As a result, net sales were 65,824 million yen (up 3.4% from the previous fiscal year), and operating income was 4,489 million yen (down 36.4% from the previous fiscal year).
Arcade Operations business
In the Arcade Operations business, which continues to be affected by ongoing market stagnation, we made efforts to expand customer segments and reach potential customers. These efforts include the development of free game experience tours for middle-aged and senior citizens and kid’s corners for preschool children. We also attempted to attract a wider range of customers, including core customers, repeat customers and families, by renovating arcades and holding various events.
Nevertheless, insufficient machine traction and increased competition from other forms of entertainment combined with unseasonable weather resulted in fewer customers.
This fiscal year, we promoted a scrap-and-build policy in response to changes in the environment, opening one new arcade in Shizuoka City and closing two unprofitable arcades, bringing the total number of arcades in operation at the end of this fiscal year to 33.
As a result, net sales were 10,620 million yen (down 3.0% from the previous fiscal year), and operating income was 1,617 million yen (down 5.4% from the previous fiscal year).
Amusement Equipments business
In the Pachinko & Pachislo business, feature title-themed “Monster Hunter Gekka Raimei” lead the increase in sales and supported earnings with a strong start due to synergy with home video game software. In addition, “DEVIL MAY CRY 4”, released last September, performed better than expected, contributing to the increase in sales.
At the same time, in the Arcade Games Sales business, new coin-operated game machines “Monster Hunter Medal Hunting Compact” and “Mario Party –Fushigi no Korokoro Catcher 2” performed solidly.
As a result, net sales were 23,160 million yen (up 38.0% from the previous fiscal year), and operating income was 7,131 million yen (up 45.8% from the previous fiscal year).
In Other Businesses, which consist mainly of game guides and other publications and sales of characters and other merchandise, net sales were 2,594 million yen (down 4.3% from the previous year), and operating income was 1,001 million yen (up 35.2% from the previous year).