Capcom can do little to no wrong. The acclaimed Japanese game publisher has announced impressive financial results for the first six months of the fiscal year, ending on September 30, showcasing a robust growth in revenue and profit. More importantly, this marks the company’s 11th consecutive year of profit growth, a commendable achievement in an ever-competitive industry like gaming.
One of the primary drivers behind Capcom’s financial upswing is its core Digital Contents business. Software sales for the first half of the year reached a commendable 22.6 million units, an increase from the previous year’s 21.3 million units. Specifically, Capcom noted that its digital game sales showed strong momentum.
A major contributor to Capcom’s software sales growth is the successful launch of Street Fighter 6. Released at the start of June, it rapidly surpassed 2.47 million units within a span of a few months. Moreover, the Resident Evil 4 remake, one of this year’s best games, sold an additional 1.66 million copies during this fiscal half-year, bringing its lifetime sales to an impressive 5.45 million. It’s worth noting that the Resident Evil series, Capcom’s flagship franchise, has now crossed a whopping 150 million sales, solidifying its place as one of the most successful gaming franchises of all time.
Alongside these giants, Capcom also ventured into new territories by launching a new intellectual property, Exoprimal, in July. Although the title was available on major platforms like PC, Xbox, and PlayStation, and was even part of Game Pass, its performance was comparatively modest, with sales figures just shy of 940,000 copies by the end of September.
From a financial perspective, the numbers indicate Capcom’s strength in the gaming industry. Net sales saw a surge of 52.7% year-over-year, amounting to 74,934 million yen ($498 million). Concurrently, key performance indicators such as operating income, ordinary income, and net income rose by 54.5%, 57.3%, and 56.7%, respectively.
But Capcom’s success isn’t just restricted to new releases. A significant portion of its revenue is attributed to the its back catalog sales. A notable 179% year-over-year increase was seen in physical copy sales, culminating at ¥12 billion ($79.7 million). However, digital sales remained the titan, generating ¥47.6 billion ($316.5 million). Capcom’s venture into the mobile game segment also bore fruit, with the Monster Hunter Now title, developed in partnership with Niantic, saw 10 million global downloads, subsequently leading to a revenue increase of 36% year-over-year for this segment.
The company’s global reach is also reflected in its sales distribution. Overseas markets accounted for a staggering 81.4% of the total 22.6 million units sold, leaving 4.2 million units for domestic sales in Japan. Furthermore, back catalog titles comprised 77.9% of total sales, indicating the enduring appeal of Capcom’s classic titles.
Looking into the future, Capcom’s prospections are bright. The company projects a year-over-year increase of 11% in net sales, estimating a figure of ¥140 billion ($930 million) for the full fiscal year ending March 31, 2024. Moreover, the anticipated operating income is ¥56 billion ($372.3 million), marking a growth of 10%.
It is not just the numbers that tell the story of Capcom’s success. The company’s strategic decisions over the years have played a pivotal role in its current achievements. While there were phases when Capcom seemed to pivot more towards Western trends, its reorientation towards its roots, reminiscent of the PS2 era, paved the way for its resurgence. Titles like Resident Evil and Devil May Cry have returned to their origins, leading to increased acclaim and financial success.
With the ninth mainline entry in the Resident Evil franchise poised to feature the fan-favourite character, Chris Redfield, in a more prominent role, which might coincide with a remake of Resident Evil 5, iconic for that one boulder-punching scene, Capcom’s best-selling franchise will only continue to sell well. Between that and a new Monster Hunter game as well as possibly new installments in Devil May Cry, possibly released around the same time as the Netflix anime adaptation, and Mega Man, the company’s year-on-year growth streak likely isn’t ending anytime soon.
Fingers crossed, Capcom will reconsider visiting its “other” forgotten franchises, specifically, Dino Crisis.
