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Capcom’s Future Business Plan Involves “Continuous Recurring Revenue” From Current Games

Capcom’s recent annual report for 2018 is up, and it looks like sunshine and rainbows for the house that created Street Fighter, Resident Evil, and Mega Man.

Here’s what we gathered:

  • The company’s net sales during its fiscal year are worth 94,515,000,000 yen/US$841,759,332, which is an 8.4% increase from the previous fiscal year results.
  • The net sales numbers are due to the success of Monster Hunter: World and Resident Evil 7 (from 2017), all thanks to digital downloads and sales.
  • The company’s main marketing strategy of making their IPs a “global brand” is to produce Hollywood movies for them. Capcom seems incredibly pleased with the RE movies, which attest to this marketing strategy so they’re following it.
  • On that note, the Monster Hunter movie is already in the works, cementing their plans to make the brand more global and worldwide-friendly. Furthermore, the company is rebooting the Resident Evil live-action series and they recently announced a Mega Man movie. Perhaps a Devil May Cry film may follow suit?
  • The fan reaction for the Resident Evil 2 remake was very positive for Capcom. Perhaps more RE reboots are in the works?


Here’s the bit which will determine the future of Capcom’s game-making and game-publishing plan.

  • The company is taking extra precautions to mitigate earnings volatility risks. It plans to do this by: (1) transforming the foundation of its Consumer business model from a traditional one-time sale “transactional model” to a continuous “recurring revenue model” and (2) creating a business portfolio and diversifying earnings risks by thoroughly leveraging Capcom’s basic strategy, Single Content Multiple Usage.

This translates to “let’s use the SFV model of expansion on all our games” so that the game keeps running. Skins, costumes, DLC, new characters, whatever that works. Coming from the company that previously snuck in already-existing content in the final product while keeping it behind a paywall ala SFxTekken and also recent shenanigans, this is par on course for the company’s business.

What do you guys and gals think of Capcom’s grand plan and annual fiscal year 2018 results?



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