Peek At Capcom’s Long Term Portfolio Strategy

By Ishaan . January 31, 2011 . 12:31pm

Last September, Capcom announced that they were reorganizing their corporate structure to be able to meet the needs of a variety of markets, including both mainstream and niche audiences, under newly-appointed Corporate Director, Jun Takeuchi.

 

While that previous announcement dealt more with internal development structure, a new management report tells us just how this will affect the releases of Capcom’s games in the future. Going forward, Capcom plan to bank on three strategies to ensure a steadier flow of profits:

 

  • Increasing their output of downloadable games and downloadable content for traditional games.
  • Strengthening development of online PC games for Asian markets.
  • Steadily releasing sequels to popular brands in the traditional games market.

 

With regard to the first point on that list, Capcom say they plan to provide online connectivity for all major home video game titles.

 

The above is a chart outlining Capcom’s game release strategy, comprising major as well as smaller to medium scale titles (in terms of brand). While we couldn’t tell you what franchises Series A through E pertain to exactly, Capcom consider Resident Evil, Street Fighter and Monster Hunter to be major titles, while Sengoku Basara and Ace Attorney fall into the latter category.

 

Because large-scale titles take a long time to develop, Capcom plan to bank heavily on outsourcing and strengthening their relationships with overseas developers to ensure they have adequate resources allocated to releasing a steady flow of successful games. They’re also going to strengthen recruitment of new internal developers to work on projects, and are allocating resources specifically for the development of entirely new titles.

 

In a nutshell, the current plan is “more games across more platforms.” With that many games a year, you’ve got to wonder how these releases will be spaced out.

 

Traditionally, publishers tend to release their biggest titles during the fourth quarter of any given year, close to the holiday season. Capcom plan to avoid meeting the competition head on by releasing major titles in every single quarter of the calendar year.


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  • http://twitter.com/mangeezer jerry

    Hope they deliver with their downloadable games this time. All they have to do is port over their dreamcast collection – Mars Matrix, Power Stone, Tech Romancer, etc. Yeah, makes too much sense for it to happen…

  • neogeno

    Ugh…I really wish I didn’t have to be greeted by that… creature… when I clicked on the link…-__-.

    • Tokyo Guy

      It’s from Devil May Cry, right? I hope the new installment can bring back the same entertainment as the original; for whatever reason that was the only installment I ever cared about.

      • http://www.facebook.com/people/Hector-Cortes/100000351183370 Hector Cortes

        Have you played Bayonetta yet? Its from the man who created the original Devil May Cry you should play it its quite the real sequel to Devil May Cry he envisioned ;)

        • neon6

          Yeah, it’s a shame he had to take ques from God of War though.

  • shion16

    “Super” Marvel vs Capcom 3 is coming on ¬¬

    • http://pulse.yahoo.com/_J6JZI7MLOB4OWZ7FZX45VLNXNE Entice

      I’d prefer a PC version instead.

      • shion16

        wont happen

    • Zero_Destiny

      You mean Super Marvel vs Turbo Capcom vs Tatsunoko 3D!!!!! The World Championship Edition. Now that’s the game I’m waiting for lol

  • HarryHodd

    Been disappointed with Capcom. Hope they turn it around this year.

    • Guest

      They gave me Tatsunoko vs Capcom so I cant complain

  • Guest

    They have the total opposite portfolio strategy than Bandai Namco

  • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

    As long as this means that the US will get another Sengoku Basara title then I am happy! It is epically awesome on the PS3, my win for surprise hit of 2010, lol. More DLC is good as well, hopefully this plan is put into action this year and they deliver me my Ada Wong for MvC3!!!

  • http://twitter.com/Ale598 Ale598

    Series C seems to be Monster Hunter with Tri being on a home console and Portable 3 on PSP next is probably Portable 3 2nd G Infinity Burst and Monster Hunter 4 for consoles on 2012 confirmed!

  • http://www.youtube.com/user/jodecideion?feature=mhum TheWon and Only

    If this means they are making more games a cross all platforms then I’m cool with it. My gut feels it’s just PSP, HD and Iphone! No Wii Love!

    • jarrodand

      I think they’re pretty much done with PSP, the 2nd Basara spinoff is probably the last thing we’ll see on it.

      I’m not expecting anything for Wii either, maybe a Basara 3 upgrade but that’s probably it. It’s going to be mainly 3DS and 360/PS3/NGP multi from here on out imo.

      • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

        Well since it says they are not abandoning niche markets. But dude, lol give Capcom and the Wii more credit, perhaps they will stick with the Wii for Tatsunoko vs Capcom (sequel) or another vs game for the Wii, and it says they will be developing new series so I dont think the Wii is gone from the equation.

  • Yui

    Shouldn’t Capcom be focusing on a “less is more” approach? Higher quality titles with longer development times? This may be more economical but it’s certainly not going to pay off in the long run if all they do is release sequel after sequel in their major series’. People are already losing patience with Biohazard, right? Are Capcom just so good that they don’t need long development timeframes to produce masterpieces?

    • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

      By releasing more titles of series that are known to sell (perhaps they will adjust the budgets accordingly and revise sales estimates for titles) while incorporating a rigid DLC structure, they can aim for profitability. I think the key word in the graphic is “popular”, meaning the titles are most likely guaranteed to be money making.

      Isnt it riskier to have longer developmental times, meaning higher costs, with lower results?

      • Yui

        I understand the reasoning behind that, but the problem is it hurts customer interest; ultimately it’ll turn people away from Capcom, and that won’t help them in the long run. Focusing on producing titles that may be “popular” but aren’t necessarily “good” still incurs development costs and all, and though DLC is cheaper, simply taking a look at the DLC sales for BioWare products is enough to confirm that it’s not necessarily the more appropriate response to flagging sales.

        It is riskier, but the output is generally better, unless you take too long, at which point the customer loses interest. Just take a look at the Call of Duty series – Activision had the manpower to switch between developers to provide longer timeframes before development (before the Infinity Ward fiasco, of course) and things were doing well for them. Now they can’t, because IF are gone, and look at the reception for Black Ops.

        • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

          Excuse me? The reception for Black Ops, if you mean the most popular title released last year and the biggest entertainment launch in history then that is just fantastic news! And should we look to their DLC strategy, $15 map packs are highly profitable as well. The development times are the same, the COD games come out in the same time frame as Capcom has highlighted up here, so Im lost at what you are getting at. Capcom will be giving their titles to other developers so there is no loss there for developer isshus.

          Ultimately I think the article addressed your concern

          “Because large-scale titles take a long time to develop, Capcom plan to bank heavily on outsourcing and strengthening their relationships with overseas developers to ensure they have adequate resources allocated to releasing a steady flow of successful games.”

          • Zero_Destiny

            Oh Sawada, you and your never ending money.

          • Yui

            I think I let something get lost in communication there, which was a mistake. I meant the critical reception for Black Ops, which was less warm (if only slightly) than that of its predecessors (save World at War). The $15 map packs ARE highly profitable for the Call of Duty titles, but there is a backlash within the consumer base that has the possibility of exploding at some point . Whether it will, I don’t know. What I can tell you is that even though you’re right about the issue of outsourcing development, it still doesn’t fit properly into the jigsaw puzzle that is my understanding of the issue. Call of Duty 4 had the longest development time of the bunch, it had the best critical reception and was what started the massive wave of sales the series experienced. Call of Duty 7 also failed to beat Call of Duty 6 overall in terms of sales, so I don’t know. I’m not clued up enough. But what I’ve seen, with the KH series (the Final Mixes and whatnot), the massive hate people throw at FFXIII, god knows how many other established developers and publishers who have done this and lost revenue…I’ll have to ask you to forgive my fragmented thought processes.

            You’re right – it does address a great deal of my concern, but I’m not fully mollified by it, mainly because I don’t know anything about it. It helps to allay my fears, but all I can do is wait and see. :D

        • http://twitter.com/Ale598 Ale598

          I don’t mind, I’ll keep buying a yearly Monster Hunter no matter what.

          • Yui

            Oh, I’ll definitely keep shelling out for Capcom titles too. If they maintain the quality they have now, that’s no question. I just hope they can with a higher production rate. :D

  • BadenBadenPrinny

    As long as one of them is Capcom vs SNK 3. Thankfully Ono said he’d keep his hands off it if it happens

    • http://www.facebook.com/people/Hector-Cortes/100000351183370 Hector Cortes

      Ono doesn’t work on the VS series of titles dude lol

  • WonderSteve

    Some of Capcom’s long term fiscal strategy:

    Get user to pay for DLC patches to unlock content on the disk like Biohazard V.

    Or releasing the game again with updated “content”. Street Fighter IV, Super Street Fighter IV, Super Street Fighter IV Turbo, Super Street Fighter IV Turbo EX…etc. Why limited to only SF?

    • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

      Thats too much, though would they do it for MvC? What would the naming conventions be?

  • PrinceHeir

    all i want is a Onimusha 5, new Strider, Megaman X9, Monster Hunter PS3, Chaos Legion 2, Darkstalkers IV, Tatsunoko vs Capcom 2 and Capcom vs Snk 3 :P

    • shion16

      you want all xD

    • kupomogli

      No mention of Breath of Fire?

      • Tokyo Guy

        I for one, would love a new Breath of Fire game. It’s kind of sad that all the “other” RPGs from the 16-Bit era have been totally left out to die. I would very much like to see new installments in:

        Estpolis
        Breath of Fire
        Ragnacenty
        Terranigma/Soul Blader/Gaia
        7th Saga

        Even Virtual Console releases of any of them would be great (though IIRC Breath of Fire already has been).

  • GamerKT

    I’m really excited for that new DmC game. Hopefully, they stop doing that crap that switches the camera angle at certain parts of the room. I have went back through the same door I just came in through way too many times. And gotten lost a few times. Fixed or fully-controlled, please.

  • Aiddon

    too bad that NT game is going to flop

  • thebanditking

    I am taking a wait and see approach to Capcom. Personally making the next supposed “real” Resident Evil on 3DS to me is a waste, so I hope they got some big plans for RE6. Other then that I would like to see Capcom focus more on their roots and single player experiences, as the XBL/multiplayer rush is what got them in the mess they are in.

    • http://www.facebook.com/people/Hector-Cortes/100000351183370 Hector Cortes

      I wouldn’t say RE for 3DS is a real main entry in the series I’d say its more in the Code Veronica vein where its more of a side story entry in the series being that its taking place before RE5…

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