A Quick Look At Capcom’s Different Business Segments

By Ishaan . May 9, 2014 . 11:30am

Capcom have a bunch of different business segments that help sustain the company. Broadly speaking, these are divided into: Consumer Business, PC/Other, Mobile Contents, Arcade, Panchinko/Pachislot, and their licensing/publishing segment. You can see how they contribute to Capcom’s revenue in the diagram below.

 

The diagram illustrates that the arcade, pachinko and licensing business (depicted on the left-hand side) accounts for 30% of Capcom revenue. Meanwhile, on the right-hand side are traditional PC/console games, online game and mobile. This accounts for 70% of revenue and Capcom feel these business have the potential to grow further.

 

How do they expect to grow revenue from these business segments? Part of it is DLC for their games and constantly updating them with new content. Back in February, Capcom said that DLC accounts for 15-16% of sales in their consumer games business. This figure, they believe, will continue to increase in the future.

 

Another aspect of the company’s growth strategy is to develop more games internally, and in the process, accumulate know-how and improve the quality of their games. Finally, Capcom also hope to strengthen their online games business by taking measure to monetize their online games, reinforce marketing, and grow their online titles outside Japan with games like Monster Hunter Online in China.

 

[Source: Capcom Investor Materials]


Read more stories about on Siliconera.

  • Teh_Akod

    The whole “reinforce the DLC strategy” its just plain wrong and anticonsumer in every way. DLC’s should be made to give players an expansion of the games they have, new experiences that are completly different from the original game. Not just levels that could just go on the original game and pointless stuff like skins and other stuff that could very well could be on the original game as a way to reward the player for their progress.

    • Kumiko Akimoto

      Hey some people like buying new skins for character.

      • Thatguy

        Well, i liked to unlock new skins for character without paying for them.
        Remember RE4? When Ashley got that knight armor? It was game changer :D

        • Kumiko Akimoto

          Nope never played. I can go for either one.

      • Max

        We all like new skin but he means we should not pay for it. Espacilly if its something that is like less than 50 MB

        • Kumiko Akimoto

          Then don’t buy it

          • Max

            The issue is not about to buy it or not, I know I’m not forced to, but ethically it’s wrong. Like I said, it’s absurd to pay for something that is less than the size of a 50 MB or even more and can fit in the game’s disc.

            If you’r fine with it than all the power to you, but it does not mean it’s fine with others it does not mean it’s right.. Money doesn’t grow on tree, it’s a shameful thing for companies or merchants to take advantage of people one way or another.

          • Kumiko Akimoto

            Ethnics is subjective, it’d be bad if they were more then just a few dollars but they aren’t.
            Not as many people take a problem with it as you do.
            If you have money troubles well that’s on you.

          • Max

            Well, I’m not sure exactly the number of people that don’t find it problematic, but I’m sure they are a lot. But if its subjective to you, and if have more money than me and just want to spend it on every chance companies take advantage of consumers by selling Avatars, skins and DLCs that did not have problem to be with the game itself in the first place, than by all means go spend.

            I’m not short on money, but I don’t want others to take advantage of me,

            I find it problematic and like to express it, do you mind?

          • Kumiko Akimoto

            I find your opinion problematic and I have every right to address that. Do you mind?

          • Max

            Yes, I do mind because yours does not make sense. I want to save money by telling companies to stop hustling and taking advantage of me and others in ridiculous and scandalous ways like asking to pay for extra stuff that can fit the game’s disc’s in the first place, while you want us to be taken advantage of?

            Of course I mind.

            And don’t give me the “oh but if you don’t support them by paying for this or that, the developers will lose their jobs” excuse, because most of the money goes to the company, not the developers, and again, it’s an “unnecessarily/unreasonable” price they ask for. So the only poor folks here are us. We pay 60$ to get half games that have bugs and glitches because they were rushed because companies want to save money. And than we pay more to get the other half of the games in DLCs.

            You want to be taken advantage of, all the power to you. But don’t troll.

          • Kumiko Akimoto

            You mean I want to spend my money on extra content the developers shell out after the game release for whatever reason and not bitch and mode like I understand the game making process despite not being apart of the industry.

            Developers are apart of the company they work for some companies don’t even have multiple developing teams. So giving money to the company i.e give money to the developers.

            I’m also pretty sure they never make you pay for the patches that fix those bugs and glitches.

          • Max

            Are suggesting we should feel good that we are not being asked to pay for the patches? That companies are being kind to make patches in the first place?! That’s not kindness or privilege, that’s our right as customers who payed 60$ or more on a game that comes half broken and we would be lucky if we get one patch that fix everything, and yet you makes it look its like we are being lucky not to pay? Your’e out of your mind, want to troll, or just some PR employ of some video game company.

            And who’s talking about you? I told you, you want to be taken advantage of, all the power to you, no one is holding you. But I and others want to save money and not being taken advantage of.

            And who said all DLCs are extra stuff? The DLCs from the Batman games for example are not extra, they are part of the complete experience of the game. Same as with the Call of Duty’s DLCs.

            And developers are not taken in a high consideration by their companies, just look at the core developers of the Modern Warfare games, they were treated like slaves owned by their company according to them and that’s why they left and made their own game like Titanfall. Or Amy Hennig and Justin Richard who left the development of Uncharted 4.

            Look, you want to spend, its up to you man, no one is forcing you. But don’t troll.

    • DoctorButler

      At least Capcom doesn’t reinforce pay-to-win tactics. I’d rather they sell useless crap that doesn’t affect gameplay, in order to fund new titles, than split the consumer base, and ruin the current games community.

      Ideally I’d rather no DLC at all, and hard copies of every game, but this is what the business has degenerated into. Even Mario Golf has gameplay-critical DLC.

      • Elfaia

        Asura’s Wrath says hi.

    • Hector Velar

      you know. I see alot of people complaining about Capcom’s DLC strategy. I will say if you don’t like it then don’t get it. Capcom is not holding a gun to the player’s head. There are plenty of Indie games now with great quality who deserve support to bother complaining about DLC. Personally i like some DLC like in Murasama PSP Vita while those like in SFxT i felt disgust, there is a right and wrong way and i do agree on you on that.

  • Firion Hope

    Ugh reinforcing DLC and strengthening measures to monetize games is the LAST thing I want them to do. Why can’t they just make good games without bloated budgets or crappy DLC anymore, that’s what everyone wants :/

    • Brion Valkerion

      What everyone wants sadly is not the reality of the business anymore.

      • Firion Hope

        Considering how much financial trouble they’ve been in recently whatever they have in mind doesn’t seem to be working either though

        • monkey king

          …They are not in financial trouble at all, go read up on their reports that they publish every year for everyone to look at (hint, they have over 300 million dollars just sitting in banks and make profit every year.)

          • Firion Hope

            It wasn’t so long ago that they were down to $152 mill in the bank. For an AAA that doesn’t seem like a lot, though I’m no expert on finances

          • monkey king

            That “152 million” article must’ve read their reports wrong (and noone bothered to check ofcourse), but Capcom hasn’t has less than ~250 mil cash on hand and in banks since 2009, that’s 5 years straight and anything but “not so long ago”.

            Also their total assets have been at ~1billion for the same amount of time.

  • Thatguy

    REINFORCE DLC is for Improving consumer business?!!!?

    Capcom, are you drunk?! How deep you keeping your head in dirt?!

    Also reinforce monetize PC online games? Seriously?

    It’s like they saw EA and Activision and said – Wow, these guys are cool! Let’s copy them!

    • http://www.siliconera.com/ Ishaan

      Also monetize PC online games? Seriously?

      PC online games refers to MMOs like MH Frontier and MHO. Why wouldn’t they monetize them? That’s the whole point of MMOs.

      • Thatguy

        Goddamnit, i missed *Reinforce* I’ll edit my post.
        Also, i don’t think you can reinforce monetization of MHO

        • http://www.siliconera.com/ Ishaan

          They said “reinforce marketing” to help monetization.

          • Thatguy

            It sounds even worse, than in Capcom Investor material D:

          • Hector Velar

            well that is because marketing is who runs the bussiness. You have to keep that in mind.

    • Matty

      What’s wrong with them aiming to grow PC online games outside of Japan?

  • JCTXS

    Ugh, it makes me sick that I want monhan 4 G. Hopefully, that’ll be one of the last purchases I make for Capcom titles because Capcom obviously won’t reinvest it into more packaged games but just more mobile shit.

    • Attribule

      Don’t feel bad for supporting Monster Hunter, it deserves the support since they actually put care and love into that franchise. They don’t try to mess with a good thing, they actually improve upon it with each title.

  • Raymond

    we should have a pachicko place here in the US. I have always wanted to play one.

    • FTM

      Play slots, or cards, or bet on horses—
      Pachinko is just gambling. Another way you can recreate the Pachinko experience is go to the convenience store, open your wallet, and put $10 on the counter. Then go outside for 5 minutes and come back in.
      Did your money double, or did someone take your $10?
      Same experience.

  • Tarkovsky

    Are people even reading? DLC covers all forms of digitally downloaded content, eg. AA5, Strider, Duck Tales HD and MH4. In this case what Capcom means is having more games to be available for download like in Steam, PSN and XBox live. I think people need to get that whole DLC is just extra add on concept out of their heads.

    • Thatguy

      It’s like you don’t know, what company Capcom is.

      • Tarkovsky

        Sigh, another Capcom hater blinded by fury that I have to deal with. Sheesh, I honestly don’t want to argue with you but feel free to think what you want to. Fact is Capcom would not be putting this in their slides if it’s not working for them.

    • k.b.a.

      No. Not after seeing what they’re doing with ultra. Capcom is the worst ex gf

      • Tarkovsky

        Yup, says the person who has yet to play the game. There’s a difference between seeing and playing a game. Even when you have a members of the FGC representing your course and balancing the game based on player feedback, you complain. I would love to see you try balancing the game in Combofiend’s place and see how hard it is to placate fans like yourself who only know how to whine and moan without actually looking at the bigger picture. I honestly feel sorry for the fella because no matter what changes are made, not everybody is going to be happy. Obviously not everybody’s feedback is going to be implemented because that would just ruin the balance of the game. Yup, there’s nothing Capcom can do to please fans like yourself even if they offered you 1 grand because people like you are never happy. But hey, just give up on your “ex” and never look back. You will not be missed.

  • yomachaser

    If I’m understanding this mobile is as big as arcade for them already?

    • http://www.siliconera.com/ Ishaan

      If you’re asking whether they’re making direct comparisons in that picture, they aren’t. Their mobile business has been going through a transition phase the last few months, so they incurred a few expenses on that front that led to lower performance. We’ll see how things go once the structural changes they made to their mobile division begin to take effect.

  • Samsara09

    “reinforce the DLC strategy”-well,exactly as they say.

    “reinforce marketing activities and measures to MONETIZE those games”-Could they basically say they are gonna milk their games EVEN more?

  • Hector Velar
  • Guest

    keep shooting themselves in the foot, eh ?
    in the first place, why would they sign exclusivity deal, what a moron.
    they could do multiplatform release which nets more cash.
    especially MH4

  • Max Eisenhardt

    Hopefully the 2nd point in strategy 1 means far less outsourcing franchises to 3rd party studios

    IPs like Lost Planet and Devil May Cry suffered because of it

  • Tiredman

    Make the games people want with ok graphics. They don’t need modern graphics, they just need “clean” older graphics. Give the same gameplay with a bit more depth and people will be happy.

    Make smaller games and then make one big game. The smaller games can help fund the big game and will allow their dev’s to get creative since they don’t have a hundred million dollars going into one giant game that will hurt the company big time if it fails. Letting dev’s get creative with mini games also builds morale and makes the in house dev’s mostly quit thinking of the indie scene and the freedom found there.

    Quit being dicks and realize that money, money, money isn’t going to get you fans. Remember who got you where you are today, the fans, and realize that making that minority happy will keep you able to release certain games at guaranteed sales levels and allow you to build up the cash to be able to handle a big budget AAA game and be able to handle it if it bombs.

    Many ways Capcom can do better, but making DLC for games that got mediocre reception is a failing idea in the long term. People do learn from their mistakes and by not giving people what they want, they will abandon you and all your precious DLC will be wasted time.

  • azureknight

    Capcom needs to re-think their budgets and focus on getting reasonable profits.

  • k.b.a.

    Act like its ’99… forever.

Video game stories from other sites on the web. These links leave Siliconera.

Siliconera Tests
Siliconera Videos

Popular