Capcom USA sets its cap at the US video game market. The subsidiary of Japan's Capcom Co., Ltd. was established as the administrative arm for Capcom's US operations in 1985. It is best known for blockbuster video game franchises, such as Devil May Cry, Mega Man, Resident Evil, and Street Fighter, made for Sony, Nintendo, and Microsoft game consoles, as well as for PCs. Recent hit franchises include Dead Rising and Monster Hunter. Mobile and social games, such as Smurf's Village and Shrek's Fairytale Kingdom, are developed through the Beeline brand. Beeline avoids established Capcom brands to focus strictly on family-friendly games. The US accounts for about 20% of parent Capcom's overall revenues.
Having to contend with more global players in North America, such as Activision Blizzard and Electronic Arts (global #2 and #3, respectively), Capcom garners a much smaller take than in its home country, where Western publishers typically have a relatively limited presence. At home Capcom is a top-five competitor in game software sales, but drops out of the top ten in North America and worldwide.
Like other regions for Capcom, and indeed for many of its competitors, revenue fell, dropping more than 15% to ¥17.3 million (about $210 million). Much of that, however, was due to its release of a number of major titles the prior fiscal year.
Driving its operations in the US, Capcom continues to rely on its experience in developing original game content. Its general strategy is to develop a new hit series every two to three years and then sustain it with sequels. Capcom also follows a "single content, multiple usage" mantra, creating games that it can parlay into other products, such as the motion pictures, comics, and toys.
In response to modern challenges, the company's strategy includes expanding its online and mobile games business and building up its catalog of games under development. That will mean finding ways to shorten its development cycle from three or four years to two and a half years. It will also make use of the time in between by releasing downloadable content for current games. To grow its US online business, Beeline will be a key player, as will Valve's Steam digital distribution service, cloud gaming, and download sales of previously-released games. – less