Capcom continues its march to 10 years of consecutive growth

Capcom says it’s continuing its march towards ten years of consecutive operating income growth, despite another quarter of declining sales revenue.

For the three months ended September 30, 2022, net sales were down 29.9% YoY at 49,067m yen, operating income down 24.3% at 21,895m yen, and ordinary income down 22.6% at 22,996m yen.

The company again attributed the decline to the release of “a new major title” in the same period of the previous year, likely to be Resident Evil Village.

Although operating income for the first 6 months of Capcom’s fiscal year is currently down 25% year-on-year (21,895m yen vs. 28,924m yen), the company said it intends to make up for this in the remaining half to achieve ten consecutive years of growth.

The company’s upcoming flagship release, Resident Evil 4, is due to release right at the end of the FY on March 24, 2023. Street Fighter 6 and Exoprimal have 2023 calendar release windows, but very likely outside of the current FY.

During its latest quarter, Capcom sold 21.3 million units of game software, marking a year-over-year increase. The company achieved this with the release of Monster Hunter Rise: Sunbreak, as well as through digital sales, including sales of catalog titles composed primarily of entries in major series, such as Monster Hunter Rise.

Monster Hunter Rise: Sunbreak has topped 4.4 million units cumulatively, Monster Hunter Rise surpassed 11 million units, and Resident Evil 2 has now exceeded 10 million units sold.

Based on progress during the first half of the fiscal year, Capcom has raised its forecast for the current fiscal year ending March 31, 2023.

Further reading

4

Hands-on: Resident Evil 4 (2023) is a far more faithful remake than we expected

Capcom has taken a 'if it ain't broke, don't fix it' approach for the remake's opening

Capcom has said it will prioritise improving its workplace environment in order to drive its growth goals. This includes previously announced plans to raise Japanese base salaries as part of wider changes to its human resources operations.

In May, the company confirmed it will also review its compensation system, tie the payment of bonuses more closely to performance, enhance its employee welfare and benefits program, and create a new chief human resources officer position.