Capcom is all-in on PC gaming, plans simultaneous console/PC releases

Capcom reiterates its strong emphasis on PC games, promises to continue simultaneously launching games on consoles and PC.

3

In a recent interview with Nikkei, Capcom's Chief Operating Officer Haruhiro Tsujimoto underlines how important PC gaming is for the company by saying it wants PC and console gaming to eventually hit a 50:50 even split. Tsujimoto reaffirms Capcom's commitment to both simultaneous and staggered PC releases of hit games, and strongly hints that pretty much all games moving forward will release on PC at some point (the most recent example is Monster Hunter Rise, which is scheduled to launch in January 2022).

3

Capcom has been investing heavily into PC gaming for a while now. There's a big reason for this: PC gaming is basically all-digital, and Capcom wants to reduce its spending while maximizing revenues. Digital gaming is the best way to do this. There's also the added bonus of instant distribution via downloads. The plan is paying off big: Capcom has had multiple years of record operating revenues because of its focus on digital gaming. For emphasis, Capcom sold 20.5 million digital games in 2020; in 2021 it hopes to push that number to a record-breaking 23.5 million.

"With the shift to digital, Capcom's operating margin has increased for four consecutive years since the fiscal year ended March 2017," Capcom said in its annual 2020 report.

3

Capcom reports that 40% of its total game sales are now on PC and 60% are from consoles. Years ago, 90% of game sales were on consoles.

"In recent years, PC platform versions have also increased their contribution to digital sales. We are now able to sell in countries and regions that far exceed the conventional console market, and we have analyzed that there is strength in expanding sales in emerging regions, such as Asia, South America, Eastern Europe, and the Middle East. I think that there is great potential for future growth in this area and have designated PCs a priority platform," Tsujimoto said in the annual report.

In summary: PC gaming is incredibly important for Capcom. While it's not the main focus--consoles will take priority, so we may see more high-profile games launch first on consoles and then later on PC--the platform offers many opportunities for growth and consistent revenues. Expect to see many mainline games like Resident Evil launch simultaneously on both platforms.

Here's a tidbit from a recent Q1'21 Q&A session:

Q What is your policy regarding support for the PC platform going forward?

A In following our core strategy of multiplatform development, we continue to provide our content on a variety of devices, including PCs, in order to maximize our user base. As with

home video game consoles, we feel that PCs are an important channel.

Q Is demand for PC versions of games exceeding that for console versions?

A While demand for PC versions of games did not exceed that for console versions in the fiscal year ended March 31, 2021, we feel that the gap between the two is shrinking.