Capcom wants to sell 100 million games every year, and outlines its plan to make it happen in the near future.
Capcom is on a roll. Over the last decade the Japanese games-maker has made a radical shift towards digital. The results have paid off with eight consecutive years of record operating profit and over 220% in net income growth. Now the company wants more.
In a recent integrated report, Capcom has set an ambitions goal for itself: 100 million games sold every year. For reference, Capcom sold 30 million games last year and expects to sell 32 million games this year with an 82% digital ratio. Capcom makes it clear that digital is the key to achieving its lofty goal.
The report is quite technical and offers the best in-depth look at Capcom's business we've ever seen. Capcom outlines the benefits of digital and how they've been using the delivery mechanism to transform their business.
Key benefits of digital include:
- Reduced costs - No product shipments, manufacturing of boxes/physical media
- Strategic sales - Capcom can adjust sale prices of its games to help boost sales volume
- Instant roll-out of new content - Capcom can release new updates in games like Monster Hunter World to boost engagement
- Ease of access - Direct-to-consumer purchases unlock content anywhere in the world
Capcom also plans to heavily invest into newer emerging markets. Think of Capcom being an explorer who's discovering new countries; that's really what's happening here. Capcom wants to bring its games to all markets--especially those where its games aren't popular yet. Capcom is now targeting sales in over 200 countries worldwide.
Digital isn't just about game sales, either. Capcom explains in length how it plans to use digital's newer emerging business models to help bolster game sales volume and revenue. These include:
- Cloud gaming (full game sales and streaming)
- Subscription-based content (Xbox Game Pass, Stadia)
- New sales platforms like Epic Games Store
- esports
- Mobile games
While the end goal is to reach 100 million game sales per year, Capcom Chairman and CEO Kenzo Tsujimoto says this method will allow the company to reach its "realistic vision of 50 million units in annual sales volume will be our goal in the near future."
