Capcom reiterates its commitment to PC gaming, says the platform is a big part of its new aggressive push into digital markets.
Capcom's latest integrated report clearly explains its game plan. The company is doubling-down on digital gaming and wants to hit 50 million games sold per year--and eventually 100 million. There's a clear roadmap to making this happen and PC gaming is a big part of it.
In the report, Capcom says it has designated PC as a "priority platform." And rightly so, considering PC gaming is practically all-digital. Capcom says that PC gaming has helped it release games across 200 countries and massively expand its reach--think of PC as a gateway, and the bridge being digital platforms like Steam, where gamers are funneling across the bridge and buying games at the gate.
In recent years, PC platform versions have also increased their contribution to digital sales. We are now able to sell in more than 200 countries and regions, a number that far exceeds 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.
Digital has completely revolutionized Capcom. The company is making more money now than it ever has before. Thanks to this strategic expansion, Capcom has reported eight consecutive years of operating profit growth, and FY20 had the best operating income in the history of the company. Total profits have increased by over 220% in the last 10 years.
Another key point that Capcom makes concerning PC gaming is being able to control where and when its games go on sale. Capcom can adjust digital game pricing on a regional basis and it's also willing to drop its games steeply as long as the product has been amortized (once the development costs have been paid back).
Essentially, Capcom is okay with selling games for as low as $10 as long as their dev budgets are clear. Every dollar after that is considered a profit, and right now Capcom is chasing sales volume over huge sales revenues, yet the latter has always seemed to materialize thanks to the former.
This flexibility has worked out well. Capcom is embracing new platforms like PC gaming, cloud, and soon possibly even more subscription services outside of Xbox Game Pass. The company is willing to mark its games down to record lows in order to sell more copies. And finally, it's willing to change up pricing to ensure different markets and regions have access to its games.
These major business strategies will help the company push closer to its near-future goal of 50 million games sold per year. It's almost there. This year, FY21, Capcom expects to sell 32 million games despite not releasing any more major titles from now until March 31, 2022.
It really is a good idea to watch what Capcom is doing and I have a feeling we'll see more overseas games-makers follow suit, maybe even Konami.
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