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Draygon

L20: Enlightened
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28 Sep 2002
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..über den weltweiten Markt und über Capcoms Firmenstrategie

1.Outlook of market surrounding game industry
(1) Over past couple years, Japanese market tends to be at a stand-still, due to various factors listed below:
  • Users tend to diversify its expenditures such as mobile phone and internet
  • Complexity of game playability
  • Penetration of second hand game into market
(2) To rejuvenate the market, game software and hardware companies are striving to implement their strategies described below:
  • Entry into online market as well as exploring its business opportunity
  • Aggressive pricing of game consoles
  • Developing and releasing next generation hardware featuring multi-entertainment functions
(3) Reinforcement of focus on overseas markets
Under the circumstance of continuing lag in Japanese market, software companies strive to expand overseas business opportunity for their survivals in US and European areas, where market growths are promising


2.Our management strategy
(1) Reformation of R&D department
  • R&D unit reformation
    R&D unit is to be reformed to attain each unit’s efficiency and to tighten measurements on title progress based on mid-term R&D strategy.
  • R&D cost tends to rise sharply in recent years due to high performance of hardware. However, our management efforts are extended to hold the reins of R&D cost to avoid skyrocketing them unruly. In addition, our efforts are to be further strengthened for strict completion as well as quality control of the product.
(2) Strengthen mega-hit sequels to stabilize revenues with continuous efforts to reduce R&D costs, and to promote corporate brand recognition in the market.


(3) More software development and sales to overseas markets
We are continuing development of titles that meet the tastes of the users in US and Europe in action game genre, and expanding new market outlets to strengthen sales in overseas market.


(4) Publishing strategy
We are selectively introducing overseas publishing hit titles in the domestic market to meet and create the demands from the markets.


(5) Arcade operation
In arcade operation, owing to our strategy “Chiiki Ichiban Ten (No.1 arcade in the Community)”, that we are focusing on opening arcades in large commercial complexes such as shopping malls, it is a proven record for us to expand business opportunity steadily every year, and it has become the second largest source of business for us.
In the light of the market circumstance, our expansion plan needs to be well thoughtful and realistic.


(6) Online games
  • As broadband access (high-speed and high-capacity communication) became widely available, we started to see more companies focusing on online games aggressively.
  • We started developing online games in full swing since CY2000, and we recognize that online market has the possibility to grow as much as non-online game market. We added online features to “Resident Evil Outbreak” released in December 2003 in order to steadily make a strategic move.
  • On the other hand, we do not recognize online business as being built up the business model due to many problems such as billing and payment, and web server, even though communication infrastructure are improving.
  • We will pursue the online business in view of improvement of communication infrastructure.


3.Implementation of strategic group management
Nowadays, group management is playing an important role on consolidated companies, and we are striving to create added value as entire Capcom Group by strategically consolidating business described as follows;


(1) Focus on management resource to core business
We will focus heavily on consumer development and sales as foundation of competitiveness to secure our advantage, and adapt to changes in the business environment.


(2) Appropriate allocation of business portfolio
  • We will allocate business structure frequently by investing resources in growth market, while shrinking and/or withdrawing unprofitable business. As for segments expected stable and demand growth, we have several businesses such as arcade operation and licensing out.
  • As for withdrawing unprofitable business, we have already withdrawn US arcade operation in October 2003.


4.Enhancement of corporate value
1) Market circumstance in the game industry changes rapidly, due to sluggish domestic market, aggressive marketing approaches by US and European competitive companies as well as rapid growth of Korean game companies. To respond to these circumstances, speed decision in management is very crucial to the management.


(2) Under these situations, we will reform profit structure by utilizing resources selectively. Moreover, we will generate cash flow and make profits by global business strategy, and create corporate value by improving management practices.


We thank you for your attention and interest in our company, and we appreciate your continuous support to our company.
Thanking in advance for your attention, we are

President & CEO
Kenzo Tsujimoto


Quelle: Capcom.co.jp/ir
 
Wenn deren Online-Games wenigstens überall Online wären *grml*
 
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