ENVALITH
株式会社カプコン logo

CAPCOM CO., LTD.

9697・Prime Market・Information & Communication

Official website
株式会社カプコン logo
CAPCOM CO., LTD.9697

Business

Capcom Co., Ltd. is a game content company founded in Osaka in 1979. Centered on its Digital Contents business (approximately 73.8% of net sales), which primarily develops and sells console games and mobile content, the company operates four business segments: directly-managed amusement facility operations, development and sales of gaming machines such as smart pachislot, and eSports, visual content, and character licensing. Capcom sells its proprietary IPs—including Resident Evil, Monster Hunter, Street Fighter, and Devil May Cry—in 244 countries and regions, and achieved consolidated net sales of ¥195,365 million for FY2026 (ending March 2026), marking 13 consecutive years of operating profit growth. Its primary customers are global console game users, and it supports all major platforms including PlayStation, Xbox, Nintendo Switch, and PC.

Business Model

Capcom leverages its proprietary game engine "RE ENGINE" to regularly release major new titles in its flagship IP portfolio, and after launch, continues to generate long-term, high-margin sales as repeat titles through enhanced digital sales, pricing initiatives, and platform ports. In FY2026 (ending March 2026), repeat sales volume reached 49.46 million units (up 9.97 million units year on year), and the Digital Contents segment recorded an operating margin of 48.9%. Through its "One Content, Multi-Use" strategy of deploying the same IP across esports, video, pachinko/pachislot machines, character merchandise, and other areas, the company is maximizing IP value and generating revenue across multiple businesses.

Company Strengths

From FY2022 (ended March 2022) to FY2026 (ending March 2026), net sales expanded from ¥110,054 million to ¥195,365 million, and operating income grew from ¥42,909 million to ¥75,295 million, achieving 13 consecutive fiscal years of operating income growth. The Digital Content business posted an operating margin of 48.9%, while the Amusement Equipment business posted 56.4%, with the software-centric business structure underpinning high profitability.

In FY2026 (ending March 2026), repeat title sales volume reached 49.46 million units (up 9.97 million units from 39.49 million units in the previous fiscal year). Monster Hunter Wilds surpassed cumulative sales of 11 million units, and Street Fighter 6 surpassed cumulative sales of 6 million units, among others, establishing a structure in which past titles contribute to earnings over the long term, enabling stable sales even in fiscal years without major new releases.

Consolidated development headcount increased by 642 employees over five years, from 2,369 as of the end of March 2022 to 3,011 as of the end of March 2026. Average base annual salary rose 38.2% compared to FY2022 (ended March 2022), while the turnover rate declined from 5.4% to 2.6%. R&D investment reached ¥54,836 million (28.1% of net sales), with continued strengthening of the technology foundation centered on the in-house developed engine "RE ENGINE" serving as a source of competitive advantage.

ENVALITH's Perspective

Although the cost of sales ratio deteriorated slightly to 43.6% in FY2026 (ending March 2026), up from 41.8% in the prior period, the operating margin remained at a high level of 38.5%. Repeat title unit sales expanded to 49.46 million units, up 9.97 million units year on year, and high-margin sales with limited incremental development costs boosted profit. The continued rise in the digital sales ratio has brought down logistics and manufacturing costs while increasing flexibility in pricing measures, functioning as a structural driver of margin improvement.

Operating cash flow for FY2026 (ending March 2026) decreased significantly to ¥31,380 million from ¥67,618 million in the prior period. The main causes were an increase in income taxes paid (from ¥8,578 million to ¥22,111 million) and a decrease in deferred revenue (which had been a factor increasing cash flow by ¥19,932 million in the prior period). In investing activities, a net increase in time deposits, acquisition of investment securities, and acquisition of property, plant and equipment combined to result in expenditure of ¥55,862 million. The cash and cash equivalents balance remained ample at ¥102,833 million, but the trend in free cash flow warrants continued monitoring.

The forecast for FY2027 (ending March 2027) calls for net sales of ¥210,000 million (up 7.5% year on year) and operating profit of ¥83,000 million (up 10.2% year on year), in line with the medium-term target of "10% operating profit growth every period." However, the market reception of the entirely new IP "Pragmata" and the sales performance of "Onimusha: Way of the Sword" will determine the degree of variability in results. Revenue remains heavily dependent on core IPs such as Resident Evil and Monster Hunter, and the risk that a shift in the launch timing of major titles or a downward surprise in market reception could directly affect results continues to be inherent.

Growth Strategy

Toward the long-term target of annual sales of 100 million units, the company is advancing a three-pronged strategy of multi-faceted IP expansion, digital sales enhancement, and annual increases of over 100 development personnel.

In FY2026 (ending March 2026), the company achieved cumulative sales of over 6 million units for 'Biohazard Requiem' and launched 'Monster Hunter Stories 3'. In FY2027 (ending March 2027), the company will launch the completely new IP 'Pragmata' (already released in April) and 'Onimusha: Way of the Sword', pursuing both expansion of new unit sales and continued long-term sales of repeat titles.

Continuous improvement in the digital sales ratio is reducing logistics and manufacturing costs, while marketing efforts tailored to the characteristics of each country/region and long-term pricing measures are being promoted. The company will continue to deepen its global sales network toward the long-term target of annual sales of 100 million units.

The company achieved 3,011 development staff (an increase of 165 from the previous period) at the end of FY2026 (ending March 2026). Average annual salary increased 38.2% compared to FY2022 (ending March 2022), and the turnover rate was 2.6%. Under the leadership of the CHO, the company is strengthening recruiting capabilities, fostering talent development, and ensuring diversity, aiming for sustained expansion of its development structure and improved productivity.

Through multi-faceted expansion into esports (CAPCOM CUP 12 attracted a record-high 20,000 attendees), video content (Netflix anime 'Devil May Cry' streamed worldwide; Street Fighter Hollywood live-action film scheduled for release in October 2026), character merchandising business, and smart pachislot machines, among others, the company is expanding revenue sources beyond game sales and enhancing IP brand value.

In FY2026 (ending March 2026), the company achieved combined sales of 35.5 thousand units across two smart pachislot models, with an operating profit margin of 56.4%. For FY2027 (ending March 2027), the company plans to launch four models with unit sales of 53 thousand units. Through the continued launch of new models leveraging the company's popular proprietary IP and repeat sales (long-term operation), the company will maintain revenue contribution from this highly profitable segment.

Last updated: July 19, 2026