Capcom Q&A For Q3 FY22/23 : RE4 Pre-orders are favorable compared to Past entries , Aims to have Better PC Sales in emerging and developing Countries

[Ryuichi Naruhodo]

Capcom had Released Today the Q&A for their Q3 of the Fiscal Year 2022/2023 , It is still in Japanese so I used DeepL for Translation

What is your evaluation and impression of the year-end sales season?

Sales are growing mainly for older titles, and are performing well compared to the previous year.

What is the impact of foreign exchange rates?

We have conducted simulations using various exchange rates, but we do not think there will be a significant impact on the full-year results at the current level.

What is your view on the plan for the next fiscal year?

We are unable to give specific targets at this time, but we would like to begin planning based on the assumption that we will continue to increase operating income by 10% for each fiscal year. We would like to start our plan with the assumption that we will continue to increase operating income by 10% each fiscal year.

What is your evaluation of "Monster Hunter Rise," which was newly released for multiple hardware platforms in January 2023?

It is progressing ahead of our internal expectations.

Could you elaborate on the impairment losses you recorded in the third quarter?

Impairment losses for the third quarter totaled just under 4 billion yen, and 3.5 billion yen for the first three months of the fiscal year.

What were the intentions behind the year-end and New Year promotions, such as TV commercials?

The intention was to promote our IP in conjunction with the sales campaign. We will use the knowledge gained for future marketing.

What is your perspective and confidence in the plan for the next fiscal year?

Now that repeat sales have become more important due to digital sales, our performance plan will not change based solely on the presence or absence of new releases or the strength or weakness of our IP. We will move toward achieving our plan step by step by ensuring stable growth of older titles.

What is the outlook for "Resident Evil RE:4"?

Compared to previous titles, pre-orders are favorable. We are also feeling a positive response from users, which is encouraging.

What are your expectations for "Street Fighter 6"?

Street Fighter 6" incorporates the know-how we have accumulated through the previous title "Street Fighter V". In addition, the number of users of the series is expanding along with the promotion of e-sports, and we will take various measures to make "Street Fighter 6" the biggest title in the series.

How will the cost structure change in the future with the introduction of new IPs such as "Pragmata" and "Exo Primal"?

We are not certain at this point, but there is a possibility that we will have to spend more on advertising and publicity for new IP.

In developing a new IP, is there any possibility of holding down development costs compared to existing large-scale IPs?

We need to evaluate the IP from a medium- to long-term perspective, such as whether the IP can be developed into the next title and how much sales can be increased over the next five years, rather than considering only one title.

What are your thoughts on sales of PC titles?

Thanks to digital pricing measures, sales of PC versions are growing remarkably in emerging and developing countries. However, at this point, the absolute sales volume in these countries is not as high as in developed countries. It is important to raise the sales volume in these countries in the future.

Have there been any new changes in repeat sales promotion measures during this fiscal year?

There is no change in our sales strategy. We aim to expand sales by setting appropriate prices based on sales data by country, region, and price.

Source : https://www.capcom.co.jp/ir/data/re...apcom_top&utm_medium=web&utm_campaign=referer

 

[fiendcode]

Sounds good for the Rise ports! No packaged release is still odd imo but hopefully it happens with Sunbreak in the spring then.

 

[Himura Kenshin]

Street Fighter 6" incorporates the know-how we have accumulated through the previous title "Street Fighter V". In addition, the number of users of the series is expanding along with the promotion of e-sports, and we will take various measures to make "Street Fighter 6" the biggest title in the series.

Yeah, I feel like there's something bubbling with this one and I've felt it since the original announcement.

 

[Spiegel]

Most of the work was done for the PC release, so between that and the Gamepass deal Rise should be all profit.

 

[ILikeFeet]

Yeah, I feel like there's something bubbling with this one and I've felt it since the original announcement.

this comment is funny coming off watching a video about the pitfalls of esports, lol. I think the single player options will do more to bring in new players than esports will

 

[Himura Kenshin]

this comment is funny coming off watching a video about the pitfalls of esports, lol. I think the single player options will do more to bring in new players than esports will

Yeah, I don't credit esports at all and I think they're a little misguided if they believe that. Twitch/streamers may help bring eyes to it, but that's not always going to be esports related. The bigger deal is them coming out of the gate with a more robust single player experience and great netcode.

 

[Lelouch0612]

Thanks for making the thread @Ryuichi Naruhodo ! It is pretty clear that Capcom is in a very successful path. 10% of growth/FY for the OI is very promising. The strategy is pretty clear and successful so far.

They only need now to build a third pillar alongside RE and MH (DD2 ?)

 

[Pikachupwnage]

Sounds good for the Rise ports! No packaged release is still odd imo but hopefully it happens with Sunbreak in the spring then.

Yeah Rise has been a huge success overall. I hope the TU keep coming. Capcom really has manuvered into an excellent position in the last several years.

"What were the intentions behind the year-end and New Year promotions, such as TV commercials?"

"The intention was to promote our IP in conjunction with the sales campaign. We will use the knowledge gained for future marketing"

What a nothing question rewarded with a nothing answer.

 

[Jaded Alyx]

Capcom might want to revise the pricing in certain emerging and developing countries.

 

[AshenOne]

Iam surprised that their inability to understand that their regional pricing in non developed countries is truly something else. At their current prices, its truly a huge luxury to buy a game. Even at discounts those games are not in-expensive. Their games are $60 in my region and thats double or triple the amount of money Valve recommends thats equivalent to $60 in the US.

 

[menx64]

their games are too expensive in my country $60 is not regional pricing Capcom!!

 

[Ryuichi Naruhodo]

What are your thoughts on sales of PC titles?

Thanks to digital pricing measures, sales of PC versions are growing remarkably in emerging and developing countries. However, at this point, the absolute sales volume in these countries is not as high as in developed countries. It is important to raise the sales volume in these countries in the future.

They Heavily increased the price of RE4 in Turkey , Argentina , Brazil and Colombia on Steam , I think Sales Volume wasn't the right word to use here but Sales Revenue is more accurate for their approach seeing that the lowest price of a region on Steam is $44 , Companies will go hard on regional abusing it seems even if it means making regional pricing way less effective sadly

Turkish Lira

₺887,29

$46.80

Brazilian Real

R$ 249,00

$47.72

Colombian Peso

COL$ 229000

$48.48

Argentine Peso

ARS$ 12958,00

$64.99

https://store.steampowered.com/news/app/2050650/view/3653020827581436828?l=english