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Capcom’s Record R&D Investment Fuels Competitive Edge

Game company increases fiscal 2024 R&D spending by 14.1% amid industry challenges
Japan
c 9697.TSE Mid and Small Cap 2000 Games 75
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Capcom’s research and development (R&D) investment for the fiscal year ending March 2024 surged 14.1% year-on-year to 43,042 million yen, setting a new record for the second consecutive year. This substantial increase in R&D spending highlights Capcom’s commitment to innovation in its digital content and amusement equipment businesses, which engage 75.8% of its workforce in R&D activities.

Despite a challenging year for many game companies, Capcom’s aggressive investment in R&D has bolstered its competitive position. The company aims to advance as a high-tech entity contributing to societal development and enhancing the “social nature of play” through computer-mediated “play culture.” By anticipating market trends and developing products that meet evolving consumer needs, Capcom underscores the importance of R&D in its strategic framework.

In the digital content segment, R&D investment rose by 15.2% to 40,748 million yen. Notable projects include the development of “Street Fighter 6,” praised for its broad user appeal and immersive battle experience, and “Separate Ways,” an additional scenario for “Resident Evil RE: 4,” lauded for its high-quality visual expression using the RE ENGINE. Furthermore, Capcom expanded platform support for “Resident Evil Village” and “Resident Evil RE: 4,” making them available on iPhone 15 Pro, iPad, and Mac.

In the amusement equipment business, R&D spending slightly decreased by 2.4% to 2,293 million yen, with the development and sale of three new pachislot machines, including collaborations with Universal Entertainment and Sammy Networks.

Capcom’s sustained focus on R&D underscores its strategic priority to remain at the forefront of the gaming industry.

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