Capcom’s focus on long-term sales means that they usually recoup development costs about a year after launch, then make a profit 

In a recent Q&A with shareholders, Capcom revealed their long-term strategy for recouping development costs and making a profit from games. This answer was given in relation to the performance of Dragon’s Dogma 2 and Kunitsu-Gami: Path of the Goddess, the latter of which failed to meet initial sales targets despite receiving good reviews.  

Although the current trend is for big, expensive pre-launch promotions that aim to sell large numbers of a game before and just after release, Capcom has a more careful approach.  

Kunitsu-Gami Path of the Goddess
Kunitsu-Gami: Path of the Goddess.

Capcom explained that they spend money on promotions for a game based on the title’s expected sales- aiming for gradual sales over a long period of time. Apparently, they usually recoup a game’s development costs in about a year and a half after launch. After that, they expect a profit margin of 80 to 90% on a game, even if they reduce the retail price. Basically, Capcom relies on long-term sales more than immediate post-launch figures. The slide below from Capcom’s presentation for the second quarter of the 2024 fiscal year shows how Capcom games are gradually amassing lifetime sales over time. 

Capcom long term sales figures fiscal year 2024 quarter 2
Image source: Capcom’s 2nd Quarter in FY2024 Presentation of Financial Results

This long-term Capcom strategy can be seen with titles like 2006’s Okami. The unusual ink painting game was critically acclaimed upon its release, and over time would become a classic of the PlayStation 2 era. It remains playable and purchasable on modern consoles today, going on to sell an additional 2.50 million units when it was re-released as Okami HD for PS4, Xbox One and Switch (source: Capcom IR). It will be interesting to see if Kunitsu-Gami: Path of the Goddess, another critically acclaimed yet “niche” title inspired by Japanese folklore, also goes on to attain a cult classic status, despite not reaching its initial sales targets. 

Verity Townsend
Verity Townsend

Automaton West Editor and translator. She has a soft spot for old-school Sierra adventure games and Final Fantasy VIII (yes, 8!). Can often be found hunting down weird forgotten games and finding out everything about them. Frequently muses about characters and lines from Metal Gear Solid and Disco Elysium. Aims to keep Automaton fresh and interesting with a wide variety of articles.

Articles: 450

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA