A New Player in the Japanese Gaming Industry: Capcom’s Mobile Strategy
Introduction
In the Japanese gaming industry, Nintendo and Sony’s PlayStation dominate the landscape. However, there’s one local rival that deserves more attention – Capcom. With its successful Street Fighter franchise, which was launched in 1987, Capcom has made a significant impact in the gaming world. Now, the company is gearing up to combine its monster fighting action from the wildly popular Monster Hunter series with the location-based gameplay sensation of Pokemon Go. In partnership with Niantic, the creator of Pokemon Go, Capcom has developed its own mobile game, Monster Hunter Now. The success of this game is a testament to Capcom’s mobile strategy, which aligns with the Japanese gaming industry’s shift towards mobile platforms.
The Rise of Mobile Games in Japan
Mobile games represent the largest segment of the Japanese gaming industry, accounting for over 40% of the market. Not only are they the most popular form of gaming, but they are also the most profitable. The ability to generate in-app spending has driven gross margins for popular titles up to 90%. This is significantly higher than the margins seen in traditional retail sales of hardware and accessories. In fact, in-app spending from mobile players accounts for nearly three-quarters of total spending across all apps.
Capcom’s Mobile Gaming Success
Capcom’s foray into the mobile gaming market has paid off handsomely. Its latest release, Monster Hunter Now, has been downloaded 5 million times in less than two weeks. This impressive feat has catapulted the game to the top spot of Apple’s app store in Japan, making it the highest-grossing app. The success of Monster Hunter Now is just the beginning for Capcom, as they have plans to release more popular titles for mobile gamers in the future.
Capcom’s Stock Performance
The success of Capcom’s mobile gaming endeavors has not gone unnoticed by investors. The company’s stock price has soared by 45% over the past year. Trading at 26 times forward earnings, Capcom’s stock commands a premium compared to its local rivals, including Nintendo and Square Enix. This premium reflects the high expectations of increased sales from the company’s mobile offerings. Additionally, repeated takeover speculation has further fueled the accumulation of Capcom shares. Despite Capcom’s relatively small size, with a market value of $9.8 billion, it remains an attractive target for potential acquirers.
The Potential for Continued Growth
Looking ahead, the mobile gaming market in Japan is poised for continued growth. Experts predict an annualized growth rate of 10% for the next five years. This presents a significant opportunity for Capcom to solidify its position as a major player in the industry. By staying true to its mobile strategy, Capcom can capitalize on the growing demand for mobile games and reap further benefits.
Conclusion
Capcom’s innovative approach to mobile gaming has propelled the company to new heights. By leveraging the success of Monster Hunter and collaborating with Niantic, Capcom has proved its ability to capture the attention and spending of mobile gamers. Bolstered by the booming Japanese mobile gaming market, Capcom is well-positioned to continue its growth trajectory. As the gaming industry evolves and mobile platforms dominate, Capcom’s mobile strategy is a testament to the company’s adaptability and foresight. With its impressive stock performance and potential takeover appeal, Capcom is an exciting player to watch in the Japanese gaming industry.
Summary: Capcom, a local rival in the Japanese gaming industry, is gaining attention with its successful Street Fighter franchise. The company has recently launched its mobile game, Monster Hunter Now, in partnership with Niantic, the creators of Pokemon Go. The game has been downloaded 5 million times since its release less than two weeks ago and has become the highest-grossing app on Apple’s app store in Japan. This success reflects the overall trend of mobile games dominating the Japanese gaming industry, with mobile games accounting for over 40% of the market. Capcom’s mobile strategy has proven to be profitable, leading to a 45% increase in its stock price over the past year. With the mobile gaming market expected to continue growing at a rate of 10% annually, Capcom is well-positioned for future success in the industry.
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In the Japanese gaming industry, Nintendo and Sony’s PlayStation are seen as the typical contenders. But what about staunch local rival Capcom? It’s successful street fighter franchise, a martial arts tournament game launched in 1987, means it deserves more attention.
Capcom has something new in its arsenal. It will combine the monster fighting action of its best-selling game Monster Hunter games with the world sensation location-based gameplay Pokemon Go. Capcom has developed its own mobile game Monster hunter now with Niantic, the creator of the Pokemon Go. Other popular titles for mobile gamers will follow.
It started well. Monster hunter now it has been downloaded 5 million times since its launch less than two weeks ago. It’s already the highest-grossing app on Apple’s app store in Japan.
Its mobile strategy makes a lot of sense. Mobile games represent the largest segment of the Japanese gaming industry, more than 40%. These are also the most profitable platform for gaming, with gross margins of up to 90% for the most popular titles.
The big difference is that mobile game makers can avoid lower retail margins for hardware and accessories. In-app spending from mobile players accounts for nearly three-quarters of total spending across all apps.
Capcom’s stock price is up 45% over the past year. It trades at 26 times forward earnings, a premium to local rivals including Nintendo and Square Enix. This reflects expectations of increased sales from mobile offerings.
This gap has also widened as repeated takeover speculation encourages accumulation of its shares. Amid industry consolidation, Capcom’s relatively small size, with a market value of $9.8 billion, makes it a reasonably attractive target despite denials from the company.
Meanwhile, Capcom’s home market for mobile games is expected to grow at an annualized growth rate of 10% for the next five years. Assuming Capcom continues to defend its position, there will be more benefits to come.
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