Capcom Co., Ltd. is a world-renowned Japanese video game developer. The company has hundreds of top-selling video game franchises, including the legendary ‘Resident Evil’ collection, the classic ‘Streetfighter’ games, and other titles like Mega Man, Dead Rising, Devil May Cry, Ace Attorney, and Marvel vs. Capcom.
Capcom utilizes ‘Megaman’ as its official company mascot. Founded in 1983 by Kenzo Tsujimoto, Capcom is a multinational company operating with subsidiaries in Hong Kong, London, and San Francisco, giving the company a global footprint.
This guide unpacks everything you need to know about Capcom the company & Where and how to to buy Capcom CCOEY stock.
How to Buy Capcom Stock CCOEY
- Ticker Symbol: ($CCOEY:OTC US)
- Avg. Volume: 243
- Market Cap: 5.824B
- Beta (5Y Monthly): 0.30
- PE Ratio (TTM): 32.54
- EPS (TTM): 0.84
- Earnings Date: N/A
- Forward Dividend & Yield: 0.35 (1.29%)
- Ex-Dividend Date: Sep 29, 2022
- 1y Target Est: N/A
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Capcom History
The IRM Corporation was the predecessor to Capcom. At the time of its founding in May 1979, Kenzo Tsujimoto was the president of Irem Corporation when founding IRM. Eventually, Tsujimoto left IRM in 1983, pouring his energy into the growth of Capcom instead.
The original companies spawning the development of Capcom’s Japan offices were IRM, and its subsidiary, ‘Japan Capsule Computers Co., Ltd.; both companies dedicated operations to the manufacturing and distributing electronic game consoles, devices, and games.
The company changed its name to ‘Sanbi Co., Ltd.’ in September 1981. In June 1983, Tsujimoto founded the company Capcom Co., Ltd. for the express purpose of commandeering the sales department within the company.
Capcom merged with Sanabi Co., Ltd. in January 1989, forming the current Japanese office for the company. Tsujimoto chose the name ‘Capcom’ as a clip of ‘Capsule Computers,’ a term the company coined during the era of arcade game machines in the early 1980s. The goal of the rebrand was t set Capcom apart from the growing personal computer market.
The word ‘capsule’ refers to Capcoms description of its gaming software as ‘a capsule packed to the brim with gaming fun.’ Capcom management aimed to protect its intellectual property rights while preventing any illegal copying or inferior imitations of its games.
The first Capcom product released to the market was the arcade game ‘Little League.’ Capcom launched the game in 1983, and it was a smashing success with the market. Capcom followed up ‘Little League’ with its release of ‘Vulgus’ in May 1984, followed shortly by the cult-classic arcade game ‘1942.’
The local success of Capcoms titles saw the company plan its international expansion. The company released ‘Ghosts and goblins’ and ‘Commando’ in 1985, with the latter title becoming one of the most popular arcade games in history.
The success of ‘Commando’ saw Capcom enter into a licensing deal for releasing its titles on home PCs in late 1985. Capcom started licensing its arcade game titles for a PC release, working with US Gold and the British software house Elite Systems in 1986.
Home Video Game Market
Capcom saw the potential in the home video game market, signing licensing agreements with the up-and-coming ‘Nintendo’ console. Capcom released ‘1942’ on the platform to much acclaim from users. At the tie, the company focused on arcade gaming, but it would shift its strategy to dominating the home video game market.
Capcom USA had a brief partnership with a video game developer for IBM’s PC DOS computers and ‘Commodore 64’ systems. However, the arcade ports were handled by another party. Capcom saw huge success in the 1990s, creating 15 video game franchises selling more than a million copies. The company struck gold with the release of the first title in the ‘Resident Evil’ franchise in 1996.
However, the company’s highest-grossing arcade game title of all time was ‘Street Fighter II,’ released in 1991. Capcom built an industry reputation as the last video game publisher working on 2D games. However, this strategy was not by choice since Capcom had a licensing deal to create games for the Super Nintendo Entertainment System, causing it to lag behind competitors in the 3D gaming development space.
It’s important to note that despite Capcom falling behind in the 3D video gaming department, it excelled in 2D gaming, creating a reputation as the best developer and publisher in the market. Many of the characters in its top-selling 2D games, such as ‘X-Men: Children of the Atom’ and ‘Darkstalkers: The Night Warriors,’ were big hits in the gaming community.
Capcoms next big hit was with ‘Bowlingo,’ a bowling game launched in 1990. This game was coin-operated, offering the player a mini 10-pin bowling station with a fully automated electro-mechanical operation.
The game was smaller than a lane at a typical bowling alley, designed to fit in arcades. Upon its release, ‘Bowlingo’ was a smashing success for Capcom, drawing huge crowds in arcades across America.
Films & Movies
Capcom decided to venture into the world of films and movies in 1994, licensing its Street Fighter’ title to a movie adaptation of the game, starring action hero Jean Claude Van Damme. While critics didn’t enjoy the film, it was a big hit with fans.
However, the biggest Hollywood success experienced by Capcom was licensing its ‘Resident Evil’ franchise. While the movie once again received the thumbs down from critics, it was well-received by fans of the franchise.
Capcom partnered with the Japanese independent Nyu Media in 2011. The partnership’s goal was to publish and distribute games localized into English. The company collaborates with the Polish localization company QLOC, porting Capcom’s games to other gaming platforms.
Some notable examples of titles resulting from the partnership include ‘Dead Rising’ on Xbox One, PlayStation 4, and PC, ‘DmC: Devil May Cry’ and its Xbox One and PlayStation 4 remasters, as well as the PC version of ‘Dragon’s Dogma.’
Problems & Controversies
2012 saw Capcom come under fire from critics for its policies of disc-locked content, causing concern with its sales tactics. However, the company defended its practices but didn’t escape criticism for its other techniques, such as failing to release games outside the Japanese market, canceling projects like ‘Mega Man Legends 3’, and closing the Clover Studio.
In August 2014, Capcom filed a patent infringement lawsuit for 980 million Yen in damages against Koei Tecmo Games in court. Capcom claimed the company infringed on a patent obtained in 2002 on a play feature in its video games.
In early November 2020, Capcom reported a ransomware attack on its servers, encrypting its data. The Ragnar Locker hacker group claimed responsibility for the ransomware attack, alleging the hackers stole 1TB of confidential corporate data from its servers.
The Ragnar Locker hacker group started releasing the data online in mid-November, which included the contact information of more than 250,000 Capcom employees and partners. The dump also showed Capcoms intentions to release new titles, but the hackers didn’t make off with any customer or credit card data from the hack.
This wouldn’t be the end of Capcoms legal troubles. In June 2021, author and artist Judy Juracek filed a lawsuit against Capcom for copyright infringement. Court filings show Juracek claims Capcom used images from one of her novels, written in 1996 in the Resident Evil 4 artwork, as well as ‘Devil May Cry.’
It’s important to note that the only way Juracek discovered Capcom using here work was through the data breach and dump by Ragnar Locker. Juracek claimed over $12 million in financial damages and between $2,500 to $25,000 for false copyright for each photo used.
However, the case never made it to court, with Capcom settling in February 2022. However, this wasn’t the last of its legal troubles relating to the hack. Dutch movie director, Richard Raaphorst, accused Capcom of copying his monster design in his film ‘Frankenstein’s Army’ into the Resident Evil Village artwork.
In February 2022, Bloomberg reported that the Saudi Arabia Public Investment Fund purchased a 5% stake in the company, valued at $332 million.
Capcom Corporate Structure
Tokuro Fujiwara, Yoshiki Okamoto, and Takashi Nishiyama led Capcoms’ planning rooms’ for its game development. However, this methodology would evolve into games developed by ‘production studios’ in the late 1990s.
In 2002, Capcom reformed its development process to give employees better collaboration opportunities and share technology between projects. The individual production studios gradually grew into larger departments responsible for handling different development tasks.
Capcom has self-contained production departments for arcade game development, Pachislo and pachinko online, and mobile gaming titles. Its Consumer Games R&D Division is a conglomeration of various subsections in charge of different stages of game development.
Capcom divides its Consumer Games Development departments into three divisions.
- Division 1 – Led by Jun Takeuchi, this department is responsible for developing games titles like Mega Man, DMC, Resident Evil, and many other franchises with a global footprint.
- Division 2 – Led by Ryozo Tsujimoto, handles the development of titles focusing on the Asian market, such as Ace Attorney, Monster Hunter, Sengoku Basara, Onimusha, and other titles with a more conventional IP.
- Division 3 – Handles multiplayer and tournament titles, such as Marvel Vs. Capcom, Street Fighter, Marvel vs. Capcom, Dragon’s Dogma, and Lost Planet.
In addition to these divisions, Capcom outsources development to ensure rapid game development, allowing the company to bring its titles to market as fast as possible. However, this strategy doesn’t seem to produce results. The titles’ Bionic Commando’ and ‘Dark Void’ had poor sales performance for Capcom, causing it to rethink its strategy of outsourcing game development.
Capcom makes decisions on game production, platform support, and development budgets using development approval meetings. These meetings are attended by management, sales, marketing, and the quality control department.
| Name of Company | CAPCOM CO., LTD. |
|---|---|
| Date of Establishment | May 30, 1979 |
| Head Office | 3-1-3 Uchihirano-machi, Chuo-ku, Osaka 540-0037, Japan |
| Management Representative | President and Chief Operating Officer (COO) Haruhiro Tsujimoto |
| Paid-in Capital | 33,239 million yen (as of March 31, 2022) |
| Major Business Segments | Planning, development, manufacture, sale and distribution of home video games, mobile games and amusement machines etc., as well as management of amusement arcades. |
| Financial results | Net sales 110,054 million yen Operating income 42,909 million yen Ordinary income 44,330 million yen Net income attributable to owners of the parent 32,553 million yen (fiscal year ended March 31, 2022) |
| Number of Employees | Consolidated: 3,206 Non-consolidated: 2,904 (as of March 31, 2022) |
| Number of Shares Authorized | 600,000,000 shares (as of March 31, 2022) |
| Number of Shares Issued | 270,892,976 shares (as of March 31, 2022) |
| Business Year | 1 year commencing from April 1 of each year to March 31 of the following year. |
| Stock Exchange Listings | Tokyo |
| Correspondent Banks | Mizuho Bank, Ltd. MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation The Nanto Bank, Ltd. Development Bank of Japan Inc. |
| Main Securities Companies | Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Daiwa Securities Co. Ltd. |
| Audit Corporation | KPMG AZSA LLC |
Capcom Headquarters and Subsidiaries
Capcom has its headquarters at Chūō-ku, Osaka. The premises is home to the corporate headquarters and the R&D team. The Capcom parent company also has offices in the Shinjuku Mitsui Building and the Ueno Facility in Nishi-Shinjuku, Shinjuku, Tokyo. The company also has a branch office in Iga, Mie Prefecture.
The international operations of the Capcom group include 15 subsidiaries throughout Japan, Europe, North America, and East Asia. Some affiliated organizations and companies working with Capcom include Street Fighter Film, LLC in the United States, Koko Capcom Co., Ltd. in South Korea, and Dellgamadas Co., Ltd.
Capcom Games
Besides its online, home, arcade, mobile, Pachislo, and pachinko game titles, Capcom also publishes gaming strategy guides. The company maintains the ‘Plaza Capcom’ arcade centers scattered throughout major districts in Japan. The company licenses its video game franchises and characters for movies, products, TV series, and stage performances.
‘Captivate,’ formerly known as ‘Gamers Day’ circa 2008, is a yearly private gaming media summit traditionally used to announce new game titles. The company’s biggest successes to date are the Mega Man, Resident Evil, and Street Fighter franchises.
Street Fighter went on to sell 50 million copies, and Mega Man sold nearly 40 million copies. However, resident Evil was the company’s flagship franchise, selling over 100 million copies. Releasing on the PlayStation 2, Resident Evil was a new direction for the company’s gaming theme.
Capcom launched the ‘Monster Hunter’ franchise in 2004, with global sales of over 70 million copies across various consoles. While the company relies on existing franchises, it emphasizes new title development.
Capcom produced several titles for top-level consoles like PlayStation, Xbox, and Wii. Some of the titles scheduled for release ‘Dead Rising,’ ‘Lost Planet: Extreme Condition,’ ‘Dragon’s Dogma,’ ‘Zack and Wiki,’ and ‘Asura’s Wrath.’
During this time, Capcom published several original titles from western developers. Some of the biggest successes include titles like ‘Spayborgs,’ ‘Dark void,’ and ‘Remember Me.’ Other titles that proved popular with the market include ‘Ghost Trick: Phantom Detective’ and ‘Ōkami, Ōkamiden.’
Capcom decided to pull the PS4 version of ‘Ultra Street Fighter IV’ in 2015, citing technical difficulties and bugs preventing its release at the Capcom Pro Tour. Capcom went on to release ‘Street Fighter V’ in 2016. However, the market didn’t receive the game well, citing issues with limited single-player content in the game.
The launch of ‘Street Fighter V’ saw stability problems with the network hosting the game. As a result, the game failed to meet its goal of selling 2 million copies in its first month of release in 2016.
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