Introduction: Capcom’s Focus on India for Long-term Growth

According to Haruhiro Tsujimoto, the Chief Operating Officer of Capcom Co., the company aims to surpass its game sales in China by focusing more on the Indian market within the next decade. This is part of Capcom’s broader strategy to identify new markets that promise long-term growth. The Osaka-based company, known for franchises like Resident Evil, Street Fighter, and Monster Hunter, is keenly considering the Indian market as an area of focus.

Market Potential: Why India is an Attractive Choice

Tsujimoto predicts a significant expansion of the gaming market in India in the next 5 to 10 years. The rationale behind this is twofold. First, the younger demographic, particularly college students who are avid gamers, are expected to age into more financially stable stages of life. Second, India’s economy is continually developing, which can support higher consumption of video games. Furthermore, India’s population has already exceeded that of China, providing a large consumer base for the company.

Strategy: Local Partnerships and Digital Expansion

To actualize its ambitions, Capcom is seeking partnerships in India and Southeast Asia to bolster the profile and sales of its PC and console games. Influencers and local device manufacturers can play a crucial role in this. Digital downloads are particularly lucrative, accounting for 90% of the company’s unit-based video game sales. Therefore, digital expansion remains a key pillar of the strategy.

Challenges: Low Current Sales and Mobile Games

Although Capcom is optimistic about its growth in India, its present footprint is rather small. The company currently sells little more than 100,000 video game copies per year in India. One reason for this is its low presence in the mobile gaming sector. Since smartphones are the primary means of internet access for many young Indians, Capcom recognizes the need for a comprehensive portfolio of mobile games to truly penetrate the market.

Sales Goals and Market Projections

Capcom aims to sell as many as two million game copies in India within the next decade. This is part of an attempt to match or even outdo its operations in China. According to research firm Niko Partners, India’s overall video game market is expected to reach $1.6 billion in 2027, almost doubling the estimated sales in 2023.

Mobile Gaming Strategy: Licensing over Free-to-Play

Capcom’s lack of presence in free-to-play games is generally considered a drawback since mobile games make up about half of the global video game market. Rather than developing free-to-play games, Capcom plans to license its content to other developers. An example is the company’s recent partnership with Pokémon Go creator Niantic Inc. to develop the mobile game Monster Hunter Now.

Focus on High-Quality Games for Smart Devices

Tsujimoto indicates that Capcom’s brand does not align well with traditional free-to-play smartphone games. Instead, the company intends to release console-quality games for download on smart devices. Recent developments include Capcom’s announcement that it will make Resident Evil games available for Apple Inc.’s iPhones and iPads.

Conclusion: Creating Demand is Capcom’s Own Responsibility

Haruhiro Tsujimoto concludes by stating that Capcom aims to sell more than 100 million copies of games a year. The majority of these sales are expected to come from games released in past fiscal years. He believes that it is Capcom’s responsibility to forge and cultivate new markets, a task they intend to undertake aggressively.

By looking at these strategies and market potentials, it’s clear that Capcom is laying a robust foundation for future growth in India, a market they consider ripe for expansion.

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