This is the English release of the Q&A.
Link:
http://www.capcom.co.jp/ir/english/data/pdf/explanation/2017/2nd/explanation_2017_2nd_02.pdf
Capcom expects to reach their 2M sales forecast for MvCi from DLC characters, Black Friday and holiday sales.
Q. Given its current sell-through, how likely is Marvel vs. Capcom: Infinite to achieve its full-year target of 2 million units sold?
A. First-half results for this title are in line with our expectations. Going forward, we aim to achieve its full-year target by releasing additional characters, along with holding promotions for the title during Black Friday and the holiday season.
A portion of the total development cost was achieved from the 900k sales of MvCi.
Q. How much of Marvel vs. Capcom: Infinite's cost was recognized in the first half of the current fiscal year?
A. While we do not disclose detailed figures, we follow accounting principles concerning recognizing development costs, and work to recognize them at the same time as we recognize sales. Because
development costs are distributed over a title's lifetime unit sales, in this case we recognized a portion of the total development cost proportionate to the 900 thousand units sold in the first half of the fiscal year.
MHW promotion.
Q. How has Monster Hunter: World been received?
A. This title received high praise at the Tokyo Game Show as well as other events all over the world, and we feel that our users are currently very satisfied with it. Going forward, we look to maximize sales by carrying out robust promotional activities not only in Japan, but also in the North American and European markets as well.
Nothing to comment about mobile licenses currently.
Q. What progress have you made in connection with the mobile licensing deal from the first quarter? What licensing deals are on the horizon?
A. There is nothing that we can comment on at this time. We will provide ongoing announcements when we are able.
Despite Capcom calling USF2 and MHXX for Switch a success, Capcom still needs to evaluate how to utilize the Nintendo Switch.
Q. What are your expectations for the Nintendo Switch, and how will you support it going forward?
A. We feel the favorable performance of the Nintendo Switch, and the impact it is having on reaffirming the status of home video game consoles, are very positive. Going forward we will support the Nintendo Switch based on our fundamental strategy of multiplatform development.
Further, we are cognizant of the need to evaluate further how to best utilize the unique features of this platform, which differ from those of other home video game consoles.
Regarding small and medium budget titles in development.
Q. In recent years, the number of smaller-scale titles you release has decreased. What is your thinking with regard to appropriating development resources to not only AAA titles, but also to small- and medium-scale titles, and do you feel the resource allocation within your development structure is appropriate?
A. We concurrently invest in small- and medium-scale titles, and currently have unannounced titles in development. Further, with regard to the allocation of development resources, we are able to maintain a high productivity rate by hiring 100 or more new graduates each fiscal year, and assigning them to positions after thoroughly evaluating their aptitude.
Monster Hunter World monetisation.
Q. Will Monster Hunter: World include in-game monetization?
A. At the moment we have nothing we can share other than what information has already been made public.
Their idea of growth for PC is to implement cutting costs.
Q. What measures are you taking to make PC Online profitable and grow?
A. Because growth in the PC market has slowed, we are prioritizing growth of Consumer and Mobile.
We aim to make PC Online profitable by maintaining sales for Dragon's Dogma Online and Monster Hunter Frontier, while implementing measures such as cost control.
Esports related questions.
Q. What are the costs and revenues associated with eSports?
A. In general, eSports revenue consists of revenue from licensing deals, as well as admission fees and fees for broadcasting rights for event operators. On the other hand, associated costs can include
expenses stemming from holding events for event operators.
Q. What are your expectations for future eSports revenue and profit?
A. We are currently at a stage where we are considering monetizing this business from a number of angles, including through promotional activities and running events; as such, we have not set any concrete revenue goals at this point in time.
A new quarter, a new embarrassing question about Capcom's performance in mobile.
Q. Do you lack knowhow in planning, developing and operating games in the Mobile business?
A. Planning, developing and operating knowhow must be thought of as a unified concept; currently, we believe we have room for improvement overall.
About the possibility of games without borders.
Q. Looking forward, it's technologically feasible that the barriers to rolling out content to mobile, home video game consoles, and PCs will disappear. Is your development and alliance structure prepared for this?
A. Our current development structure allows our developers to move between title development regardless of platform, and we have had examples where developers from our Consumer sub-segment have developed titles for mobile devices.
