FY2007 Presentation of Financial Results Q&A Summary
Q. What do you anticipate in regards to hardware platform market penetration? How has Capcom adapted to respond to this?
A. (1) That's a difficult question to answer, as the potential growth in terms of number of units, for each hardware platform is an important factor to consider. With currently available hardware, over 300 million units have been sold around the world as of the end of April 2007. From a population of 1 billion, the number of users, children and above, would be around 400 million, of which 300 million own the systems.
(2) The PSP hasn't achieved the numbers expected, and PlayStation 3 sales are currently sluggish. On the other hand, Nintendo is still making hard effort to keep up with demand in regards to their Wii console. Also of note, the PlayStation 2 still sold 14 million units last year. Last year, Capcom produced three, million selling titles, but cost factors heavily into any new product. Due to this, even when a title becomes a hit, it does not necessarily translate into instant profits. We always have to work to reduce costs. One method is to release popular past titles again at a discounted price. One example is Phoenix Wright 4, which is currently selling quite well. Our strategy has been to reduce the costs while increasing the number of titles sold from Phoenix Wright 1 to 3. As a result of this strategy, the fourth in the series has sold more than 500,000 copies in Japan alone.
(3) For the reasons given, it's important to try and figure out which platforms are excelling in the overall game market and to develop the most popular titles possible for those platforms to guarantee the continued success of our franchises.
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