Capcom has announced that the Japanese publisher will invest US$78 million in new R&D facilities near the company’s Osaka headquarters and plans to expand the number of internal development staff to 2,500 by 2022.
“The appearance of next-generation consoles with a variety of network functions has shifted the focus of sales from conventional package software to digitally distributed content,” said Capcom in a statement. “The profit structure and business model are changing at an increasing speed as a result. Furthermore, the popularity of social games due to the widespread use of smartphones is enabling games to reach more user segments and enlarging the entire game market.”
The new R&D facilities and increased internal development will cut development costs, make internal studio operations more efficient and give Capcom a competitive edge in the mobile and online PC game sector worldwide, according to the company.
In March Capcom revised expected net profits for the current fiscal year down sharply from 6.8 billion JPY to 3.3 billion JPY. The Japanese publisher attributed the 50 per cent reduction to expected costs related to major structural changes in the company’s mobile business.
“Due to rapid changes taking place in the market for games, Capcom is building a sound base for earnings by reorganising the product development framework and improving development processes,” said Capcom in a statement to shareholders. “These are two core elements of the company’s operations.”
