In a recent development that may reassure collectors and traditional gamers, Japanese video game developer and publisher Capcom has stated that it has no immediate plans to discontinue physical game releases. This revelation came during the company’s 45th General Shareholders meeting, where various aspects of Capcom’s future strategies were discussed.
When questioned about the declining ratio of physical game sales compared to the rising demand for digital products, Capcom’s response was clear: “Given that a significant number of end users demand physical games, we currently do not expect to eliminate physical products.”
This stance comes at a time when the video game industry is experiencing a significant shift towards digital distribution. However, Capcom’s decision demonstrates an understanding that a substantial portion of their customer base still values tangible game copies.
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Interestingly, the company also shed light on how the growth of the online market has positively impacted their business model. Capcom highlighted that the digital shift has allowed for more flexible pricing strategies and the ability to offer discounts on older titles when launching new releases. This approach has contributed to sustained sales for games long after their initial release, with titles like Resident Evil 7 Biohazard and Monster Hunter: World continuing to perform well years after their debut.
Furthermore, Capcom attributed its recent financial stability to this evolving business model. The company noted that the game industry has transitioned to a “low volatility” state, as digital sales enable them to sell games over extended periods. This contrasts with the previous model, where physical retail stores typically concentrated sales within the first six months of a game’s release.
Capcom also emphasized the importance of their medium-term planning, maintaining a five-year development map to effectively time new title releases.