annual_2010_07.pdf

Pachislo machine
“Vampire”
At the same time, with respect to Pachinko machines, these amendments
to the Regulations gave hardware manufacturers greater flexibility in designing
and developing innovative products, encouraging the launch of new products
appealing to users. As a result, sales were steady.
The outlook for the Pachislo market calls for a shift to the development
of machines with a greater emphasis on entertainment so that users can play
for a long period of time with a small amount of money in an effort to develop
the beginning users segment. This is expected to result in the gradual
appearance of machines more aligned with market needs in preparation for
the eventual recovery trend. The outlook for the pachinko (new machine
sales) market is for a leveling off resulting from the expansion of the low-cost
game machine market, including one yen Pachinko machines.
The mobile content market has been growing worldwide and was worth
4.72 billion dollars (up 15.5% from the previous year) in 2009 (See Diagram
15). Factors underlying this growth include the spread of mobile phones driven
by a growing world population and the rise of smartphones such as the
iPhone, both of which contributed to the significant increase in the number
of users who play mobile games to 546 million people (up 85.8% from the
previous year).
By region, the North American market was worth1.13 billion dollars (up
20.0% from the previous year) and the European market was worth 1.68
billion dollars (up 46.3% from the previous year) as a result of significant
expansion of the smartphone market. Despite an increase in users in China
and other developing countries in Asia, declining numbers of users in Japan
resulted in an Asia-Pacific market including Japan worth 1.81 billion dollars
(down 6.1% from the previous year).
The outlook for this market is for an increase in “application stores” that
1,309.0
786.5
522.5
2004
1,406.4
869.9
536.5
Pachislo Pachinko
1,389.5
898.6
490.9
2005 2006
1,357.3
856.4
500.9
2007
1,142.8
900.5
242.3
2008
(¥ Billion)
Source: Figures by Capcom, based on “Research Results of the Pachinko-Related Machine Markets 2008”
and “Research Results of the Pachinko-Related Machine Markets 2009” from Yano Research Institute Ltd.
33
(CY)
sell downloadable application software for smartphones, as well as an
increase in smartphone users (see Diagram 16), which are expected to represent
38% of mobile phone sales by 2013. In addition, newly released operating
systems enable software companies to develop games that maximize
hardware functionality, enabling the provision of games that appeal to
a wide segment, from light users to core game fans. As a result, significant
growth is forecast for the global mobile content market, which is expected
to reach 11.42 billion dollars in 2014 (an average annual growth rate of
19.4%).
Operating Results for This Fiscal Year
Despite a slowdown in the Pachinko & Pachislo Business, the
Mobile Content Business maintained steady sales and
returned to profitability.
Capcom’s strength in this business is our ability to maintain high profitability
through the multiple usage of our wealth of intellectual properties in a
variety of areas.
In the Pachinko & Pachislo Business, Capcom develops attractive software
featuring our proprietary content along with that of third-party developers,
using our technological expertise in high-resolution image processing
cultivated through the development of home video games. Also, we have
been supplying LCD devices to machine manufacturers. Moreover, we
acquired Enterrise CO., LTD., a manufacturer of equipment related to Pachislo
machines, as a subsidiary in November 2008. This allowed us to start our
own frame business using Enterrise’s main board development capabilities
(program for controlling the number of balls dispensed).
Diagram 14 Major Gaming Machines Market (New Machine sales)
Diagram 15 Mobile Content Market
CAPCOM ANNUAL REPORT 2010
Pachislo machine
“Beautiful Joe”
“Are You Smarter
Than A 5th Grader?”
Game Code ©2008 CAPCOM.
Produced under license Fox
Broadcasting Co. Are You Smarter
Than A 5th Grader? and ©2008 JM, Inc.
“Cash Cab After Dark: Las Vegas”
Cash Cab © 2010 & TM Discovery
Communications, LLC. All rights reserved.
4,721
103
1,812
1,677
1,130
2009
5,618
159
2,199
1,961
1,300
2010
(Estimate)
7,147
369
2,805
2,446
1,527
2011
(Estimate)
8,369
557
3,170
2,825
1,817
2012
(Estimate)
“Where’s Waldo?”
Japan, Asia Europe North America other
9,729
767
3,566
3,280
2,117
2013
(Estimate)
Where’s Waldo?®
©2009 Classic Media.
All rights reserved.
($ Million)
11,421
993
4,207
3,729
2,493
2014
(CY)
(Estimate)
Source: Gartner Dataquest 2010