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Capcom "aggressively" seeking overseas partnerships

Investor note presses need to look beyond Japan to ensure future growth

Japanese publisher Capcom has released a note to investors highlighting acquisitions and mergers with Western companies as an immediate priority.

The note outlines the need for Capcom to increase sales of its game business outside of Japan to ensure future growth.

"Acquisitions and partnerships are one of the important strategies for increasing our market share overseas," the note reads.

"We aggressively seek the opportunities of acquisitions and partnerships for the purposes of creating game content with universal market appeal and acquiring technologies and know-how required for our 'Single Content Multiple Usage' strategy."

The note discourages any takeover bids on the grounds that they lead to employee departures, which compromises the value of the acquired company. As such, Capcom favours partnerships, which could lead to acquisitions in the long term.

However, similar deals with Japanese companies are explicitly discouraged.

"A merger with a large Japanese game or toy manufacturer is not being considered as a serious option since it would not make a significant contribution to growth in our overseas sales. Furthermore, this type of merger also poses the risk of limiting our activities involving the licensing of game content."

Capcom's focus on appealing to Western gaming markets has been a defining feature of its strategy over the last few years.

Former creative director Keiji Inafune has been particularly vocal in his disillusionment with the Japanese industry, variously claiming that it makes "awful games", and that its internal culture turns developers into "salary men".

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Latest comments (6)

Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster5 years ago
Interesting, as long as Capcom can retain it's distinctively Japanese appeal whilst doing so. I don't wanna see Ryu getting westernized into a Texan Cowboy or some such stupidness anytime soon.

Reminds me of that westernized Akira youtube satire... anyone don't understand what I mean, have a look at that. So stupid its funny.
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Bob Kreut 3D Artist, ACRONYM Games5 years ago
@Andrew you referring to that Harry Partridge video? Because that one is hilarious. And sadly accurate...

But Capcom's presence has been noted here in Vancouver already with the buyout at Blue Castle into a Capcom studio and over at Slant Six where they've been working on a Resident Evil game. It'll be interesting to see if there'll be any more big news from them here.
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Sam Maxted Journalist / Community / Support 5 years ago
I'm not really surprised by this - Capcom has been interested in western-developed games for a while now. Bob mentioned Blue Castle, who for those that aren't aware worked on Dead Rising 2 alongside some of Capcom's staff that worked on the original game. I also seem to remember an article from a year or two ago, with someone high up at Capcom suggesting Japan had fallen behind the west in terms of game development, which had been improving while they'd been standing still.
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Tony Johns5 years ago
that is kinda sad, the last paragraph there.

Because I love Japanese games the way they are....

Not everyone is into them, but I am.

And if every game is changed to be westernised then I would simply stop being a current gamer and prefer to just be a Retro gamer when the Japanese style of games were the way to go.
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I dont think capcom aims to westernise its games, however the japanese gaming giants understand they want to have more than just local home appeal, they would need international penetration. As such, choosing the right western partners that suit Capcom (or sega or Squaresoft or nintendo) are important for each companies culture. whilst maintaining its various individual studio identities.
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Andrew Goodchild Studying development, Train2Game5 years ago
Like anything, it can be done well, or badly. So far for instance, Square Enix' buyout of Eidos seems to be very successful, with Eidos, who were in a rut, seeming to really benefit. However, if Inefune's recent comments about the state of Capcom decision making and how it prompted him to leave are accurate, I wouldn't trust that Capcom will do it right.
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