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Japanese Game Publisher Behind Monster Hunter Sees 1,200% Gain Over Decade

While the gaming world fixates on the implications of a Microsoft-Activision deal and AI, a smaller player in their universe may deserve a closer look from investors.

www.bloomberg.com

Japanese game publisher Capcom Co.’s shares are up by a third this year, outpacing the broader Tokyo market and capping off a remarkable 1,200% surge over the past decade. That’s in part because the $11 billion company has punched well above its weight, spawning Hollywood franchises such as Resident Evil and Monster Hunter.

The rally means Capcom, which reports earnings Wednesday, is trading at valuations well in excess of many of its biggest rivals from Konami Group Corp. to Bandai Namco Holdings Inc. It’s doing so despite lagging peers in the smartphone gaming arena, which now makes up half the industry’s sales. Of analysts covering the company, 7 rate it a hold and 10 a buy, with one sell.

The firm sells software in 230 countries and regions, by far the largest number among Japanese publishers, according to Toyo Securities analyst Hideki Yasuda. It’s set a goal of selling 100 million copies per year, from the 41.7 million mark it set in the fiscal year ended March.

 

[Roxkis_ii]

A thread by Adam... Is Ms trying to buy Capcom next??

 

[OmegaSupreme]

Excellent. The best third-party developer out there.

 

[adamsapple]

A thread by Adam... Is Ms trying to buy Capcom next??

This thread is part of my portfolio ( ͡° ͜ʖ ͡°)

 

[Skyfox]

Deserved

 

[FoxMcChief]

Well deserved. They are without a doubt, the absolute best third party company. Not only are they putting out great games on all platforms, but they’re pushing the industry forward.

 

[64bitmodels]

Common, unsurprising, routine everyday Capcom W.

 

[Thick Thighs Save Lives]

Capgod is truly back! Good on them!

 

[Bernoulli]

Deserved for making her

 

[Gaiff]

They figured out how to pull their heads out of their asses. Now, if only Square could do the same.

 

[64bitmodels]

Deserved for making her

use another gif. Don't disrespect Dee Jay like that.

 

[Thick Thighs Save Lives]

Deserved for making her

 

[JohnnyFootball]

Much of their content has been remakes/remasters.

Hear that MS?

Get me Fallout 3 and New Vegas on current gen.

 

[Rentahamster]

Good. That's what happens when you stop making Crapcom games and go back to making Capcom games. I hope they don't forget that.

 

[Rran]

Capcom's been doing well this gen, good for them. I think we're overdue for a new Mega Man though.

They figured out how to pull their heads out of their asses. Now, if only Square could do the same.

Hey, Octopath 2 and Dragon Quest XI are great.

 

[FoxMcChief]

Dragons Dogma 2 is coming next year too. I would hope they’re hard at work with Monster Hunter World 2, as well.

 

[Disco Dave]

Guess what's happening next Wednesday

Seriously, look at Sega on that chart. Their growth has been non existent. Their dormant IP library is incredible and yet they continue to pump out shit Sonic games with a sprinkle of Sega Mega Drive collection releases. They have a few good releases like Yakuza but they are a shadow of the 16bit and 32bit company.

 

[Gaiff]

Capcom's been doing well this gen, good for them. I think we're overdue for a new Mega Man though.

Hey, Octopath 2 and Dragon Quest XI are great.

They are, but with Square, it's always one step forward and two steps back. They release an incredible game, only to fumble the ball on something incredibly moronic later on such as their ill-fated attempt at NFTs or completely fucking up FF XIV at first, and then re-releasing it and getting it right this time. Let's also not forget their ridiculous sales expectations; Oh, this game didn't sell 10M copies in a day like we anticipated? It missed our sales target! That's ignoring the FF XIII debacle and many other blunders over the past few years.

Square Enix is run by morons.

 

[Nvzman]

Absolutely deserved, ever since RE7 released almost everything Capcom has been putting out has been pure gold. Top 3 in the industry easily at the moment.

 

[PanzerCute]

Deserved. Amazing company.

 

[F0rneus]

Their output since RE7 has just been insane.

 

[MrA]

Absolutely deserved, ever since RE7 released almost everything Capcom has been putting out has been pure gold. Top 3 in the industry easily at the moment.

Well that pretty well marked the end of trolling capcom (which I'd say peaked with cover art megaman, even though I liked it) and all west all the time capcom (peak was lost lost planet 3, like what was that?)

 

[64bitmodels]

I think we're overdue for a new Mega Man though.

Megaman Legends remake and a 3rd game based off the remakes would be great. Megaman 11 is 5 years old now, we need the blue bomber back.

 

[Ellery]

make good single player games and get rewarded.

 

[RagnarokIV]

Well deserved!

 

[Hudo]

Can we have Menat for SF6?

 

[Werewolf Jones]

They auto piloted using the same safe IPs for like eight years straight. If that's to ensure success and the bag that's fine.

Now let's get some risk games going outside of ExoPrimal & Pragmata. Bring back a dormant IP or two.

 

[Hudo]

They auto piloted using the same safe IPs for like eight years straight. If that's to ensure success and the bag that's fine.

Now let's get some risk games going outside of ExoPrimal & Pragmata. Bring back a dormant IP or two.

Mega Man Legends 3 is what I want after Dragon's Dogma 2.

 

[Kronos9x]

This is a company that makes almost zero innovation. No creativity at all in their games anymore. If they could release remakes and nothing else they'd do it and the fanboys would be ok with it.

 

[yurinka]

Well deserved, they released mostly top quality games during the last half a dozen years.

 

[kvltus lvlzvs]

they deserve it

 

[MrStauf]

Make good games and don't get woke and you won't go broke.
It really is that simple.

 

[Kronos9x]

edit

 

[Deerock71]

I just chipped in on their bottom line with Ghost Trick and The Great Ace Attorney Chronicles. They swole.

 

[Slicker than your average]

I remember when they were crapcom not that long ago. Good turn around.

 

[Woopah]

From Crapcom to Capgod. This is what happens when you just focus on delivering quality games.

 

[havoc00]

Thank you Exoprimal

 

[yurinka]

As reference, some EV/EBITDA from other Japanese game companies not listed by Bloomberg:
Koei Tecmo 18.9
Sony 12.9
Nintendo 10.3

 

[Killer8]

You make quality software and people buy it. It's an amazing new concept that i'm surprised no one has thought of till now.

 

[Robb]

Glad to see their work is paying off, Capcom has been absolutely killing it. Banger after banger after banger.

 

[cireza]

they are a shadow of the 16bit and 32bit company

Totally agree with this. Back their creativity was off the charts. Sadly it wasn't profitable. Now we are stuck with a company that is most definitely alive and profitable, but doesn't do anything exciting.

For me as a player, they desperately need to be able to take risks again. I want brand new games as crazy as Panzer Dragoon, Jet Set Radio, Crazy Taxi, Outrun 2, Shining Force, Burning Rangers, Nights, Dragon Force etc... And not stuff outsourced to super small teams.

 

[Thief1987]

Good for them, I guess. I think there are japanese studios which deserve this kind of success much more than developers of pewpew zombie shooters.

 

[Badlucktroll]

And, Lord willing, Konami shall also return

 

[Dr. Suchong]

Dragons Dogma 2 is coming next year too. I would hope they’re hard at work with Monster Hunter World 2, as well.

Monster Hunter World 2 has got to be my most anticipated game by quite some margin.
The first was absolutely incredible.
No rush though, still enjoying Rise/Sunbreak

 

[SmokedMeat]

Easily the best third party publisher.

 

[R6Rider]

 

[FoxMcChief]

Monster Hunter World 2 has got to be my most anticipated game by quite some margin.
The first was absolutely incredible.
No rush though, still enjoying Rise/Sunbreak

DD2 and MHW2 are about the same level of excitement for me, which is pretty damn high. Not Starfield levels, but still super high.

 

[Astral Dog]

I just wish they did more with DMC and MegaMan

 

[poodaddy]

And they earned it quite admirably. They may very well be the best third party developer and publisher in the industry right now.

 

[Ronin_7]

That ROI is absolutely insane, that is even better than Nintendo