Capcom shifts arcade focus to women, families

Resident Evil developer Capcom is hoping to boost profitability by closing three arcade centres and opening eight new ones before the end of March 2008, reports Bloomberg.

The arcade business represents approximately 18 percent of Capcom's sales. Approximately 58 percent of its revenue comes from game sales. The eight new arcade centres will be larger stores that will focus on being female- and family-friendly. Capcom president Haruhiro Tsujimoto commented, "It's all about the location."

According to the Bloomberg interview, it's expected that the move will boost Capcom's profitability to a seven-year high by the end of March 2009, and that the operating margin could rise to 15 percent next fiscal year (compared to 12.8 for the year ending March 2008). Sales growth could also more than double to 10 percent.