In the recently launched DFC Intelligence Video Game Stock Index, Capcom (9697.T-JP: Tokyo) (OTC:CCOEY) was the top performer with a stock increase of 37% from January 2022 to January 2023. The overall DFC Intelligence Video Game Stock Index was down 30% in 2022.
In late October, Capcom announced a 30% decline in revenue for the first six months of the fiscal year ending 3/31/23. However, the company also raised full-year forecasts and is on track to release the Resident Evil 4 remake by the end of the fiscal year on 3/24/23.
Capcom is an established video game company that was a market leader in the early days 8 and 16-bit console games. Franchises like Resident Evil, Street Fighter and Monster Hunter have a large fan base and significant growth potential going forward.
Currently Capcom stock is NOT in the newly launched DFC Intelligence Video Game Stock Portfolio. This is mainly because the portfolio is focused on companies that have underperformed. That is not the case with Capcom. However, there is the additional concern that Capcom will face a tough transition to a live services model that will more fully enhance the value of core franchises.Â
