Capcom invests $78M in game development R&D with two high-tech facilities

Capcom is investing $78 million in game development R&D with the construction of two buildings located near its Osaka headquarters, the company announced today.

According to Capcom, the two new R&D buildings will centralize its game development arm, make game dev operations more efficient and allow it to "create highly original games that can meet the expectations of users."

The two structures will include game dev facilities such as a motion capture room, a studio for producing sound effects and "multi-purpose spaces that can hold more than 100 people." The 8-floor R&D Building S (approximately ¥2.5 billion) and 16-floor R&D Building N (approximately ¥5.5 billion) are expected to be completed in February 2015 and February 2016, respectively.

Capcom also wants to cut down development expenses by growing its internal game development arm by hiring roughly 100 developers every year, consisting of "mostly new graduates." It aims to have 2,500 internal developers by March 2022, similar to its announcement in 2012 where it planned to increase the number of internal staff with 1,000 new employees by 2023.

Capcom believes the R&D facilities and increased internal development will give it a competitive advantage in the expanding mobile and PC online games markets.

"The appearance of next-generation consoles with a variety of network functions has shifted the focus of sales from conventional package software to digitally distributed content," the announcement reads. "The profit structure and business model are changing at an increasing speed as a result. Furthermore, the popularity of social games due to the widespread use of smartphones is enabling games to reach more user segments and enlarging the entire game market."

Last month, Capcom adjusted its net profit forecast from ¥6.8 billion to ¥3.3 billion for the full fiscal year due to ¥5 billion in expenses in improving its business structure. The company ultimately aims to shift from outsourcing and focus on internal development of new titles.