Capcom's Winning Formula: Sticking to What Works

The fear of missing out, or FOMO, is a driving force in consumer behavior, and businesses often exploit this to create a sense of urgency around their products. However, this same fear can also affect business leaders, causing them to chase after the latest trends and technologies without fully considering their potential impact. The gaming industry is particularly prone to this, with many companies feeling pressure to jump on the latest bandwagons, whether it's NFTs, the metaverse, or new business models. While it's understandable to want to stay ahead of the curve, this approach can lead to a loss of focus on what's truly important: creating great games. Capcom, on the other hand, has taken a different approach. By sticking to its core strengths and traditional business model, the company has achieved remarkable success, with a decade-long growth trajectory and a stock price that has increased by 1200% over the past ten years. This success is not due to any revolutionary new strategy, but rather a commitment to doing what the company does best: making great games. Capcom has resisted the temptation to pursue every new trend and instead focused on its fan-favorite franchises, such as Street Fighter, Resident Evil, and Monster Hunter. The company has also been willing to experiment with new technologies, but only in a way that makes sense for its business and its fans. For example, its recent foray into online team-based shooters with Exoprimal is a minimal commitment, with no valuable IP attached to the project. This approach has allowed Capcom to build a strong relationship with its fans and establish a reputation for quality and consistency. In an industry where many companies are struggling to find their footing, Capcom's success is a testament to the power of sticking to what works. The company's commitment to its core values and its willingness to ignore the noise and focus on what's truly important have paid off in a big way. As the gaming industry continues to evolve, it's likely that we'll see more companies trying to follow in Capcom's footsteps, and investors would do well to take note of this success story. Ultimately, the key to Capcom's success is not some secret sauce or revolutionary new approach, but rather a simple commitment to making great games and doing what's best for its fans.