History

Japan Capsule Computers

Capcom traces its origins to 1979, when Kenzo Tsujimoto established Japan Capsule Computers Co., Ltd. in Osaka. The company’s initial focus was electromechanical amusement devices - coin-operated machines, capsule dispensers, and arcade-adjacent hardware popular in the emerging Japanese amusement industry.

Tsujimoto had a background in sales and distribution, and his early ambitions lay in the broader amusement market rather than video games specifically. That changed as the video game industry exploded following the success of Pac-Man and Donkey Kong in the early 1980s.

Pivot: 1983

In 1983, the company shortened its name to Capcom - a portmanteau of “Capsule Computers” - and committed fully to electronic video game development and publishing. The pivot was decisive: within a year, Capcom had its first arcade release.

The 1983 pivot came at a critical moment. The North American video game crash of 1983 had devastated the US market, but in Japan, the Family Computer (Famicom) launched in July 1983 and the arcade industry remained strong. Capcom positioned itself to benefit from both.

Vulgus and the First Steps

Capcom’s debut arcade game, Vulgus (1984), was a vertical scrolling shoot-’em-up. It established Capcom’s technical competence without breaking new ground. The real breakthrough came the following year.

Ghosts ‘n Goblins: 1985

Ghosts ‘n Goblins (1985), designed by Tokuro Fujiwara, was Capcom’s first major arcade hit. A graveyard platformer starring the knight Arthur, it was distinguished by its punishing difficulty, gothic atmosphere, and memorable boss design. The game spread to arcades worldwide and announced Capcom as a studio to watch.

The NES port (1986) brought Ghosts ‘n Goblins into millions of living rooms. Despite necessary compromises in hardware fidelity, it captured the arcade game’s essential spirit - particularly its relentless challenge. Nintendo Power and contemporary magazines featured it prominently.

Capcom USA and Street Fighter: 1985 – 1987

Capcom USA was founded in 1985 to localise and distribute games for the North American market. The US subsidiary played a key role in adapting Capcom’s Japanese titles and building relationships with US retailers.

Street Fighter (1987), directed by Takashi Nishiyama, was Capcom’s first fighting game. Two characters, six opponents, and a control scheme that presaged what was to come. It was not yet the phenomenon its sequel would become, but it established the IP and the genre template that Street Fighter II would perfect four years later.

Mega Man: 1987

Mega Man (NES, 1987), directed by Akira Kitamura and featuring character design by Kitamura and Keiji Inafune, introduced the Blue Bomber. The original game was a modest success - its non-linear stage selection and weapon acquisition system were innovations - but it was its sequel that would cement the franchise’s legacy.

The composer, Manami Matsumae (credited as “Chanchacorin Manami” on the Japanese release), produced one of the NES era’s most inventive soundtracks, working within the console’s severe hardware constraints to create music with genuine personality.

"Mega Man 2 was the team's chance to do everything right. We thought we might not get another. So every Robot Master, every stage, every track had to count." Keiji Inafune, GDC 2009 retrospective

Mega Man 2 and the CPS-1: 1988 – 1989

Mega Man 2 (NES, released December 1988 in Japan and June 1989 in North America) is widely considered one of the greatest NES games ever made. Composer Takashi Tateishi (credited as “Ogeretsu Kun”) produced a soundtrack that has been analysed, covered, and remixed for decades. Eight Robot Masters, refined controls, and iconic stage design made it the template for the entire series.

In the arcades, 1988 saw Capcom introduce the CP System (CPS-1) board with Forgotten Worlds. The hardware delivered graphics quality beyond most contemporaries and would power Capcom’s most celebrated arcade titles through the early 1990s.

DuckTales (NES, 1989), directed by Tokuro Fujiwara, demonstrated Capcom’s skill with licensed IP. The “Moon Stage” music became one of the most beloved pieces of game music from the era.

Final Fight, Mega Man 3–6, and More

Final Fight (CPS-1, 1989) redefined the beat-’em-up genre. Its SNES port (1991), though missing co-op and one character (Guy) due to cartridge constraints, was a landmark console release. Chip ‘n Dale Rescue Rangers (1990) and Bionic Commando (1988) further expanded Capcom’s NES catalogue of critically regarded platform games.

Mega Man 3 through 6 (1990–1993) maintained quality with different composers at the helm - Yasuaki Fujita for Mega Man 3, Minae Fujii for Mega Man 4, Mari Yamaguchi for Mega Man 5, and Yuko Takehara for Mega Man 6 (published by Nintendo in North America). Each entry refined the formula while adding new mechanics.

Street Fighter II: A Cultural Event

Street Fighter II: The World Warrior (arcade, March 1991) was not merely a commercial success - it was a cultural event. The game defined competitive fighting games, introduced the “combo” mechanic, and created a template copied by dozens of competitors. Yoko Shimomura composed the main soundtrack, creating character themes that remain iconic.

The SNES port (June 1992) was unprecedented in its accuracy to the arcade original, selling over six million copies. Nintendo Power ran it as a cover feature. It demonstrated that the SNES could deliver an arcade-quality experience and pushed the console to its limits.

Mega Man X and CPS-2: 1993

Mega Man X (SNES, December 1993 in Japan) launched a new sub-series set in a darker future, directed by Keiji Inafune. The game’s Mode 7 intro, wall-sliding mechanics, and more complex upgrade systems represented a clear evolution of the Mega Man formula. Nintendo Power featured it as a cover game.

The same year, Capcom introduced the CPS-2 board with Super Street Fighter II Turbo, pushing arcade hardware still further. The CPS-2’s encrypted ROM security made it considerably harder to pirate than its predecessor - a sign of Capcom’s growing commercial sophistication.

Super Ghouls ‘n Ghosts

Super Ghouls ‘n Ghosts (SNES, 1992) was a direct sequel to the original arcade game, again directed by Tokuro Fujiwara. Considered one of the SNES’s most demanding platform games, it retained the series’ punishing design philosophy while expanding the sprite and colour capabilities of the 16-bit platform.