Games developer Capcom announced a new brand intended to expand its presence in “the burgeoning ‘freemium’ smartphone space.” Called Beeline, this represents the first time that Capcom has created a separate publishing sub-brand with the intention of targeting a specific part of the gaming market. Beeline is expected to publish eight new social games for smartphones by the end of the 2011 financial year. Separately, Capcom will continue to publish smartphone games based on its “celebrated intellectual property” under its own brand, targeting “hardcore” gamers.

The company said it realigned its mobile operations to focus on smartphone game development in 2009. Since then its North American and European subsidiaries “have achieved impressive success with ‘freemium’ social games targeted at the ‘casual’ gamer.” Its Smurfs Village, Zombie Cafe and Lil’ Pirates games have seen in excess of 15 million cumulative downloads. It said that with the creation of Beeline, its goal is to “capitalise on this success with a brand and team focused on the mobile casual gamer.”

Capcom’s social games activities have not been without controversy. Smurfs Village has been identified for inappropriate use of in-app billing, by being designed to appeal to younger users while including high-value purchase options – for example the £34.99 “Wheelbarrow of Smurfberries.” It was reported that Apple had had “strong words” with the company about its actions.

Midori Yuasa, President and COO of Capcom Interactive, noted that “Capcom recognises that the market for social smartphone games is very different from our core video game business. Capcom is extremely committed to the smartphone social game space, and the creation of ‘Beeline’ represents a major investment and strategic refocusing of the company’s mobile operations.”