Outline of Tokyo Game Show 2011 Keynote Speech held on September 15, 2011

*This keynote was made by the president and CEO of Square Enix Holdings in his role as chairman of the Computer Entertainment Supplier’s Association.

Finally, and this is not just about games, but it's something I think is quite important. When I speak of the cloud, I speak of a fundamental revolution.

In the world today there are tens of billions, if not hundreds of billions of dollars invested almost completely in devices. And incidentally, I've got amazing processing power! Of course, I have all the game consoles, two computers, and I've got a company smartphone, and if you add it up, this can do some astronomical calculations, enough to do protein synthesis with! But all their operations are meaningless. I've got this growing amount of processing power, but most of the time it’s just sitting around.

If we focus the world's investments on the cloud, the cloud will evolve, and the communication environment will evolve along with it. It's a complete paradigm shift. The industrial ecosystem will be transformed. It will be the industrial revolution of infrastructure. (Though this is different from the industrial revolution of games.)

The cloud has the power to change governments, corporations, etc. Today’s vested interests exist to protect our current system. Moving toward this new shared resource system that is the fullest potential of the cloud means a new system is needed to regulate how we share creative efforts, pricing, etc. Copyright law will need to be changed, patent law will need to be changed. There will be immense conflict with vested interests.

There will be market failures. It’s possible that “the visible hand” of the market will determine the resolution, and emerging countries may manage to attain hegemony through the cloud. The cloud has the power to change the balance of power in the world.

Years from now, when we enter the cloud era, our games industry will face off against other forms of entertainment. What kind of value will our customers expect, furthermore, how will the world be completely changed? We need to create our products in anticipation of these changes.

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