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.

(Continued from previous page.)*

Furthermore, the reason processing power stopped being a driver of growth is due to general purpose devices gaining considerably in processing power.

The next axis is input.

At the very start, the great invention was the controller. The mouse, keyboard and joystick, then at a stroke, the Nintendo controller. This was a wonderful invention, and thanks to it, the gameplay experience became further enriched. You could enter exceedingly complex inputs. And from there, Nintendo also released the Game Boy, giving birth to the handheld genre.

Around the year 2000, processing power stopped being the driver, and the world shifted in the direction of inputs.

And here, Nintendo reappeared with the Nintendo DS and the Wii. One after the other came touch panels and voice control, then motion control. From the middle half of the 2000s to 2010, the Nintendo DS and Wii swept the market. And this makes a lot of sense. The axis had moved. And Nintendo consistently became the market’s sovereign.

As would be expected, Sony and Microsoft released the PlayStation Move and Kinect. But touch panels and partial motion, etc. had already become a standard for general purpose devices. Bringing motion controls to the consoles simply meant that the distance between dedicated game consoles and those devices that were not dedicated game consoles became closer; Move and Kinect could not become a driver of growth for the whole industry.

I think the input axis will continue to evolve but the next jump will take time. For example, we can think about how to use brain waves. It could go as far as planting something in the brainstem like out of the Matrix, which is a bit of a gap from here.

This axis, as seen in the slide, only reaches as far as where we are around 2010.

Earlier I said that these theories were all quite logical so I want to link to our previous discussion.

As the investment to play on the part of the consumer decreases, the market expands, and this expansion has moved from dedicated hardware to multimedia machines and then general purpose devices. The processing power and input are reaching standardized levels on general purpose devices and the gap between dedicated and general purpose devices is decreasing.

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