Summary of Financial Results for the First--Half Period Ended September 30, 2009.
Background of Positive Results for Games
Record half-year unit sales: Eidos integration a great success
The effective use of the Nintendo DS communication functions for DRAGON QUEST IX: HOSHIZORA NO MAMORIBITO appears to have been a success.
Yes indeed. One of the great attractions of DRAGON QUEST IX: HOSHIZORA NO MAMORIBITO is the ability to enjoy the game with family and friends. The fact that each person has their own game, rather than just one game for the whole household, seems to have had a great appeal. The multi-play function and the Chance Encounter communication function through which players can obtain treasure maps from each other, together with the Wi-Fi function that enables users to share the sults of their adventures, have led to an unexpected social phenomenon as users have gathered together all over the country to enjoy using these functions. I think one of the reasons the game was particularly well received by so many people was allowing users to play for longer by adding and distributing stories through Wi-Fi. This kind of phenomenon gives us, as games developers, the pride and motivation to get to the next title.
Furthermore, we are providing users with a range of new gaming experiences through the “Cho-rendo" (super-link) promotion collaborating with DRAGON QUEST Monster Battleroad II, a Square-Enix-made arcade game machine, and the new “Wi-Fi Quest” special events in which players cooperate to complete a game mission presented on the website.
Unit sales for the first half of the financial year ending March 2010 have already exceeded the 11.61 million units for the whole year to March 2009.
The increase in units sold means a lot in enabling as many users as possible to become familiar with our game content.
We achieved first-half sales of 5.57 million units in Japan, 3.47 million in North America, 3.02 million in Europe, and 10 thousand in Asia - all together 12.07 million units worldwide. I believe this increase in overseas sales is the fruit of the integration of Eidos into the Group.
The situation for the Amusement segment appears to remain harsh.
I have to say that we expect the battle for survival in this market to continue for another year to 18 months, because rent remains quite high, and depreciation of the purchased large machines are still outstanding. However, we believe the demand for amusement facilities itself has not declined so seriously. Taking this situation into account, we ceased operations at 21 locations while opening 13 new facilities, leaving us with 138 facilities operating at the end of September. We will continue to control investment in arcade game machines, while implementing initiatives to lower fixed costs through negotiations on rents and so on. In fact, with regard to rent, as a result of negotiations over the past few months, we have achieved the equivalent of a 600 million yen cut in annual costs.
We believe it is possible to deal with this state of emergency in the market by taking bold measures to strengthen cost structures of our Amusement segment. We will operate this segment considering what would our best strategy be when the market recovers and we have survived.