Outline of Results Briefing held on May 13, 2011

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(Continued from previous page.)*

Extraordinary losses also included a loss on disposal of content and other related losses including a loss due to content re-evaluation within cost of goods sold. Such costs are the result of our tightened selection standard regarding title lineup.

In the fiscal year ending March 31, 2012, we will not release as many AAA console titles due to our tightened selection standard for the title lineup.
In the high growth areas of SNS and smartphone games, etc., we are expecting to see results from the current fiscal year onward, but this is not strongly reflected in our forecast numbers.
In general, we are not expecting to see a big recovery of results in this fiscal year ending March 2012, but rather are rebuilding in the current year toward our target of record profits in fiscal year ending March 2013. We plan to continue stable shareholder returns of 30 yen per share as cumulative dividends for the fiscal year ended March 31, 2011.
For your reference, within our Digital Entertainment segment, we saw a drop in packaged software for consoles relative to the fiscal year ended March 31, 2010. While we saw growth in the newer areas such as “digital” and smartphone, a slump in the sales of packaged software for consoles was the principal cause in the reduction of operating margins.

Now I will explain our progress on the key strategic areas that I have identified for some time now.

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