Outline of Results Briefing held on May 13, 2011

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(Continued from previous page.)*

Next is strengthening our PDLC for console games. While the console packaged software sales business finds itself shrinking, it’s become an important theme to gain supplemental earnings through the network. And with several striking examples finally emerging within the industry, our creators now have a clear image of PDLC.
In our Group, within the last year we have been adding these elements to some titles. To roll this out more thoroughly on a Group-wide basis, we are studying examples and sharing our findings.

The last issue of “network centric” is the digitization of our catalog titles.
In the past, discounted popular editions of our catalog titles contributed an estimated ¥1 billion to our profits. Now, non-packaged goods such as download sales, and ports to smartphones and other platforms have begun to make significant contributions. We look at the ongoing digitization of our catalog titles as a solid contributor to our bottom line.

This is not mentioned in the slide but devices will continue to further decentralize. Each device has its own billing system, further segmenting customers. As a result, we believe that the development of an underlying service platform will be necessary.

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Regarding the strengthening of our own-IPs, we intend to focus on the establishment of 10 strong IPs. On this slide, the "Current" column has the IPs we consider as continually profitable. In order to establish the additional IPs, we have development ongoing at each studio as listed.

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