Outline of Results Briefing held on November 6, 2012

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This is a list of our HD games lineup for this fiscal year. The upper features titles released in the First Six-month Period, and the lower features those to be released in the second six-month period.

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At the announcement of forecast revisions last week, we talked about SLEEPING DOGS (SD) as an example of a Western title that started out slow, which seemed to provoke misunderstandings that it was suffering poor sales. Let me clarify that SD is an exceptionally remarkable title that came with very high expectations and aggressive sales targets for the First Six-Month Period. Our goal might have been exceedingly high, which is what we see here in the difference in actual versus forecast sales.
A similar type of game would be JUST CAUSE 2 (JC2) launched in March 2010. Games like SD and JC2 show a steady increase in unit sales long after launch, in contrast to games in Japan, where each game’s lifetime sales volume is nearly achieved within 1-2 months after launch. Sales for JC2 doubled in the first 12 months and again in the following 12-month period. Initial shipment was less than 1 million units, however, we are now about to reach 2.5 million units. Looking at this trend, we expect SD’s lifetime sales to be strong as well. SD got off to a good start just as JC2 did. SD’s growth trajectory just like JC2’s has led to the difference in actual revenue versus forecast.

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