Outline of Results Briefing held on May 13, 2013

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The third initiative is “Regionality.”
While we had been making investments in the game development under the assumption that major titles would sell a lot worldwide, however, we have found it extremely difficult to achieve. We created our budgets on the basis that our games would be sold worldwide. We had not given much consideration of the regionality of each market, and had focused more on how to sell the major titles globally; however, titles fitting this method are limited.
Many of the titles that we decided to cancel or reexamine in the fiscal year ended March 2013 had been based in that way of thinking. As the sheer amount of and diversification of game and entertainment products is increasing, I believe it is difficult to move forward on the assumption that many products can cover the tastes of the entire world, and sell across the entire world. Of course, we will continue to invest in flagship titles that showcase our technological prowess, pursuing high-end game quality, and which can earn profits on a global basis. Regarding a number of these types of titles, we will share information with everyone at this year's E3. That said, we cannot reasonably finance this direction for every single title, and we have to think about our entire product portfolio. From a different perspective, the recent game industry is seeing the emergence of blockbuster games from online (PC/browser/etc), smart phones, and tablets. Our strategy of selling AAA titles of 10 IPs around the globe has implicitly assumed Hollywood-style cinematic major games centered on single-player experiences. Going forward, I think it is necessary to review the definition of "AAA Title," and we need to pursue a new type of blockbuster title, in addition to the conventional-type of blockbusters. Our customers' tastes throughout the globe are as varied as the regions in which they live, and as we think about our product portfolio in various regions, we need to develop our games appropriately. We have only just started reforming along the three points I mentioned above, so at this point, I can't speak about specific titles. But we are determined to solidly implement these initiatives.

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