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As I mentioned previously, our overseas studios are shifting their focus to include more online-based titles. While we are continuing our development of sellout-type flagship HD (high-definition) games for conventional game consoles, we will be transitioning to developing more online games as a major trend of our business.
Studios in Japan are continuing to work on developing flagship HD (high-definition) game titles for consoles such as "FINAL FANTASY XV" and "KINGDOM HEARTS III," which have already been announced at E3. On the other hand, these studios are also working on new content for smart devices.
We will produce results from such efforts from this time forward.
Lastly, I would like to mention overseas business developments in the Asia region.
Since there is an extremely strong affinity for content produced in Japan in areas such as China, South Korea and Southeast Asian countries, we are strongly supporting the rollout to these regions of games for smart devices that are well received in Japan.
In addition, we are looking to carry out development in overseas locations.
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It has been reported on some websites that the first title to be released as a part of the hither-to mentioned online games to be produced for North American and European markets will be "NOSGOTH", which is currently in the closed alpha stage.
One of the major points regarding future game development, in both Japan and overseas, is the transformation from a conventional fixed-price sellout model into variable earnings models.
Variable earnings models are typified by the F2P (free to play) price model, I however believe there are many types of fee-based revenue models other than F2P.
As the types of devices, OS and platforms continue to become more diversified, I believe the transformation to variable earnings models from a fixed-price sellout model is extremely important, and therefore some of our studios in North America and Europe are moving forward with development of content for such models.
First, we are moving forward with development for PCs by introducing a "PC first" concept for some of our games, with a view to tuning and perfecting the game experience on PC first, with the option of later expanding these games from the PC to other devices, if suitable.
"NOSGOTH," a PC-based F2P action game, is under development as an example of such initiatives.
