Outline of Results Briefing held on May 12, 2014

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(Continued from previous page.)*

The above are the essential points of the structural reforms taking place in the Digital Entertainment segment.

Next I would like to explain the balance sheet. Please take a look at pages 7 and 8 of the Earnings Briefing.

The content production account amounted to ¥15.8 billion at the end of the FY2013/3, and ¥20.5 billion at the end of the FY2014/3. The account includes WIP of not only HD games but also MMOs and games for smart device and PC browser.
We attach more importance to the mix of titles in development than an absolute amount of the outstanding balance.

Liabilities are listed on page 8 of the Earnings Briefing. The corporate bonds have moved from the non-current liabilities to the current liabilities, since the maturity date comes within one year. There are no other significant changes on the balance sheet.

This concludes my explanation for the FY2014/3.


Next I would like to explain the progress made in each business segment.


Rollout into mainland China and other Asian markets is particularly important for this FY2015/3.
We plan to launch the MMO "FINAL FANTASY XIV" in mainland China this year through a partnership with Shanda Games Ltd. The partner company is planning the rollout of a sweeping and nation-wide advertising campaign.
I am glad to hear that the game is being extremely well received in China, and after the global launch, we are working hard at preparations to make the summer launch in China a big success. In order to increase the revenue of a subscription-based MMO, you have to offer various choices of compatible platforms to customers, and then you have to expand service territories. From that perspective, a success in China is an important strategic milestone for us.

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