Outline of Results Briefing held on May 12, 2014

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This shows the numbers of units sold by region. They are the numbers of physical discs sold, and do not include downloads. We are shifting towards online games, therefore the proportion of physical disc sales to total revenues is decreasing over time. On the other hand, what is important is the increase in the ratio of HD game download sales and this is starting to become a significant amount in US and European markets. The download sales, in particular catalogue game downloads, have been strong, and are expected to grow further in this FY2015/3.

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Although this is a forward-looking agenda, we are putting a certain amount of our resources into the technical development of cloud-gaming. We have started a streaming service of "DRAGON QUEST X" for smartphones. We are going to offer some titles through streaming mainly on our e-STORE site in this FY2015/3, using cloud-gaming technology. We announced a new project for cloud gaming technology development last November, and we are taking a venture business-type approach to achieve positive results in this area.

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Continuing on with the Amusement segment, "PUZZLE & DRAGONS BATTLE TOURNAMENT" released on April 24 has started off great. "LEFT 4 DEAD" is a derivative of our new initiative under which overseas video games are transformed to an amusement game machine format. Taito and Square Enix are both working on such a business development project in the amusement business.

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In the Publication segment, we have some titles, including very popular ones, that have concluded their series’ in comic magazines. We are making an effort to create new content. Although still quite small, the sales of digital publications is increasing at a remarkable rate.
Digital publication will become a vital distribution method for comics and we are actively working on enforcement of the content distribution through digital publication.

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