Outline of Results Briefing held on November 6, 2014

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We have booked ¥8.4 billion of valuation loss for the content production account, taking account of risks in our various business areas. Our earnings volatility is increasing, due to competition intensifying in our businesses, in particular, HD games and smart device games. From an accounting perspective, we need to consider the downside risk from this volatility, so we booked ¥8.4 billion of valuation loss of inventories, mainly in relation to the content production account.

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Now, I will go over our progress in each business segment.

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First, HD games in the Digital Entertainment segment. Launches in FY2016/3 will mainly be titles for the Western market. We are planning several releases of major titles in the second half. We expect the competitive environment to be tough, with our competitors announcing big titles in the E3 in June. We believe our titles can fully compete with these big titles, however, as I will explain later, we have been conservative in our forecast for FY2016/3. We are confident about the quality of each title, and will aim a t a level far beyond our current forecast.

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This is “DEUS EX,” launched this April. In our private conference at the next E3, we are planning to announce several titles in addition to this one. We plan to make use of our IP in multifaceted approach, in “DRAGON QUEST HEROESⅡ,” and “STAR OCEAN 5,”, as part of the efforts to strengthen and reboot our existing IPs, as I mentioned earlier.

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