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Next, I turn to the Amusement segment, where arcade operations are solid. We will be working to bolster earnings by expanding our high-performing arcades, with one example being the refurbishment of the Taito Station in Mizonokuchi. That arcade re-opened in October and will serve as a major flagship location for us. Our new title “DENSHA DE GO!!” has been off to a good start since its November launch.
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I look next at the Publication segment, where sales have been solid.
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Digital sales exceeded 20% of total sales in 1H FY2018/3 due in large part to our comics distribution app “MANGA UP!.” Our weighting of digital sales has risen significantly in the two quarters the app has been available. We intend to increase the percentage of digital sales going forward by making more titles available on the app.
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Next is the Merchandising segment. We have held a variety of events in FY2017/3 and FY2018/3 to commemorate the 30th anniversaries of DRAGON QUEST and FINAL FANTASY. As a result, sales of character merchandise have also been brisk. FY2017/3 also saw the opening of our first Square Enix Cafe. Before FY2018/3 is out, we plan to open a Square Enix Cafe in Shanghai, which will make for our third location.
