To Our Shareholders

Let me wrap up with one more major theme—the issue of locality. Marketing AAA titles on a global basis was one of our strategic initiatives. I, however, have to admit that titles appealing to a global audience are very limited, with a few exceptions. In addition, it is exceedingly difficult to achieve worldwide prominence for a new IP. Customer preferences vary from region to region, and other factors such as lifestyle, income status, and infrastructure are vastly different throughout the world. Therefore, developing a game on the assumption of world-wide distribution involves tremendous challenges. Consequently, we will prioritize a product portfolio for the future that attaches importance to consumer preferences in each region we serve. We will utilize our global network to propel our global business with a product lineup that emphasizes regional tastes. Of course, we will always pursue an opportunity to expand a hit title’s service territory beyond its original region. We, however, will start with global business development by fine-tuning each product portfolio to customers in the targeted region. We will also be watching markets that present considerable growth potential, particularly the India and Asia region, the Middle East, and Latin America. We aim to establish a solid business base in these markets, and start generating a profit as soon as possible thereafter. This is another major business objective for the fiscal year ending March 31, 2014.

Our poor performance in the fiscal year under review undoubtedly caused shareholders considerable concern. It is our mission, as the new executive team, to reverse this situation, and to return the Group to a profitable position at the earliest possible date.

The business environment for the game industry is in the midst of intense and extensive changes not yet seen. However, we see this as an enormous opportunity for growth. I would appreciate your continued great support.

Yousuke Matsuda

Yousuke Matsuda
President and Representative Director
SQUARE ENIX HOLDINGS CO., LTD.

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