To Our Shareholders

How should our content development deal with such circumstances? I think the key lies in “focus.” Precisely because customer tastes are diversifying and decentralizing, we will be able to create quality content that attains higher customer reviews if we focus on the strengths and specialties that our creators are best at. The regions I mean here are not physical regions. In the current world of digital entertainment, physical borders and boundaries are no longer meaningful. The world is fully connected by the Internet, and content is disseminated to the whole world simultaneously. In this context, “regional” refers to customer diversity, not physical regions. The fields in which our creators excel are also diverse. Therefore, creators can provide customers with the ultimate experience by focusing on their specialized areas. For example, there are many customers loving JRPGs (Japanese Role Playing Games) worldwide. By focusing on JRPGs tailored to these customers and offering the ultimate games, we will win acclaim from the world. I think that is a reality of the modern digital content business. This concludes my summary of the fiscal year ended March 2014, and my outline of our future initiatives. In light of the extremely disappointing results from the fiscal year ended March 2013, we performed a vast review of our domestic and overseas development systems, and developed content with a conscious focus on areas in which we excel. Such efforts will enable us to produce diverse content for a variety of genres in the future. The important value underlying all of this diversity is “fun.” By letting our creators focus on the fields in which they are best, and work on delivering their perfect “fun,” we will provide customers with the ultimate content. That is what our Group’s content development strategy should be, and it is also our raison d’etre. Through realizing these principles, we will endeavor to achieve a record operating income at an early point (see Figure 2 ), and we intend to establish a business base on which we can generate a stable profit at that level.

The content industry, particularly the games industry, is right in the middle of a major transformation. Although such a transformation is a threat, it’s also a tremendous opportunity for us. By resolutely pressing forward, we shall seize the opportunity through an aggressive approach in order to make the next leap forward as the content industry’s leading company. I would like to ask your continued support.

Yousuke Matsuda

Yousuke Matsuda
President and Representative Director

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