Chuo University Speech（Nov 25th, 2011）
"The Structural Transformation of the Game Industry"
- (Continued from previous page.)
By that time, global business development had become increasingly important. It would take too much time if I seconded a Japanese person to US or Europe to have the individual manage the business and recruit local staff in order to build up the operation. The company would never be able to change from being a Japanese company. The solution was to acquire a well-established UK company, Eidos, a LSE listed company who gave birth to franchises such as Tomb Raider and Hitman. Eidos was headquartered in UK, but had a global footprint of development studios with few hundred developers at each location. The immediate access to this global network was one of the intentions behind the acquisition. Eidos headquarter as a corporate entity was completely integrated with Square Enix Europe. The full integration was executed based on meritocracy, with the competent talents leading the organization, and less competent stepping down from the manager's role. At the same time, the Eidos brand and the franchise titles were left unchanged, and the global studios maintained their autonomy as subsidiaries of the newly formed Square Enix Europe.
Please take a look at slide 4.
This is how the company global footprint is spread out. As mentioned earlier, I basically do not resort to HR management with which I second the staffs from Japan. Rather than overcoming the challenges by HR managements, I am a strong believer in globalization through practical business management. Yet, I strive for intimate communication between the different sites at all times, which results in tremendous amount of business trips, not to mention conference calls. Video conferencing is extremely convenient. I am sure that you will also be frequent users of video conferences. I use it twice or three times a week to talk with someone at the overseas office. I myself am on the road roughly sixty days a year to also facilitate face to face communication. Globalization through leveraging on the local capabilities grants us further benefits. Local people who were raised breathing the air in local communities, received local education, and grew up absorbing the local culture have a much better capability and breadth in absorbing the local culture and information, compared to Japanese people who were sent from the Tokyo office. On the hiring front, Square Enix gets access to the top talents from different markets. Different countries have different business set ups. Different markets abide by different corporate tax structures, as well as income tax and social benefits, which allows us to pursue global optimization. Having global recruiting windows also serves as a strong weapon in pursuing global business.