Investor Relations

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on November 4, 2011

Outline of Results Briefing by SQUARE ENIX HOLDINGS held on November 4, 2011
(Continued from previous page.)*

These two titles should not conflict with each other since each has very different gaming experiences. We anticipate that the combination of these two titles will contribute the company-wide brand and profit.

As MMOs (massively multiplayer online games) requires heavy investment in operations, it is a higher-risk area for a company. However, it should contribute stable results for a period of years if a certain level of status can be gained. Therefore, we have been striving toward improving FINAL FANTASY XIV, instead of simply giving up.

Social games are being offered by the several organizations in our group as introduced earlier. We chose not to build a big organization to develop social games. Instead, we split into small teams to speed up decision-making.


Next, we are going to explain monetization with DLC after the packaged title release. This is something that some publishers in the West have already been talking about for some time. We have also been implementing DLC for main titles for about a year and half now. It is applied to Deus Ex: Human Revolution as well. In terms of revenue and expense, gross margin rate for DLC is higher than the packaged title sales, so the overall revenue cannot be pictured by just looking at the unit sales figures. While Deus Ex: Human Revolution offers weapons and missions as DLC, the main focus is the “The Missing Link,” an extra episode that fills the gap of the main scenario. As it has been achieving tens of thousands of downloads even though it was just recently launched, we are hoping to see it grow from here on out. As a number of titles, including FINAL FANTASY XIII-2, will have additional content via download from now on, we are considering shifting the direction of our company-wide strategy from concentrating promotion around the game's release to spreading promotion out across the business deployment of a project as it develops.