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I am Yosuke Matsuda. I will be discussing the progress we made in each of our business segments. We had expected to struggle in terms of 1Q FY2020/3 earnings given that we were not launching any major new HD game titles. However, brisk sales of existing titles for smart devices and growth in “FINAL FANTASY XIV” subscriber numbers resulted in a YoY rise in net sales and operating income.
As of the end of 1Q, our content production account stood at ¥58.1 billion, a ¥7.5 billion rise versus the end of FY2019/3. We see that account as the driver of our growth and a rich pipeline as the key to future growth. We are working to create a rich pipeline for FY2020/3 and beyond, including by undertaking the development of multiple new titles for next-generation consoles.
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1Q saw somewhat weak additional sales of major titles that had been released in FY2019/3. In 2Q and thereafter, we will be launching new titles including “ONINAKI,” “DRAGON QUEST XI S: Echoes of an Elusive Age – Definitive Edition,” and “FINAL FANTASY VII REMAKE.” We also plan to release remakes or remasters of multiple titles from our back catalog.
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Next is the MMO sub-segment, where we launched “FINAL FANTASY XIV: SHADOWBRINGERS” on July 2. The number of paying subscribers grew in 1Q ahead of the launch, contributing to earnings. We selected October 24 as the release date for our upcoming “DRAGON QUEST X” expansion pack.
