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I will next break our results down by segment.The Digital Entertainment segment booked net sales of ¥85.4 billion (+¥3.5 billion YoY) and operating income of ¥16.6 billion (+¥4.1 billion).
In the HD Games sub-segment, we released “DRAGON QUEST XI S: Echoes of an Elusive Age – Definitive Edition” and Nintendo Switch and Xbox One versions of “FINAL FANTASY X/X-2 HD Remaster” etc., but net sales fell YoY due to the high hurdle set by major releases a year earlier. In addition, the sub-segment generated an operating loss because of weak additional sales of new titles launched in FY2019/3.
Thanks to the release of the “FINAL FANTASY XIV: Shadowbringers” expansion pack and the resulting growth in subscriber numbers, net sales and operating income rose YoY in the MMO sub-segment.
Net sales and operating income also rose in the Games for Smart Devices/PC Browsers sub-segment, where “Romancing SaGa Re;univerSe” performed well and “DRAGON QUEST WALK,” which was launched in September 2019, is off to a good start.
The Amusement segment posted net sales of ¥22.8 billion (+¥2.3 billion YoY) and operating income of ¥1.3 billion (+¥600 million). While we launched no new amusement machine titles, strong arcade operations resulted in a YoY rise in both sales and profit.
The Publication segment booked net sales of ¥9 billion (+¥2.7 billion YoY) and operating income of ¥3.2 billion (+¥1.5 billion). Sales in digital formats, including via the “MANGA UP!” manga app, rose sharply. Sales of printed media were also brisk, leading to the YoY rise in net sales and operating income.
The Merchandising segment posted net sales of ¥4.5 billion (+¥1.2 billion YoY) and operating income of ¥600 million (+¥400 million). The release of new character goods featuring the Group’s owned intellectual property led to the YoY rise in net sales and operating income.
This concludes my overview of our financial results.