Investor Relations

Outline of Results Briefing held on Aug 6, 2020

123
Outline of Results Briefing held on Aug 6, 2020

SQUARE ENIX HOLDINGS CO., LTD.
1Q FY2021/3 Financial Results Briefing Session Q&A

Date/Time: August 6, 2020 (Thu); 6:30-7:40 pm (JST)
Main Speaker: Yosuke Matsuda, President and Representative Director


Q&A

Q: How do you view the trend of so-called “stay-at-home demand” that has resulted from the COVID-19 pandemic? Also, how is “FINAL FANTASY VII REMAKE” selling?

A: In 1Q, Western countries went into lockdown and businesses in Japan were asked to close temporarily as part of the government’s state of emergency declaration. As a result, demand for game downloads increased. The pace of digital sales has eased since July, but we believe that the shift to digital will continue. As for “FINAL FANTASY VII REMAKE,” cumulative sales had reached just under 5 million units as of the end of 1Q. Going forward our sales promotion efforts will focus on customers who are interested in the title, but who have yet to purchase it.

Q: “Marvel’s Avengers” is slated for a September launch. What are your expectations for it?

A: Our expectations are very high. Since it will be a title with GaaS (Game as a Service) features, our operations after the game goes live will also be key, not just initial sales on launch. We hope to build excitement around the title by rolling out powerful add-on content.

Q: Other than “FINAL FANTASY VII REMAKE,” how are new and catalog HD games selling?

A: Sales of “TRIALS OF MANA” are so strong that they have significantly surpassed our initial expectations. In regards to catalog titles, we are seeing growth in digital sales from our library, especially of titles featuring our core IP, and this is despite not engaging in any special promotions. In addition, unrelated to HD games, revenue generated from one-off sales of smartphone games also grew in 1Q.

Q: You launched “DRAGON QUEST TACT” in July. What kind of response have you gotten?

A: It is off to a strong start and has exceeded our initial expectations.

Q: What is your outlook for the Merchandising segment?

A: We are standing ready with multiple pieces of merchandise based on our IP. Game tradeshows and other major events are prime opportunities for the Merchandising segment to sell its products, but these events have all be cancelled, postponed, or moved online because of COVID-19. As such, we are currently considering what new sales initiatives we can undertake in their stead.

Q: What is your outlook for the HD Games sub-segment in 2Q?

A: We think that digital sales will be calmer in 2Q than in 1Q. With “Marvel’s Avengers,” we think growing digital sales will play a more important role than sales of physical copies, which makes forecasting sales volumes difficult.


123
laoding...