Investor Relations

I am Yosuke Matsuda. I will be discussing the progress made by each of our business segments, as well as the progress that we have made with our medium-term business strategy.

In 1H, net sales and operating income fell YoY.

This is a breakdown for the Digital Entertainment segment. The HD Game sub-segment released “Life is Strange: True Colors” and “NEO: The World Ends with You” in 2Q. We have plans to release “Life is Strange: True Colors” for Nintendo Switch, as well as “Life is Strange Remastered Collection” in the near future. . We are hoping for both titles to continue to sell well over the long term. While “NEO: The World Ends with You” was well received by users, it has underperformed our initial expectations.

As in 1Q, the MMO sub-segment benefitted from brisk recurring revenue from “FINAL FANTASY XIV.” We expect the release of an expansion pack in 3Q to generate additional excitement.

Net sales at the Games for Smart Devices/PC Browser sub-segment declined due to lackluster performances from existing titles and to the release of few new titles. However, we have prepared a variety of initiatives to turn sales upward in 2H.

This slide shows our HD game pipeline.

In the MMO sub-segment, we have 3Q expansion pack releases planned for “FINAL FANTASY XIV” and “DRAGON QUEST X ONLINE.”

The Games for Smart Devices/PC Browser sub-segment launched “DRAGON QUEST The Adventure of Dai: A Hero's Bonds” on September 28.

This slide shows the breakdown of digital and physical sales at the Digital Entertainment segment.

This slide shows units sold by region in 1H. The sharp YoY decline owes in part to the high hurdle set the previous year by the release of major titles.

Our content production account stood at ¥89.7 billion as of the end of 2Q. We have multiple major titles slated for launch, and we will ensure that each release meets certain standards of quality.

While the Amusement segment's net sales rose YoY and it turned into the black, it was unable to avoid impact from the state of emergency declarations. The declarations have been lifted since October, so we hope to see earnings recover going forward.

The Publication segment delivered a solid performance.

The Merchandising segment's progress tracked our plan in 1H.