Investor Relations

2010 To Our Shareholders

Strengthening Own-IPs

In establishing networks at the core of our business, we shall have a free hand in deploying certain titles into various content and services. While it is impossible to predict what future opportunities might be possible at the time of original title development,the current copyright system gives only IP holders the rights to determine what modifications can be made. As a result, titles based on external IPs face the risk of structural bottlenecks in business development.
This is why we insist on focusing on our own-IPs.

At SQUARE ENIX and TAITO, almost all of our titles are our own-IPs. And with the acquisition of Eidos, we increased our stable of AAA and potential AAA titles including "Tomb Raider," "Hitman" and "Kane & Lynch," to name a few.
We, of course, are also continuing to challenge ourselves in the creation of altogether new titles as well.

These are the three pillars of our growth strategy.

Constant Improvement

It takes strength to support transformation. In preparation, we took reinforcement measures in the fiscal ended March 2010.
These included a slimming of our content production account and an accelerated amortization of goodwill.
We also conducted a headcount adjustment to strengthen our fundamentals and energize the organization. Our over 350new graduate and mid-career hires were more than offset by a headcount reduction of over 800, resulting in a net decline of 457 employees.

We achieved record profit in the fiscal year under review.
However, this industry is deep in the middle of a rapidly changing operating environment.
As I have discussed, we are making every effort to become the industry leader in the next evolutionary stage. In these endeavors, I look forward to your continuing loyal support.

Yoichi Wada
President and Representative Director

Yoichi Wada