We have defined the three years of our current medium-term business plan as “a 3-year reboot for long-term growth.” In this, the first year of that plan, we advanced initiatives rooted in the four key strategies laid out below.
We overhauled the organization of our Japan studios, integrating them into a single management structure. This enables close coordination between corporate management and the studios on all large-scale investment titles, making it possible to manage progress on our development efforts in a cohesive manner. In so doing, we are working not only to optimize our development portfolio and timelines, but also to promote in-house development talent mobility and development cost optimization. Under the new structure, we have steadily implemented a policy of selectivity and focus in our development pipeline, following a thorough review across all HD and SD projects. Initiatives to improve the profitability of live titles are underway, including platform expansion, diversification of payment methods, and a review of operating costs. Through these initiatives, we are accelerating the shift from quantity to quality and on creating a robust pipeline for the medium to long term. Over the three years of our medium-term plan, we will establish a structure that enables us to steadily launch major titles—focused on our core IP franchises—into the global market.
As part of our multi-platform strategy, we have expanded into new markets by rolling out our titles to additional platforms, including PCs for both HD and SD titles. We have also increased sales of catalog titles by strengthening sales initiatives such as bundled offerings and promotions that accelerate the shift to digital. As part of our efforts to maximize IP value, we merged our domestic merchandising and licensing organizations, consolidating IP-related expertise that had previously been dispersed across the Group into a single organization. This integration has positioned us to pursue global growth from the next fiscal year onward and has also accelerated the creation of diverse customer touchpoints. These include new initiatives such as pop-up stores in Japan and overseas, as well as events, live performances, and cross-media projects that leverage our Group IP. We have also initiated new collaborations with partner companies, including multiple unannounced global projects, and have begun developing new IP with cross-media deployment in mind. We will further diversify revenue opportunities for our Group IP by leveraging our core publishing IP, while also expanding overseas sales, developing new business formats in the Amusement segment, and strengthening intra-Group synergies.
In our domestic operations, we are improving operational efficiencies through a renewal of our management accounting system and the utilization of AI. We plan to roll out a portion of our new HR programs in FY2026/3, with the aim of equipping our organization to foster talent strategically and to deliver results. The new framework will include a performance-based bonus system linked to Company earnings and the establishment of a Human Resources Development Committee. As in Japan, we renewed our management accounting system overseas and improved the SG&A ratio year-on-year basis by optimizing SG&A costs, particularly labor and advertising expenses. In addition, we have implemented new HR programs and rebuilt our global management structure by revamping our development studio and publishing functions. Looking ahead, we will pursue further optimization of our HD game development studio and publishing functions, while strengthening collaboration across the Group to establish a more efficient development structure.
In FY2025/3, we continued to explore growth investment opportunities, while also enhancing shareholder returns through a dividend increase. We paid a dividend of ¥129 per share, with reference to the level set in FY2022/3, when the Company posted record earnings. In addition, we announced a 3-for-1 stock split (executed on October 1, 2025) to improve stock liquidity and broaden our investor base. Going forward, we will continue to pursue an optimal balance between growth investment and shareholder returns, with a view to further enhancing the Group’s corporate value.