Square Enix Holdings First Quarter Financial Results: Fiscal Year Ending March 31, 2010

Square Enix Holdings experienced a net loss of 1,672 million yen during the first quarter of the fiscal year ending March 31, 2010. This financial outcome was primarily driven by the cyclical nature of major title releases within the Games segment and non-operational costs associated with the integration of Eidos, including acquisition-related expenses, tax adjustments, and accounting standardizations. Despite these temporary headwinds, the company maintained profitability on a recurring income basis, supported by stable performance in the Publication and Merchandising segments.

The integration of Eidos remains a central strategic priority, with structural and operational consolidation scheduled for completion by the end of 2009. Management is focused on leveraging cross-company synergies by applying a multi-faceted business model to newly acquired assets and fostering technical collaboration between global creative teams. Simultaneously, the company is actively restructuring its amusement business to enhance operational efficiency in response to a challenging market environment.

Looking ahead, the company anticipates a significant improvement in financial performance beginning in the second quarter. This optimism is anchored by the successful launch of Dragon Quest IX and a robust pipeline of international releases. By maintaining financial strength throughout the integration process and capitalizing on a diversified portfolio, the company remains positioned to meet its broader fiscal objectives for the remainder of the year.