Results Briefing Session for the Six-Month Period Ended September 30, 2010: Square Enix Holdings Co., Ltd.

Square Enix Holdings Co., Ltd. reported its consolidated financial results for the six-month period ending September 30, 2010, reflecting a period of transition and strategic realignment. The company recorded net sales of 68.06 billion yen and an operating income of 5.71 billion yen for the first half of the fiscal year. These figures represent a decline compared to the previous fiscal year, driven by shifting market conditions and the company’s ongoing efforts to pivot toward a network-centric business model.

The core strategy for the fiscal year ending March 2011 focuses on three pillars: globalization, the transition to network-centric operations, and the strengthening of intellectual property. To achieve global expansion, the company has prioritized its business framework in North America and Europe, including leadership changes at its U.S. subsidiary and a strategic partnership with Shanda Games to facilitate online gaming growth in China. The network-centric initiative is anchored by the launch of Final Fantasy XIV and the development of new digital content areas, such as browser-based games. Simultaneously, the company is leveraging its existing portfolio, including titles like Deus Ex and Lara Croft, while investing in the creation of new AAA brands.

Financial projections for the full fiscal year ending March 31, 2011, anticipate net sales of 160 billion yen and an operating income of 20 billion yen. While the company expects a decrease in total unit sales compared to the previous year, it remains committed to cross-media deployment and the expansion of its digital entertainment segment. The results underscore a period of heavy investment in infrastructure and new business models, with management emphasizing that long-term growth depends on adapting to rapid technological developments and evolving consumer preferences in the global gaming market.