Square Enix Revision of Briefing Session Material: First-Half Period Ended September 30, 2007

Square Enix issued a formal revision to its financial briefing materials for the first half of the fiscal year ending September 30, 2007, to reflect a material change in consolidated earnings. The adjustment stems from a post-announcement contractual agreement reached by its subsidiary, Taito Corporation, regarding the closure of specific game arcade facilities. This development necessitated a recalculation of the previously reported financial figures to ensure accurate representation of the company’s fiscal performance during the specified period.

The primary financial impact of this revision is an ¥813 million decrease in the Allowance for Game Arcade Closings. Consequently, the company’s net income for the first half of the fiscal year increased by an identical amount of ¥813 million. This adjustment serves to correct the initial briefing data released on November 19, 2007, providing stakeholders with an updated view of the company’s profitability following the resolution of these arcade-related liabilities.

The scope of this update is limited to the consolidated financial results of Square Enix and its subsidiary, Taito Corporation, for the six-month period concluding in September 2007. By formalizing these changes, the company maintains transparency regarding its operational costs and the financial implications of its ongoing restructuring efforts within the arcade sector. The revision ensures that the briefing materials align with the final accounting adjustments necessitated by the finalized terms of the facility closures.