Revision to Consolidated Results Forecasts for the Fiscal Year Ending March 31, 2009

Square Enix Holdings Co., Ltd. has issued a significant downward revision to its consolidated financial forecasts for the fiscal year ending March 31, 2009. Originally projected in November 2008, the updated guidance reflects a substantial contraction in expected profitability and revenue. Net sales are now anticipated to reach 133 billion yen, a 16.9 percent decrease from the previous estimate of 160 billion yen. The impact on earnings is more pronounced, with operating income revised downward by 42.9 percent to 12 billion yen, recurring income halved to 10 billion yen, and net income reduced by 62.5 percent to 4.5 billion yen.

The primary drivers for these adjustments are underperformance in the Amusement and offline Games segments. The Amusement division, operated by Taito Corporation, has struggled against a challenging macroeconomic environment, while the offline Games segment has been negatively affected by the postponement of a major software title originally scheduled for a March 2009 release. These setbacks have overshadowed the positive momentum observed in other areas of the business, as the Online Games, Mobile Phone Content, and Publishing segments have continued to perform at or above initial expectations.

This financial outlook covers the full fiscal year ending March 31, 2009, and serves as a corrective measure to align market expectations with current operational realities. The revisions underscore the volatility inherent in the gaming industry, particularly regarding the timing of major product launches and the sensitivity of the amusement sector to broader economic conditions. While the company maintains a diversified portfolio, the reliance on specific high-profile releases and the performance of its amusement facilities remain critical factors in its overall fiscal health.