Square Enix 2005 Annual Report Download - page 10

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Overview by Business Segment
Games (Offline)
The Company plans, develops and distributes games
for game consoles and mobile game terminals. The
Company also handles localization of games developed
and distributed in Japan to distribute in North America
through SQUARE ENIX, INC., a wholly-owned subsidiary,
while distribution in Europe and Asia is handled by
leading publishers through license arrangements.
During this fiscal year, “DRAGON QUEST VIII Sora-to-
Umi-to-Daichi-to-Norowareshi Himegimi” was released
and is now the first PlayStation2 (PS2) title in Japan
achieving over 3 million units shipped (3,610 thousand
units in Japan as of March 31, 2005). In addition,
“Kingdom Hearts Chain of Memories” for Game Boy
Advance (“GBA”) has over 1 million units shipped
worldwide (360 thousand units in Japan, 720 thousand
units in North America). Other new game titles released
during this period are “FULLMETAL ALCHEMIST 2
Akaki Erikusiru-no-Akumu” (160 thousand units in
Japan), “DRAGON QUEST & FINAL FANTASY in
Itadaki Street Special” (380 thousand units in Japan),
“RADIATA STORIES” (290 thousand units in Japan) and
“MUSASHI: SAMURAI LEGEND” (80 thousand units in
North America) for PS2; and “Toruneko no Daibouken
3 Advance –Fushigi no Dungeon–” (140 thousand
units in Japan) and “FINAL FANTASY I·II Advance”
(290 thousand units in Japan, 500 thousand units in
North America and 150 thousand units in Europe) for
GBA. Furthermore, the Company released “Egg
Monster HEROES” (90 thousand units in Japan)
for Nintendo DS in December 2004.
Consequently, net sales in the Games (Offline)
segment totaled ¥41 billion (up 10.4% from the
previous fiscal year), and operating income amounted
to ¥19 billion (up 19.8%).
Games (Online)
The Company plans, develops, distributes and operates
online games connected to the network. In September
2004, the expansion pack “FINAL FANTASY XI: Chains
of Promathia” was released in Japan and North
America, while online game service “PlayOnline”
and “FINAL FANTASY XI” (“FFXI”) were launched
in Europe.
8SQUARE ENIX CO., LTD.
Review of Operations
The Year in Review
SQUARE ENIX CO., LTD., and its consolidated subsidiaries (collectively, the “Company”) have been making determined efforts to strengthen the foundation
and profitability of its business segments of Games (Offline), Games (Online), Mobile Phone Content, Publication and Others. The Company has been pursuing
fundamental R&D activities to obtain advanced information technologies, which are crucial in promoting growing network-related businesses, and to apply such
technologies to our products and services.
The Games (Online) and Mobile Phone Content segments have continued to make significant growth in this fiscal year in addition to the Games (Offline) segment.
The Publication segment has made increased income and profit despite unfavorable market conditions.
DRAGON QUEST VIII
©2004 ARMOR PROJECT/BIRD
STUDIO/LEVEL-5/SQUARE ENIX
All Rights Reserved.
Games (Offline) Games (Online) Mobile Phone Publication Others Elimination or Consolidated
Content corporate total
Net sales 41,944 13,853 4,557 10,859 2,649 — 73,864
Operating income 19,649 4,986 1,738 3,411 782 (4,131) 26,438
Operating income margin 46.8% 36.0% 38.1% 31.4% 29.5% — 35.8%
Millions of yen
Business Segment Information Fiscal year ended March 31, 2005