Square Enix 2008 Annual Report Download - page 11

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The Group’s operations are classified into six business segments—
Games (Offline), Games (Online), Mobile Phone Content,
Amusement, Publication and Others. In each business segment,
the Group strives to reinforce its business base and enhance its
earnings potential. The Group has been pursuing research and
development (R&D) in core technology areas, with particular
emphasis on network-related businesses, and aims to apply
network technologies to its products and services.　
In fiscal 2007, ended March 31, 2008, on a consolidated
basis, net sales declined 9.8%, to ¥147,516 million. Operating
income decreased 17.0%, to ¥21,520 million, and recurring
income declined 28.1%, to ¥18,864 million. Net income
amounted to ¥9,196 million, a 20.9% decrease compared with
the previous fiscal year.
The Company plans, develops and distributes games for game
consoles (including handheld game machines) and personal
computers (PCs). The Company also handles localization of
games developed and distributed in Japan, which are distributed
overseas principally by two wholly owned subsidiaries of the
Company. In North America, distribution is handled by SQUARE
ENIX, INC., and in Europe and other regions that use the PAL
video format, through SQUARE ENIX LTD.
During the fiscal year under review, the Company released a
number of titles for Nintendo DS, including “DRAGON QUEST
IV” (1.15 million units in Japan as of March 31, 2008; hereafter
references to units sold are as of that date), “FINAL FANTASY
IV” (590 thousand units in Japan), “FINAL FANTASY XII: REVE-
NANT WINGS” (540 thousand units in Japan, 220 thousand
units in North America and 280 thousand units in Europe),
“Itadaki Street DS” (430 thousand units in Japan), “FINAL
FANTASY CRYSTAL CHRONICLES: Ring of Fates” (380 thousand
units in Japan, 160 thousand units in North America and 150
thousand units in Europe) and “FINAL FANTASY III” (480 thou-
sand units in Europe). The Company also released “CRISIS
CORE—FINAL FANTASY VII—” (800 thousand units in Japan
and 450 thousand units in North America) for PlayStation
Portable (“PSP“) and “DRAGON QUEST SWORDS: The Masked
Queen and the Tower of Mirrors” (490 thousand units in Japan
and 110 thousand units in North America) for Wii.
General Overview
Overview by Business Segment
Games (Offline)
Business Segment Information (Fiscal year ended March 31, 2008) (Millions of yen)
Games
(Offline)
Games
(Online)
Mobile Phone
Content
Publication Amusement Others Elimination or
Unallocated
Consolidated
Total
Net sales 41,588 12,098 6,579 11,158 69,104 9,005 (2,017) 147,516
Operating income 8,882 5,880 1,758 3,626 3,129 3,324 (5,082) 21,520
Operating income margin 21.4% 48.6% 26.7% 32.5% 4.5% 36.9% — 14.6%
©2007 SQUARE ENIX CO., LTD. All Right Reserved.
CHARACTER DESIGN: TETSUYA NOMURA
©2007 ARMOR PROJECT/BIRD STUDIO/
ARTEPIAZZA/SQUARE ENIX All Rights Reserved.
Review of Operations
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