Square Enix 2009 Annual Report Download - page 10

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Review of Operations
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.
The Company moved to a holding company structure on
October 1, 2008.
In the fiscal year ended March 31, 2009, on a consolidated
basis, net sales declined 8.0%, to ¥135,693 million. Operating income
decreased 42.9%, to ¥12,277 million, and recurring income declined
40.3%, to ¥11,261 million. Net income amounted to ¥6,333 million,
a 31.1% decrease compared with the previous fiscal year.
The Group plans, develops and distributes games for game
consoles (including handheld game machines) and personal
computers. The Group also handles localization of games devel-
oped 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,
by SQUARE ENIX LTD.
During the fiscal year under review, the Group released a
number of titles for Nintendo DS, including “DRAGON QUEST V”
(released in Japan, North America and Europe) and “CHRONO
TRIGGER “(released in Japan, North America and Europe). For
PlayStation Portable (PSP), the Group released “DISSIDIA FINAL
FANTASY” (released in Japan) and “CRISIS CORE – FINAL
FANTASY VII-“ (released in Europe).For XBOX 360, the Group
released “THE LAST REMNANT” (released in Japan, North
America and Europe) , “INFINITE UNDISCOVERY”(released in
Japan, North America and Europe) and “STAR OCEAN 4 –
THE LAST HOPE-“ (released in Japan and North America).
Consequently, sales in the Games (Offline) segment
totaled ¥36,343 million (down 12.6% from the previous fiscal
year), and operating income amounted to ¥4,162 million
(down 53.1%, ditto).
General Overview
Games (Offline)
Overview by Business Segment
©2008 ARMOR PROJECT/BIRD
STUDIO/ARTEPIAZZA/SQUARE ENIX
All Rights Reserved.
©2008 SQUARE ENIX CO., LTD.
All Rights Reserved. CHARACTER
DESIGN: TETSUYA NOMURA
©2009 SQUARE ENIX CO., LTD.
All Rights Reserved. Developed
by tri-Ace Inc.
©2009 SQUARE ENIX CO., LTD.
All Rights Reserved. CHARACTER
DESIGN: Yasuhisa Izumisawa
©2008 SQUARE ENIX CO., LTD. All
Rights Reserved./ Unreal® Engine,
Copyright 1998-2008, Epic
Games, Inc. All rights reserved.
Business Segment Information (Fiscal year ended March 31, 2009) (Millions of yen)
Games
(Offline)
Games
(Online)
Mobile Phone
Content
Publication Amusement Others Elimination or
Unallocated
Consolidated
Total
Net sales 36,343 10,629 7,092 12,985 58,269 12,370 (1,996) 135,693
Operating income 4,162 3,087 3,689 3,540 (944) 3,266 (4,523) 12,277
Operating income margin 11.5% 29.0% 52.0% 27.3% — 26.4% — 9.0%
08