Square Enix 2015 Annual Report Download - page 9

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The Way Forward
Our business environment is undergoing major changes. Sales of PlayStation 4 and Xbox One are
growing significantly, primarily in Europe and North America. At the same time, smart devices are
becoming more advanced and more commonplace. As such, we are seeing an evolution in where
and how we enjoy digital content. Moreover, as the term IoT (Internet of Things) suggests, everything
around us is beginning to connect to the Internet. This is another trend that promises to create new
experiences for us. We recognize that such changes are a constant feature of the landscape in
which we do business, and based on that recognition, we maintain a constant goal: to deliver
content of consistently high quality to customers around the world under the best conditions
possible. We will continue to strive to attain that goal by engaging in research into the latest content
and technologies, developing new business models, and cultivating new sales channels and regions.
In addition, we will focus on the following initiatives in order to further strengthen and enrich our
Group’s content and IP portfolios.
1. Revitalizing Existing IPs
We will revitalize some of our strong IPs in ways that meet the needs of the modern gaming market.
For example, we will take an IP developed for earlier generations of game consoles and recreate it
for the latest consoles, while also proactively developing versions for play on smart devices. In
addition, we will also explore possibilities involving VR (virtual reality) and other new platforms. We
want our longtime fans to relish reliving past experiences with a freshness that only the latest in
technology can provide, while at the same time have new customers enjoy the IP as though it were
brand new. By not only optimizing single pieces of IP for single platforms but also rolling out IP in a
multi-dimensional manner to meet the needs of the modern market, we believe we can deliver
exciting new experiences.
2. Creating New IPs
How to constantly generate new IPs and how to cultivate them are key business issues for any
content provider. Once new content begins to take shape, it is vital to have an environment and
mechanisms in place that help it grow into a major franchise. We intend to strengthen our efforts to
sow the seeds of new content, and cultivate them constantly, and we will pursue a variety of avenues
in order to do so. Our Group possesses many content platforms, including console games, smart
device games, arcades, PC games, and comics. All of those platforms are capable of giving rise to
new IPs. We see this as a strength of our Group that is unmatched by any competitor. We will work
in the fiscal year ending March 2016 to ensure that these IP cultivation platforms give rise to new IPs
for us to foster for the future.
07