During FY2024/3, we will exert particular effort into the three goals in the Entertainment Contents business of further expansion of major IPs, securing stable earnings from existing mainstay titles, and creating new IP. With regard to new titles, we plan to release new titles, etc. for our mainstay IPs, such as “Sonic” and “Like a Dragon,” and in line with the medium-term strategy, pursue global simultaneous launches and multi-platform support, and strengthen repeat sales. With regard to existing titles, “Project SEKAI COLORFUL STAGE! featuring Hatsune Miku” and other titles will perform strongly to contribute to stable earnings. Furthermore, as a challenge towards creating new IPs we are planning to launch “HYENAS” and etc. within this fiscal year. Although the rebound of the market following the worldwide consumer behavior changes accompanying the COVID-19 pandemic shows signs of settling down, expectations continue for vitalization and growth in the global gaming market. Carrying on with Sonic at the forefront, we will conduct the accelerated global branding of existing IPs, and pursue initiatives to expand opportunities for profit in the Entertainment Contents business.

In the Pachislot and Pachinko Machines business, starting with “Smart Pachislot Hokuto No Ken”, we plan to aggressively launch smart pachislot including “Smart Pachislot BIOHAZARD: VENDETTA” in addition to the number 6.5 models, which are operating well. We are receiving strong demand for our products, including “Smart Pachislot Hokuto No Ken”, but we need to continue to closely monitor the procurement of parts, and we will take appropriate measures accordingly while keeping an eye on our production capacity. Over the past year the contribution of “Pachislot Kabaneri of the Iron Fortress” and other pachislot machines were considerable, and the utilization of pachislot machines rose greatly. This upward trend is continuing, and we expect that the prospected number of units sold in the Pachislot and Pachinko market during FY2024/3 will buck the downward trend and start to increase. Furthermore, with the introduction of “Smart Pachislot Hokuto No Ken” we have won the 2nd largest total utilization share of Pachislot and Pachinko machines. Amid such a market situation and strong demand for machines, it is possible that we may attain the target in the medium-term plan of “No. 1 in total utilization share of Pachislot and Pachinko machines” during the early half of the fiscal year. We would like to make this a year not just in which we obtain the top share but keep it for as long as possible.

With regard to growth investment in the Consumer area, we announced the implementation of a TOB for Rovio, the developer of the Angry Birds and possessor of high development and operational capabilities of global mobile F2P games. Furthermore, we established a joint venture company with PAPYLESS Co., LTD., which offers “Renta!” to jointly launch a new vertical scrolling comic book label, “ZEToon”. In these and other ways we are also pursuing the creation of new business and making good progress.

The medium-term plan launched in FY2022/3 has finally reached its last year. Now we have reached the consolidated targets of the plan, in FY2024/3 all our employees will join forces to aim for further growth. We will aim to be “constantly creating, forever captivating”, and pursue initiatives towards the sustainable growth of our corporate value. We hope that we can continue to count on the ongoing support of each and every one of stakeholders.

In terms of building upon the Sonic series’ media mix, we have released a number of feature films, including Sonic the Hedgehog (2020) and its sequel, Sonic the Hedgehog 2 (2022), as well as the animated series Sonic Prime (2022), which is currently available on Netflix. At present, we are also working with Paramount Pictures to produce the third installment of the Sonic the Hedgehog film series, as well as developing an original TV series for Paramount+, Paramount’s subscription-based streaming service.

To attract a new fan base and further increase recognition of the Sonic brand, we will continue to promote the global branding of the Sonic IP, which is beloved by fans of all ages around the world, by expanding upon our media mix in future including the production of films and TV series.

In the Pachislot and Pachinko Machines Business where our target is to continue to expand its share of utilization by “creation of hits” and maintain stable earnings by “improvement of business efficiency” under the medium-term plan, sales of No. 6.5 model pachislot machines and smart pachislot machines that take advantage of revised regulations have been strong.

Released in July 2022, “Pachislot Kabaneri of the Iron Fortress,” our first No. 6.5 model pachislot machine has achieved cumulative sales of approximately 35,000 units, which far exceeds our initial forecast, due to additional release of the “Biba panel” version from January 2023, etc. We have also released the “Mumei panel” as the third version since June 2023.

In addition, “Smart Pachislot Hokuto No Ken,” our first smart pachislot machine, was introduced in April 2023 and has already sold approximately 40,000 units as of April 28, 2023. It also has marked the highest utilization start out of the past “Hokuto” series. The “Ken-oh panel” version is scheduled to be released as the second version sequentially from August 2023.

We will also release our second smart pachislot machine, “Smart Pachislot BIOHAZARD:VENDETTA” after July 2023.