CAPCOM IR

We anticipate sales from titles that we are launching in the fourth quarter along with strong sales of small and midsize titles and repeat titles. Overall, we intend to reach the fiscal year sales goal for home video games.

It appears that most launches are in the first half when looking only at the titles that we have announced thus far. But we will be introducing other titles as well throughout the year. Consequently, our title introductions are spread evenly throughout the next fiscal year once you include all of the titles we plan to launch.

There is no change in our multi-platform strategy. We will select the platforms that best utilize the features of each game.

We will not use MT Framework. Monster Hunter Frontier Online is a title used exclusively for online play. We decided to offer this title for the Xbox 360 because of this console’s outstanding online game playing capabilities and for other reasons.

This is a growing market category in Japan and other countries. We realize that we need to target the SNS sector but have not yet reached any decisions concerning specific actions.

We can produce 3D games now from a technological standpoint. Although we are prepared to start research involving some titles, our decision about adding 3D to games will be made from a strategic perspective.

We are conducting sales activities but cannot provide further information at this time. We expect an improvement in orders compared with the previous model partly due to the benefits of reforms to our sales system and marketing activities.

We are well aware of the challenges in the pachislo market. We are reexamining our lineup of titles as part of measures to rebuild this business. We plan to focus on the development of titles that are very well known.

Our goal is to stabilize performance by increasing the number of models that we produce for other companies. In addition, we plan to sell several models of these machines that use our own brand. By taking these actions, we aim to make this business profitable. Furthermore, we believe that our decision to record a valuation loss on parts and take other actions in this fiscal year will improve earnings in this business going forward. We will announce our outlook when we have completed work on our forecast for the next fiscal year.

We believe that the pachinko & pachislo business will be the main source of this improvement. We will start sales of the Viewtiful Joe machine and will soon start sales of the Shin-Onimusha (Dawn of Dreams) machine, which we make for another company. We expect that these sales will contribute to earnings. In the mobile content business, we have been launching a steady stream of titles for the iPhone and other new devices. Performance has been generally in line with our original plan for the fiscal year. Overall, we believe that performance in both the pachinko and pachislo business and mobile content business will match our fiscal year plan.

We sell Resident Evil: Degeneration, Resident Evil 4, Phoenix Wright: Ace Attorney, Ghosts’n Goblins Gold Knights, and other games for the iPhone and iPod Touch. In addition, some titles of subsidiaries are distributed in other countries. We are unable to provide data concerning sales and the number of downloads.

There will be only repeat sales from existing products due to the absence of any new product launches in the fourth quarter. We therefore expect an operating loss because sales cannot cover fixed expenses.