Note: This document is a translation from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the Japanese original shall prevail.

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Q&A for 2Q FY2020 Operating Results Briefing

The operating results briefing for the second quarter of the fiscal year ending September 2020 was held on Thursday, May 14, 2020 at 4:00 p.m. Below is a summary of the question and answer session.

Q: Regarding the smartphone game market, what is your 2Q review and 3Q outlook?

  1. There is no major change in the situation where the market is mature and the top titles in the sales ranking are fixed. "proposing new ways of playing" will continue to be required. 3Q has not changed much in the marketplace as a whole, but the impact of the COVID-19 may become more pronounced.

Q: What is the impact of the COVID‐19?

  1. We will continue to operate "DRAGON QUEST WALK" while giving consideration to social conditions and ways of communicating with users. For other titles, changes in the development structure at home had a slight impact, but this had no significant impact on the operation of content. DAU, ARPU, and persistence rate are growing, indicating that users are enjoying their services. We continue to develop three to four new titles annually. Although an environment has been put in place in which development can be carried out without problems even for telecommuting, it is considered that there is a possibility that development costs will increase slightly due to the lowering of work efficiency.

Q: What is 3Q outlook for the existing titles?

  1. While steadily nurturing medium-tolong-term sources of competitiveness, we aim to simultaneously assure immediate and effective sales. We hope to cultivate its own IP by conducting operations that allow users to play for a long time. At the same time, it monitors the profitability of titles on a regular basis to determine whether or not to continue operating.
    • Above ー

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Colopl Inc. published this content on 19 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2020 03:57:02 UTC