Umegaki

Taku Umegaki inquired about the delayed release of Marathon, the strategic significance of live service games for Sony Group, and the company's perspective on its stock price performance, market valuation, and strategies to enhance market capitalization amidst concerns like memory costs and AI's impact on entertainment stocks.

Answer

Corporate Executive Officer and CFO Lin Tao explained that Marathon's delay was due to user feedback and modifications, expressing confidence in its March 5th release. She highlighted live service games' importance for recurring revenue and portfolio stability. Regarding stock performance, Ms. Tao acknowledged market concerns about memory supply and AI's draw, stating Sony's focus on strengthening fundamentals, optimizing its portfolio, and communicating its long-term strategy to improve valuation.

Umegaki from Toyo Keizai inquired about the music segment's JPY 25 billion upward revision in operating income, specifically asking how much of this contribution came from Demon Slayer, given it was already partially reflected in the forecast. Umegaki also asked about the Pictures segment's JPY 250 billion operating income, noting first-half difficulties and a decline in TV production, and how upcoming sequels are expected to contribute to growth.

Answer

Lin Tao, CFO, Corporate Executive Officer, stated that Demon Slayer and Kokuhou together contributed about 50% of the music segment's JPY 25 billion upward revision, alongside streaming music. For the Pictures segment, Lin Tao explained that first-half difficulties are seasonal, with launches typically in the latter half. Lin Tao acknowledged the depressed industry for TV and movie production, emphasizing cost control and successful projects, and highlighted Crunchyroll as a key growth driver for the Pictures segment, with increased subscribers and sales.