|Square Enix Anual Report 2013|
... Next, let me comment on the earnings model. In the online game area, including games for mobile devices, flexible pricing models represented by free-to-play (“F2P”) have become mainstream. Sales units of F2Pbased games are not physical discs, but rather are in-game items or virtual currency. Therefore, the F2P model is flexible in that earnings are adjustable according to players’ demand without any restriction on distribution of game products. My aim here is not to discuss the dichotomy between F2P and the fixed pricing model, but I would like to put emphasis on the major transformation of the game-playing environment in these days and big changes in consumer preferences regarding games. Devices for playing games are undergoing a rapid evolution and customer requirements for game experiences are becoming diversified accordingly. Consequently, the time has come for us game makers to take more flexible approaches in offering games and to devise various earnings models conforming to customers’ game-playing environments, moving away from the limited outlet of disc-based distribution of games. In this current of change, it is extremely important for the HD games category to enable transition from a disc-based earnings model to a more flexible one. This will define the future way we pursue HD games development...
Yosuke Matsuda - President and Representative Director
square-enix.com - PDF