I sincerely hope that this interim report finds our shareholders prospering and in good health.
The economic environment facing the Konami Group is at a standstill with concerns over the rapid appreciation of the yen and the outlook for consumer spending. In addition,the direction of the global economy remains uncertain due to such factors as the United Kingdom’s exit from the European Union and a slowdown in the economies of emerging countries.
In the entertainment market, the market for virtual reality is expanding following the dramatically improved performances of various electronic devices, including tablets and home video game consoles. This expansion has brought about a growing number of business opportunities in the video game industry.
The gaming business continues to increase in size internationally due to the development of resources related to tourism and other factors. Moreover, there has been a movement toward the legalization of slot machines that incorporate the element of user skill. Accordingly, more and more business opportunities are expected to present themselves.
Needs within the market for health and fitness continue to diversify, with rising demand for exercise with a focus on improving physical appearance as well as a heightened interest in sports and health consciousness and preventing the need for nursing care that accompanies old age. Also, in the market for household health and fitness machines, new markets continue to expand thanks to cheaper equipment prices and the launch of a wide range of new products.
Thus far, the Group has placed accurately responding to the daily changes in the market environment as well as shifting toward a flexible and sustainable business organization as the foundation of its management strategy. We have now reorganized our business to integrate the arcade game business, a B2B business that formed a part of our Digital Entertainment Segment, into our Pachislot & Pachinko Machines Segment, which represents a segment of similar B2B businesses. Upon this reorganization, we have changed the name of the Pachislot & Pachinko Machines Segment to the "Amusement Segment." In doing so, we are working to leverage the know-how we have cultivated in the arcade game business since our foundation to provide KONAMIbrand products and services with higher-added value. At the same time, this business integration represents our pursuit of streamlined operations.
We will continue to work toward improving our value as a competitive corporate group. Accordingly, we would like to ask for the continued support and encouragement of our shareholders going forward.
Representative Director, President