COLOPL : 1Q FY Sep.2023 Question and Answer Summary（362KB）

Note: This document is a translated version for reference purposes only. Therefore, any discrepancy may occur with the Japanese original version. Please refer to the Japanese version if you find anything unclear. COLOPL, Inc. takes no responsibility for any problems of translation.

Q&A for 1Q FY2023 Operating Results Briefing

This financial results meeting was held on Wednesday, February 8, 2023 at 4:00 p.m. Below is a summary of the question and answer session.

Q：Please tell me when and why your performance will bottom out.

A：In the entertainment business, we believe that releasing new titles and making them hits is everything. This fiscal year, we had already released two titles, "NEKO GOLF -AnimeGOLF-" and "Volzerk : Monsters and Lands Unknown". With six new titles in development, we will continue to focus on the development of new titles and make them hits.

Q：Regarding your new title "Volzerk : Monsters and Lands Unknown," what are your aims for it and its impact on earnings?

A：In order to propose "new ways to play", we are considering monetization that fits each game and way of playing. The "Volzerk : Monsters and Lands Unknown" is part of such efforts and is positioned as a verification of various challenges (non-operational title, monetization other than gacha, distribution on Steam, etc.) and is not aimed at large profits. We would like to make use of the knowledge gained in this project for future game development.

Q：Please tell us if your new upcoming titles will also be titles that challenge new monetization. Also, what do you think about the possibility that users may not be looking for monetization other than gacha?

A：Not to say that we will not develop games with gacha in the future, we believe that it is important to select and release monetization methods that fit the gameplay and the way of playing. We believe that users will get bored if they play only games with the same monetization, so we will proceed with development while selecting monetization that matches the gameplay so that users can enjoy and play the games for a longer time.

Q：Many users are critical of "Play to Earn," but do you believe that if the game is fun, people will play it?

A：The current "Play to Earn" has sustainability issues, and we believe that this is the key to

whether it will be accepted by society in the future. While there is a general methodology to ensure sustainability through fun games and the token economy, we would like to take a different approach to ensure sustainability. We are considering a system in which playing games is a value to others and creates value in the world. We will continue to work on this so that it will be accepted and sympathized with by the world.

ー Thank you very much ー