Outlook for P-B systems <4447>.
2. Medium to long-term focuses.
The Emotional System business achieved a long-awaited profit turnaround in the September period 2023. Moreover, it is clear that the same business is expected to grow rapidly in the September period 2024. However, it is necessary to understand that there is great growth potential depending on the business development in the medium to long term. In particular, there is a possibility that the direction of business expansion will broaden based on the growing interest of society in the "metaverse".
As the greatest achievement in the September 2023 period, customers started using the metaverse service developed for DaiEi Industrial <2974>, a comprehensive real estate company listed on the Fukuoka Stock Exchange. While many companies struggled to commercialize the metaverse, this company steadily completed metaverse projects for companies. It is considered as a good opportunity to deepen the understanding of service requirements that companies require for metaverse, and to get significant indications for service brush up in the future by observing the reactions of general customers who use metaverse. Indeed, the company mentioned this point at its past earnings conferences, commenting that in order to further penetrate corporate metaverse in the future, it is necessary to realize a 3D space where desired information can be easily and in real time obtained, preferably by lowering the threshold for service use by general customers (such as eliminating the need to wear VR goggles and reducing user authentication).
In addition, it was announced that the company became a partner in SoftBank's <9434> "ONE SHIP" program as of June 30, 2023, and also joined SoftBank's "5G Consortium". The former is a partner program where companies aiming to realize innovation together with SoftBank cooperate and collaborate, and the latter is an organization that gathers suppliers and solution partners to support the 5G era, discuss and examine concrete solutions for industry and theme areas, and conduct proof-of-concept experiments (PoC). It is easy to imagine that the possibilities of MetaWalkers will expand not only by promoting our own business but also by involving other companies with keywords such as 5G and 6G, and we are expecting further continued efforts. In fact, it has been revealed that the company is currently promoting the expansion of MetaWalkers' lineup, and strengthening real-time distribution with the combination of 5G and 360-degree cameras would have a high probability of acquiring new demand once development is completed.
(Writer: FISCO analyst Tomoichi Murase)