6 operating results & financial status 1 overview of the six month period ended september 30 2006 japanese economy during this was on a recovery path in spite sluggish stock market and high crude oil prices supporting factors for trend were solid capital investments improved employment conditions steady consumer spending as video game industry profusion current hardware has impacted home while waiting full scale release next generation consoles portable console led growth expanding its user base into novice female middle aged players online grew steadily due partially to diffusion internet capable overseas showed favorable general one price reduction north american arcade operations stayed backed up by growing popularity card dispending games construction large arcades under these circumstances capcom group pushed forward effective product development elaborate sales promotion events aggressive expansion