This paper describes simultaneous attainment in improving fuel consumption, output power and reducing HC emissions with a direct injection S.I. engine newly developed in Nissan.Straight intake port is adopted to increase discharge coefficient under WOT operation and horizontal swirl flow is generated by a swirl control valve to provide stable stratified charge combustion under part load conditions. As a result, fuel consumption is reduced by more than 20% and power output is improved by approximately 10%. Moreover, unburned HC is reduced by equivalently 30% in engine cold start condition. An application of diagnostic and numerical simulation tools to investigate and optimize various factors are also introduced.