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Financial
Summary of Supplementary Explanations Q&A at the FY2026 Second Quarter GREE Holdings Results Briefing
GREE Holdings, Inc. outlines its strategic direction and financial outlook following the second quarter of fiscal year 2026, focusing on a structural shift away from the volatile Game Business toward more stable, continuous growth segments. Despite a downward revision to the full-year earnings outlook for FY2026 due to the softening performance of existing game titles, the long-term medium-term targets for FY2028 remain unchanged. This stability is supported by the steady expansion of the IP, VTuber, and DX Business segments, which are intended to reduce the company's reliance on hit-driven gaming revenue. The IP Business is diversifying through the Anime Business, specifically by adapting invested anime titles into games. To strengthen this pipeline, there is a strategic goal to acquire in-house anime production capabilities or pursue M&A within the next two to three years. This move aims to provide greater control over production quality and timing, which are viewed as essential for creating popular intellectual property. Simultaneously, the VTuber Business is expanding its monetization beyond traditional gifting. Pilot projects on the REALITY platform are testing merchandise sales and event-based revenue for both in-house talent and independent streamers, alongside new marketing solutions for corporate clients. In the DX Business segment, the focus remains on high-value consulting for end-user-facing services and entertainment. While generative AI and automated agents are expected to impact routine maintenance and labor costs in the broader industry, the specialized nature of creating fan-driven content is seen as resilient to automation. Consequently, technological advances in AI are not expected to negatively impact the DX segment in the near term. Overall, the strategy emphasizes leveraging human creativity and platform diversification to ensure stable, long-term earnings growth across the global entertainment and digital transformation markets.
GREEFeb 2026
Report
Guide to Growing Chinese Gaming Apps Overseas
Chinese gaming developers are aggressively expanding their global footprint by leveraging sophisticated monetization models and high-volume, AI-driven marketing strategies. The primary objective for these publishers is to balance the high revenue potential of mature markets like the United States, Japan, and South Korea against the rising costs of user acquisition. By prioritizing video advertising, which currently yields the highest Day 7 return on ad spend at 21%, developers are successfully capturing market share in competitive strategy and RPG segments. Success in these international territories is increasingly predicated on hyper-localization and technological integration. Publishers are utilizing generative AI to streamline the production of localized ad creatives, voice-overs, and performance-tested copy, allowing for rapid iteration and regional customization. Leading titles demonstrate that high-engagement gameplay loops—such as the inclusion of social hangout spaces, customizable home systems, and minigame integrations—are essential for sustaining long-term retention. These efforts are further bolstered by strategic partnerships with local influencers and the implementation of innovative, time-limited gacha mechanics. To maintain consistent growth, developers are diversifying their engagement tactics through gamified live events, including seasonal collections and interactive board-style challenges. These features, combined with trial character systems, allow publishers to cater to varied player motivations while maintaining a steady revenue stream. By synthesizing competitive intelligence with agile content updates, Chinese gaming apps are effectively navigating the complexities of global expansion, ensuring that both monetization and user interest remain high across diverse geographic regions.
EAJan 2025
Report
Mobile App Trends 2025: Japan Edition
Japan remains the world’s third-largest mobile app market, characterized by a resilient consumer spend of $16.5 billion in 2024 and a 7% year-over-year increase in total installs. While the gaming sector remains a foundational pillar, the market is undergoing a significant diversification into finance, entertainment, and digital comics. User trust is also on an upward trajectory, evidenced by App Tracking Transparency opt-in rates rising to 21.4%, with the gaming vertical leading at 31%. This shift suggests a maturing ecosystem where users are increasingly comfortable with data sharing in exchange for personalized experiences. The gaming sector demonstrated notable stability in the first half of 2025, with a 3% increase in installs that outperformed global trends. Card games experienced a 127% surge in sessions, while role-playing games maintained the highest engagement levels with average session lengths of 40 minutes. Simultaneously, the finance sector emerged as a high-growth vertical, with installs rising 50% driven by payment and banking apps. Although average revenue per monthly active user has seen declines in some sectors, engagement metrics remain strong, particularly in entertainment where short-form drama apps have achieved a high revenue-per-download of $4.13. A defining trend across the Japanese landscape is the strategic shift toward paid user acquisition. This is most visible in the comic app market, which reached a record paid-to-organic ratio of 1.03. Despite a decline in new installs for comics, the vertical remains a global revenue powerhouse due to deep user loyalty and session lengths averaging over 17 minutes. Across finance, entertainment, and comics, the market is transitioning from a phase of rapid expansion to one focused on maximizing the lifetime value of a culturally invested and highly engaged user base.
AdjustJan 2025
Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2024 Second Quarter GREE Results Briefing Held on February 7, 2024
GREE’s financial performance and strategic outlook for the second quarter of fiscal year 2024 reflect a period of portfolio optimization and aggressive expansion into emerging digital entertainment sectors. The primary driver of recent operational success is the strong performance of Heaven Burns Red, which saw significant engagement following its second-anniversary events. This success is balanced against the strategic discontinuation of SINoALICE, a decision made to align the Game and Anime Business with long-term development goals. While several titles remain in the development pipeline, specific release schedules remain undisclosed as the company prioritizes smooth internal progress over immediate market entry. The VTuber Business represents a core pillar of future growth, with plans to invest aggressively in talent acquisition and agency support. Earnings in this segment are primarily driven by the talent pool, leading to a rigorous audition process that evaluates past streaming performance, character compatibility, and audience communication skills. Simultaneously, the Investment Business is entering a more favorable phase as global valuations, particularly in the United States, begin to stabilize after a period of excess. GREE intends to leverage its established network in the game and metaverse domains to accumulate new investment assets during this market correction. Financial projections for the remainder of the fiscal year indicate steady profitability. Excluding the volatile Investment Business, consolidated operating income is forecasted at approximately 1.5 billion yen for the third quarter and 5.0 billion yen for the full fiscal year 2024. These figures suggest a stable baseline for the company’s core operations as it navigates the transition between legacy titles and new growth initiatives in the virtual talent and investment sectors.
GREEFeb 2024