Updated Mar 21, 2026 by GREE
The company reported a 63% quarter-over-quarter decline in operating profit to ¥0.4 billion and a 12% year-over-year sales decrease to ¥12.7 billion, citing core game underperformance and lower investment dividends.
Management has lowered the full-year sales forecast to ¥52.4 billion but maintains a ¥4.4 billion operating profit target by prioritizing cost controls and high-margin recurring revenue in DX and platform sectors.
The VTuber production business is a primary growth driver, achieving record-high quarterly sales and a 105% year-over-year increase in operating profit.
Despite current earnings pressure, the company projects a 48% compound annual growth rate for profit through fiscal year 2028, positioning the current period as an earnings floor.
The core game business experienced a 24% sales decline, though operational efficiencies allowed profits to exceed internal expectations.
The company maintains a strong balance sheet with an equity ratio of 70% and total net assets of ¥64.6 billion, supported by an investment portfolio with ¥22.4 billion in unrealized value.
Future growth strategy centers on a diversified pipeline, including a first-party console RPG, a major third-party IP title, and expanded investments in anime production and merchandising.
The company reported a 63% quarter-over-quarter decline in operating profit to ¥0.4 billion and a 12% year-over-year sales decrease to ¥12.7 billion, citing core game underperformance and lower investment dividends.
Management has lowered the full-year sales forecast to ¥52.4 billion but maintains a ¥4.4 billion operating profit target by prioritizing cost controls and high-margin recurring revenue in DX and platform sectors.
The VTuber production business is a primary growth driver, achieving record-high quarterly sales and a 105% year-over-year increase in operating profit.
Despite current earnings pressure, the company projects a 48% compound annual growth rate for profit through fiscal year 2028, positioning the current period as an earnings floor.
The core game business experienced a 24% sales decline, though operational efficiencies allowed profits to exceed internal expectations.
The company maintains a strong balance sheet with an equity ratio of 70% and total net assets of ¥64.6 billion, supported by an investment portfolio with ¥22.4 billion in unrealized value.
Future growth strategy centers on a diversified pipeline, including a first-party console RPG, a major third-party IP title, and expanded investments in anime production and merchandising.