ReportGREE
Summary of Questions and Answers: FY2017 2Q GREE Results Briefing
3 pages~4 min full read
GREE expects Q3 operating income to decline due to increased fixed costs associated with a pipeline of seven new game releases scheduled for the second half of the fiscal year.
See it on page 2The company is shifting operations for select titles to Vietnam and improving marketing efficiency to stabilize coin-consumption revenue within its game segment.
See it on page 2New business ventures in virtual reality and video advertising are targeted to reach profitability by FY2019.
See it on page 1GREE acquired 3Minute to bolster its video-content capabilities as part of a broader growth strategy.
See it on page 1The smartphone adaptation of Wild Arms, developed in partnership with ForwardWorks Corporation, is confirmed for release in FY2018 or later.
See it on page 1Management plans to improve performance by closing underperforming titles and reallocating resources to games with higher growth potential, citing insufficient content depth as a primary cause for past failures.
See it on page 2While the title Rara-MAGI saw a strong launch, coin consumption for other overseas native titles declined quarter-over-quarter, with a new overseas title planned for the late second half of the year.
See it on page 2The briefing clarified GREE’s strategic focus for FY2017 and beyond. The company confirmed that a smartphone adaptation of Wild Arms, developed with ForwardWorks Corporation, remains in the FY18‑later pipeline. To stabilize coin‑consumption revenue from its game operation segment, GREE plans to shift operations of select titles to Vietnam and enhance marketing efficiency as its portfolio expands. New ventures in video advertising and virtual reality are expected to reach profitability by FY2019, while the acquisition of 3Minute is positioned as an investment in video‑content capabilities to support broader growth.
Regarding intellectual property, GREE indicated that its development pipeline includes both partner‑owned IP and its own assets, aiming for a balanced mix. The company highlighted Rara‑MAGI’s strong launch performance and noted that coin consumption for other overseas native titles has declined quarter‑over‑quarter, though a new title is slated for late second half release. Seven titles scheduled for the latter half of the year will see roughly half released in Q3 and the remainder in Q4, with Rara‑MAGI already live.
Operating income is projected to dip in Q3 due to increased fixed costs from new releases. GREE will evaluate ongoing titles, closing those unlikely to grow while reallocating resources to high‑potential games. Poor performance is attributed mainly to insufficient content depth or breadth at launch, and lessons learned will inform future development.
