Summary of Main Questions and Answers at the FY2018 First Quarter GREE Results Briefing Held on October 27, 2017

The first quarter results for fiscal year 2018 reveal a strategic shift toward high-quality native game development and international expansion, particularly within the Chinese market. Financial performance during this period was characterized by an increase in commission fees, driven by both overall sales growth and a higher proportion of revenue generated from titles utilizing third-party intellectual property. Key contributors to coin consumption included successful late-2017 releases such as Another Eden, SINoALICE, and Senki Zesshou SYMPHOGEAR XD Unlimited. While a temporary decline in consumption is anticipated for these titles following their initial launch peaks, the long-term strategy focuses on scaling operational teams to enhance content depth and sustain user engagement.

The operational outlook emphasizes disciplined spending in the game and entertainment segments, prioritizing internal system strengthening over aggressive advertising. Conversely, investment in advertising and media remains a priority due to a growing user base. Regarding international growth, the timeline for overseas releases is estimated at three to six months following a launch decision. Success in the Chinese market is specifically tied to maintaining the authenticity of original Japanese versions while collaborating with local partners for fine-tuned regional operations.

Broader industry trends indicate rising user expectations and increased difficulty in player acquisition. To remain competitive, the strategy leverages a strong financial base to fund large-scale development and multi-media collaborations. Beyond mobile gaming, there is a continued commitment to the virtual reality sector, focusing on building development expertise and expanding accessibility through location-based VR experiences. This multifaceted approach aims to transition successful domestic titles into global hits while diversifying the technological portfolio to meet evolving market demands.