ReportGREE
Summary of Main Supplementary Explanations Questions and Answers: FY2021 Fourth Quarter
2 pages~2 min full read
GREE is committing approximately ¥10 billion over the next two to three years to scale its Metaverse platform, REALITY, focusing on advertising, labor, and outsourcing costs.
REALITY has expanded to 63 countries and territories globally, with particularly strong market reception in North America, Southeast Asia, Central and South America, and Russia.
GREE anticipates an operating loss in the hundreds of millions of yen for the first quarter of FY2022, driven by upfront investments and increased development costs for new app games.
The company’s investment and incubation segment targets a minimum return of 10% on venture capital activities to ensure consistent medium-to-long-term income.
REALITY differentiates itself from competitors through a unique livestreaming feature that allows users to broadcast content using virtual avatars.
GREE plans to accelerate REALITY's growth through localized events, expanded multilingual support, and aggressive promotional activities.
The briefing clarified GREE’s strategic focus on its Metaverse platform, REALITY, and financial outlook for the coming year. The company defined the Metaverse as a digital universe where users inhabit avatars to work and play, emphasizing its rapid growth driven by technology advances and heightened online interaction during the COVID‑19 pandemic. REALITY, launched globally six months prior to the briefing, is now available in 63 countries and territories, with strong reception in North America, Southeast Asia, Central and South America, and Russia. GREE highlighted the platform’s unique ability to livestream content with virtual avatars, a feature not offered by competitors, and outlined plans for further expansion through localized events, multilingual support, and extensive promotional activities.
Investment plans for REALITY are set at approximately ¥10 billion over the next two to three years, covering advertising, labor, and outsourcing costs. The company views this as a high‑potential business and aims to balance growth with cost efficiency. In its investment and incubation segment, GREE anticipates venture capital activities to provide consistent medium‑to‑long‑term income, targeting a return of at least 10 % despite short‑term volatility. For the first quarter of FY2022, GREE foresees a potential operating loss in the hundreds of millions of yen, attributed to increased development costs for new app games and upfront investments. The overall narrative positions REALITY as a central growth engine while acknowledging the financial risks associated with early‑stage expansion.
