ReportGREE
Summary of Main Supplementary Explanations Questions and Answers: FY2023 Fourth Quarter
2 pages~3 min full read
GREE is pivoting away from the declining profitability of the smartphone game market toward a diversified portfolio, aiming for half of non-investment earnings to come from non-game, non-anime sources by FY2026.
See it on page 1The company projects a consolidated operating income of ¥4.0–5.0 billion for FY2024, excluding contributions from new game releases, anime, or investment income.
See it on page 2Within the Metaverse Business segment, the Platform and B2B sub-segments are currently profitable, with a group-wide goal for all four sub-segments to reach profitability by FY2026.
See it on page 1GREE is restructuring its game development pipeline into four categories—in-house, regional expansion, joint development, and licensing—while prioritizing quality over speed by withholding release dates for FY2024 titles.
See it on page 1The Investment Business is targeted to achieve a 10% return by FY2026 as part of the company's medium-term strategy to build stable revenue streams.
See it on page 2Profits from the profitable Metaverse sub-segments are being actively reinvested into the growth of the company's VTuber and Web3 business units.
See it on page 1The briefing outlines GREE’s strategic direction for FY2023‑FY2026, emphasizing a diversified portfolio beyond core gaming. In the fourth quarter, the company began categorizing its development pipeline into in‑house, regional expansion, joint development, and licensing, noting increased collaboration prospects with major IP holders such as Heaven Burns Red. Release dates remain undisclosed for FY2024 titles, reflecting a focus on quality over speed.
GREE views the smartphone game market as increasingly less profitable due to larger development scales, prompting a shift toward higher‑margin ventures. Within the Metaverse Business segment, Platform and B2B sub‑segments have achieved profitability; profits are being reinvested into the VTuber and Web3 businesses. The company aims for all four Metaverse sub‑segments to be profitable by FY2026, contributing significantly to group earnings.
Synergies between the VTuber and Platform businesses are currently indirect, driven by international talent recruitment for REALITY. Future cross‑promotions are anticipated once both units mature.
Financial outlooks indicate a consolidated operating income of approximately ¥1.0 billion for Q1 FY2024, with a full‑year target of ¥4.0–5.0 billion for FY2024, excluding new game or anime contributions and investment income. For FY2026, the company projects similar operating income levels while targeting a 10 % return from its Investment Business and aiming for half of non‑investment earnings to derive from non‑game, non‑anime sources. This reflects a medium‑term strategy of expanding stable revenue streams beyond traditional gaming.
