FinancialGREE
Summary of Main Supplementary Explanations Questions and Answers at the FY2023 Third Quarter GREE Results Briefing Held on May 11, 2023
1 May 20232 pages~2 min full read
GREE's metaverse platform, REALITY, has surpassed 10 million global users and maintains a monetization model driven by livestreaming and avatar sales.
See it on page 1The company is integrating generative AI into the REALITY platform to automate the creation of 3D assets, avatars, and environmental elements to improve scalability.
See it on page 1The Internet and Entertainment segment is projected to generate 1.5 billion yen in operating income for Q4, reflecting a revenue decline following Japanese market anniversary events.
See it on page 2The international launch of 'Heaven Burns Red' is performing in line with market expectations, serving as a key driver for global expansion.
See it on page 1The Investment and Incubation Business is expected to contribute 0.5 billion yen in operating income for Q4, primarily through dividend income from corporate venture capital funds.
See it on page 2GREE is shifting its strategic focus toward international markets to offset the maturation of the domestic Japanese mobile gaming sector.
See it on page 1GREE’s financial performance and strategic outlook for the third quarter of fiscal year 2023 highlight a period of international expansion and technological evolution. The successful launch of overseas versions of Heaven Burns Red serves as a primary driver for the Internet and Entertainment Business. While specific long-term forecasts remain premature only three months post-launch, initial sales levels align with market expectations, indicating a strong start in global territories. For the upcoming fourth quarter, the company anticipates operating income of approximately 1.5 billion yen in this segment, accounting for the natural tapering of revenue following major anniversary events in the Japanese market.
The metaverse platform REALITY represents a significant pillar of growth, having surpassed 10 million global users. The platform distinguishes itself from competitors through high daily active user engagement and a proven monetization model centered on avatars and livestreaming. Strategic development for REALITY involves the integration of generative AI to facilitate user-generated content, mirroring successful industry trends seen in platforms like Fortnite. Current experimental applications of AI focus on the automated creation of 3D assets, including avatars and environmental elements, to enhance the service's scalability and creative depth.
Financial stability is further supported by the Investment and Incubation Business, which expects to post roughly 0.5 billion yen in operating income for the fourth quarter. This figure is largely secured through dividend income from corporate venture capital funds. Collectively, these results demonstrate a dual focus on maintaining core gaming profitability while aggressively scaling a monetized metaverse ecosystem for a global audience. The geographic scope emphasizes a shift toward international markets, particularly as the domestic Japanese mobile market matures and the company seeks to leverage its technological strengths in AI and virtual communities.
