FinancialGREE
Summary of Main Supplementary Explanations Questions and Answers at the FY2025 Second Quarter GREE Results Briefing Held on February 6, 2025
6 Feb 20252 pages~3 min full read
The upcoming title 'Puella Magi Madoka Magica Magia Exedra' has exceeded 500,000 pre-registrations, outperforming the company's historical benchmarks for major game launches.
GREE targets approximately ¥3.0 billion in annual sales for its VTuber segment, with a goal of achieving monthly profitability within fiscal year 2026.
Existing flagship titles 'Heaven Burns Red' and 'That Time I Got Reincarnated as a Slime: ISEKAI Memories' are showing a slowing rate of revenue decline as they mature past their three-year mark.
Current losses in the VTuber business are driven by one-time capital expenditures for 3D model production and character design associated with new talent debuts.
Management has committed to a development cadence of at least one major game release per year, with individual project timelines operating independently to insulate the broader pipeline from delays.
The VTuber business strategy focuses on diversifying revenue through merchandise, live music events, and industry participation to reduce reliance on individual performers.
GREE Group’s fiscal 2025 second-quarter performance reflects a strategic pivot toward stabilizing mainstay gaming titles while aggressively scaling its VTuber business. The Game and Anime segment is currently anchored by the upcoming release of Puella Magi Madoka Magica Magia Exedra, which has surpassed 500,000 pre-registrations as of late January 2025. This performance exceeds internal expectations and historical benchmarks for the company’s past hits, suggesting strong market anticipation despite a generally tightening smartphone game environment. Management maintains a development cadence of at least one major release per year, emphasizing that individual project timelines are independent and that delays in one title do not impact the broader pipeline.
Performance trends for existing titles, including Heaven Burns Red and That Time I Got Reincarnated as a Slime: ISEKAI Memories, indicate a slowing rate of decline as these games mature beyond their third year of operation. This stabilization provides a foundation for the company to absorb the costs associated with newer ventures. In the VTuber segment, revenue growth is driven by talent merchandise, live music events, and seasonal participation in major industry events like Winter Comiket. While the business currently reports losses, these are attributed to one-time investments in 3D model production and character designs for new talent debuts.
The VTuber business is expected to reach a turning point in profitability as the initial phase of talent acquisition and asset creation concludes. Management targets approximately ¥3.0 billion in annual sales for this segment, with a goal of achieving monthly profitability within fiscal year 2026. By diversifying income across a broad roster of talent rather than relying on a single performer, the company aims to build a sustainable, high-growth vertical that complements its traditional gaming operations. Overall, the strategy focuses on leveraging established intellectual properties and expanding digital talent platforms to drive long-term financial recovery.
