Financial

Summary of Main Supplementary Explanations Q&A at FY2026 First Quarter GREE Holdings Results Briefing, November 6, 2025

6 November 20253 pages1,176 words

Summary

GREE Holdings provides a strategic overview of its operational performance and market outlook following the first quarter of fiscal year 2026. The primary focus centers on the structural evolution of the gaming sector and the path to profitability for the VTuber business. While the smartphone game market has reached a plateau characterized by high competition for user installs, the implementation of outside-the-app payment methods across all major titles has successfully bolstered profit margins. To ensure long-term sustainability in gaming, the strategy involves transitioning toward console development and cultivating internal intellectual property that can support multi-title series, though external contractors are currently utilized to bridge expertise gaps in the console segment. The VTuber business represents a significant growth pillar, with the production segment expected to reach monthly profitability within fiscal year 2026 and full-year profitability by fiscal year 2027. This financial turnaround is driven by a shift from high-cost talent acquisition and 3D model production toward high-margin revenue streams, including merchandise, live events, and cross-media collaborations. Although the domestic Japanese market remains the primary revenue driver, there is a strong conviction that international fan bases will eventually surpass the domestic market in scale, mirroring the historical trajectory of the anime industry. Broader corporate initiatives include the integration of generative AI to enhance development efficiency and service quality across the gaming and digital transformation segments. In the investment business, the strategy is adapting to a challenging IPO environment by increasingly targeting M&A as a viable exit path. Overall, the outlook emphasizes a transition from rapid expansion to margin optimization and long-term IP cultivation across both digital entertainment and platform services.

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