Game Publishing
Report
Summary of Main Q&A: FY2018 Second Quarter GREE Results Briefing
The briefing clarified GREE’s strategic shift toward console gaming while maintaining its mobile‑centric foundation. The company announced that “Fishing Star,” its first Nintendo Switch title, will be sold as a single‑purchase download without in‑game microtransactions, leveraging the console’s unique features to deliver a classic fishing experience. GREE emphasized its intent to build a multiplatform, multiregional development system that supports both mobile and console releases for Japanese and overseas markets, aiming to broaden its audience base. Progress on international titles was described as steady, with ongoing partner selection for overseas distribution of games such as “Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze.” Exact launch dates remain undetermined as the company evaluates optimal release strategies. GREE also addressed concerns about a slowed release cadence, noting that while operational focus on existing hits remains strong, the company continues to pursue new projects, as illustrated by its development pipeline figures. Regarding monetization models, GREE stated that decisions on free‑to‑play console titles with in‑game purchases will be made on a case‑by‑case basis, reflecting each title’s characteristics. Cost control is highlighted by the company’s avoidance of large‑scale first‑time console projects, thereby limiting development expenses. Advertising and media investments are maintained at a consistent level across the first two quarters, with future spending tied to expected returns. Operational improvements were cited for key mobile titles, such as the addition of new scenarios in “Another Eden: The Cat Who Goes Beyond Time,” demonstrating a system that enables rapid content deployment to meet customer demand.
GREE
Report
Financial Results for the Second Quarter of FY2019
The second‑quarter fiscal 2019 results show net sales of ¥17.7 billion, operating income of ¥1.0 billion and EBITDA of ¥1.2 billion, aligning closely with forecasts after adjusting for a ¥160 million variable‑cost revision that had been misrecorded in the prior quarter. Operating margin stands at 5.4 %. Variable costs fell to ¥7.27 billion, aided by a ¥400 million reduction in advertising spend and declining commission fees; fixed costs rose by ¥430 million due to increased outsourcing for full‑scale development investment, bringing total costs to ¥16.76 billion. Geographically, the company expanded overseas distribution of its flagship titles—DanMachi and SINoALICE—to Hong Kong, Taiwan, and North America, with another first‑party IP, Another Eden, slated for global self‑distribution. Multi‑platform releases included Fishing Star on Nintendo Switch and a new VTuber livestreaming app, REALITY Avatar. The company’s strategy emphasizes nurturing first‑party IPs to improve long‑term profitability, while maintaining third‑party titles and leveraging self‑distribution where possible. For the third quarter, net sales are projected between ¥16.5 and ¥17.5 billion with operating income ranging from ¥300 to ¥800 million, reflecting continued investment in new titles and the expected impact of overseas expansion. The balance sheet remains solid, with fixed assets at ¥17 billion and investment securities valued at approximately ¥25 billion, including venture‑capital holdings. Overall, the company maintains confidence in its financial base while pursuing aggressive international growth and IP development.
GREE
