GREE

Game Co.

36 documents

Documents

Summary of Main Questions and Answers at the FY2018 Fourth Quarter GREE Results Briefing

The briefing summarized GREE’s strategic focus for FY2019 and addressed investor inquiries about recent performance. The company reaffirmed its commitment to expanding the overall live entertainment market, emphasizing growth in both domestic and overseas game titles. In FY2019, GREE plans to roll out existing games internationally while pursuing new development projects, positioning itself to capture emerging markets. A key point of discussion was the goodwill impairment in the advertising and media segment, attributed to underperformance of the 3 Minutes unit. Despite this setback, management highlighted sustained growth across the advertising and media business, noting that it remains a sizable contributor to revenue. The company intends to continue investing in this area to accelerate expansion. The briefing also addressed the anticipated impact of 5G technology, with executives predicting that widespread adoption will drive demand for more creative gaming experiences. Consequently, GREE plans to enhance its development and creative capabilities to capitalize on the opportunities presented by faster connectivity. Investor interest in marketing tactics was reflected in questions about the television advertisement for SINoALICE. Management reported a positive outcome, citing record-high daily active users and strong retention rates following the campaign. Finally, the potential use of VTubers in future corporate promotion activities was acknowledged; GREE will evaluate audience response and consider incorporating VTubers again in upcoming events.

market-analysis game-publishing mobile+2

GREE

Report

Summary of main supplementary explanations questions and answers at the FY2020 First Quarter GREE results briefing held on October 30, 2019

The briefing addressed key financial and operational questions for GREE’s first quarter of FY2020. A decline in sales was attributed to a reactive drop following anniversary events for major titles in the previous quarter and strategic title transfers aimed at improving profitability. Management projected operating income of roughly ¥0.5 billion for the second quarter, with strong expectations for core titles but a continued decline in browser game revenue; advertising spend was to increase on high‑potential games. Overseas distribution of SINoALICE remains uncertain in China due to regulatory approval, while other regions rely on local partners and progress is ongoing. Global release strategy now allows simultaneous launches in Japan and abroad, with timing set on a case‑by‑case basis after partner consultation. Challenges for AFTERLOST – Shoumetsu Toshi include attracting new fans while retaining existing ones, despite extensive fan‑targeted measures. Cost‑cutting through title transfers is viewed as a means to improve profitability, with plans to broaden the title lineup. Earnings contribution from REALITY depends on internal factors such as lifetime value enhancement and external 5G infrastructure development; the focus is on steady content portfolio expansion and platform functionality rather than rapid growth before full infrastructure deployment.

market-analysis monetization marketing+3

GREE

Report

Summary of main supplementary explanations questions and answers at the FY2026 Second Quarter GREE Holdings, Inc. results briefing held on February 5, 2026

The briefing clarified GREE Holdings’ strategic priorities across its core business segments for FY2026. In the Anime Business, earnings from the newly announced “Mushoku Tensei: Jobless Reincarnation – Chronicle of Echoes” are recorded under the IP Business segment, reflecting the company’s focus on monetizing anime titles it has invested in. The Platform Business within the VTuber segment is expanding beyond traditional gifting revenue by piloting merchandise sales and event features on its REALITY platform; early feedback indicates positive reception, and the company plans to extend these monetization tools to a broader streamer base while offering corporate marketing solutions. In the DX Consulting Business, GREE emphasizes its niche in end‑user entertainment services and acknowledges that generative AI may automate routine maintenance but is unlikely to erode its creative‑driven value proposition in the short term. Regarding financial outlook, a downward revision of FY26 earnings was justified by recent softness in existing game titles; however, the company maintains confidence in its three‑year medium‑term targets (FY28) by shifting emphasis toward continuous growth businesses and reducing reliance on volatile game revenues. Finally, the Anime Business will pursue acquisition of production capabilities—through both in‑house development and M&A—within 2–3 years to secure control over high‑quality, timely anime output. These initiatives collectively aim to diversify revenue streams, strengthen creative control, and sustain long‑term growth across GREE’s entertainment ecosystem.

monetization investment mobile+1

GREE

Report

Supplementary Explanation: FY 2020 Third Quarter GREE Results

The supplementary explanation clarifies the financial performance of GREE for FY 2020 third quarter. It attributes the quarter‑over‑quarter decline in sales to a strategic shutdown of certain titles during a portfolio reevaluation and weaker results in the Advertising and Media segment, both influenced by the COVID‑19 pandemic. Conversely, operating income rose because high‑margin first‑party IP titles performed strongly and promotional costs were streamlined. The COVID‑19 crisis is noted to have indirectly affected the Game Business through postponed anime broadcasts and directly impacted the Advertising and Media business. For the fourth quarter, GREE projects continued weakness in sales and income within the Advertising and Media segment due to ongoing pandemic effects. The company plans restructuring measures under the assumption that COVID‑19 will persist, acknowledging a potential one‑time loss in Q4 but expressing confidence in establishing a solid earnings base from FY 2021 onward. The explanation covers Japan‑centric operations, focusing on game and media revenues for the fiscal year ending 2020. It relies on internal financial data, portfolio reviews, and cost‑management initiatives to explain performance shifts. The narrative emphasizes strategic adjustments in response to market disruptions, projecting a recovery trajectory beginning with the next fiscal year.

market-analysis monetization marketing+2

GREE

Report

Summary of Main Supplementary Explanations Questions and Answers: FY2024 First Quarter GREE Results Briefing

The briefing clarified GREE’s strategic focus and financial outlook for FY2024. Development activities remain fluid, with no concrete release schedule disclosed due to external IP dependencies and shifting priorities. In the Metaverse platform segment, the REALITY service showed robust growth in the first quarter, driven by Japan and North America. Monetization diversified across avatars and gifting, contributing to earnings from the platform business. The DX Business continues to expand its client base, split between game and entertainment firms—leveraging GREE’s expertise in advertising, customer service, and quality assurance—and national‑scale food and beauty companies that benefit from digital marketing support. Growth in the latter segment is noted to outpace industry averages. Financial projections for the second quarter exclude investment activities, estimating consolidated operating income around ¥0.5 billion. Year‑end guidance remains unchanged from the August 3, 2023 announcement, targeting consolidated operating income between ¥4.0 and ¥5.0 billion for FY2024, with no significant impact expected from new game or anime titles or the investment arm. The company’s emphasis on platform monetization and diversified DX services underpins its confidence in maintaining steady earnings growth amid a competitive digital landscape.

market-analysis game-development metaverse+2

GREE

Report

Summary of main supplementary explanations questions and answers at the FY2025 First Quarter GREE results briefing held on November 5, 2024

The briefing clarified GREE’s strategic focus for FY2025 first‑quarter results, emphasizing both gaming and investment operations. In the gaming segment, the company confirmed that advance registrations for the English version of “Heaven Burns Red” are strong and that distribution will be handled by Yostar Games, whose track record in expanding English‑speaking fan communities is expected to generate significant buzz. GREE highlighted ongoing community building efforts prior to launch, underscoring a proactive marketing approach. Regarding the investment business, management acknowledged that valuation‑loss risk remains comparable to Q1 FY2025 levels. The primary driver of past losses was large investments in funds nearing the end of their operating periods; however, diversification and limited exposure to such funds mitigate long‑term impact. GREE maintains that while short‑term volatility may persist, medium‑to‑long‑term earnings should remain stable as funds mature and yield dividends or asset sales. The company reiterated its commitment to investing in GREE‑Group managed funds, including GREE Ventures, and expects related risks to surface only after several years. Overall, the briefing presented a balanced outlook: aggressive growth in the gaming arm through strategic partnerships and community engagement, coupled with cautious yet steady investment practices aimed at preserving earnings stability amid inherent valuation risks.

market-analysis game-publishing investment+3

GREE

Report

Summary of Main Supplementary Explanations Questions and Answers: FY2024 Second Quarter

The briefing clarified GREE’s strategic priorities and financial outlook for the second quarter of FY2024. Recent events for Heaven Burns Red celebrated its two‑year anniversary, generating strong performance and reinforcing the company’s focus on successful titles. The decision to discontinue support for SINoALICE was framed as a timing choice aligned with the broader development trajectory of GREE’s Game and Anime Business, indicating a shift toward more promising projects. Development activities continue to progress smoothly, though specific release dates remain undisclosed. In the VTuber segment, GREE plans aggressive investment to expand its talent pool and enhance competitiveness through its talent agencies. Talent auditions are evaluated on past streaming performance, character fit with the existing portfolio, and audience engagement capabilities. Investment business conditions are described as improving; after a period of inflated valuations—particularly in the United States—market values have stabilized, creating a favorable environment for new investments. GREE’s established network in gaming and metaverse sectors positions it to accumulate additional investment assets. Financial projections for the third quarter exclude the Investment Business, estimating consolidated operating income of approximately ¥1.5 billion. For the full fiscal year FY2024, the company forecasts consolidated operating income of roughly ¥5.0 billion under the same exclusion. These figures suggest a steady growth trajectory driven by core gaming, anime, and VTuber operations while maintaining a cautious stance on investment activities.

market-analysis game-development mobile+3

GREE

Report

Summary of Questions and Answers: FY2017 2Q GREE Results Briefing

The briefing clarified GREE’s strategic focus for FY2017 and beyond. The company confirmed that a smartphone adaptation of Wild Arms, developed with ForwardWorks Corporation, remains in the FY18‑later pipeline. To stabilize coin‑consumption revenue from its game operation segment, GREE plans to shift operations of select titles to Vietnam and enhance marketing efficiency as its portfolio expands. New ventures in video advertising and virtual reality are expected to reach profitability by FY2019, while the acquisition of 3Minute is positioned as an investment in video‑content capabilities to support broader growth. Regarding intellectual property, GREE indicated that its development pipeline includes both partner‑owned IP and its own assets, aiming for a balanced mix. The company highlighted Rara‑MAGI’s strong launch performance and noted that coin consumption for other overseas native titles has declined quarter‑over‑quarter, though a new title is slated for late second half release. Seven titles scheduled for the latter half of the year will see roughly half released in Q3 and the remainder in Q4, with Rara‑MAGI already live. Operating income is projected to dip in Q3 due to increased fixed costs from new releases. GREE will evaluate ongoing titles, closing those unlikely to grow while reallocating resources to high‑potential games. Poor performance is attributed mainly to insufficient content depth or breadth at launch, and lessons learned will inform future development.

market-analysis game-development monetization+3

GREE

Report

Summary of main supplementary explanations questions and answers at the FY2022 Fourth Quarter GREE results briefing held on August 4, 2022

The briefing focused on GREE’s financial performance and strategic initiatives for FY2022, highlighting the strong contribution of new titles such as *Heaven Burns Red* and anniversary events to quarter‑over‑quarter earnings growth. The company attributed this success to a “release blitz” strategy launched in FY2017, which has since strengthened marketing, game quality through an engine‑centric approach, and content volume at launch. These measures have enabled the company to exceed fan expectations, generate significant social media buzz, and deliver high‑quality 3D rendering. Investment in the Metaverse Business is progressing as planned, with a ¥10 billion allocation over two to three years and the business reaching breakeven. GREE intends to continue expanding its global user base and sales through further investment. The DX Business is being restructured to integrate marketing support services, creating a data‑driven platform that offers comprehensive digital transformation solutions to corporate clients. Meanwhile, the Manga Business is introduced as part of a broader media diversification strategy aimed at leveraging first‑party IP across games, anime, and manga to broaden user engagement channels. The Investment and Incubation Business is expected to provide stable medium‑to‑long‑term earnings, with a target return on investment of 10 % or higher. For FY2023 Q1, operating income in the Internet and Entertainment segment is projected at ¥1.0–¥1.5 billion, reflecting a decline from the strong performance of new titles and anniversary events in FY2022 while anticipating continued system‑strengthening investments.

market-analysis mobile jrpg+2

GREE

Report

Summary of Main Supplementary Explanations Questions and Answers: FY2021 Fourth Quarter

The briefing clarified GREE’s strategic focus on its Metaverse platform, REALITY, and financial outlook for the coming year. The company defined the Metaverse as a digital universe where users inhabit avatars to work and play, emphasizing its rapid growth driven by technology advances and heightened online interaction during the COVID‑19 pandemic. REALITY, launched globally six months prior to the briefing, is now available in 63 countries and territories, with strong reception in North America, Southeast Asia, Central and South America, and Russia. GREE highlighted the platform’s unique ability to livestream content with virtual avatars, a feature not offered by competitors, and outlined plans for further expansion through localized events, multilingual support, and extensive promotional activities. Investment plans for REALITY are set at approximately ¥10 billion over the next two to three years, covering advertising, labor, and outsourcing costs. The company views this as a high‑potential business and aims to balance growth with cost efficiency. In its investment and incubation segment, GREE anticipates venture capital activities to provide consistent medium‑to‑long‑term income, targeting a return of at least 10 % despite short‑term volatility. For the first quarter of FY2022, GREE foresees a potential operating loss in the hundreds of millions of yen, attributed to increased development costs for new app games and upfront investments. The overall narrative positions REALITY as a central growth engine while acknowledging the financial risks associated with early‑stage expansion.

metaverse mobile global+1

GREE

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.

market-analysis game-publishing monetization+2

GREE

Report

Summary of Main Questions and Answers at the FY2019 Third Quarter GREE Results Briefing

The briefing focused on GREE’s fiscal 2019 third‑quarter performance and forward outlook. The company projected a significant rise in net sales for the fourth quarter, with operating income expected to remain robust after excluding one‑time events. Management emphasized continued investment in marketing and development, noting that new titles launched next fiscal year could provide additional upside. Operating income for the third quarter exceeded forecasts largely due to stronger overseas sales of “Another Eden.” Advertising spend stayed near budgeted levels, while fixed‑cost efficiencies in the game business surpassed expectations, contributing to higher profitability. In discussing the Reality division, GREE highlighted key performance indicators such as installation numbers and persistence rates, which it considers critical for sustaining user engagement. The division plans to maintain upfront investments while maintaining healthy KPI trends, aiming to expand its market presence. The briefing covered Japan and international markets for the 2019 fiscal year, with a focus on game development and mobile services. Data points were drawn from internal financial results and operational metrics, with no external survey methodology disclosed. Overall, the company presents a positive trajectory for Q4 and beyond, driven by overseas growth, cost efficiencies, and continued investment in high‑potential titles.

market-analysis market-forecast investment+4

GREE