GREE

Game Co.

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

The briefing clarified GREE’s strategic outlook for FY2024, focusing on console game development and the VTuber business. The company confirmed that its console gaming venture remains in early planning, with no concrete release dates or platform commitments disclosed. This indicates a cautious approach as GREE evaluates market entry points and potential partnerships before committing resources. In contrast, the VTuber segment is progressing toward profitability. GREE reported steady sales growth aligned with its initial projections, despite operating losses that have risen due to aggressive talent acquisition and merchandise production. These losses fall within the company’s planned range, suggesting disciplined financial management amid expansion efforts. GREE projects that monthly operating losses will be eliminated in FY2026, marking the anticipated break‑even point for its VTuber investments. The briefing covered a domestic Japanese market focus, with no mention of international expansion for either segment. The time frame discussed spans FY2024 through FY2026, highlighting short‑term challenges and medium‑term profitability goals. Methodological details were limited; the company referenced internal financial metrics rather than external surveys or third‑party data. Overall, GREE’s communication signals a phased growth strategy: cautious console game development coupled with aggressive scaling of its VTuber platform, aiming for profitability by the middle of FY2026.

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GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2025 Third Quarter Results Briefing

GREE Holdings, Inc. clarified its strategic approach to game releases and anime development during the FY2025 third‑quarter briefing on May 9, 2025. The company emphasized a disciplined release cadence for its game business, arguing that regular intervals prevent internal cannibalization and preserve development resources. While past titles such as *Heaven Burns Red* and *Puella Magi Madoka Magica: Magia Exedra* were spaced roughly three years apart, GREE indicated that the next title will be introduced without a similarly long gap, reflecting an accelerated pipeline. In the anime sector, GREE highlighted its growing participation in production committees for high‑profile series, including *Is It Wrong to Try to Pick Up Girls in a Dungeon? V* and *Mushoku Tensei II: Jobless Reincarnation (Season 2)*. The firm has joined more than 20 committees overall and is actively pursuing in‑house creation of new anime IPs, from original concept development to full adaptation production. This dual strategy—acquiring external IP through committee participation and cultivating proprietary titles—aims to establish a stable, recurring revenue stream. The briefing underscored GREE’s commitment to expanding its entertainment portfolio across both gaming and anime, positioning the company as a diversified content producer within Japan’s broader media ecosystem.

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GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2020 Fourth Quarter Results Briefing

The briefing clarified the reasons behind the quarter‑over‑quarter decline in sales and operating income for the fourth quarter of fiscal 2020. Core revenue streams from Game and Live Entertainment remained robust, while the Advertising and Media segment suffered sales drops linked to COVID‑19 disruptions. Operating income fell further due to lower sales and increased fixed costs, notably one‑time expenses such as divestitures of unprofitable units, office consolidation and relocation costs, and remote‑office support to curb virus spread. The Game business itself experienced only limited impact despite delays in anime broadcasts featuring third‑party intellectual property. Looking ahead, the company projects full‑year fiscal 2021 operating income to stay within a range of approximately ¥0.5 billion to just under ¥1.0 billion per quarter, with a stronger first‑quarter outlook of over ¥1 billion driven by the successful global launch of SINoALICE. For the Advertising and Media division, profitability is expected to improve through restructuring initiatives and a revised business plan tailored to the pandemic context, with an aim to achieve profitability within fiscal 2021. The analysis covers Japan‑based operations across gaming, live entertainment, and advertising/media segments during the 2020–2021 fiscal period.

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GREE

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

The briefing clarified that the FY2024 third‑quarter earnings improvement in GREE’s Game and Anime Business stemmed from two primary initiatives: a more efficient promotional strategy following the second anniversary of “Heaven Burns Red,” and a comprehensive reorganization that reassigned staff to higher‑margin projects. The company emphasized multiplatformization as a strategic priority, noting active preparations for console game development to capture broader market segments. In the VTuber segment, planned investments focus on expanding management capacity in line with a growing talent roster and enhancing live‑event production, merchandise marketing, and fan engagement metrics such as concurrent viewer counts. While these initiatives are expected to drive near‑term sales, the company views sustained growth as contingent on deepening fan base loyalty. Financial outlooks presented exclude investment business figures. Consolidated operating income for the fourth quarter is projected at approximately ¥1.5 billion, and full‑year FY2024 earnings are estimated between ¥5–6 billion. These targets reflect the company’s confidence in its streamlined operations and strategic expansion across gaming, anime, and VTuber platforms.

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GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2023 Second Quarter

The briefing outlines GREE’s performance and strategic outlook for the second quarter of FY2023, focusing on its Internet and Entertainment Business. Sales in the Game and Anime segment remained steady for “Heaven Burns Red,” though revenue tapered after the half‑year anniversary promotion; growth continued in Metaverse and Commerce & DX divisions. The company anticipates a one‑year anniversary event for the Japanese version of Heaven Burns Red and imminent releases in Korean and traditional Chinese, with pre‑registrations already generating significant buzz at local game shows. The Anime Business is positioned to secure and diversify intellectual property, enabling in‑house development of game‑to‑anime adaptations that can enhance user engagement and revenue. Metaverse operations, branded as REALITY, have surpassed the break‑even point and achieved profitability. Over the past six months, overseas sales grew markedly, with North America leading after Japan, followed by Indonesia and Thailand. User demographics skew female and Generation Z, with a strong preference for private communication features. Monetization streams—live‑stream gifting, avatar sales, and in‑game purchases—are expanding consistently across regions. Advertising spend is expected to rise in the third quarter, driven by anniversary events and new language releases for Heaven Burns Red, as well as intensified promotion of REALITY. Operating income projections for the Internet and Entertainment Business in Q3 FY2023 range from ¥1.0 billion to ¥1.5 billion, contingent on the performance of the Korean and Chinese versions. The Investment and Incubation Business remains cautious, with potential short‑term losses anticipated due to market conditions. However, diversified investment timing and targets are projected to stabilize contributions over the medium‑to‑long term.

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Summary of Main Questions and Answers: FY2017 1Q GREE Results Briefing

The briefing clarified GREE’s strategic focus for FY2017, emphasizing a concentrated investment in role‑playing games (RPGs) and an emerging virtual reality (VR) segment. The company highlighted its development pipeline—titles such as Senki Zesshou SYMPHOGEAR XD Unlimited, Rara‑MAGI, Another Eden, and A Farewell to Arms—all classified under the RPG umbrella. GREE explained that earnings for these titles hinge on content consumption patterns, with a multi‑layered approach to character development, abilities, backstories, theme music, and real‑world events designed to sustain player engagement. Release timing for the two first‑quarter titles was coordinated with co‑development partners, reflecting a collaborative approach to product launch. Regarding VR, GREE anticipates the emergence of at least two major platforms within the next couple of years and plans to partner with arcade operators and IP‑rich companies to capture early market share, positioning VR as a future earnings contributor once platforms mature. The briefing acknowledged a decline in overall coin consumption, projecting an uptick in the second quarter and urging stakeholders to monitor net sales results. GREE justified its heavy RPG focus by citing the genre’s dominance in Japan’s market scale, resilience to trend shifts, and operational efficiencies gained from concentrated development expertise. The company also outlined a forecasted ¥1.0 billion operating income decline in Q2, attributing it to planned strategic investments and cost factors such as advertising, rental expenses, and goodwill amortization. Finally, GREE expressed confidence in a game‑business earnings recovery for FY2017, with top‑line growth expected from Q2 onward, while noting that VR and other new ventures would not yet materially impact earnings within the fiscal year.

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Summary of Main Questions and Answers at the FY2018 Third Quarter GREE Results Briefing: Japan

The briefing outlines GREE’s strategic focus for FY2018, emphasizing steady progress in its Funplex division and a significant investment of ¥10 billion into the emerging VTuber market. Funplex benefits from separating development and operation functions, positioning itself as a trusted operator for third‑party titles. The VTuber initiative allocates roughly ¥4 billion to support illustrators and creators, with the remaining ¥6 billion earmarked for advertising; GREE plans to scale investments as market traction grows, anticipating rapid expansion driven by the convergence of YouTube, influencer, and anime cultures. Internationally, GREE pursues a “game engine, IP, and global” strategy. The North American launch of *Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freese* has shown strong initial sales, and the company aims to release titles simultaneously overseas or within six months of a Japanese launch, depending on development and partnership logistics. GREE also targets Facebook Instant Games with *Fishing Star*, viewing the platform as a potential major channel due to its messenger integration and low download barrier. The company highlights synergies between VTubers and VR, leveraging existing 3D rendering expertise to enhance character interaction. Domestic IPs such as *Another Eden* and *SINoALICE* are positioned for overseas appeal, with accelerated content release schedules expected to sustain sales growth. Overall, GREE’s strategy blends substantial capital deployment in new media formats with aggressive global expansion of proven IPs, aiming to capture emerging revenue streams while maintaining operational momentum.

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Summary of main supplementary explanations questions and answers at the FY 2020 Second Quarter GREE results briefing held on February 3, 2020

The briefing focused on GREE’s financial outlook, investment performance, and strategic initiatives across its entertainment and advertising segments. Management projected operating income for the third quarter of FY2020 to range between ¥0.5 billion and just under ¥1.0 billion, reflecting confidence in continued strong results. The rise in ordinary and net income during the second quarter was attributed to gains from listed companies and venture‑capital investments, with expectations of further upside in portfolio securities. Marketing efforts for the game “Another Eden” were highlighted, noting a doubling of overseas users through an IP collaboration with Persona 5 and enhanced digital advertising operations. In the Advertising and Media business, earnings trends were described as solid, with a target of achieving profitability within FY2020. The Live Entertainment division emphasized ongoing enhancements to the REALITY virtual live‑distribution platform, with monthly investments in development and an undecided schedule for large‑scale promotions. Regarding the broader VTuber market, management characterized it as both a talent‑based business and a live‑streaming distribution service, observing growth from both angles. The anticipated impact of 5G technology was cited as a catalyst for further expansion in the sector. Overall, the briefing underscored GREE’s focus on diversified revenue streams, strategic investment in emerging platforms, and a proactive marketing approach to sustain growth across its core business segments.

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GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2023 Fourth Quarter

The briefing outlines GREE’s strategic direction for FY2023‑FY2026, emphasizing a diversified portfolio beyond core gaming. In the fourth quarter, the company began categorizing its development pipeline into in‑house, regional expansion, joint development, and licensing, noting increased collaboration prospects with major IP holders such as Heaven Burns Red. Release dates remain undisclosed for FY2024 titles, reflecting a focus on quality over speed. GREE views the smartphone game market as increasingly less profitable due to larger development scales, prompting a shift toward higher‑margin ventures. Within the Metaverse Business segment, Platform and B2B sub‑segments have achieved profitability; profits are being reinvested into the VTuber and Web3 businesses. The company aims for all four Metaverse sub‑segments to be profitable by FY2026, contributing significantly to group earnings. Synergies between the VTuber and Platform businesses are currently indirect, driven by international talent recruitment for REALITY. Future cross‑promotions are anticipated once both units mature. Financial outlooks indicate a consolidated operating income of approximately ¥1.0 billion for Q1 FY2024, with a full‑year target of ¥4.0–5.0 billion for FY2024, excluding new game or anime contributions and investment income. For FY2026, the company projects similar operating income levels while targeting a 10 % return from its Investment Business and aiming for half of non‑investment earnings to derive from non‑game, non‑anime sources. This reflects a medium‑term strategy of expanding stable revenue streams beyond traditional gaming.

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Summary of main supplementary explanations questions and answers at the FY2026 First Quarter GREE Holdings, Inc. results briefing held on November 6, 2025

GREE Holdings’ FY2026 first‑quarter briefing clarified strategic priorities across its game, VTuber, and investment divisions. The company emphasized a shift toward an in‑house development model for console titles while still leveraging external contractors to bridge current expertise gaps. In the mobile game segment, outside‑app payment methods have been fully deployed across all major titles and are contributing positively to profitability; the VTuber platform has similarly expanded its outside‑app transactions, boosting operating margins. The firm acknowledges a structural decline in earnings from new smartphone releases but plans to sustain revenue by focusing on long‑term engagement features and continuous hit title launches, particularly within the RPG genre. Market outlooks reveal a plateau in smartphone installs but growing potential through high‑value IP and outside‑app monetization. Console gaming is viewed as a long‑term investment, with an emphasis on cultivating enduring IP series. The VTuber market is still expanding globally, especially overseas, and the company projects full‑year profitability for its VTuber production arm by FY2027 as higher‑margin merchandise and live events offset earlier talent acquisition costs. Exit strategies for the investment business have shifted from IPOs to M&A, reflecting broader market conditions. Generative AI is being integrated across game development, VTuber content creation, and digital transformation services to enhance efficiency and service quality, though its direct earnings impact remains difficult to quantify. Overall, GREE aims to strengthen core competencies, diversify revenue streams, and adapt to evolving market dynamics while pursuing sustainable growth.

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FY2018 2Q Result Presentation

GREE, Inc. reported FY2018 second‑quarter results on February 2, 2018, with net sales of ¥19.5 billion and operating income of ¥2.3 billion, exceeding targets for both metrics. EBITDA reached ¥2.7 billion. Year‑on‑year growth was achieved, though quarter‑over‑quarter sales moderated by roughly 10 percentage points; operating margin remained at 12 %. The company attributed the sales dip to reduced advertising spend and lower commission fees, while cost controls on labor and outsourcing mitigated profit erosion. A strategic shift toward console gaming was announced, with the first title “The Fishing Star” slated for Nintendo Switch and a global release in development. Mobile game performance was bolstered by the launch of “Library Cross Infinite” and ongoing content updates for titles such as Another Eden, Danmachi, SINoALICE, SYMPHOGEAR, and Puchiguru Love Live. Five new mobile titles are approved for development, with three slated for release this fiscal year. The FY2018 Q3 forecast projects flat net sales at ¥19.5 billion and operating income of ¥2.5 billion, aiming for a year‑to‑date total of ¥60.6 billion. GREE plans to sustain growth through aggressive title reinforcement, overseas expansion, and cost discipline across mobile, console, VR, advertising, and media segments. The presentation covered financial performance, cost structure adjustments following overseas operation closures, and a pipeline of upcoming releases across multiple platforms.

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Summary of Main Supplementary Explanations Questions and Answers: FY2021 First Quarter GREE Results Briefing

The briefing explains that first‑quarter FY2021 sales and operating income rose despite a divestiture of the 3Minute fashion commerce unit, which reduced Advertising and Media sales by several hundred million yen. Growth was driven mainly by the launch of SINoALICE’s global version on July 1, coupled with a reduction in fixed costs. One‑time expenses incurred in Q4 FY2020 were eliminated, and restructuring within Advertising and Media cut development costs for the Game business. Operating income is projected to remain stable in Q2 FY2021, with a forecasted range of ¥0.5 billion to just under ¥1.0 billion, reflecting a decline in SINoALICE momentum and an uptick in game development outlays. Fixed‑cost trends are expected to fluctuate by a few hundred million yen annually, with game development expenses projected between ¥7.5 billion and ¥8.5 billion. The Chinese version of DanMachi is performing as anticipated, contributing to earnings through a net‑level profit share with the local partner; however, its impact on overall profitability is modest. The Advertising and Media division aims to achieve profitability in FY2021, while the Live Entertainment segment shows a narrowing loss margin due to sales growth. Overall, the company’s restructuring and strategic releases have bolstered revenue and controlled costs, positioning it for steady profitability in the second quarter while maintaining a cautious outlook on development spending and partner‑shared titles.

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GREE