Gree Holdings reported a steep decline in profitability for fiscal 2025, with net income dropping 74.6% to ¥1.19 billion ($8.1 million) as foreign exchange losses compounded weakening game revenues.
The Tokyo-based entertainment company’s revenue fell 6.8% to ¥57.11 billion ($387 million) for the year ended June 2025, despite launching “Puella Magi Madoka Magica Magia Exedra” during the period. The new mobile game provided some contribution but proved insufficient to counter deteriorating performance from existing titles.
Operating profit declined 18.7% to ¥4.86 billion ($33 million), while ordinary profit tumbled 47.2% to ¥3.76 billion ($25.5 million). Currency fluctuations on foreign-denominated assets significantly impacted the bottom line, according to the company.
The core gaming division saw revenue drop 14.2% to ¥36.94 billion ($250 million), with operating profit falling 29.8%. However, the metaverse business showed resilience, with revenue climbing 14.2% and operating profit surging 220.1% through cost efficiency improvements and global expansion of its REALITY platform.
Gree Holdings suspended its fiscal 2026 earnings forecast, citing volatile market conditions affecting its investment business. The company stated it cannot calculate “appropriate and reasonable” projections given rapid changes in the business environment.
The results highlight ongoing challenges facing Japan’s mobile gaming sector as operators struggle to maintain user engagement with aging franchises.
