Japanese mobile game developer GREE Inc. reported an operating loss of 133 million yen ($890,000) in its fiscal first quarter, struggling with declining revenue from existing titles and higher development costs. The company had posted a 1.23 billion yen profit a year earlier.
Revenue fell 23% to 9.06 billion yen in the gaming and anime segment, which accounts for about 70% of total sales. The Tokyo-based company’s live service games business swung to a loss of 70 million yen, despite positive momentum from licensing “Heaven Burns Red” in China.
GREE is betting on new releases to revive growth, with four titles in development including “Puella Magi Madoka Magica Magia Exedra” scheduled for this fiscal year. The company is also expanding into consumer games, with its first such title targeted for fiscal 2026.
The broader company posted a net loss of 1.64 billion yen as its investment business was hit by portfolio revaluations. GREE withheld its full-year forecast, citing market volatility and rapid changes in its business environment.
