While GREE's main focus these days is international expansion, there's still plenty of competition in its core Japanese market.

Aside from arch-rival GREE, social networks such as Line are gaining traction, not to mention the rise of other big social mobile gaming companies such as Nexon and Gungho Online, which is currently the top grossing publisher on Google Play globally.

That's the background between GREE's new strategic partnership with Yahoo! Japan.

Cuckold

Significantly, Yahoo! Japan was previously a strong partner with DeNA; the companies set up the Yahoo! Mobage gaming platform for PC users in 2010.

However, in late 2012, GREE broke into the relationship, and the results have now been unveiled with a new joint venture company.

Mouthful

Called GxYz (at least for the time being), the Tokyo outfit is 51 percent owned by GREE and 49 percent by Yahoo! Japan, with a total capital investment of ¥200 million (around $2 million).

Its mission is to develop social-mobile games, using GREE's social network for retention and monetisation and Yahoo! Japan's online reach for user acquisition.

The two companies are also liaising with link from GREE's games to the smartphone version of Yahoo! Japan, and are also working together over promotion for the Tokyo 2020 Olympics and Paralympic bid.

[source: GREE]