GREE's (TYO:3632) attempts to expand beyond its Japanese base appear to be faltering, with the social gaming giant announcing the closure of its Beijing office in its latest disappointing financial results.
The office's closure is part of what GREE claims is a streamlining of its overseas operations after net sales fell by almost 18 percent year-on-year to ¥37.9 billion (around $370 million), with several online sources suggesting 30 jobs will go.
Operating profit at GREE is also down in Q3, coming in at ¥10.8 billion ($105 million) a drop of 56 percent from the same period in 2012.
Net income suffered the biggest decline of all, however, down 65 percent year on year to ¥4.7 billion ($45.8 million).
GREE blames a slower than expected take up of virtual coins within its Japanese games, citing an intention to focus on its hand in the US market for future growth.
Moves to streamline its portfolio back in Japan, however, also made an impact, with GREE writing off more than ¥4 billion in the assets of canned games.
Having its international ambitions checked in this way will be even harder to take given GREE's close rival DeNA reported a 22 percent rise in revenue in its most recent quarter, coming in at ¥52.3 billion yen ($528 million).