Japanese mobile game giant Gree decided to close China office and dismiss employees

Beijing Time May 15 news, according to foreign media reports, the Japanese mobile game giant Gree will be formally closed on June 28 in Beijing's China office, and the severance of all staff, but has not announced the compensation plan for employees.

Gree announced a decision to close its China office, but did not disclose compensation plans for employees.

Gree announced last December that it would cut more than 30 employees in its North American office.

Analysts said Gree failed to capture the opportunities offered by the popularity of smartphones, with 60% of its revenues still coming from functional handsets. Like many Japanese companies, Gree's organizational structure is stiff and China's offices have many Japanese executives, making Gree "acclimatized" in the Chinese market.

Although profits will slide for the first time since the IPO in 2008, Gree still expects net profit to reach about 31 billion yen (about $311 million) in the fiscal year ended June 30, 2013.

Analysts have pointed out that, in order to improve revenue-generating capacity and competitiveness, mobile and social game developers must implement a diversification strategy, not only rely on game products to generate revenue.