GREE was originally launched as a PC-based social networking service in early 2004, with a mobile version following in June 2005. Until July 2006, the service was very similar to market leader mixi (focused on core social networking functionalities), however, GREE was not able to demonstrate the same kind of growth as mixi, especially because mixi - which had far more capital at its disposal - introduced innovative features in much more rapid succession.

In July 2006, mobile network operator KDDI made a major investment in the company, aiming to leverage GREE as the "SNS engine" for a variety of its carrier-branded mobile services (e.g. its navigation service, its music download service, etc.).

In late 2006, GREE relaunched its mobile version as EZ GREE on the au KDDI network, featuring several features that competitors mobagetown and mixi Mobile had seen success with (e.g. decorated profiles, casual games), and in early 2007, the site was listed as an official site on NTT DoCoMo's i-mode as well, with a Softbank version following 7 months later.

However, it was not until July 2007 that the service started to really catch on, shortly after GREE introduced avatars, rooms, and - most notably - its now hugely popular pet nurturing game "Clinoppe". Building on this success story, Mobile GREE introduced several other complex games with nurturing and/or collecting mechanisms, tied into community functionalities. All of these games feature in-game paid items. The most successful of these is Tsuri Star, a virtual fishing simulation game.

In the past two years, Mobile GREE's user base has grown almost tenfold, and currently exceeds ten million registered members. The service generates more than 12 billion page views per month, 99% of which are served to mobile devices. Revenues for the quarter ending March 2008 totaled ¥3.9 billion (US$ 41.2 million), more than 70% of which stemmed from paid content and in-game purchases. This strongly distinguishes GREE from its competitors mixi Mobile and mobagetown,which much more strongly rely on an advertised-based revenue model.

Interestingly, GREE only started to reach a stellar level of performance once it largely abandoned the PC channel and focused its strategy on mobile. It was also the first of the three major mobile social networking services in Japan to implement complex mobile games that feature strong community elements and combine mobile web and Flash-based technologies, and pioneered the concept of paid in-game items as a revenue stream (an approach that was quickly copied by competitor mobagetown).

This is the first and only detailed research report available in English providing detailed analysis of the factors that have made Mobile GREE a smash hit. It includes step-by-step walkthroughs of all major features, deep analysis of the game portfolio, insight into business model and financials, as well as information on usage patterns and demographics.