Sony Music Entertainment is winding down its VTuber project VEE on September 30, 2026, while its parent Sony Music Entertainment Japan moves to become GungHo Online Entertainment's largest shareholder, and its Echoes label launches the virtual-real singer LAYRA.
Sony Music Entertainment's virtual talent project VEE is ending its current operational structure on September 30, 2026. The company said maintaining the current framework as a sustainable business was difficult and attributed the failure to management, not the talents. Of the 21 affiliated talents, 20 will continue, with activity names, characters, YouTube channels, and social media accounts carried over in principle. Hoshihoshi Airu's graduation stream is scheduled for September 16 at 21:00. The fan community VEELLAGE ends service on September 30 at 23:59 with no refunds or compensation planned, the official shop closes November 30, and the game Gun Girl Go has been canceled.
On the corporate side, Sony Music Entertainment Japan is set to become GungHo Online Entertainment's largest shareholder. The company will acquire 12,006,500 GungHo shares from SON Financial LLC for about 28.6 billion yen (roughly US$179 million), pending regulatory approval, giving it a 23.29% voting rights stake. The two companies plan to explore joint development and operation of smartphone, console, and PC games, plus new projects using SME Group IP. GungHo keeps its Tokyo Stock Exchange listing.
Before the VEE shutdown, the project continued to release merchandise and collaborations: 4th anniversary goods for Anew Uparu and Luminous Sweet, a murder mystery collaboration featuring Anew Uparu and Maoh Tulsi, and birthday goods for Airu Hinahoshi. Separately, the Echoes label announced the debut of LAYRA, a singer who moves between virtual and real worlds, with an immersive live show from October 10 to November 15, 2026, and VERSEⁿ member Kagase Uno began digital distribution of her crowdfunding-backed song.
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Sony Music Entertainment opened order sales on the VEE Official Shop for Airu Hinahoshi's 2026 birthday goods on September 16, the day she marks her birthday. The lineup uses newly drawn illustrations by Kemuri Nakamori and includes an acrylic panel, an acrylic stand, and a set of two can badges, sold both as a set and individually. Orders close September 30, with shipping from mid-December 2026.
Kagase Uno of VTuber project VERSEⁿ has begun digital distribution of her first original song, "U☆World＊Order," as of Sunday, September 6, 2026. The track was produced through a 2023 crowdfunding campaign, with lyrics, composition, and arrangement by composer Asuka Ogura. A second song from the project, "Ippou Sonokoro Pedia!," was distributed earlier. The music video was already released in advance.
GungHo Online Entertainment announced a capital and business alliance with Sony Music Entertainment Japan. SME will acquire 12,006,500 GungHo shares from SON Financial LLC for about 28.6 billion yen (roughly US$179 million) in an off-market transaction. Pending regulatory approval, SME becomes GungHo's largest shareholder and an affiliated company. The two will explore joint development and operation of smartphone, console, and PC games, plus new projects using SME Group IP. GungHo keeps its Tokyo Stock Exchange listing.
Sony Music Entertainment announced on August 31 that its virtual talent project VEE will end its current operational structure as of Wednesday, September 30, 2026. The company said it determined that continuing operations as a sustainable business while maintaining the current framework is difficult, and it attributed the failure to establish that framework to management, not the talents. Of the 21 affiliated talents, 20 will continue their activities, with their activity names, characters, YouTube channels, and social media accounts carried over in principle. The transition will follow each talent's choice, such as going independent or joining a new agency. The one exception is Hoshihoshi Airu, whose graduation stream is scheduled for September 16 at 21:00. The fan community VEELLAGE will end service on September 30 at 23:59, with no refunds or compensation planned. Sales at the official shop end on November 30. The game "Gun Girl Go," which was under development, has been canceled. VEE, which launched in 2021, had promoted the message "VTubers are human too" and treated talents' activity names and characters as their own property. The official YouTube channel and SNS accounts will remain public as archives for the time being.
Sony Music Entertainment and GungHo Online Entertainment announced a capital and business alliance on August 28. SME will acquire all 12,006,500 common shares held by SON Financial LLC, GungHo's current largest shareholder, at 2,385 yen per share for about 28.6 billion yen. The transfer, scheduled for December 30, 2026, gives SME a 23.29% voting rights stake, making it GungHo's largest shareholder. The companies plan to combine GungHo's game development with Sony Music Group's entertainment expertise.
Sony Music Entertainment began order-based sales of 4th Anniversary Goods for VEE virtual talents Anew Uparu and Luminous Sweet at the VEE Official Shop. Each acrylic diorama stand, priced at 4,500 yen, includes a bonus sticker using new illustration by Kutori Panya. Orders run through September 6.
Sony Music Entertainment's Echoes label announced the debut of LAYRA, a singer who moves between virtual and real worlds. Part of the new song "Watashi wa LAYRA" by TeddyLoid was released. LAYRA is produced by Hiro-chan <As>, who worked on the singer Bell in the animated film Belle. Character design is by Mika Pikazo, and music is by TeddyLoid. LAYRA's first stage is the immersive live "Belle - PROJECT LAYRA -" at MoN Takanawa from October 10 to November 15, 2026, with five performers.
Sony Music's VEE project talents Anew Uparu and Maoh Tulsi have provided a collaboration song and made cameo appearances as character models for Ibarayugi's murder mystery work Kinpu no Harmonia, released July 15. The song Soul Unbound has two versions, each showing the talents' individuality. The cross-genre collaboration blends VEE talents into the narrative from both musical and story aspects.