gaming guide to big in asia
DESCRIPTION
Can your game make millions in Asia? If 1% of Asians would pay a $1! This presentation is a bit of a reality check given for Yetizen given in May 2012 in San Francisco.TRANSCRIPT
The Gaming guide to
Big in Asia
Misconcep3ons & Reali3es
@benjaminjoffe ceo, +8*
@benjaminjoffe
100+ Keynotes in 20 Countries!
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Investor in Global Startups from Asia!
CEO of +8* | Research & Market Entry to Asia!
EUROPE
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ASIA
I spent most of my working life (11 years) overseas, especially in Japan, China, South Korea and USA. My cultural DNA has become rather complex.
12 years abroad – my cultural DNA!
Asia!
This is Asia!
But “Asia” does not cover the diversity!
China Japan
South Korea Singapore Indonesia
… Russia Turkey
… 48 Countries!
48 countries with major differences!
“Asia was a concept of Western CivilizaEon.”
This is probably the best definition of Asia!
There is no Asia • GDP • GDP/capita • Demographics • Language(s) • Religion(s) • Web & Mobile Infrastructures • Dominant Players • Payment systems
Just consider the radical differences…!
To give some perspective: view from Taiwan!
…with translation!
“Just by going to China, we could double the audience,”
– Peter Relan, CEO, Crowdstar
Doubling audience is not doubling revenue!
4 Asian countries in top 10? How big are they?!
Country PopulaEon GDP/Capita (USD)
China 1.3 billion 4,500
Japan 128 million 42,000
South Korea 49 million 20,000
Taiwan 23 million 20,000
Hong Kong 7 million 32,000
Singapore 5 million 57,000
Malaysia 28 million 9,500
Indonesia 240 million 3,900
Vietnam 90 million 1,500
Philippines 94 million 2,500
Thailand 65 million 5,800
North Korea 24 million 1,000
Not all markets are created equal!
Country PopulaEon GDP/Capita (USD)
China 1.3 billion 4,500
Japan 128 million 42,000
South Korea 49 million 20,000
Taiwan 23 million 20,000
Hong Kong 7 million 32,000
Singapore 5 million 57,000
Malaysia 28 million 9,500
Indonesia 240 million 3,900
Vietnam 90 million 1,500
Philippines 94 million 2,500
Thailand 65 million 5,800
North Korea 24 million 1,000
- 1 user in Japan is possibly worth 10 in China in terms of monetization - HK, SG and Malaysia are smaller but quite decent medium-sized markets!
Country PopulaEon GDP/Capita (USD)
China 1.3 billion 4,500
Japan 128 million 42,000
South Korea 49 million 20,000
Taiwan 23 million 20,000
Hong Kong 7 million 32,000
Singapore 5 million 57,000
Malaysia 28 million 9,500
Indonesia 240 million 3,900
Vietnam 90 million 1,500
Philippines 94 million 2,500
Thailand 65 million 5,800
North Korea 24 million 1,000
On the contrary, the countries below are going to be hard to monetize due to low
GDP/capita.!
4 Asian countries in top 10? How big are they?!
Mobile Users China Japan Korea
Total 1.02 billion 127 million 50 million
Android (es3mates) ? 15 million 17 million
iPhone (es3mates) <20 million <10 million 3 million
3G Users 10% 100% 70%
- China, Japan, Korea have embraced Android.!- iPhones are for the 1% richer in China!- Very few reliable numbers are available (send me yours!)!
Online Game Companies Market Cap China $bln Japan $bln Korea $bln Tencent 57.5 GREE 6.3 Nexon 8 Netease 7.8 DeNA 4.6 NHN (Hangame) 10.5 Renren 2.6 Mixi <1 NCso` 5.3 Shanda 2.2
Shanda Games 1.4 as of May 5, 2012 Giant 1.2
Changyou 1.2 Facebook (100) NetDragon (91) <1 Ac3vision Blizzard 13.8 Perfect World <1 Zynga 6.1
The9 <1 EA 5.0
Gaming giants dominate in each country.!Very few foreign players do well.!
Reality of China
• Local partners are preky much mandatory for foreigners to get any distribu3on and operate.
• Successes are rare, generally accidental, and mostly by dominant players – Mobile Angry Birds, Fruit Ninja, a few more – Web Korean companies via licensing
Easiest to do in China is iOS!
Reality of China
• Social networks are… TENCENT – Likle money on Renren – No Facebook
• Online Game Giants – Developing their own games – Licensing from Korea – Rarely from other places (WoW) – Excep3on: League of Legends (but bought by Tencent)
Web-based is almost impossible alone!
Reality of China
• iPhone is for the 1%
• Android is fragmented – Numerous app stores – Lots of copies – Adver3sing don’t make much money
iOS is easier, Android still hard!
Top Ranking Apps on iPhone
Foreign games and apps do well!Source: AppAnnie.com!
Top Ranking Apps on Android
Source: AppAnnie.com!
Android is much harder + Competing stores!
Tencent in 2011
• Revenue US$4.5 billion • Mobile 10% • Adver3sing 7%
– Net Profit US$1.6 billion (35%)
• Services • Qzone 552 million MAU • Pengyou 202 million MAU • Open plaqorm 40,000 apps
– More than 10 have 10m+ MAU
Money: 10m MAU in China = 1m MAU in USA!
Renren in 2011
• Revenue US$118.0 million – ~50% from adver3sing
• Net Loss US$5 million • Net loss does not count sale of eLong for US$50 million • Promo3ng Nuomi, its Groupon clone (US$30 million)
• Curb your enthusiasm!
Renren is not quite the “Facebook of China” yet!
Reality of Japan
About $3.6 billion
More than $1.2 billion
Official sites, $1 billion Social games over $1.8 billion
Core Gamers
Casual Gamers
PC
Console Game software
Mobile
Smartphone games market 2014
Smartphone games
Overall market size growing
Arcade games, Card games, Edutainment
Mobile / Smartphone games is going really big!
Mobile Social Games in Japan • GREE
– Revenue $785 million – Acquired OpenFeint ($104m) – Acquired Funzio ($210m)
• DeNA – Revenue $1.4 billion – Acquired Ngmoco ($400m)
• Konami – $360 million from social games in 2011
The platforms are making most of the money, but some third-party do well. However, Most Western companies
failed on those platform so far (including Zynga)!
Reality of Korea
• Aside from Blizzard (local opera3on), FIFA (partnership) and League of Legends (hired Blizzard staff), not many successes
• On mobile, it is possible to make money, especially via iOS
• Android is big, but fragmented among several app stores + regulatory limita3ons (GRB)
iOS doable, Android harder, web very hard!
Reality of Korea
The market figures are including exports, but still a big market for web, less so for mobile.!
• Revenue – 2011 Revenue $1.1 billion – Net revenue $313 million
• 19% margin • China licensing: Tencent = 85%
• Titles – Maple Story (RPG), Mabinogi (RPG), Dungeon & Fighter (RPG), Kart Rider (fantasy kart racing), Counter Strike Online (FPS)
Market Revenue
China $398m (38%)
Korea $348m (33%)
Japan $158m (15%)
Rest of World $105m (14%)
TOTAL $1.1 billion
Nexon
Nexon does great in China and Japan!
• 2011 Income $540 million • Net income $157 million
Market Revenue
Korea $360m (66%)
Japan $75m (14%)
China (royalty) $50m (10%)
Rest of World $55m (10%)
TOTAL $540m
Title Revenue
Lineage 1 35%
Lineage 2 18%
Aion 40%
Other 5%
NCsov
NCsoft has few titles, mostly missed China!
• Part of NHN Group – Naver 65% of search market – Hangame Casual games, #2 player
• Revenue – NHN 2011 $1.9 billion – Net profits $400m (20%)
• Gaming brought $570m in 2011 – Japan = $267 million
Hangame
Hangame is #1 in Japan, lots of casual games!
• 20-‐30 mobile games for Korea and 40 games for Japan in 2012
Hangame sourcing mobile games
Register game on a social
platform
Apply online (send application form,
executable file, instructions) Result Reflect result
on the game
Deliberation By Game Rating
Board
For All Users Over 12 Years Old Over 15 Years Old Over 18 Years Old
To launch in Korea, approval is needed!
Game Ra3ng Board
10 Dotori = 1,000 KRW = USD 1
Recharge (Purchase) Dotori 1. Credit Card
2. Mobile Payment
3. Online Banking
4. Fixed Phone
6. Prepaid Giv Coupons
7. Prepaid Cards
Payment method
5. Loyalty Points from partnerships (OK Cashbag)
Payment Methods
In all 3 countries, payment methods are mostly local. No way around it.!
Reality of “Rest of Asia” • Rich & English-‐friendly
– Singapore (English) – Hong Kong (cantonese, mandarin, English)
• Somewhat wealthy & somewhat English-‐friendly – Malaysia (some – most revenue from Chinese popula3on) – Taiwan (Taiwanese = tradi3onal Chinese script)
• Not there yet – Vietnam – Indonesia – Philippines – Thailand…
Some markets can provide decent revenue!
Coming soon: $50 Android Phones
Android booming with cheap phones!
