Social Games in Asia (aka Where Facebook is Not Yet King) James - PowerPoint PPT Presentation

Social Games in Asia (aka Where Facebook is Not Yet King) James Gwertzman VP Asia/Pacific james@popcap.com

Facebook Usage (as % of population) (source: www.nickburcher.com; visualized with OpenHeatMap)

Korea Japan China India Taiwan Philippines Thailand Vietnam Malaysia Indonesia Facebook Usage (as % of population) Australia (source: www.nickburcher.com; visualized with OpenHeatMap)

Korea India Thailand Facebook Growth (2010 vs. 2009) (source: www.nickburcher.com; visualized with OpenHeatMap)

China Market Overview Many competing platforms High DAU; Low ARPU Heavily regulated Predominately PC focused (esp. for foreign companies)

QZone China SNS market RenRen.com Sina Space 51.com Kaixin001.com Sohu Douban.com 139.com (mobile) Kaixin.com Other

User behaviors China’s platforms Facebook  Stealing  Cooperating

Art style China Facebook

Viral feeds QZone RenRen  No app feeds App Feeds  App Invites 

App Discovery QZone RenRen  App Directory  App Directory  Banner Ads  Ads

Platform currency QZone RenRen  RenRen Beans  QB

Happy Tower “Farmville meets Cake Mania”  Manage a shop  Service your customers  Steal from your friends  DAU: 15M  ARPU: $.005 / DAU  Monthly revenue: $2.5M

Core Mechanic 1.Rent a floor to open a shop (1) (4) 2.Serve guests and get coins 3.Spend coins to upgrade and expand 4.Steal coins and guests from friends (2) 5.Finish daily tasks for bonus rewards (5)

Business Model  Buy items to:  Attract more customers  Shorten service time  Improve customer satisfaction

Viral Growth  Friend invites

Fantasy Seabed

Business model  Buy items to:  Shorten growth time  Extend harvest time  Buy special fish

Viral Growth  Friend Invites

Little War  Grow, decorate village  Make war on others  Build magic powers  Prank friends

Business Model  Buy:  Building materials  Magic energy  Special decorations  Shorten growth time

Viral Growth  Friend invites  Form feeds

Japan Market Overview Mobile Phone (“Gala -kei ”) High (US$2-$3) ARPU Implementations Limited social features: activity feeds, messaging, avatars

GREE vs DENA : Feature Phone As of Feb 7, 2011 As of Feb 11, 2011 1 Dragon Collection Kaitou Royale 2 100 Mannin No Sangokushi Nouen Hokkorina 3 Omiseyasan Kaizoku Treasure 4 Love&Job! Otona No Jijyou Hoshitsuku 5 Shirotsuku El Ark More collaborative games More competitive games •  Few titles from GREE Top 5, all from DeNA / 8 DeNA titles in Top 10 •  Titles related to “love” and “boy” are popular More like Nintendo •  More like Sony Computer Entertainment •

Kaitou Royale Dragon Collection “Mafia Wars” style RPG  Card collection and battle game  “Mafia Wars” not popular in Japan  Popular with women as men  Released as “Bandit Nation” in  US; not especially successful

100 Mannin no sangokushi Nouen Hokkorina  “Strategy RPG” game  Farming game  Reunify ancient China  Simple battle mechanics; no real fight interaction

Kaizoku Treasure Omiseyasan  Seafaring Pirates  Shopkeeper game  Ship Battles  Visit friends’ shops, etc  Treasure hunting

Love & Job! Hoshitsuku Otona no jijyou Life drama game Planet-building game   Main character works in nail salon Develop the culture on your planet   At the turning point of your life, Spend energy to go to other players’   choose between love and job! planets and find items Pay per-episode model Use found items to boost your culture  

GREE vs DENA : SMARTPHONE In service now Flash emulation Original web browser To be launched on April Native apps for Gree API Using NG moco’s engine “ ngCore ”, which is Android-iPhone cross- platform capable Web based Native App calls GREE API Flash Emulator

GREE vs DENA : PC SOCIAL China Japan US China Japan US Yabage PC No Game but PC with Yahoo! simple SNS WAP Mobage WAP GREE GREE GREE WAPTX Mobage GREE Plus+ Network platform for platform for Smartphone Smartphone Smartphone Smartphone platform for with ngmoco Smartphone Smartphone with tx.com.cn with ngmoco Smartphone with Tencent as GREE USA Focusing on Partnering with Yahoo smartphone, not PC (Yabage) to go after PC

App Discovery & Virality  Discovery through promotion or charts (new, top selling, recommended)  Virality limited to activity feeds & messaging  Low click-through on game-related invites (25%)

Q4 2010 Mobile & PC trends Reach rate Average PV Minutes spent mixi mobile Mobile mobage SNS market in Japan Ameba mobile Reach rate Average PV Minutes spent Yabage PC Ameba pigg Hangame Q42010

Q42010 ARPU Item ARPU Ad ARPU SNS market in Japan Mobage (Unit: JPY) Q42010

Western Companies Competing in Asia Zynga China: purchased Beijing social game studio (XPD); developing primarily for  Facebook Japan: $150M Softbank investment,; bought 120 people studio (Unoh); launched  Farmville on Mixi platform (PC); working on mobile titles Crowdstar Partnership with Drecom in Japan to launch social titles on mobile  EA Growing Playfish Beijing studio; opening iPhone studio in Beijing; planning to  enter China market PopCap Built 80 person Shanghai studio; partnering in Japan, Korea, China  Announced social- mobile “ PopTower ” project for Japan 

Predictions…  <$100 Android handsets  Huge competition on social/mobile in China  Facebook will partner to enter China

Questions?