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Korean social game market trend report (2011Q2) Eng
 

Korean social game market trend report (2011Q2) Eng

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Korea social game report, Cyworld AppStore.

Korea social game report, Cyworld AppStore.

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    Korean social game market trend report (2011Q2) Eng Korean social game market trend report (2011Q2) Eng Document Transcript

    • Korea Social Game MarketTrend Report2011 Second Quarter (Vol. 4)
    • Table of ContentsMarket Overview .......................................................................................................................................... 3 Accumulated AppStore Users .................................................................................................................... 3 Total Revenue of Cyworld AppStore ......................................................................................................... 4 Gender Ratio ............................................................................................................................................. 4 Age Distribution ........................................................................................................................................ 4 Age Distribution by Gender ....................................................................................................................... 5Simulation Games ......................................................................................................................................... 5 Accumulated Installs of Simulation Genre ................................................................................................ 6 Monthly Revenue Simulation vs Non-Simulation Genre ........................................................................... 6 Installation ratio Simulation vs Non-Simulation Genre............................................................................. 7 Total Revenue Ratio .................................................................................................................................. 7 ARPPU for Simulation Genre .................................................................................................................... 8 ARPPU for Simulation Genre by Gender.................................................................................................... 8AppStore Overview ....................................................................................................................................... 8 Accumulated Installs for All Genres .......................................................................................................... 9 ARPU All Genres ...................................................................................................................................... 10 ARPPU for All Genres............................................................................................................................... 10 Revenue of all Genres.............................................................................................................................. 11 ARPPU All Genres .................................................................................................................................... 11Cyworld Mobile AppStore ........................................................................................................................... 12Developers at a Glance ............................................................................................................................... 13 Number of Apps in AppStore ................................................................................................................... 13Conclusion ................................................................................................................................................... 14 2
    • Market OverviewCyworld AppStore in the 2nd quarter has had its ups and downs. Despite seeing growth in gameslaunched in the first quarter, the platform also saw a drop in new users as well as revenue.Cyworld AppStore attracted around 400,000 new users in the 2nd quarter or just about half of what wesaw in the 1st quarter. In total, the number of total users in the platform is at 4.9M users, up from 4.5Mas reported in the 1st quarter. 6,000,000 25,000 5,000,000 20,000 4,000,000 15,000 3,000,000 전체회원 신규회원 10,000 2,000,000 5,000 1,000,000 0 0 10/7 12/7 2/7 4/7 6/7 8/7 10/7 12/7 2/7 4/7 6/7<Line graph 1: Accumulated AppStore Users>Even with the decrease in new users signing up to the AppStore, the quarterly revenue continued toincrease. The AppStore also saw the highest monthly revenue in April with just over $900,000 USD inrevenue before fading the next two months. Despite the decline in May and June, it was the bestperforming quarter so far for the Cyworld AppStore with the total revenue reaching $8M USD since theAppStore launched in 2009. 3
    • Total Revenue of Cyworld AppStore (Jun 2011) 1,000,000,000 900,000,000 800,000,000 Korean Won (KRW) 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 0 11/2009 01/2011 12/2009 01/2010 02/2010 03/2010 04/2010 05/2010 06/2010 07/2010 08/2010 09/2010 10/2010 11/2010 12/2010 02/2011 03/2011 04/2011 05/2011 06/2011<Line graph 2: Total Revenue of Cyworld AppStore (Jun 2011)>One thing that remained steady in the Cyworld AppStore was the demographics. The growth betweenmale and female users remains steady for four straight quarters. Like previous quarters, female userscontinue to be the majority in installing apps with the ratio remaining consistent with previous quarters(56:44).<Pie graph 1: Gender Ratio> <Pie graph 2: Age Distribution> 4
    • Much like the gender ratio, the age distribution for the Cyworld AppStore saw a slight change fromprevious quarter with a tiny increase in users between the 16-18 years old age group and users in the25-29 years old age group dropped slightly.<Pie graph 3: Age Distribution by Gender>Simulation GamesSimulation genre has always been at the top attracting users and increasing revenue even well beforethis quarter. The games that were popular then and continue to be popular now are farming, aquariumor business management games. The 2nd quarter exploded with a handful of simulation games fromboth local and foreign developers. Those games that were introduced to the AppStore were games thatare already published on Facebook and other social networks. Some of the simulations games were MyFarm, My City (Avocado), My Kingdom (Happy Elements), Viva 3 Kingdoms (Crzyfish), and first personshooter, Uberstrike (Crzyfish). This quarter, the city building games took off in Cyworld AppStore withthe aforementioned games in the genre. 5
    • <Line graph 3: Accumulated installs for Simulation genre.>There’s no question by now that simulation genre is the most popular amongst the users in Cyworld anddata up until the 2nd quarter proves it. An overwhelming 90% of the revenue for the 2nd quarter wasfrom games in the Simulation genre, ranging from farming to building a kingdom to running a fashionstore.<Pie graph 4: Revenue Sim vs Non-sim games. in KRW. Figures rounded.>Driven by the release of new simulation games in the 2nd quarter, the majority (94%) of the AppStoreusers installed more Simulation games than Non-simulation games in the quarter. Revenue fromSimulation games also increased from the previous quarter. The ARPPU was higher for each category in 6
    • the Simulation genre, while the ARPPU for the city building games more than doubled for each month ofthe 2nd quarter.Note: Q1 2011 report included data for the last month of the quarter (March) while this report reported numbers for the threemonths in Q2.<Pie graph 5: Sim vs Non-sim games install ratio and revenue ratio><Line graph 4: ARPPU for Simulation genre> 7
    • <Bar graph 1: ARPPU of Simulation genre by gender> 8
    • AppStore OverviewWhile Simulation genre continues to be a strong genre in the AppStore, there are still a continuous flowof games, of other genres, into the AppStore. Users continue to install various types of games that areavailable in the AppStore. The installation numbers were positive for each genre in the 2nd quarter,while there was a noticeable increase for some genres as compared to the previous quarter. Asmentioned earlier, games in the Simulation genre saw the most growth compared to other genres whileothers remained steady or flat or saw little growth. City building games more than doubled theirinstallations in the 2nd quarter from 890,000 users ending March 2011 to 1.8M users at the end of June2011.<Line graph 5: Accumulated number of installs by genre>While users are playing games and purchasing in-game items in the AppStore, the revenue generated bygames other than the Simulation is still relative small. The ARPU has been down for many genres withthe exception of city building games whose unexpected growth helped drive the city building game’saverage revenue per paying users up to as high as 150 Won or roughly USD $0.10. The ARPPU washigher in the 2nd quarter, with many seeing an increase from previous quarter. City building games wereright behind RPG games, which is known to have the highest ARPPU in the AppStore for past quarters. 9
    • <Line graph 6: ARPU of All Genres><Line graph 7: ARPPU of All Genres>Another genre we’ve highlighted in the past couple reports was the success of RPG genre. In the 2ndquarter, the revenue from RPG games dipped after a promising 1st quarter. The ARPPU, on the otherhand, continued upwards, moving past 18,000 Won or roughly equivalent to $17USD. Despite the 10
    • decrease in revenue in this quarter, solidly designed RPG games will continue to attract both male andfemale users.<Line graph 8: Revenue of RPG genre><Line graph 9: ARPPU for RPG> 11
    • Cyworld Mobile AppStoreWith the increasing popularity of smartphones in Korea, Cyworld embarked on a mobile AppStore thatwould allow users with a smartphone to play social games on the phones. Smartphones are booming inKorea, with over 10M smartphone users at the end of March 2011. In April 2011, Cyworld unveiled themobile AppStore to their users. Initially, the mobile platform launched with five games and it slowlygrew to nine games by the end of the 2nd quarter and is mostly made up of simplified versions of theexiting games in the AppStore.The Cyworld mobile AppStore allow developers to create both Flash and HTML/Javascript games playedon mobile browsers on their smartphones and/or other mobile devices. Additionally with our mobileAPI, developers are also able to integrate the Cyworld social graph into their games as well as integratedotori “acorn” virtual currency into their mobile social games and native mobile games/apps.While it’s still too early to report back any statistics on the performance of the mobile AppStore, theincreasing number of smartphone users, it a good signal of where the trend is going. 12
    • Developers at a GlanceThe 2nd quarter continued to see growth in overseas developers publishing their games into theAppStore. Overall, there were 33 games published in the 2nd quarter. Of those, eleven were gamesdeveloped by overseas developers. The number of overseas games has already surpassed the previousyears combined. Despite the growth in overseas developers in the AppStore, the local developers stillhave a very strong presence in the AppStore.<Bar graph 2: Number of Apps in AppStore>The increase of developers only means an increase of games for the platform. Simulation gamescontinued to be the popular genre the overseas developers are bringing to the platform. All but two ofthe eleven games were simulation games. First person shooter and RPG were the other two gamespublished this quarter.Of the overseas developers coming to the Cyworld AppStore, Chinese developers were the most activesince Rekoo first began service on the platform in 2009. Followed closely are developers from Russiawhile developers from North America and other parts of Europe were not present in our platform sincethe platform began operations. 13
    • Games from Chinese developers appear to have an easier time breaking into the market compared toother overseas developers. Happy Elements’ My Kingdom (known as Happy Kingdom in Facebook), WildAge (Avocado) and Hoolai’s Viva Three Kingdoms (locally published by Crzyfish) have attracted solidnumber of users to their respective games since launch.Games being published are also reaching a new high each quarter. The AppStore has reached a total of66 games through the first two quarters of 2011. It’s expected the AppStore will surpass the 86 totalgames that were launched in 2010.ConclusionWhile we saw favorable growth in the 1st quarter of 2011, the user growth slowed in the 2nd quarter.After reaching a record revenue month in April 2011, the revenue decrease in May and June. Despitethe slight decrease in new users and the decline in monthly revenue the last two months of the quarter,the 2nd quarter performed better the previous quarters, in terms of generating revenue.Simulation games continued to be the dominant genre in the platform. City building games became oneof the popular categories in the Simulation genre. While the installs of city building games remain thelowest behind the farming, aquarium, business management and pet simulation games, their revenuefar exceeds those type of games and is second only behind to RPG games in terms of ARPPU. Koreanusers are seeking simple yet fun games on the platform and games in the Simulation genre provides that.The introduction of these city building games helped revive a stale city building genre.As we saw last quarter, overseas developers had begun to notice the Korean market. This quarter, therewere even more overseas developers entering the market, either directly by themselves or through theone of many local publishers. The increase of proven games from the Chinese and Western market willbe beneficial to both users and their developers.The introduction of the Cyworld mobile AppStore social gaming platform is the first from the three localsocial game platforms. Developers can now develop games for users to play on the browsers of theirsmartphones. In addition is the availability of our Mobile API, which allows developers to developgames for mobile operating systems, Android and iOS. 14