Recent reports suggest that the rate of downloads is decreasing in the West, which means higher user acquisition and growth costs. Turn East to next years year's $6 billion market, though you can only succeed if you understand user preferences, technical requirements, and the intricate publishing ecosystem. While developing your game, think “China-First”.

1. China’s Mobile Games Market
and Publishing
William Heathershaw, Head of International Marketing, SkyMobi
• Market Overview
• Largest User Segment Preferences and Trends
• Publishing in China
Updated August 2014

2. Market Overview

3. China Mobile Internet Users as % of Internet Users
Source: KPCB

4. Total Number of Active Devices and Devices Used for Games
6/13-6/14
Total Numbers of Devices Actively Used and Devices Used for Games
1.48
Between June 2013 and June 2014
3.2
8.1
1.1
3.1
7.9
77%
96% 97%
100%
80%
60%
40%
20%
0%
10
8
6
4
2
0
Jun 2013 Dec 2013 Jun 2014
Active Mobile Device Active Game Devices Proportion

5. Percent of Global GDP
Source: KPCB

6. Conversion of Users to Paid and ARPU (Android)
6.62
0.39
11.49
8.56
6.11
2.08
2.49
14.26
Card Battle
Table
SLG
STG
ACT
RPG
Puzzle
Casual
ARPU
Conversion Rate
3.74%
4.25%
1.70%
1.60%
3.08%
2.08%
1.19%
2.70%

7. Conversion of Users to Paid and ARPU (iOS)
4.45
1.73
0.48
12.59
9.99
7.89
2.26
14.42
Card Battle
Table
SLG
STG
ACT
RPG
Puzzle
Casual
ARPU
0.19%
Conversion Rate
1.52%
1.45%
0.71%
0.74%
0.77%
0.35%
1.05%

8. The Largest Mobile Gamer Segment

9. 3rd and Lower Tier Cities
• Population
• Provincial GDP
• Cities with strong economic growth
• Geography vicinity to other powerful cities
• Advanced transportation infrastructure
• Historical and cultural significance
Source: American Chamber of Commerce

10. Distribution of Active Devices in Chinese Cities
1st Tier cities only have 10%
of China’s population
1st Tier Cities: Beijing,
Shanghai, Guangzhou,
Shenzhen

11. Annual Changes of Daily Sessions per User
Source: umeng

12. Preferences and Trends of Gamers in
3nd Tier Cities and Lower

13. Game Preference
Source: Maopao appstore

14. Game Preference Trend
Casual
Action
Card
Racing
RPG
Adventur
e
Time
Source: Maopao appstore

15. Wifi vs Cellular Network Usage for Downloads
Source: Maopao appstore

16. 238
251
271
316
377
282
298 303
323
354
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14
 AVG.RAM
 AVG.ROM
Handset Performance Increasing,
but yet Relatively Low End
Source: Maopao appstore

17. Most Responsive Time Periods to Promotions
Source: Maopao appstore

18. “Hmm, can they monetize?”
• Most affordable form of entertainment
• Able to “show face” through games

19. Publishing in China

20. Localization
• Language
• Theme/Story
• Items for IAP
• Monetizing Schedule (3 minutes)

21. Distribution Channels
400+ Android distribution channels
• App stores: MyApp, 91.com,
• OEM: Xiaomi, SkyMobi (Maopao)
• Carrier pre-installs: SkyMobi (Maopao)
• Mobile browser: UCWeb
• Wifi network: CMGE

22. What We Look for in Games
• Built on leading game engine
• Size less than 50 MB
• Not dependent on social network
• Monetizes with IAP

23. What Do We Look for in Games
• Quality (Art style, Music, Graphics, Gameplay)
• Potential popularity
• Degree of difficulty and resources to localize
• How fun is the game
• Cute, attractive graphics

25. Billing
• 80% through SMS
• Difficulties
– Differences in regional carrier
– Bugs, negative feedback
• Billing SDK

26. Marketing
• Distribution channels
• PR/Media
• Few open networks, exchanges

27. Monetizing
• IAP: passing levels, tools, VIP status
• Pricing: 1-4 RMB

28. Revenue Split
Channel
30%
Billing
30%
Publisher
25%
Developer
15%

29. • Nasdaq-listed, Sequoia funded
• Maopao app platform
– 30 million MAU
– 400,000 new users daily
• Publishing
– 100+ distribution partners
– 9 year operators relationships
– Use Maopao for testing before publishing

30. Contact Us
developers@sky-mobi.com

31. Proudly based in Hangzhou, China
San Francisco
Visit Us!

32. Köszönöm!