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Online and Social gaming in Asia - A few tips
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Online and Social gaming in Asia - A few tips


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  • 1. ONLINE GAMINGFABIEN SIOUFFI. VP, ONLINE AT TAKE 2 Online gaming in Asia in 2011. Fabien Siouffi 1
  • 2. ABOUT ME Previous life • Internet early adopter (Mosaic ? BBS anyone ? ) • Microsoftee then Sun Microsystems in Europe Asia ! • 10 years in Asian gaming • Counter Strike, World of Warcraft asian launches in mid 2000’s • At EA, FIFA Online Korea and South East Asia • Electronic Arts move to overall online centricity Now • NBA 2K Online with Tencent China. Forecasting 50m active users • Baseball Online with Nexon. Targeting ARPU of 50$/month • Civilization Online. Large scale MMORPG going against World of Warcraft • Social Mobile push in Japan and Social Web in China Online gaming in Asia in 2011. Fabien Siouffi
  • 3. A DECADE OF GAMING BOOM IN ASIA The problem with packaged games • Limited market : Piracy • Limited reach : high specs, fat clients • Limited appeal : solo experience, static product designs Multiplayer PC Games showed the way • Extended lifecycle : DOTA, Counter Strike enduring craze • Social gaming : PC Bangs (Internet Gaming Rooms) • Dilemma for publishers : Huge consumption, no monetization Online PC Games • Huge market : Server only = No piracy • Massive Reach : Low/adjustable specs • Massive Appeal : Continuous refresh of the game content + online events + community based design Online gaming in Asia in 2011. Fabien Siouffi
  • 4. THE RISE OF GLOBAL PLAYERS 1998 – 2004 : Innovation from South Korea • Lineage by NC Soft (Jake Song) : first MMORPG. • Ragnarok by Gravity : First Casual MMO • Kart Rider by Nexon: First Free to Play casual game 2003 - 2006 : Online gaming boom throughout Asia • World of Legend in China hits 1 million Peak Concurrent Users (PCU) • Korea : Lineage has 1m subscribers. Kart Rider hits 200k PCU • Ragnarok reach 75,000 PCU in both Philippines and Thailand 2006-2010 : Games for everyone • Higher end MMOs. World of Warcraft. First 3D game in China, first (and only) western success in China. 1m PCU • New genres of MMO. o MMO-FPS – Sudden Attack kills Counter Strike o MMO-Sports – FIFA Online hits 200k PCU in Korea 2010 -? : Games everywhere • Play on Social Networks • Build social networks around games. Gree and DeNA in Japan • Clientless and portable. Near ubiquity Online gaming in Asia in 2011. Fabien Siouffi
  • 5. ONLINE GAMING IN ASIA TODAY Market value : $13Bn (USA + Europe = $9Bn!) 415m of online gamers 200k Internet Gaming Rooms Birth of giants : NHN worth $10Bn , Tencent worth $40Bn Asia 2 years in advance of the west. Invented social networks, free to play business model, community design, data driven development Asian companies go big, go out • US and Europe subsidiaries • Consolidation started, lots of M&A Oligopolistic Portal business • Platforms dominate • Increased reach. Female and casual gamers conversions • Increased monetization. ARPPU rising Online gaming in Asia in 2011. Fabien Siouffi
  • 6. ONLINE GAMES MARKETS 2011 TOTAL MARKET : $12.7B SOUTH KOREA Rev : $2,900M Gamers : 30M IGR : 19,000 CHINA Rev : $6,470M Gamers : 311M JAPAN IGR : 125,000 Rev : $2,594M INDIA Gamers : 10M Rev : $10M IGR : 1,500 Gamers : 4M THAILAND TAIWAN IGR : 1,500 Rev : $65M Rev : $474M Gamers : 6.7M Gamers : 4M IGR : 10,000 IGR : 2,000 Thailand VIETNAM MALAYSIA Rev : $90M Rev : $25M Gamers : 6M PHILIPPINES Gamers : 5M IGR : 15,000 Rev : $30M IGR : 5,000 Gamers : 4M IGR : 6,000 SINGAPORE INDONESIASource : IDC 2010, Pacific Epoch Asia, Niko Partners Rev : $15M Rev : $35M Gamers : 0.5M Gamers : 2M Growth : 100 IGR : 10,000 Key markets : China, Korea, Japan, Taiwan Emerging Markets : S.E.A. Online gaming in Asia in 2011. Fabien Siouffi 6
  • 7. HOW IT WORKS Acquisition. Registered Users (RU), Installs, PCU • Must o Trigger virality • Avoid o Server downtime o Hacks Retention. Active Users, ACU • Must o Repeatable core gameplay, o Operation events o Community loop • Avoid o Undesired features o Linear game designs Monetization. ARPPU, LTV • Must o Metrics analysis. What the whales want o Cash rich time poor vs time rich cash poor • Avoid o Breaking game balance Online gaming in Asia in 2011. Fabien Siouffi
  • 8. TIPS FOR MAKING IT WORK Acquisition • Virality – Refer a friend program • Accessibility – o Light client = Keep it under 500Mb, refresh often o Quick rewards Retention. • Design stickiness. Show the end game at the beginning • Community rules. Attract guilds, opinion leaders • Events. Valentine’s day, CNY Monetization. • Everything for the status conscious -> Purple items • Pay for not losing face -> Erase stats of poor performance • Bring luck into play -> Win a chance to win big • Eliminate friction -> Buy at the moment of win or loss. Online gaming in Asia in 2011. Fabien Siouffi
  • 9. PLAYER BEHAVIORS ? Play out of home • Simple to control, no sound, Boss button ! • Always on, running in the background Impulse buy • Shopping is part of the gameplay experience • Low denominated items • Appeal to completist Repetitive play • just one more go at it ! • Average online time : 5 hours/day in most serious MMOs Meet people online • everyday : clan, guilds, party for a raid • one time only : matchmake, date • Date : Marriage feature in most of MMO Online gaming in Asia in 2011. Fabien Siouffi
  • 10. BUT WHY PEOPLE PAY ? Look good. • Show off achievement. Epic mounts only accessible to level 70 players Play better. • Progress faster. Skip time, remove the grind Have fun. • More of that kind of fun. ManU vs Liverpool FIFA matches Meet girls. • Gift item to that special one Make money. • Buy because you know you can sell at higher price • Game farming / Secondary market Online gaming in Asia in 2011. Fabien Siouffi
  • 11. IDENTIFYING GREATNESS IN ONLINE GAMES Do first, perfect later. • Shorten dev loops, get the core gameplay right o FIFA Online session match. • Go public halfway through your development cycle. o NBA 2K Social first beta after 4 months • Get the community to tell you what they would like to see o Street Mode or NBA Mode ? Immerse yourself in stats, and code accordingly • Cap the free stuff : FIFA quick match mode • Address balance issues. Dark Elves race in WoW Managing the lifecyle. • Acquisition first, then retention then monetization. Don’t rush • Usage, usage, usage Small Agile teams, with access to large pools of resources • It all starts with one creative and one business guy. Keep the dynamic alive, even if conflictual Online gaming in Asia in 2011. Fabien Siouffi
  • 12. ASIA HOT SPOTS Japan – Gree and DeNA • 25m each of mobile social gamers • Extremely high stickiness and ARPPU • Each of them makes more revenue than Zynga with a tenth of the users China – Tencent • Q + “open” platform. • Going aggressively into mobile social games Vietnam • Vinagames and VTC fostering fast growth Philippines and Indonesia • Asia has more people on Facebook than in the US • Indonesia, India and Philippines each more than 25m users Online gaming in Asia in 2011. Fabien Siouffi