GREE: Going Global with GREE – best practice and current trends in social mobile free-to-play

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Going Global with GREE – best practice and current trends in social mobile free-to-play GREE is the world’s largest social gaming network with over 190 million users and is currently launching the …

Going Global with GREE – best practice and current trends in social mobile free-to-play GREE is the world’s largest social gaming network with over 190 million users and is currently launching the GREE Platform – a social gaming ecosystem available to mobile users and developers all over the world. Having spent the past five years providing social games on mobile devices in Japan, GREE is well aware of the challenges – and the enormous creative and commercial potential – posed by this rapidly growing new area of gaming. So come and learn from one of the leaders in the ever evolving frontier territory of Free-to-Play.

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  • 1. GREE: WHO WE ARECnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. 1 Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 2. CREATING THE WORLD’S LARGEST MOBILE SOCIAL GAMING PLATFORMCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. 2 Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 3. GREE Overview Creating the World’s Largest Mobile Social Gaming Platform Tokyo Founded December 2004 Founder & CEO Yoshikazu Tanaka International San Francisco Founded February 2011 CEO Naoki Aoyagi Acquired OpenFeint April 2011Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 4. The Leading Platform in Japan Established only Approx. 1,000 employees, 8 years ago 3x from 1 year ago (December, 2011 consolidated base) Japan’s No.1 advertiser 234 mm users for TVCMs (March, 2012) (Number of air-play, November- December, 2011) Targeting 1.6-1.7 billion 8,000 game titles euros in revenue (February, 2012) (Estimated June, 2012) 5.9 billion euro Listed on the market cap TSE 1st Section (February, 2012) (June, 2010)Cnetl of n da ii 4 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 5. GREE Current Global Reach Amsterdam ●● ◎◎ London Beijing Seoul ● ◎ ●● ◎◎ San Francisco ● ◎ Tokyo ●◎ ● ◎ Dubai Osaka ● ◎ Singapore ● ◎ São PauloCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 6. Growing User and Game Network 200 8000 Live GamesPlayers (Millions) 180 234 MM 7000 8000 160 Unique User Accounts Live Games 6000 140 5000 120 100 4000 80 3000 60 2000 40 1000 20 0 0 Jul Sep Jul Sep Jun Aug Oct Feb Jun Dec Apr Aug Oct Feb Dec Nov Jan Nov Jan Mar May Jun Jul Aug Sep Oct Feb Jun Jul Oct Feb Dec Aug Sep Apr Dec Nov Nov Jan Jan May Mar 2010 2011 2012 2010 2011 2012 *Above data shows users and games numbers of OpenFeint Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 7. Internet Industry Trends Smartphone shipments are estimated to exceed PCs and internet access will become more mobile and more social Global PC and Smartphone Shipments Trend of Global Time Spent Online(Millions) (%) 600 15 500 400 10 Social Media 300 200 5 Portal Media 100 2005 2007 2009 2011 2013 (E) 2007 2008 2009 2010 PC SP Sources: Morgan Stanley「Mobile Internet Trend」Cnetl of n da ii 7 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 8. The Mobile Gaming Market and GREE GREE games have gained popularity with the continued growth in the mobile games market in Japan Gaming Market Growth Top Grossing chart on App Store in Japan, North America, and Western Europe(Million Euro) 25000 19,800 20000 15000 14,000 12,400 High LTV Tsuri-Sta Since 2007 10000 5000 3,060 0 2010 2015 Mobile Game Console Game *Sources: Ichiyoshi Research Institute Inc. and Ichiyoshi Securities Co.,Ltd. October, 2011 *Sources: App Store(February 1, 2012) 8 Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 9. GREE Platform Overview Platform overview ▼①Web Application Web Appli iOS Appli Android Appli ■The same as the current GREE Platform for feature phone Development GREE Partners GREE App release Provide API Sandbox Various support ▼② iOS App / ③Android App Web appli iOS Appli Android Appli ■GREE will provide SDK and the games will be distributed on GREE and various App markets. Various Market Integrate SDK App release App GREE Users GREE API GREE Partners Provide SDK GREE Release as GREE App Sandbox Various support 9Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 10. CREATING THE WORLD’S BEST MOBILE SOCIAL GAMESCnetl of n da ii 10 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 11. What’s a social game? A social mobile game is: • Casual • So it helps to have simple rules, game design, and interface • It also helps if it’s very rewarding • And it needs to be playable within a short space of time – ideally within 3-5 minutes • Free to play • So anyone can try it • But people play it in different ways – hardcore fans play alongside people who are just trying it out • With in-app purchases • So people are playing for different reasons than pay-per-download games • And people are paying money for different reasons too – to show off to friends, or to compete with them.Cnetl of n da ii 11 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 12. What’s a social game? A social mobile game is: • Online • So people can compete or cooperate with friends • And we can provide players with a new experience every day • Anywhere, anytime • People carry their phones with them 24/7, 365 days a year. • People play on the train, at lunch, taking a break, waiting for a bus, etc. • So games need to be simple, and quick, and possible to divide across the day • If you’re making mobile games you’re not competing for your players’ money; you’re competing for their time • You need to make users want to come back • Global • AppStore and Android Market/Google Play are already global • So you need to cater to local tastes – co-op is popular in Japan; competition in the west • And people pay for different things in different placesCnetl of n da ii 12 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 13. Social Game Planning Creating a game system which maintains user engagement User Retention Monetization AcquisitionMechanism to Mechanism to Mechanism to continuously attract users keep users playing increase revenueCnetl of n da ii 13 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 14. Social Game Planning Good planning requires User Acquisition, Retention, and Monetization User Retention Monetization Acquisition Ways to attract Increase retention Increase paid users Details new users and user return rate and ARPU Promotion, Decrease word-of-mouth, unsubscription rate etc. Acquire new users Promotion Promotion Game layout Example Tie-ups Return bonuses Periodical in-game Virtual item Periodical in-game events lineup eventsCnetl of n da ii 14 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 15. User Acquisition Game Performance × Viral Game Social Design DesignCnetl of n da ii 15 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 16. User Acquisition × Game Design Universally appealing game concepts featuring easy-to-understand rules  Fishing Star  Super satisfying fishing!  Game rule:catch fish  Clinoppe  Raise a mystical pet  Game rule:raise a pet  Hakoniwa  Easy and simple gardening  Game rule:Plant and create your own gardenCnetl of n da ii 16 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 17. User Acquisition × Social Design Encouraging users to play with friends Play Play Game Game Wish for Invite Virtual Want to Invite Friends Currency Play with Friends and Items friendsCnetl of n da ii 17 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 18. Retention Communication Game Cycle × Among Users Game Social Design DesignCnetl of n da ii 18 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 19. A simple game design The best way to think about the game design is as a cycle, rather than as a path. • The basic action needs to be simple and quick or the whole game cycle becomes boring – about 30 seconds • Players need to be able to feel a sense of progress • The UI needs to be simple • It needs to be rewarding enough to inspire players to come back for more • It needs to inspire users, not confuse them • When creating multiple game cycles it’s important to bear in mind the following points: • Make the objective clear: • Keep it simple • Make the game cycles complimentary: • So that the sub-cycles have a clear benefit for the main cycleCnetl of n da ii 19 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 20. Driland Game System ■Gacha Random Prize Machine ■Synthesis  Free or Paid chance to get random cards These chances are key to transactions  Combine cards to make stronger cards Compete with Friends■Game Top ■Quests ■Battle  Single Play, Quests are used to Level Up  Battles are won based on cards and levels Compete with Friends ■Raid Battles  Co-op battles with friends to defeat bosses in given time. Greater Reward incentives Co-op with Friends Cnetl of n da ii 20 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 21. Retention × Game Design Place a sub-goal for each short, middle, and long term game cycle to maintain high retention ✓Game Cycle Aquire Stronger Card! Get eg) Driland stronger Get Card ・short term :complete quest / Level Up card ・mid term:acquire cards battle ・long term:acquire stronger cards result Level Up! ✓Simple but addictive and repetitive gameplay Essential to create a sense of accomplishment for each game cycle ✓Set a milestone for each sub-goal to increase user traffic and engage users more in-game play. eg) in-game event: “Gacha” event where you get random, but strong cards Gain momentum! Win Battle users usually Lose!Cnetl of n da ii 21 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Acquire Strong Card! Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 22. Monetization Enforcing Challenges Sharing and × and Visualizing Success Connecting Users Game Social Design DesignCnetl of n da ii 22 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 23. Monetization× Social DesignHelp players to connect with each other! Type of Level of User SatisfactionConnect with Friends Light Small sense of Invite friends (85%) accomplishment Middle (10%) Competitive Share advantage and Heavy Buy virtual items honor (5%) to gain advantage inside game (ranking and achievements) Team up with Friends Play Against FriendsCnetl of n da ii 23 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 24. Social Game Planning Summary 『User Acquisition』『Retention』『Monetization』 Game Design Social Design User Acquisition Game Performance × Viral Retention Various Game models × Interaction between users Connecting Users Enforcing Monetization Challenges and Visualizing Success × and Displaying AccomplishmentsCnetl of n da ii 24 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 25. ABOUT METRICSCnetl of n da ii 25 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 26. We’re mad about metrics It’s important to use the right metrics and to understand where they are coming from • Different metrics matter at different times in the game cycle • There are a lot of general metrics, but it’s also essential to create custom metrics for your particular game cycle • User acquisition and virality-related metrics: • CTR, CPC, CPI, cohort analysis, k-factor, invites sent per DAU, invite acceptance rate, % of virally acquired users • Retention-related metrics: • 1-7 day retention, drop-off rate, visits per DAU, session times, churn rate • Monetization metrics: • ARPU, ARPPU, Payment conversion rate, average transaction value, first purchase trigger, paying user cohort, LTVCnetl of n da ii 26 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 27. ABOUT EVENTSCnetl of n da ii 27 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 28. Keep people playing! Reduce churn rate and raise retention rates: • Limited events within a certain number of days of logging on • Extra experience/gold in the first week Powerful • Reduced cost items Yakyuubu • Incentives for completing tutorial etc. Early morning Gacha Dragon Collection Pocket Kingdom Lunchtime Gacha Every day between 10am and 2pm, experience points are increased 1.5x 28Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 29. Keep people playing! Login incentive example • Example Login Bonus Campaign • Login everyday and collect stamps in return for a reward DAU DAU 590000 2011年9月17日 2011年9月18日 2011年9月19日 2011年9月20日 2011年9月21日 2011年9月22日 2011年9月23日 2011年9月24日 2011年9月25日 2011年9月26日 2011年9月27日 2011年9月28日 2011年9月29日 2011年9月30日 2011年10月1日 2011年10月2日 2011年10月3日 2011年10月4日 2011年10月5日Cnetl of n da ii 29 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 30. WHY PLATFORMS ARE IMPORTANTCnetl of n da ii 30 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 31. Growth in Free-to-Play Games Game Design Has Shifted to Freemium with IAP Premium games User Revenue monetize users once Free-to-play with IAP $ Paid Longer play = more $$$$ F2P games monetize users many times Premium Game Virtual goods market was $7.3B in 2010; will Time game played double by 2014 Download App Source: Zynga SEC filing, via In-Stat market intelligence firm.Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 32. Why Social Games are Special Social is a unique variant of “freemium” that uses social network effects to increase LTV and lower CPI/A SNS or Social Platform Notifications from friends Game Economics Player Lifetime Engagement Network = Revenue X effects Value (LTV) Per User from friends Cost Per Requests Acquisition (CPA)Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 33. Social Gaming Platforms Win Optimize Acquisition, Retention, Monetization Acquisition Platform provides optimal distribution through cross promotion Games and platform SNS Social Platform Social & communication tools Retention Viral effect between games Standard virtual currency across all Monetization games on platform increases ARPUCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 33
  • 34. Without a platform... High CPA Weak Viral Engagement • App-store trickery • No clear social graph • Limited cross- • Diffused viral promotion channels • Ad networks • App-store hides dominate conversion tracking … but several platforms are emergingCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 34
  • 35. Inefficient User Acquisition Requires Constant Management and EvaluationCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 35
  • 36. Lower Retention Rates Communication Channels are FragmentedCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 36
  • 37. Monetizing is Easier on Platforms With a Platform… • Platform re-engagement channels enable developers to target users • Common currency makes transactions more streamlined on AndroidCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 37
  • 38. Potential Platform Landscape SNS Focus Game FocusCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 38
  • 39. GREE PLATFORM: ADDRESSING A GLOBAL MOBILE AUDIENCECnetl of n da ii 39 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 40. GREE+ OpenFeint A New Global Platform for Developers and Gamers Successful 7,000 over social games games Games 234MM users Games Current Current New Global GREE Japan OpenFeint GREE Platform Platform Platform High-ARPU users Users & Developers & Social know-howCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 41. GREE Platform Strategy Providing game developers with the most robust toolset to best take advantage of the global mobile gaming market Release your games worldwide and gain access to high ARPU Global markets for increased revenue opportunities Generate viral acquisitions and increased downloads by Social tapping into the world’s largest mobile social user base Unlock the full potential of your games with a flexible cross- Open platform API suite that puts developers in controlCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 42. Platform Comprehensive Offering World’s largest social mobile Cross promotions through gaming community developer announcements Unified global platform Promotional programs Distribution Localization services Acquisition Friend invites Wall posting Incentivized invites Gifting Social sharing Social sharing Engagement Virality Gifting Push Notifications International currency Dashboard access to game management analytics Unified virtual currency on Game, player, and Monetization Android Analytics monetization dataCnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 42
  • 43. GREE Platform Partners Just some of the major titles that will be available on the GREE Platform GREE Platform Aiming for 1 billion users worldwide http://developer.gree.net/sp/globalplatform/en/ Reserved. 43 43Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  • 44. Japanese GREE Platform Partners 7 Major Developers and More to Come *Previously released 8,000 titles available *2nd phase/3rd phase release planned 44Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 44
  • 45. China & Korea GREE Partners 11 Major Developers and More to Come 45Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 45
  • 46. Our Latest Partnership Game release scheduled within the year on GREE Platform 46Cnetl of n da ii Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved. 46
  • 47. Future Target 10億人が利用する Creating a サービスをつくる 1 Billion User ServiceCnetl of n da ii 47 Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Reserved. Copyright © 2004-2012 GREE,Inc. All Rights Reserved.