Chasing China: The Next Mobile Gaming Frontier by Chris Shen of The9

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Chris Shen of The9 gives an overview of the mobile gaming market in China and how to prepare for it.

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Chasing China: The Next Mobile Gaming Frontier by Chris Shen of The9

  1. Chasing China: The Next Mobile GamingFrontierBy Chris Shen
  2. Chris ShenVice President, The9 Limited (NASDAQ: NCTY)General Manager, Mobile Business Unit, The9 Established in 1999, Headquarter in Shanghai The9 early history: PC Online game operation in China including World of Warcraft®, Soul of The Ultimate Nation™, EA SPORTS™ FIFA Online 2, World of Fighter, etc. The9 Mobile Business Unit – Telecom carriers and other channels – Developers – Publishing
  3. China:A Billion Mobile Phone Users…One of the Largest Mobile Markets in the World 980 million mobile phone users in China, and counting
  4. Smartphones Are Catching On Longtime popularity of feature phones Smartphones: why now?
  5. iOS vs. Android: Growth and Competition• Apple – Only official with China Unicom so far – 10 million+ noncontract users with China Mobile – Partnerships for 3 carriers in 2012?• Android – More and cheaper devices = more users
  6. Challenges for Western Devs
  7. Challenge 1: Fragmented Channel Distribution• Apple and Google aren’t in control – Numerous distribution channels – Unique requirements
  8. Challenge 2:Regulations and Culture Differences• Legality – Okay in the U.S., not necessarily in China • Games with gambling, sex and violence• Genre & Visual – Game category – Character style – Playability
  9. Challenge 3: Monetization• Chinese mobile gaming is all about freemium – In-app purchases and in-app advertising• Pricing for micro-transaction• Different distribution channel = different payment solution
  10. Challenge 4: Piracy• Pirates are everywhere – Even big-name enterprise doing that – Responsibility falls on local publishers
  11. How The9 Can Help: Some Background• Early experience with PC virtual communities…before Facebook• PC online game operation experience – Social gaming communities – Micro-transactions• Engaged into the mobile gaming business since 2010
  12. The9:Venturing into Mobile Social Gaming• The9 Game Zone: Localized mobile social gaming platform powered by OpenFeint and connecting with major Chinese SNS Sina Weibo Tencent Weibo RenRen The9 Game Zone
  13. The9:Single Publisher and Operator in China• Partnerships – Major telecom carriers – Third-party channels … – Device manufacturers …
  14. The9:One-Stop Shop for Western Developers in• Localization China• SDK Packaging• Monetization Strategies• Advertising• Distribution• Marketing and Promotion• Anti-Piracy Solutions
  15. Fund9• Why we’re giving developers $100 million
  16. Our Global Partners Are Seeing Serious Growth• 300% growth on licensed games: 685 titles up to end of Jan ‘12• Contracted distribution channels: 50+• Register member on The9 Game Zone: Double the number every two months
  17. Tips for Western Developers Headed for China
  18. Tip 1: Don’t Go It Alone• Without a local partner, even great games can suffer – Example: Fruit Ninja by Halfbrick
  19. Tip 2: Know What’s Popular• RPG is still the favorite• High expectations on cross platform social games• Male users are the majority paying users
  20. Tip 3: Choose the Right Monetization Model• Pay-per-download isn’t the way to go• In-app purchases and in-app advertising are key• iOS users are more likely to pay for micro-transactions• Android users respond better to in-game ads
  21. The9 Mobile Business Unit: Your Passport to ChinaChris Shenshenguoding@corp.the9.comm.the9.com/developer/en
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