Transcript of "Chasing China: The Next Mobile Gaming Frontier by Chris Shen of The9"
Chasing China: The Next Mobile GamingFrontierBy Chris Shen
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
China:A Billion Mobile Phone Users…One of the Largest Mobile Markets in the World 980 million mobile phone users in China, and counting
Smartphones Are Catching On Longtime popularity of feature phones Smartphones: why now?
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
Challenge 1: Fragmented Channel Distribution• Apple and Google aren’t in control – Numerous distribution channels – Unique requirements
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
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
Challenge 4: Piracy• Pirates are everywhere – Even big-name enterprise doing that – Responsibility falls on local publishers
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
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
The9:Single Publisher and Operator in China• Partnerships – Major telecom carriers – Third-party channels … – Device manufacturers …
The9:One-Stop Shop for Western Developers in• Localization China• SDK Packaging• Monetization Strategies• Advertising• Distribution• Marketing and Promotion• Anti-Piracy Solutions
Fund9• Why we’re giving developers $100 million
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
Tip 1: Don’t Go It Alone• Without a local partner, even great games can suffer – Example: Fruit Ninja by Halfbrick
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
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
The9 Mobile Business Unit: Your Passport to ChinaChris Shenshenguoding@corp.the9.comm.the9.com/developer/en
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