The document summarizes The9 Limited's efforts to expand into the Chinese mobile gaming market. It describes the size and growth of China's mobile market, challenges for Western developers, and how The9 aims to help developers succeed in China through localization services, a unified platform, and $100 million in funding. The9 believes partnerships with local mobile operators and platforms will be key to reaching China's large audience for social and free-to-play games.
2. Chris Shen
Vice 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
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
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
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
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 China
Chris Shen
shenguoding@corp.the9.com
m.the9.com/developer/en