Social Gaming in Asia       @benjaminjoffe	  |	  CEO,	  +8*	     Casual	  Connect,	  Hamburg	  |	  2011.02	  
ngmoco:)	  +	  DeNA	        (October	  2010)	                                $400M	                         <	  2010	  Pro...
Riot	  Games	  +	  Tencent	            (January	  2011)	                                    $400M	                        ...
Tencent	  CollaboraJon	  Fund	              (January	  2011)	                                      $760m	                 ...
@benjaminjoffe	  
4	  years	     1	  year	     5	  years	  
•  CEO,	  Plus	  Eight	  Star	  |	  www.plus8star.com	     –  Best	  pracJces	  from	  Asia’s	  digital	  space	     –  Re...
Angel	  Investor,	  Advisor,	  Keynote	  Speaker	               •  Speaker	                     	  100+	  talks	  in	  16	...
IntroducJon         	  Quiz!	  Chapter	  1 	     	  South	  Korea	  Chapter	  3 	     	  Japan	  Chapter	  4 	     	  Chin...
Quiz!	  
Quiz!	  
Quiz	  
Quiz	  
Quiz	  
Quiz	  
Quiz	  
More	  than	  Facebook	  and	  USA	  •    Facebook	  •    LinkedIn	  •    QQ	  (Tencent)	  •    Qzone	  •    RenRen	  •   ...
Billion	  Dollar	  Brands	                                      $B	                                $B	  •    Facebook	  • ...
Market	  Caps	  (2011.02)	                        $800M	                        $3.5B	                        $5.2B	      ...
South	  Korea	  
Cyworld	  •  SNS/VG	  pioneer	  since	  10	  years	  ago	      –  Stagnant	  for	  several	  years	      –  “The	  new	  M...
2009.10	  |	  Nate	  App	  Store	  •  Leverages	  Nate’s	  reach	     •  Slow	  rise	   	  (2M	  users)	  •  Semi-­‐open	 ...
Portals	  join	  the	  dance	  •  .	     	  Naver	  Social	  Apps	  •  .	     	  Yozm	  by	  Daum	  •  Results	       –  J...
Facebook	  Rising	  •  Facebook	  in	  Korea	     –  Usage	  growing	     –  Local	  office	     –  Hired	  from	  Cyworld	 ...
Online	  Games	  •  Online	  games	  market	      	  $3B+	  •  Leaders	  	      	     	     	  Nexon,	  NHN,	  NC	  Sos	  ...
Answer	                                •  #1	  in	  Online	  Gaming	                                •  Pioneer	  in	  virt...
Nexon	  Today	  •  Revenue	  2010:	  $1	  billion	  (E)	      –  Over	  half	  from	  overseas	      –  Market	  lisJng	  ...
Foreign	  Players	  in	  Korea?	      Some	  limited	  successes…	  
Summary:	  South	  Korea	  •  3	  social	  plaworms	  (+	  Facebook)	  •  Young	  market	  (<$10M)	  •  But	  strong	  in	...
Japan	  
Mobile	  SNS	  Make	  a	  Killing	  •  Revenue	              	       	  $2	  billion!	  •  Walled	  Garden                ...
Mixi	  •  Inspired	  by	                   •    Friends            	  (PC)	                                        •    Mo...
Mixi	  Page	  (PC)	  
Mixi	  Page	  (mobile)	  
Mixi	  •  Revenue	  2010	  	  (E) 	        	     	  $166	  million	      –  Profit	  margin	         	     	     	  20%	  •...
Mixi	  |	  Users	  •  Gender-­‐Balanced	          •  90%	  above	  20	  y.o.	   Total	                                    ...
Mixi	  |	  Pageviews	                                                        2009.10	                                     ...
Mixi	  |	  Apps	  •  Apps	      –  PC	  >	  1,000	      –  Mobile	  >	  600	  •  Apps	  contribuJon	      –  Minor	  for	 ...
Mixi	  |	  Popular	  Games	               Game             MAU      Category              Developer1    Sunshine Farm     ...
Answer	                                     •  CEO	  of	  DeNA	                                     •  Operates	  “Mobile	...
DeNA	  •  Revenue	  2010	        	     	  $1.2~1.3	  billion	  •  Profit	  margin 	       	     	  50%	  •  Revenue	  sourc...
Users	  
Mobile	  Game	  Town	  |	  Open	  Plaworm	  •  154	  partners	  companies	   •  Avatars	  in	  open	  •  350	  Jtles	  (Ju...
Mobage	  |	  Popular	  Games	                       Game                 Category      Developer1    Bandit Nation Royale ...
DeNA	  |	  Target:	  Global	  Leader	  
Yahoo	  Mobage	  (PC)	                •  Launched	  2010.10	                •  2M	  users	  (=	  FB	  Japan)	             ...
By	  2014,	  DeNA	  wants	  to	  have	  $4	          billion	  in	  revenue,	  50%	  in	  Japan	  and	          50%	  over...
Answer	                                         •  CEO	  of	  GREE,	  top	                                            mobi...
GREE	  •  Users         	        	     	     	  22	  million	  •  2010	  revenue	  	          	     	  $600	  million	  (E...
Adver`sing	  Gree	  Home	                                 Adver`sing	  &	  Affiliates	                     Avatars	  &	  ite...
GREE	  |	  Service	  Strategy	                                                   Members	        SNS	                     ...
GREE	  |	  Monthly	  Page	  Views	    35.7	  Billion	       Google	  Images	  =	  30	  billion	  
Self-­‐Published	  Games	  
Fishing	  Star	   Sea	  River	  
GREE	  •  2010.06	  |	  Open	  plaworm	  •  2010.10	  |	  Non-­‐gaming	     apps	  (27	  coming	  up)	  
GREE	  |	  Popular	  Games	                       Game                   Category       Developer                         ...
Community	  Safety	  •  DeNA	     –  861	  employees…	     –  Many	  doing	  content	  monitoring	                        ...
Who’s	  AcJve	  in	  Japan?	  Ac`ve	                              Not	  Ac`ve	  •    Zynga	                         •  Pla...
Zynga	  in	  Japan	  SosBank	  CEO	  Masayoshi	  Son	  (Les),	  Zynga	  Japan	  CEO	  Robert	  Goldberg	  (Middle)	  Mixi	...
Have	  you	  heard	  of…?	  
CyberAgent	  •  History	      –  Started	  as	  ad	  network	      –  Branched	  into	  blogs	  (10M	  users),	  virtual	 ...
  	  	       	  	  	  	  |	  Social	  Games	  •  DeNA     	            	  10	  Jtles   	       	         	     	  	  •  Gr...
  	  	     	  	  	  	  |	  	  	  Social	  Games	  •  $13M	  in	  4Q2010	     –  Run-­‐rate	  2011	  >	  $50M	  (	  >	  ngm...
  	     	  |	  2D	  Virtual	  World	  
  	         	  |	  2D	  Virtual	  World	  •  PromoJon	      –  Leveraging	  Ameba’s	  blog	  plaworm	      –  TV	  ads	  •...
 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  |	  Revenue	  split	  •  Sales	  2Q2010 	                         	  $10	  m...
 	  	  	  	  	  	  	  	  	  	  	  	  	  	  |	  Subs	  &	  ARPU	                                   4.3	  million	  users	  ...
 	  	  	  	  	  	  	  	  	  	  	  	  	  	  |	  Fishing	  Game	  
Facebook	  Making	  Inroads	  •  Facebook	  in	  Japan	     –  Growing	  (2M)	     –  Mobile	  JP	  version	     –  Real-­...
Foreign	  Players	  in	  Japan	  •  Zynga	      –  Acquired	  local	  company	  Unoh	      –  JV	  with	  Yahoo!	  Japan	 ...
Summary:	  Japan	  •  3	  social	  plaworms	  (+	  Facebook)	  •  Walled	  gardens	  •  Mostly	  mobile	  ($2	  bln)	  
China	  
Social	  Games	  Growing	  But…	  •  Fragmented	  market	      –  4	  compeJng	  social	  networks	      –  Facebook	  sJl...
…Online	  Games	  SJll	  Dominate	  •  Online	  games	  biggest	  money	  maker	      –  $900M	  in	  2Q2010	      –  Tenc...
Answer	                                             •  CEO	  of	  Tencent!	                                             • ...
QQ	  IM	  &	  QZone	  
Digital	  Goods?	  •    Iden`ty	  related	  •    Game	  related	  •    Music	  related	  •    And	  more…	  
Tencent	  Bigger	  Than	  Ever?	  •  Sales	  2010	  (E)	     	  $2.8	  billion	      –  Sales	  1H2010	      	  $1.3	  bil...
RenRen	  •  Claims	  to	  be	  #1	  SNS	  in	  China	  •  More	  open	  than	  others	  •  Tencent	  announced	  it	  woul...
PHOTO:	  MOBILE	  PHONE,	  BEIJING,	  APRIL	  2010	  ©	  Benjamin	  Joffe	  /	  Plus	  Eight	  Star	  Ltd.	  
Hardware	  Innova`on:	  “Shanzhai”	  (              )	  PHOTO:	  MOBILE	  PHONE,	  BEIJING,	  APRIL	  2010	  ©	  Benjamin	...
PHOTO:	  MOBILE	  PHONE,	  BEIJING,	  APRIL	  2010	  ©	  Benjamin	  Joffe	  /	  Plus	  Eight	  Star	  Ltd.	  
QQ	  Farm	  
Foreign	  Players	  in	  China?	  •  Offices	     –  Zynga	     –  Playfish	     –  Kabam	     –  Cmune	  •  Games	     –  No...
Summary:	  China	  •  4	  social	  plaworms	  (-­‐	  Facebook)	  •  Self-­‐serving	  plaworms	  •  Leader	  in	  MMOs	  
Globaliza`on	                 Durian	  Strudel	  (Singapore)	  
Ideas,	  Talent	  &	  Markets	  •  Ideas      	     	  First	  farm	  game	  =	  made	  in	  China!	  •  Dev.       	     ...
Nexon	  •  Ndoor	   	              	  M&A	              	  2010.05 	  Korea	  •  GameHi	  	              	  M&A	          ...
DeNA	  •  ngmoco:)              	  M&A	         	  USA	  •  Astro	  Ape          	  Invest.       	  USA	  •  Aurora	  Fei...
Tencent	  •  Riot	  Games 	  M&A	         	  2011.01 	  USA	  •  Sanook 	         	  Invest.   	  2010.08 	  Thailand	  • ...
Other	  Chinese	  Companies	  •  Emerging	  markets,	  Japan,	  US	  •  Rekoo	  &	  Yicha	  doing	  great	  with	  social	...
China	  +	  Russia	  +	  South	  Africa	                                          $18B	  $3B	                             ...
DST	  |	  Digital	  Sky	  Technologies	  •  Invested	  $180M	  in	  Zynga	  •  Invested	  ~$350M	  in	  Facebook	  (~10%)	...
NASPERS	  
Conclusions	  
Conclusions	  •  Social	  games	  =	  growing	  fast	  •  Online	  games	  sJll	  >	  Social	  games	  (except	  Japan)	  ...
Conclusions	  •  CJK	  companies	  expanding	  globally	  •  TransiJon	  to	  digital	  goods	  is	  a	  `dal	  wave	  •  ...
Digital	  Goods	  in	  2010	  Asia:	  $10	  Billion	       USA:	  $2	  Billion	                                           ...
Market	  PotenJal?	  •  From	  analog	  to	  digital	      –  Global	  video	  game	  market	  >$40	  billion	      –  In	...
From	  Asia	  to	  the	  World	                              Durian	  Strudel	  (Singapore)	  
Facebook’s	  First	  FPS:	  UberStrike	  Thursday	  2:30pm	  Hall	  E	  |	  www.facebook.com/uberstrike	  	  
Asia	  is	  part	  of	  your	  world	  too!	  What	  we	  do	              –  Best	  pracJces	  from	  Asia	              ...
Social Gaming in Asia
Upcoming SlideShare
Loading in...5
×

Social Gaming in Asia

12,527

Published on

An overview of Asia's social gaming scene given at Casual Connect in Hamburg in February 2011.

Published in: Education
3 Comments
25 Likes
Statistics
Notes
  • 28--Bom dia galera, Venham conhecer nossos Servidores de Mu Online
    O Jogando.net/mu Mu Online Season 6
    Fazemos sua Diversão com qualidade,há mais de 5 anos
    Servers ON 24 horas por dia.
    Vários Server esperando por você.Venha se divertir de verdade.
    Venham participar do 6° Megaultrasuperhiper Evento Castle Siege
    Sejam benvindos ao nosso Servidor.
    >>Kits DIAMOND,Com asas LVL 4,os kits mais fortes e raros do servidor ,venham conferir.
    >>Qual o seu Time ?? Tenha o seu Time do coração no Mu Online.Sets do seu Time preferido
    >>Confiram a nova versão do Shild mais usado no servidor o SHILD POWER v3.
    >> Lançamento do NOVO Kit Fusion V2,Kit hiper top e bonito.
    Você só encontra no http://www.jogando.net/mu/
    Facebook: http://www.facebook.com/profile.php?id=100002113910611
    Site http://www.jogando.net/mu/ HYCLEN Divulgadora Oficial !!!
    Boa Semana á todos !!!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • __militarylover.c om__The best and most trusted dating site for military singles and admirers!check it out and sign up,you may enjoy it!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Great snapshot of Asia's social gaming market.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
12,527
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
413
Comments
3
Likes
25
Embeds 0
No embeds

No notes for slide

Social Gaming in Asia

  1. 1. Social Gaming in Asia @benjaminjoffe  |  CEO,  +8*   Casual  Connect,  Hamburg  |  2011.02  
  2. 2. ngmoco:)  +  DeNA   (October  2010)   $400M   <  2010  Profit!  
  3. 3. Riot  Games  +  Tencent   (January  2011)   $400M   =  1/3  of   2010  profit  
  4. 4. Tencent  CollaboraJon  Fund   (January  2011)   $760m   Fund!  
  5. 5. @benjaminjoffe  
  6. 6. 4  years   1  year   5  years  
  7. 7. •  CEO,  Plus  Eight  Star  |  www.plus8star.com   –  Best  pracJces  from  Asia’s  digital  space   –  Research,  Strategy  &  “InnovaJon  Arbitrage”  •  References  
  8. 8. Angel  Investor,  Advisor,  Keynote  Speaker   •  Speaker    100+  talks  in  16  countries   •  Advisor  to  Incubators   •  Investor  in  Asia-­‐based  global  companies  
  9. 9. IntroducJon  Quiz!  Chapter  1    South  Korea  Chapter  3    Japan  Chapter  4    China  Chapter  6    Conclusions  
  10. 10. Quiz!  
  11. 11. Quiz!  
  12. 12. Quiz  
  13. 13. Quiz  
  14. 14. Quiz  
  15. 15. Quiz  
  16. 16. Quiz  
  17. 17. More  than  Facebook  and  USA  •  Facebook  •  LinkedIn  •  QQ  (Tencent)  •  Qzone  •  RenRen  •  Kaixin001  •  Xiaonei  •  51.com  •  Mixi   And  more…  •  Mobile  Game  Town  •  Gree  •  Cyworld  •  Friendster  
  18. 18. Billion  Dollar  Brands   $B   $B  •  Facebook  •  LinkedIn   $B   $B  •  QQ  (Tencent)  •  Qzone   $B   $B  •  RenRen  •  Kaixin001  •  Xiaonei  •  51.com  •  Mixi   $B   And  more…  •  Mobile  Game  Town  •  Gree  •  Cyworld  •  Friendster  
  19. 19. Market  Caps  (2011.02)   $800M   $3.5B   $5.2B   $45B  
  20. 20. South  Korea  
  21. 21. Cyworld  •  SNS/VG  pioneer  since  10  years  ago   –  Stagnant  for  several  years   –  “The  new  MySpace”?  
  22. 22. 2009.10  |  Nate  App  Store  •  Leverages  Nate’s  reach   •  Slow  rise    (2M  users)  •  Semi-­‐open   •  Rev  share    (70/30)  
  23. 23. Portals  join  the  dance  •  .    Naver  Social  Apps  •  .    Yozm  by  Daum  •  Results   –  Just  started   –  No  social  graph  
  24. 24. Facebook  Rising  •  Facebook  in  Korea   –  Usage  growing   –  Local  office   –  Hired  from  Cyworld  •  Why?   –  Users  bored  of  Cyworld   –  Virtual  goods  market   –  Games  market  
  25. 25. Online  Games  •  Online  games  market    $3B+  •  Leaders          Nexon,  NHN,  NC  Sos  •  Expanding  overseas    China,  Japan,  US,            Emerging  markets   Source:  KOCCA  
  26. 26. Answer   •  #1  in  Online  Gaming   •  Pioneer  in  virtual  goods   •  First  MMO  in  1996!  Min  Seo,  CEO  
  27. 27. Nexon  Today  •  Revenue  2010:  $1  billion  (E)   –  Over  half  from  overseas   –  Market  lisJng  in  2011  (rumor)  •  Some  famous  games   •  Kart  Rider  (200M  reg.  users)   •  Dungeon  &  Fighter  (200M  reg.  users)   •  Maple  Story  (95M  reg.  users)   •  Combat  Arms  (FPS)   •  Sudden  Avack  (FPS)   •  Etc.   Source:  Nexon  
  28. 28. Foreign  Players  in  Korea?   Some  limited  successes…  
  29. 29. Summary:  South  Korea  •  3  social  plaworms  (+  Facebook)  •  Young  market  (<$10M)  •  But  strong  in  online  gaming  ($  bln)  
  30. 30. Japan  
  31. 31. Mobile  SNS  Make  a  Killing  •  Revenue      $2  billion!  •  Walled  Garden  mobile  app  plaorm  •  Mass  promoJon  TV,  Billboards,  Posters…  •  Publish  +  Develop  1st,  2nd,  3rd  Party  dev.  
  32. 32. Mixi  •  Inspired  by   •  Friends  (PC)   •  Mobile  (mobile)   •  FB    (apps,  “like”)   •  Twiver  (micro-­‐blog)  •  21  million  users   •  Pageviews   –  14  million  MAU   –  Mobile    28  billion  PV   –  PC  5  billion  PV  
  33. 33. Mixi  Page  (PC)  
  34. 34. Mixi  Page  (mobile)  
  35. 35. Mixi  •  Revenue  2010    (E)      $166  million   –  Profit  margin        20%  •  2Q2010          $49M   –  Profit  margin        25%   –  Run  rate  2010      $200M  
  36. 36. Mixi  |  Users  •  Gender-­‐Balanced   •  90%  above  20  y.o.   Total   Mobile   Total  Mobile  
  37. 37. Mixi  |  Pageviews   2009.10   PC   ApplicaJons   Plaworm   2009.08   Mobile  Ad  prices  for  mobile  =  1/3  of  PC  price  
  38. 38. Mixi  |  Apps  •  Apps   –  PC  >  1,000   –  Mobile  >  600  •  Apps  contribuJon   –  Minor  for  revenue  <10%   –  High  for  PV  •  Smartphone  UI  “Mixi  Touch”   Machi  Tsuku  (3M  MAU)   by  Unoh  /  Zynga  Japan   Source:  Masaru  Ikeda  @  Asiajin  
  39. 39. Mixi  |  Popular  Games   Game MAU Category Developer1 Sunshine Farm 5.4M RPG Rekoo2 Mixi Xmas 2010 2M Entertainment Mixi 3 City Builder 3.3M Simulation Unoh (now Zynga)4 Bandit Nation Royale 4.3M RPG DeNA 5 Star sky bar town 1.5M Simulation CyberX6 Source of Decision 3.2M Fortune Telling Grafio7 Let’s play together 5.5M Entertainment Community Factory8 Funny Face 2M Entertainment Cybird9 Farming story 1.5M Simulation Liveware10 Calm Down Advice 0.3M Fortune Telling Digital Tact
  40. 40. Answer   •  CEO  of  DeNA   •  Operates  “Mobile  Game   Town”,  a  top  mobile  SNS   in  Japan  Tomoko  Namba,  CEO  
  41. 41. DeNA  •  Revenue  2010      $1.2~1.3  billion  •  Profit  margin      50%  •  Revenue  source      90%  digital  goods  
  42. 42. Users  
  43. 43. Mobile  Game  Town  |  Open  Plaworm  •  154  partners  companies   •  Avatars  in  open  •  350  Jtles  (July  2010)   plaworm  games  too  •  In-­‐house  games  too   •  Common  currency  
  44. 44. Mobage  |  Popular  Games   Game Category Developer1 Bandit Nation Royale RPG DeNA2 “Sengoku” (Warring State) Royale RPG DeNA3 Hokkorina (Okinawa Farm) RPG DeNA4 Hoppin City Simulation DeNA5 Aquasquare Simulation DeNA6 Space Debries Simulation DeNA7 Pirates’ treasure RPG DeNA8 Nobunagas Ambition RPG/Strategy Tecmo Koei 9 Monster Hunter Airu Village RPG Capcom10 Our baseball field Entertainment Kayac
  45. 45. DeNA  |  Target:  Global  Leader  
  46. 46. Yahoo  Mobage  (PC)   •  Launched  2010.10   •  2M  users  (=  FB  Japan)   •  70  partners,  104  Jtles   •  Rev  share   –  Plaworm    30%   –  OperaJons    13%   –  Developer    57%  
  47. 47. By  2014,  DeNA  wants  to  have  $4   billion  in  revenue,  50%  in  Japan  and   50%  overseas.   I  want  DeNA  to  become  a  $40  billion   market  cap  company.  Tomoko  Namba  CEO  of  DeNA  
  48. 48. Answer   •  CEO  of  GREE,  top   mobile  SNS  in  Japan   •  #2  youngest  self-­‐made   billionaire  in  the  world   (aser  Mark  Zuckerberg)  Yoshikazu  Tanaka,  CEO  
  49. 49. GREE  •  Users        22  million  •  2010  revenue        $600  million  (E)   –  Digital  goods      80%   –  Ads        20%  •  Profit  margin      50%  
  50. 50. Adver`sing  Gree  Home   Adver`sing  &  Affiliates   Avatars  &  items   B2C  virtual  goods   Games   (avatar  +  games)  
  51. 51. GREE  |  Service  Strategy   Members   SNS   Social  Games   Diary/Notes   Q&A  Community/BBS   Page  views   Virtual  Goods   Media  Ad  Sales   VG  Sales   GREE  
  52. 52. GREE  |  Monthly  Page  Views   35.7  Billion   Google  Images  =  30  billion  
  53. 53. Self-­‐Published  Games  
  54. 54. Fishing  Star   Sea  River  
  55. 55. GREE  •  2010.06  |  Open  plaworm  •  2010.10  |  Non-­‐gaming   apps  (27  coming  up)  
  56. 56. GREE  |  Popular  Games   Game Category Developer RPG (Card1 Dragon Collection Konami game)2 My Darling is a Celebrity RPG Voltage3 Three Kingdoms RPG Tecmo Koei4 My lover is in the Special Police RPG Voltage Simulation /5 Fashion Coordination Mania Sumzap avatar6 My New Boyfriend RPG Winlight7 Our Love Affairs in College RPG Style Walker8 Love Affairs, Handsome Boys College RPG Voltage9 Princess Love (Hime Koi) RPG Winlight10 The Legend of Derby King RPG Alt Plus
  57. 57. Community  Safety  •  DeNA   –  861  employees…   –  Many  doing  content  monitoring   Pipo-­‐kun   Tokyo  Police  Mascot   –  Monitoring  24/7  since  2006.11   –  “Patrol  Center”  built  in  2008.03   Gree’s  Patrol  Center  
  58. 58. Who’s  AcJve  in  Japan?  Ac`ve   Not  Ac`ve  •  Zynga   •  Playdom  •  Playfish  /  EA   •  Kabam  •  CrowdStar   •  Digital  Chocolate  •  RockYou   Happy  Aquarium    •  And  also   –  Rekoo   –  Rakoo   –  Five  Minutes  
  59. 59. Zynga  in  Japan  SosBank  CEO  Masayoshi  Son  (Les),  Zynga  Japan  CEO  Robert  Goldberg  (Middle)  Mixi  CEO  Kenji  Kasahara  (Right)    
  60. 60. Have  you  heard  of…?  
  61. 61. CyberAgent  •  History   –  Started  as  ad  network   –  Branched  into  blogs  (10M  users),  virtual  world  &   social  games   –  1,900  employees  •  Sales  2009      $1.1  billion   –  Profit  2009      $55  million  •  Sales  2010  (E)      $1.1  billion   –  Profit  2010  (E)    $98  million  
  62. 62.              |  Social  Games  •  DeNA    10  Jtles          •  Gree    3  Jtles      •  Mixi    8  Jtles      •  Facebook  7  Jtles      
  63. 63.              |      Social  Games  •  $13M  in  4Q2010   –  Run-­‐rate  2011  >  $50M  (  >  ngmoco  ?)  
  64. 64.      |  2D  Virtual  World  
  65. 65.      |  2D  Virtual  World  •  PromoJon   –  Leveraging  Ameba’s  blog  plaworm   –  TV  ads  •  Paying  Users   –  80%  are  20  to  40  y.o.   –  70%  female  •  Payment   –  68%  Mobile,  20%  Webmoney,  12%  Credit  Card  
  66. 66.                                |  Revenue  split  •  Sales  2Q2010    $10  million  
  67. 67.                              |  Subs  &  ARPU   4.3  million  users  (2010.06)   monthly  ARPU  =  $15  
  68. 68.                              |  Fishing  Game  
  69. 69. Facebook  Making  Inroads  •  Facebook  in  Japan   –  Growing  (2M)   –  Mobile  JP  version   –  Real-­‐Name  •  Why?   –  GDP   –  Online  adverJsing   –  Virtual  goods   KDDI’s  Summer  Line-­‐Up   –  Mobile!  
  70. 70. Foreign  Players  in  Japan  •  Zynga   –  Acquired  local  company  Unoh   –  JV  with  Yahoo!  Japan  (#1  portal)  for  games  •  Chinese  social  games  doing  well   –  Rekoo,  Rakoo,  Elex    …  but  for  how  long?  •  Online  games  growing  too   –  Perfect  World  (China)  acquired  local  licensee  
  71. 71. Summary:  Japan  •  3  social  plaworms  (+  Facebook)  •  Walled  gardens  •  Mostly  mobile  ($2  bln)  
  72. 72. China  
  73. 73. Social  Games  Growing  But…  •  Fragmented  market   –  4  compeJng  social  networks   –  Facebook  sJll  blocked  •  SNS  revenue  not  great  (esp.  for  third  parJes)   –  Low  adver`sing   –  Plaworms  develop  games  in-­‐house   –  Rev  share  variable  &  osen  unajrac`ve  
  74. 74. …Online  Games  SJll  Dominate  •  Online  games  biggest  money  maker   –  $900M  in  2Q2010   –  Tencent  (20%),  Shanda  (20%),  Netease  (13%)  •  Social  networks  channel  users  to  MMOs  •  China  =  30%  of  global  online  games  market   $4  billion  in  2010   Source:  iResearch,  Lazard  Capital  Markets  
  75. 75. Answer   •  CEO  of  Tencent!   •  #3  Internet  company  in   the  world  Ma  Huateng  (Pony),  CEO  
  76. 76. QQ  IM  &  QZone  
  77. 77. Digital  Goods?  •  Iden`ty  related  •  Game  related  •  Music  related  •  And  more…  
  78. 78. Tencent  Bigger  Than  Ever?  •  Sales  2010  (E)    $2.8  billion   –  Sales  1H2010    $1.3  billion   –  Profit  2010  (E)  $1  billion   Internet  penetraJon  sJll  only  30%!  
  79. 79. RenRen  •  Claims  to  be  #1  SNS  in  China  •  More  open  than  others  •  Tencent  announced  it  would  open  too  
  80. 80. PHOTO:  MOBILE  PHONE,  BEIJING,  APRIL  2010  ©  Benjamin  Joffe  /  Plus  Eight  Star  Ltd.  
  81. 81. Hardware  Innova`on:  “Shanzhai”  ( )  PHOTO:  MOBILE  PHONE,  BEIJING,  APRIL  2010  ©  Benjamin  Joffe  /  Plus  Eight  Star  Ltd.  
  82. 82. PHOTO:  MOBILE  PHONE,  BEIJING,  APRIL  2010  ©  Benjamin  Joffe  /  Plus  Eight  Star  Ltd.  
  83. 83. QQ  Farm  
  84. 84. Foreign  Players  in  China?  •  Offices   –  Zynga   –  Playfish   –  Kabam   –  Cmune  •  Games   –  Not  launched  locally  
  85. 85. Summary:  China  •  4  social  plaworms  (-­‐  Facebook)  •  Self-­‐serving  plaworms  •  Leader  in  MMOs  
  86. 86. Globaliza`on   Durian  Strudel  (Singapore)  
  87. 87. Ideas,  Talent  &  Markets  •  Ideas    First  farm  game  =  made  in  China!  •  Dev.    Zynga  (JP,  CN)        Playfish  (CN)        Kabam  (CN)  •  Market    Facebook  (JP,  KR,  SG,  SEA)        Zynga  (JV  with  Sosbank  for  JP)        Rockyou  (JP),  Others?  
  88. 88. Nexon  •  Ndoor      M&A    2010.05  Korea  •  GameHi      M&A    2010.05    Korea  •  BoomBang    Invest.  2010.10  Spain  •  Disney  offering  $6  billion?  (rumor)   •  EA’s  market  cap  is  $5.8  billion…  (2010.10)   Source:  +8*,  Nexon  
  89. 89. DeNA  •  ngmoco:)  M&A    USA  •  Astro  Ape  Invest.  USA  •  Aurora  Feint  Invest.  USA  •  GameView  M&A    USA  •  Icebreak    M&A      USA  •  TX.com.cn  M&A      China  •  Social  Gaming  Fund  of  $27.5  million  
  90. 90. Tencent  •  Riot  Games  M&A    2011.01  USA  •  Sanook    Invest.  2010.08  Thailand  •  Comsenz  M&A    2010.08  China  •  Shenzhen  DN  M&A    2010.04  China  •  DST    Invest.  2010.04  Russia  •  Outspark  Invest.  2008.01  USA  
  91. 91. Other  Chinese  Companies  •  Emerging  markets,  Japan,  US  •  Rekoo  &  Yicha  doing  great  with  social  games  •  Shanda  buys  Mochi  Media  (2010.01,  $80M)  
  92. 92. China  +  Russia  +  South  Africa   $18B  $3B   $35B   10%   Source:  +8*,  October  2010  
  93. 93. DST  |  Digital  Sky  Technologies  •  Invested  $180M  in  Zynga  •  Invested  ~$350M  in  Facebook  (~10%)  •  Invested  $135M  in  Groupon  •  Acquired  ICQ                  for  $188M  •  Mail.ru  (portal),  Astrum  (games)   –  70%  of  all  PV  in  the  Russian  speaking  Internet  
  94. 94. NASPERS  
  95. 95. Conclusions  
  96. 96. Conclusions  •  Social  games  =  growing  fast  •  Online  games  sJll  >  Social  games  (except  Japan)  •  Massive  ads  (TV,  billboards,  etc.)  if  ROI  is  good!  •  Media  proper`es  entering  social  (portals,  blogs)  •  SNS  can  channel  users  to  MMOs  with  bever  ROI  •  Mobile  great  in  emerging  &  advanced  markets  
  97. 97. Conclusions  •  CJK  companies  expanding  globally  •  TransiJon  to  digital  goods  is  a  `dal  wave  •  Epiphanies  in  the  West  like  Korea  10  years  ago  
  98. 98. Digital  Goods  in  2010  Asia:  $10  Billion   USA:  $2  Billion   Source:  +8*,  2011  
  99. 99. Market  PotenJal?  •  From  analog  to  digital   –  Global  video  game  market  >$40  billion   –  In  Korea  >50%  of  ALL  GAMES  =  online  games  •  PotenJal  =  all  games  in  the  world   –  Global  game  market  $120  billion   –  With  digital  goods  dominant  model?  
  100. 100. From  Asia  to  the  World   Durian  Strudel  (Singapore)  
  101. 101. Facebook’s  First  FPS:  UberStrike  Thursday  2:30pm  Hall  E  |  www.facebook.com/uberstrike    
  102. 102. Asia  is  part  of  your  world  too!  What  we  do   –  Best  pracJces  from  Asia   –  Digital  Research  &  Strategy  References   +81  |  Japan   +82  |  Korea   +86  |  China   Telecom  &  Internet   +  Added  Value  Contacts   *  High  quality   –  benjamin@plus8star.com   –  @benjaminjoffe   –  www.slideshare.net/plus8star    
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×