This presentation covers the size of Japan's social gaming market and 14 reasons why the two big social game companies in Japan, DeNA and GREE, monetize better than Zynga.
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Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
1. GREE And Mobage operator DeNA:
14 Reasons Why Japan’s Social Gaming
Giants Monetize Better Than Zynga
By Serkan Toto, PhD
www.serkantoto.com
Image credit: DeNA
2. About Me
• Web, mobile and gaming industry consultant
• Advisor for startups in Japan and the US
• Japan contributor for TechCrunch.com
• Based in Japan since 2004
• http://www.serkantoto.com
13. Reason 2: Japan Is A Mobile NaDon
• Social games (and the web at large) are
consumed mainly on mobile phones
• Content is easier to sell on mobile devices
• 99% 3G penetraDon in Japan, crucial for playing
mobile games
Image credit: The Nikkei
19. Reason 8: Aggressive TV MarkeDng
• DeNA And GREE are invesDng large amounts of
money in TV adverDsing
• In November 2010, both companies showed the
most spots on Japanese TV
Image credit: Social Game Academy
20. Reason 9: Zynga’s User Base Is Wide‐Spread
• Zynga has significantly more registered and acDve
users, but they are spread across a large number
of regions with smaller economies and weaker
technical infrastructures
• Example: Indonesia is Facebook‘s fourth largest
market, but its GDP per capita is only about 1/8
of Japan
• DeNA and GREE evolved into mulD‐billion dollar
companies without foreign compeDDon
25. Reason 14: Virtual Social Graph
• Players use GREE and Mobage anonymously
• Virtual social graph makes mass‐inviDng friends,
showing one‘s gaming addicDon less awkward