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Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga
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Social Games: Why GREE And Mobage Operator DeNA Monetize Better Than Zynga

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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.

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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  • 1. GREE And Mobage operator DeNA:14 Reasons Why Japan’s Social GamingGiants 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
  • 3. Contact InformationTwitter: http://twitter.com/serkantotoLinkedIn: http://linkedin.com/in/serkantotoEmail: serkan AT serkantoto.com
  • 4. Visit My Website For Free Information OnJapan’s Social Game Industry(http://www.serkantoto.com)
  • 5. AgendaI:
Structure
And
Size
Of
Japan’s
Social
Gaming
Market
II:
Top
13
Reasons
For
Successful
MoneDzaDon

  • 6. I:
Structure
And
Size
Of
Japan’s
Social
Gaming
Market

  • 7. Japan‘s
Social
Gaming
Market:
Dominant
Duopoly

  • 8. Market
Size
Stats:
Depend
On
Sources
‐>
Yano:
Japan‘s
social
gaming
market
worth
US$1.4
Billion
In
2011

  • 9. Size
Of
Japan‘s
Social
Gaming
Market
‐>
ProjecDon
from
Morgan
Stanley,
January
2012

  • 10. Size
Of
Japan‘s
Social
Gaming
Market
‐>
ProjecDon
from
Nomura
Research,
January
2012

  • 11. II:
Top
14
Reasons
For
Successful
MoneDzaDon

  • 12. Reason
1:
Japan
Is
A
Gaming
NaDon
•  Taito‘s
Space
Invaders
kicked
off
the
gaming
 industry
as
a
whole
in
1978
•  Japan
has
10%
share
($6.5
billion)
in
global
video
 game
market
•  Games
enjoy
greater
cultural
aaenDon
in
Japan
 than
elsewhere

  • 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

  • 14. Reason
3:
Popularity
Of
Card
Baale
Games
•  Card
baale
games
have
proven
to
be
excellent
 money
makers
•  Up
to
70%
of
the
top
20
games
on
Mobage
and
 GREE
are
social
card
baale
games
currently


  • 15. Reason
4:
Rise
Of
The
Video
Game
Makers

•  All
major
video
game
makers
produce
social
 games
now
•  Konami
alone
is
expecDng
to
generate
$390
 million
in
fiscal
2011
with
social
games
•  Video
game
makers
increasingly
use
popular
IP
 for
social
games

  • 16. Reason
5:
Acceptance
Of
Higher
Paywalls
•  Japanese
users
don‘t
really
mind
higher
payment
 walls
for
progressing
in
social
games
•  Micropayments
to
progress
known
from
arcade
 machine
market
(*Insert
Coin*
concept)

  • 17. Reason
6:
Japan
Is
A
Wealthy
Country
•  Japan
has
the
world‘s
No.
3
economy
(US$5.5
 trillion
in
2010)
•  GDP
per
capita
stands
at
over
US$34,000
per
year
 (IMF,
2011)
•  World‘s
2nd
highest
online
spend
at
$6,688
per
 year
(Visa,
2009)
•  Morgan
Stanley:
10%
of
Japan‘s
social
gamers
 were
paying
in
2010
(projecDon
for
2013:
17%)

  • 18. Reason
7:
FricDonless
Mobile
Payment
•  I
am
hearing
from
social
game
makers
80‐90%
of
 gamers
pay
via
carrier
billing
(monthly
phone
bill)
 
•  Wide
range
of
paying
opDons:
carrier
billing,
 credit
cards,
e‐money,
pre‐paid
cards,
Paypal
•  SubscripDons
for
virtual
items
are
possible

  • 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

  • 21. Reason
10:
Pre‐InstallaDon
On
Handsets
 •  Mobage
is
part
of
the
home
menu
in
NTT
 Docomo‘s
feature
phones

 •  Japan‘s
No.
2
mobile
carrier
KDDI
is
an
investor
 and
GREE
partner
(pre‐installaDon
deal)

  • 22. Reason
11:
Zynga
Is
Weaker
WRT
MoneDzaDon

 •  Zynga‘s
raDo
of
paying
users
is
lower
than
that
of
 Mobage
and
GREE
 •  DeNA
director
Kenji
Kobayashi:

 I
Think
That
Zynga
Has
Not
Really
Researched
 MoneDzaDon‘
(Gamasutra,
October
3,
2011)

  • 23. Reason
12:
Gacha
As
Major
Money
Maker
 •  Gacha
mechanism
is
biggest
money
maker
in
 many
Japanese
social
games
 •  Even
Bejeweled
has
a
gacha
feature
in
its
 Japanese
version

  • 24. Reason
13:
In‐Game
Events
And
Campaigns
 •  Japan‘s
social
game
makers
are
brilliant
in
using
 Dmed
events
and
campaigns
to
boost
revenue
 •  Example
for
a
campaign:
offer
an
exclusive
item
 that
only
users
who
pre‐register
for
a
game
get
 •  Example
for
an
event
in
Mobage‘s
Ninja
Royale
 (English
version)
pictured
below

  • 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


  • 26. Thank you for listening! Questions?
  • 27. Contact InformationTwitter: http://twitter.com/serkantotoLinkedIn: http://linkedin.com/in/serkantotoEmail: serkan AT serkantoto.com

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