Thank you for coming Thanks to Casual Conect @ Hitcents We like to share - Big enough market for everyone
Hitcents is a 14 year old company and has evolved through time Started by twin brothers in high school Moved to Shanghai China a year ago Have worked in the Chinese mobile market over the last year executively with Chinese
Market Fragmentation Chinese Mobile Payment Systems Player Behavior (Difference from Western to Chinese game playing methods) Tutorial / User Traiing Localization vs Culturalazation
Over 100 channels user’s download content for android 3 types: 1) Carrier Stores 2) Tier 1 and Tire 2 Channels 3) Hardware Channels
57% comes from PC app download then Usb install Limited Bandwidth or no WiFi
No such thing as Paid apps in China Two different types: 1) Causal games more Carrier Billing 2) Mid-Core to Hardcore games use 3rd party payment systems
Carrier Billing - SMS payment (No Internet needed) 3 Payment Systems, 5 SDKS Limited amount from 1 RMB to 30 RMB ($.16 to $4.80)
Mid to Hard core games with higher payment models
Western style games and bringing them to China and tasking China games and bringing them to the West
Random / Lottery based systems Spend Money but can still lose (think of an iAP that is not a sure thing) VIP Cards Random advancements or possibility of getting something great
“Lucky Draws” Chance of success
Show our first game to over 20 channels Add tutorial, and on and on Take you through the changes we made from China
If this is a global Game how are you going to approach it? Localization is just translating text Localization is normally terrible and too literal Culturalization requires locals
Data you should know Questions you should ask
Hitcents China partnership with TalkingData
Estimated 2014 Mobile Game Revenue– US $3.2 billion vs China 3 Billion
Over 550 million active smart phones in China with 528 million users playing mobile games
Over 53 million users spending money on mobile games in 2013
39% of users will play a casual game first in china 45% of users will spend money in a casual game first Everyday adults are getting smart phones for the first time in there lives, they play the games they have hard about
Average Revenue Per Paid User is about $45 USD per month for Card Battle and $19 USD per month for all paid users
Now that I have I given you the data try not to get distracted There are other things to help you decide to go to China or not
App Piracy, 1 day huge spike in China (Paid App)
Understanding Revenue Split Payment Systems are going to want 30% plus bad debt Because Payment channels are small going to have ot use 3rd party – they want 30% You can’t get the payment codes or 3rd party without a publisher – they going to want to split 50/50 What’s left? 20% (100% of 0 is 0 and 20% of something = something) EXTRA: - Chinese users first gaming console is phone (No console) - Spending $40 USD on a smart phone (Pre – Install Apps)
Stuart Westphal 'First hand experiences of setting up and running a games business in China. And what every western entrant needs to know' Hitcents
• Chris Mills - President
Chinese Mobile Market Review:
• Market Fragmentation
• Chinese Payment
• Player Behavior
• Tutorial / Training
• Localization /
Total volume of smartphone users continued to rise in each quarter, doubling every six months.
Transitory mobile gamers (people who have played any kind of mobile games) grew in numbers, and the
growth rate is 1.5 times that of the industry.
In 2013, China has become the largest market of mobile gaming.
Chinese Smartphone Active Users
Chinese Smartphone Spenders
The cumulative proportion of money spenders is 2.5 times that compared to the beginning of the year. The
absolute number of money spenders has increased five times+.
More and more people would like to pay for mobile games
Chinese Game Types
45% of mobile gamers choose casual games as their primary games
30% choose card/strategy games.
Where do players spend their money?
Chinese Player Spending
Single-player user experience game spend continue to do well. RPG & Card Battle are expected to
continue their strong performance in 2014.
With their frequent payment rates and high spending amounts,
RPG & card battle are expected to continue their strong performance in 2014