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Why Mobile Social Games Need a                Platform Now More than Ever                           Eros Resmini          ...
GREE Overview   Japan’s Leading Mobile Social Gaming Platform                               Tokyo   Founded               ...
OpenFeint Overview   Leading Mobile Social Gaming Ecosystem   • Mobile social gaming standard with millions of users globa...
GREE Financial Overview                         Net Sales & Operating Profit                      USD         2007    2008...
GREE’s Global Reach                                  Amsterdam                         London                             ...
Growing User and Game Network                                                                     Live GamesPlayers (Milli...
A Platform Symbiosis           mobile social designConfidential                      Copyright © 2004-2012 GREE,Inc. All R...
Growth in Free-to-Play Games   Business Model Shifting to Freemium with IAP   Premium games                               ...
Free-to-Play Games Monetize   US App Store: 20 of Top 25 Grossing Games   are Free to Download   Source: iTunes store Febr...
IAP Increasingly Generates Revenue     % of 2011 US Apple App Store Revenue from Free Apps   Source: Distimo Report, 2011 ...
Goal of Freemium Games   Increase Player Lifetime Value (LTV)                                              Player         ...
Goal of Freemium Games   LTV Greater than Cost Per Acquisition (CPA)               Lifetime             Cost Per          ...
Social Games are Special   Social is a unique variant of “freemium” that   uses social network effects to increase LTV   a...
Social Gaming Ecosystem   True Social Platforms don’t exist on Mobile yet   Facebook: Users Start with Social Netowrk, the...
Benefits of Social Games Ecosystem   Optimizes Acquisition, Retention, Monetization                                       ...
Why Fragmentation is Inefficient   Inhibits Acquisition, Retention, Monetization                Acquisition              M...
Case Study:           Game Evolution on PC & MobileConfidential                     Copyright © 2004-2012 GREE,Inc. All Ri...
PC: Casual Game Portals   Early Portals Lacked Strong Social Effects                                 Most portals lacked s...
PC: Facebook   Social Games Emerged on Facebook in 2007                              Facebook won social and              ...
2012: A Pivotal Moment      Smartphone Sales Outpace PC Sales             Global Smartphone vs PC Sales出所: MorganStanley 「...
Mobile: Fragmented Network   Games on Mobile are Currently in a Fragmented   Player Ecosystem                             ...
Mobile Game Type Evolution   Mobile Game Type Becomes Increasingly Social                                          Free-to...
Mobile: Social Gaming Platforms   Platforms are Emerging to Solve Fragmentation                           Acquisition    S...
Emerging Mobile Social Platforms           Current global marketConfidential                     Copyright © 2004-2012 GRE...
Global Mobile Market Challenges               … but several platforms are emergingConfidential                            ...
Potential Platform Landscape                          SNS Focus               Social Platforms   Meta-Platforms           ...
GREE Platform:           Addressing Global Mobile Audience           GREE global platformConfidential                     ...
GREE + OpenFeint   A New Global Platform for Developers and Gamers               Social Games                             ...
GREE Platform Strategy   Offer developers the most robust toolset to take   advantage of the global mobile gaming market  ...
Comprehensive Offering                       190 MM Users                       Unified global platform                   ...
Thanks! Questions?                    @ErosResminiConfidential                       Copyright © 2004-2012 GREE,Inc. All R...
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Why mobile social games need a platform now morethan ever - Eros Resmini - Openfeint

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Many mobile social games are freemium but lack strong social effects. Only with the help of SNS platforms do mobile social games truly become social and achieve cost-effective acquisition, retention, and monetization rates.

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Why mobile social games need a platform now morethan ever - Eros Resmini - Openfeint

  1. 1. Why Mobile Social Games Need a Platform Now More than Ever Eros Resmini SVP of Marketing & Developer RelationsConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  2. 2. GREE Overview Japan’s Leading Mobile Social Gaming Platform Tokyo Founded December 2004 Founder & CEO Yoshikazu Tanaka International San Francisco Founded January 2011 CEO Naoki AoyagiConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  3. 3. OpenFeint Overview Leading Mobile Social Gaming Ecosystem • Mobile social gaming standard with millions of users globally • Cross platform ecosystem: iOS + Android • Open source & customizable UI • Founded in April 2009 in Burlingame, California • Acquired by GREE in April 2011Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  4. 4. GREE Financial Overview Net Sales & Operating Profit USD 2007 2008 2009 2010 2011 • $5 Billion market cap Net Sales 3.8M 34.6M 164.1M 414.5M 750M O. Profit △1.2M 12.3M 98.4M 230.3M 370M • Fastest Growing Tech Company in Japan USD (Millions) • 2,636% revenue growth over 3 years • Q2 FY2012 record high revenue ($536M) * Fiscal year-end, June 30 Source: Deloitte Technology Fast 50 Japan 2010Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  5. 5. GREE’s Global Reach Amsterdam London Seoul Beijing San Francisco Tokyo Dubai Singapore São PauloConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  6. 6. Growing User and Game Network Live GamesPlayers (Millions) 190+ MM 7500+ Unique User Accounts Live Games 2010 2011 2012 2010 2011 2012 Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  7. 7. A Platform Symbiosis mobile social designConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  8. 8. Growth in Free-to-Play Games Business Model Shifting to Freemium with IAP Premium games User Revenue monetize users once Free-to-play with IAP $ Paid Longer play = more $$$$ F2P games monetize users many times Premium Game Virtual goods market was $7.3B in 2010; will Time game played double by 2014 Download App Source: Zynga SEC filing, via In-Stat market intelligence firm.Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  9. 9. Free-to-Play Games Monetize US App Store: 20 of Top 25 Grossing Games are Free to Download Source: iTunes store February 18, 2012Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  10. 10. IAP Increasingly Generates Revenue % of 2011 US Apple App Store Revenue from Free Apps Source: Distimo Report, 2011 (* Top 200 grossing iPhone apps in the US per month)Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  11. 11. Goal of Freemium Games Increase Player Lifetime Value (LTV) Player Lifetime Revenue Engagement Value = Per User X (LTV) Cost Per Acquisition (CPA)Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  12. 12. Goal of Freemium Games LTV Greater than Cost Per Acquisition (CPA) Lifetime Cost Per Value Acquisition (LTV) (CPA)Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  13. 13. Social Games are Special Social is a unique variant of “freemium” that uses social network effects to increase LTV and lower CPI/A SNS or social platform Game Economics Player Lifetime Engagement Value = Revenue X (LTV) Per User from friends Cost Per Requests Acquisition (CPA)Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  14. 14. Social Gaming Ecosystem True Social Platforms don’t exist on Mobile yet Facebook: Users Start with Social Netowrk, then Discover and Play Games Mobile: Users Start with Games/App Store, then Discover the Social NetworkConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  15. 15. Benefits of Social Games Ecosystem Optimizes Acquisition, Retention, Monetization • App portal optimizes distribution Acquisition • Cross promotion builds user base • Social & communication tools engage users SNS Social Platform Retention • Games and platform engage users • Viral effect cross games Monetization • Standard virtual currency across all games on platform increases ARPUConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  16. 16. Why Fragmentation is Inefficient Inhibits Acquisition, Retention, Monetization Acquisition Multiple High cost & Through campaigns poor results Multiple Ad Networks Retention “Loose coupling” of users Low retention Channels are Email, SMS, notifications Weak Limited Monetization Dependent on retention Difficult to Due to Univ. currency, VG tools increase ARPU Economic ScaleConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  17. 17. Case Study: Game Evolution on PC & MobileConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  18. 18. PC: Casual Game Portals Early Portals Lacked Strong Social Effects Most portals lacked social features, inhibiting player- to-player interaction. SNS Some portals emerged offering weak social features, badges, and micro-transactions.Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  19. 19. PC: Facebook Social Games Emerged on Facebook in 2007 Facebook won social and dominates the online social gaming market. SNS Developers leverage Facebook’s high DAU and social effects to retain and monetize users.Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  20. 20. 2012: A Pivotal Moment Smartphone Sales Outpace PC Sales Global Smartphone vs PC Sales出所: MorganStanley 「 Mobile Internet Trend 」より当社作成 Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  21. 21. Mobile: Fragmented Network Games on Mobile are Currently in a Fragmented Player Ecosystem Users currently discover social network within each game. SNS Fragmentation makes acquisition, retention and monetization challenging for developers.Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  22. 22. Mobile Game Type Evolution Mobile Game Type Becomes Increasingly Social Free-to-Play Free-to-Play Free-to-Play Social Games Social Games Arcade Games Games with In- (fragmented (within social App Purchases & ecosystem) network) Virtual EconomicsConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  23. 23. Mobile: Social Gaming Platforms Platforms are Emerging to Solve Fragmentation Acquisition Similar to the shift we saw on PC, mobile games are Mobile moving to social platforms. Social SNS Platform Retention These platforms provide efficient channels and Monetization features for developers.Confidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  24. 24. Emerging Mobile Social Platforms Current global marketConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  25. 25. Global Mobile Market Challenges … but several platforms are emergingConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  26. 26. Potential Platform Landscape SNS Focus Social Platforms Meta-Platforms Game Focus OS Platforms Studio PlatformsConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  27. 27. GREE Platform: Addressing Global Mobile Audience GREE global platformConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  28. 28. GREE + OpenFeint A New Global Platform for Developers and Gamers Social Games 7,000+ Games Current Current New Global GREE Japan OpenFeint GREE Platform Platform Platform High-ARPU 150MM+ users users, plus social 12,000+ developers know-howConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  29. 29. GREE Platform Strategy Offer developers the most robust toolset to take advantage of the global mobile gaming market Global Social OpenConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  30. 30. Comprehensive Offering 190 MM Users Unified global platform Cross promotions through developer announcements Key regional distribution partners Promotional programs Distribution Acquisition Localization services Wall posting Friend invites Gifting Incentivized invites Social sharing Social sharing Engagement Push Notifications Virality Gifting Dashboard access to game Universal billing analytics International currency Game, player, and management monetization data Monetization AnalyticsConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.
  31. 31. Thanks! Questions? @ErosResminiConfidential Copyright © 2004-2012 GREE,Inc. All Rights Reserved.

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