Gp7 Telecom Convergence Conference

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Dubai based Game Power 7 has participated in a massive conference that brings together top regional and global media and telecoms industry executives, the sixth Annual Media and Telecommunications Convergence Conference that took place in Amman on the 1st and 2nd of June.

During the conference, Mr. Fadi Mujahid General Manager of Game Power 7, delivered a presentation titled “Online Gaming and Telecom Operators The Gold Rush Convergence”

Mr. Mujahid explained in his presentation the company’s vision that telecom and media will very soon be part of the virtual worlds that are currently represented as MMO Online games. “5 years from now, kids will no longer turn on TV machines to watch TV programs, but rather, they go to the TV Room in their online world to watch their preferred programs. They will use their virtual world telecommunication facilities to communicate with friends instead of making a phone call.”

Out of this vision, the company has built a state-of-the-art game localization and culturalization facility that provides

1- Global game developers with value-added game publishing services, and

2- Telecom operators with the best gaming content to enrich their VAS, and aggregate their services to kids, teens, and young youths.

Game Power 7 published the first online MMO game in the region, Arabic Rappelz, thus, taking the risk of this untapped market in MENA

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Gp7 Telecom Convergence Conference

  1. 1. Online Gaming and Telecom Operators The Gold Rush Convergence Fadi Mujahid General Manager 6TH Annual Media And Telecommunications Convergence Conference 2009 (Amman June 1 & 2 2009)
  2. 2. Convergence New Products and Opportunities <ul><li>Hot Technologies </li></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Mobile </li></ul></ul><ul><ul><li>Games </li></ul></ul><ul><li>Their convergence produced products and opportunities that surpassed the original technologies </li></ul>
  3. 3. Case I: Internet + Mobile <ul><li>3G, Edge, WiMAX </li></ul><ul><li>Blackberry </li></ul><ul><li>Mobile TV </li></ul><ul><li>M-commerce </li></ul><ul><li>3G in S. Korea is over 70% </li></ul><ul><li>Japan Stopped selling 2G in 2007 </li></ul>
  4. 4. Case II: Mobile + Games <ul><li>Mobile Games, Flash Games, Java Games </li></ul><ul><li>N-Gage platform </li></ul><ul><li>Estimated market in 2012: $18B </li></ul>
  5. 5. Case III: Internet + Games <ul><li>Online Games, Virtual Worlds, Massively Multiplayer Online Games (MMOG) </li></ul><ul><li>Worldwide number of Online Game players in 2010 364 million user </li></ul><ul><li>21% of Internet users are Online Game players </li></ul><ul><li>Worldwide MMO game revenue to reach $13.1 billion in 2011 </li></ul>
  6. 6. Our Case Internet + Games + Mobile (Telecom) Online Games + Mobile (Telecom)
  7. 7. Online Games Business <ul><li>364M User worldwide (2010) </li></ul><ul><ul><li>Over 20% of Internet Population </li></ul></ul><ul><li>Revenue of $13B (2011) </li></ul><ul><li>In 2007 </li></ul><ul><ul><li>Internet growth rate 9.4% </li></ul></ul><ul><ul><li>Online Game player growth 16.5% </li></ul></ul><ul><ul><li>Traditional Games growth -3% </li></ul></ul><ul><li>In Vietnam for example </li></ul><ul><ul><li>More than 11% of the entire population will be Online Game players by 2010 (40% of the Internet population) </li></ul></ul>
  8. 8. Telco’s & Online Games Business <ul><li>High rate of online gaming growth is associated with partnerships between Telco's and online game companies </li></ul><ul><li>In China (news headlines) </li></ul><ul><ul><li>Alcatel partners with Chinese Online Game Supplier (2004) </li></ul></ul><ul><ul><li>Shanghai Telecom expands into online gaming business (2004) </li></ul></ul><ul><ul><li>Shanghai Telecom, THE9 (online gaming company) jointly promote 3G services (2009) </li></ul></ul><ul><li>In Korea </li></ul><ul><ul><li>SK Telecom, through strategic alliances with game developers, is one of the top game publishers in Korea </li></ul></ul>
  9. 9. Telco’s & Online Games Business <ul><li>In China, during 2008, Online Gaming was the direct result of </li></ul><ul><ul><li>$4.5B revenue for Telecom Industry </li></ul></ul><ul><ul><li>$1.6B revenue for IT Industry </li></ul></ul><ul><li>Orange and GOA.com a success story </li></ul><ul><li>Scores of success stories in other countries </li></ul>
  10. 10. Why Telco’s are Involved in Online Games? <ul><li>Online games are leveraging on the Telco’s mobile and broadband infrastructure </li></ul><ul><ul><li>Why not leverage on their own infrastructure? </li></ul></ul><ul><ul><li>Turn online games into services </li></ul></ul><ul><ul><li>Attract kids and teens to use broadband and mobile technologies: competitive edge. </li></ul></ul><ul><li>Telco’s can benefit the most from e-commerce and m-commerce booming </li></ul><ul><ul><li>Online Games and virtual worlds are the future of m-commerce and e-commerce </li></ul></ul><ul><ul><li>Revenue of m-commerce in Japan = revenue of e-commerce of China </li></ul></ul>
  11. 11. Why Telco’s are Involved in Online Games? <ul><li>Telco’s are focusing more on VAS as a revenue generator </li></ul><ul><ul><li>In 2006, KDDI achieved an additional $1B by indirect effect of selling music as VAS </li></ul></ul><ul><ul><li>Online Game mobile interaction </li></ul></ul><ul><ul><ul><li>Game Status notification via SMS (Guild rank, dungeon raids, player levels, etc.) </li></ul></ul></ul><ul><ul><ul><li>In-game SMS communication with other players </li></ul></ul></ul><ul><ul><ul><li>MMS, VOD, and VLOGs of important events </li></ul></ul></ul><ul><li>Telco’s are already dealing with customer billing and payment services </li></ul><ul><ul><li>In Korea, Telco's offer online game publishers an integrated billing and payment services for 5% of the payment </li></ul></ul>
  12. 12. Online Games and Telco’s Future Trends <ul><li>Merger of virtual worlds and online games </li></ul><ul><li>IPTV through your virtual world </li></ul><ul><li>Telecommunication through your virtual world </li></ul>
  13. 15. Arabic Rappelz Status <ul><li>Game Power 7 Published the first online game (MMORPG) in the region, Arabic Rappelz ( أمل الشعوب ) </li></ul><ul><li>First Beta Phase December 2008 </li></ul><ul><li>Second Beta Phase February 2009 </li></ul><ul><li>Commercial Launch March 2009 </li></ul>
  14. 16. Arabic Rappelz Status <ul><li>Growing fast since commercial launch </li></ul><ul><ul><li>CCU increase over 2 Months = %166 </li></ul></ul><ul><ul><li>UV increase over 2 Months = %255 </li></ul></ul><ul><li>Very high ARPU </li></ul><ul><li>Anticipate 100K players by the end of 2009 </li></ul>
  15. 17. Rappelz Localization <ul><li>Localization & Culturalization </li></ul><ul><ul><li>Culturalized Translation </li></ul></ul><ul><ul><li>Story Mythology </li></ul></ul><ul><ul><ul><li>Respect religious concepts </li></ul></ul></ul><ul><ul><ul><li>Remove controversial mythologies </li></ul></ul></ul><ul><ul><ul><li>Avoid cultural taboos </li></ul></ul></ul><ul><ul><li>Character Naming </li></ul></ul><ul><ul><li>Character Clothing </li></ul></ul>
  16. 18. Character Clothing
  17. 19. Challenges for Game Publishers <ul><li>Customer education </li></ul><ul><ul><li>Less than 10% of kids and teens know what an MMO is and how you play it </li></ul></ul><ul><ul><li>So far, over $1M spent on marketing Arabic Rappelz </li></ul></ul><ul><li>Heavy localization and culturalization requirements </li></ul><ul><ul><li>Arabic language RTL problem </li></ul></ul><ul><ul><li>Game stories are aliens to the culture </li></ul></ul><ul><ul><li>Character clothing could trigger major sensitivities in several countries </li></ul></ul>
  18. 20. Challenges for Game Publishers <ul><li>Payment methods </li></ul><ul><ul><li>Credit cards </li></ul></ul><ul><ul><ul><li>Not widely used </li></ul></ul></ul><ul><ul><ul><li>Rarely used online </li></ul></ul></ul><ul><ul><li>Payment cards </li></ul></ul><ul><ul><ul><li>Very few payment cards </li></ul></ul></ul><ul><ul><ul><li>Limited availability </li></ul></ul></ul><ul><ul><li>Mobile payments </li></ul></ul><ul><ul><ul><li>Operators deduct between 30-75% of the payment!!! </li></ul></ul></ul><ul><li>Download Speed Limits </li></ul><ul><ul><li>Online games have download sizes of 1.6GB </li></ul></ul>
  19. 21. Challenges for Game Publishers <ul><li>Internet Data Centers </li></ul><ul><ul><li>Reliability </li></ul></ul><ul><ul><ul><li>Very few IDCs can be considered good enough for MMO Hosting </li></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Bandwidth and server collocation costs are very high </li></ul></ul></ul><ul><li>Absence of official statistics and market studies </li></ul><ul><ul><li>Major research firms have “blank pages” about MMOs in the region </li></ul></ul><ul><ul><li>All statistics that we used were “local made” through the help of our offices in the region </li></ul></ul>
  20. 22. Game Power 7 Company Profile <ul><li>The first publisher and developer of online MMO games and related digital media in the Middle East and North Africa </li></ul><ul><li>Game Power 7 is a subsidiary of Weiss Investment the owner of Spacetoon and Space Power TV stations and media hubs. </li></ul><ul><li>The company envisions that telecom and media will very soon be part of the Virtual Worlds / MMO Online games. </li></ul>
  21. 23. Game Power 7 Company Profile <ul><li>Game Power 7 built a state-of-the-art game localization and culturalization facility that provides </li></ul><ul><ul><li>Global game developers with value-added game publishing services, and </li></ul></ul><ul><ul><li>Telecom operators with the best gaming content to </li></ul></ul><ul><ul><ul><li>Enrich their VAS, </li></ul></ul></ul><ul><ul><ul><li>Aggregate their services to kids, teens, and young youths. </li></ul></ul></ul><ul><li>Aggressive plan to publish two more Online Games in 2009 </li></ul>
  22. 24. Game Power 7 Business Strategy <ul><li>Cover all types of online gaming: MMORPG, MMO Sports, MMO Strategy, MMO Shooting, MMO Casual, and MMO Mobile </li></ul><ul><ul><li>Aggressive plan to publish two more Online Games in 2009 </li></ul></ul><ul><li>Form strategic partnerships with </li></ul><ul><ul><li>Media Hubs </li></ul></ul><ul><ul><li>Telecom Operators and Companies </li></ul></ul><ul><ul><li>IT Industry Leaders </li></ul></ul>

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