A small invited talk session given at the MSeed Accelerator Program. A quick overview of the Thai Game Industry was given before going into little tids and bits about the Game Industry that would be interesting ranging from the Targeting Segments, App Stores, to Survival Guides based on aggregate ideas from many sources.
This talk is geared towards newer game developers just breaking into the business.
2. Outline of Talk 1/3
• About the Speaker
• Why Games?
• Overview of the Game Industry in Thailand
– Timeline
– Actors/Stakeholders in Thailand
– Game Market
– Future Opportunities
Pisal Setthawong (2014) 2
3. Outline of Talk 2/3
• Game Business Overview
– Fundamentals/Product Life Cycle
– Classification of the Game Market
• Game Player Demographics
• Ambiguity in Classification
• Looking In Between the Lines
– Current Install Base
– App Store and Other Digital Store Fundamentals
• App Store
• A Look at Freemium
• Publishers
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4. Outline of Talk 3/3
• Let’s Guess the Future!
• Game Developer Survival Tips
• Q&A/Discussions
Pisal Setthawong (2014) 4
5. About the Speaker
Pisal Setthawong
• Award Winning and Early
Pioneer in the Thai Game
Industry
• Committees at various
Game Events
/Organizations
• Developer Community
Volunteer/Organizer
• Well-travelled Game
Educator
Pisal Setthawong (2014) 5
6. GAMES are probably the most
Important form of Digital Media
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7. Global Game Market Value
Pisal Setthawong (2014) 7
RW Baird and Co - 2012
12. Major Period Classifications in
the Thai Game Development Industry (1/2)
PC
• Start of Industry
• 2000
PC
Mobile
PDA
• Rise of Mobile
• 2002-2005
???
• Mobile Market Crash
• 2005
Maturity
Trials
Early
Pisal Setthawong (2014) 12
13. Major Period Classifications in
the Thai Game Industry (2/2)
MMOG
Console
PC Casual
• Transition Phase
• 2005-2008
FB
Mobile
• The Rise of Facebook and the App Store
• 2009-2011
• Increasing Maturity
• 2011-Present
Maturity
Trials
Early
Pisal Setthawong (2014) 13
14. View the Timeline
• View the timeline at:
http://www.tiki-toki.com/
timeline/imagemode/291692/
Thai-Game-Industry-Timeline/
http://tinyurl.com/pnz3wn6
Maturity
Trials
Early
Pisal Setthawong (2014) 14
17. Developers (Overview)
• Industry started in 2000
• Virtually all of the Early Game Development Studios
were self-funded
• Huge Expansion during 2011-Present
– Open Publishing Platforms
– Lower Cost of Entry
– Seed Funding/Incubators/Investors
– Foreign Investment
– Increased Acceptance by Society
• Most Studios are small in size (less than 10 people)
focused on creating original IPs on Mobile Platform
Pisal Setthawong (2014) 17
18. Developers
• Industry started in 2000
• Virtually all of the Early Game Development
Studios were self-funded
• Huge Expansion during 2011-Present
– Open Publishing Platforms
– Lower Cost of Entry
– Seed Funding/Incubators/Investors
– Foreign Investment
– Expanding Game Market
– Increased Acceptance by Society
Pisal Setthawong (2014) 18
19. Developers
• Currently most Studios are small in size (less
than 10 people) and focused on creating
original IPs on Mobile Platform
• Different Developers have different focus,
leading to products on different platforms and
services provided
• Strong entrepreneur spirit, more experienced
developers have a tendency to start their own
company
Pisal Setthawong (2014) 19
20. Developers
• Thai Developer have a good record in developing hits
and original IPs over the years
– Juice Cubes
– Unblock Me
– Candy Meleon
– Jigsaw Mansion
– Glow Hockey
– Etc.
Pisal Setthawong (2014) 20
21. Publishers
• Traditionally focus on MMOGs
– Ragnarok Online was first major hit
– Influx of imported games (mainly Korean)
• Some Local Publishers Publish Local
Developed MMOGs Games
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22. Publishers
• Currently publishers are entering the Mobile
Publishing sphere
– Many different publishing models are offered
• Microinvestment in Projects
– Some Provide Development/Publishing Platforms
– Publishing process, guidelines, best practices are
still being ironed out
• Potential for increasing collaboration with
local developers
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23. Investors
• Investment in the game development sector is
minimal until about 2010 (Coincide with
Global Game/Startup Culture Boom)
• Foreign and Local Investments in Game
Development Studios is becoming common
Pisal Setthawong (2014) 23
24. Investors
• Local Publishers/Investors/Banks have
improved perception of the Game Industry
• Investment from Thai investors comes in many
flavors:
– Seed Funding
– Support Funding
– Investment
– Grants
– Competition Grants
Pisal Setthawong (2014) 24
25. Government
• ICT Ministry and SIPA supports Thai Game
Development
– Thailand Ministry of ICT Awards with Categories in
Entertainment
– Periodical Contests for Seed Funding
– Funding to join Overseas Events (e.g. Games
Connection, GDC, Tokyo Game Show, etc.)
– Business Matching Events
– Funding for Trade Association Events
• Other Notable Agencies – DEP (Department of
Export Promotion), Software Park, TK Park
• Board of Investment (BOI) Incentives available
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26. Associations
Game & Interactive Digital
Entertainment Association
Thai Game Software Industry Association
Thai Digital Entertainment
Content Federation
Thai Animation and Computer
Graphic Association
Software Association of Thailand
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27. Developer Community
• TGDC is the Largest Thai Game Developer
Community (on FB)
• https://www.facebook.com/groups/thaigamepad
• Most discussions in the Local Game Developer Community are done in Thai
• However, most developers are Bilingual (Thai/English)
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28. Academic
• Most Major Universities offer Major/Minor in
Game Development
• Game Developers/Association have contacts with
many Universities
• Challenges
– Effectiveness hampered by University Regulations
– Coursework needs realignment with Industry Needs
– Potential for too much dependency on Tools
– Student Attitudes
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29. Media
• Traditional Strong in Print Media
• Online Media surpassing Print Media in
Popularity
• Word of Mouth via social network is an important
Media
• E-Sports is increasing in popularity
• G-Square is Thailand’s dedicated gaming channel
(Sadly Closed 2013)
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31. Quick Statistics
• Population: 65,479,453 (2010 Census)
• Major Language: Thai
• Major Consumer of Media, Games, and
Mobile
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33. Thailand Mobile Overview
Post-Paid 6,481,372 7,050,943 7,256,473 7,938,934 9,782,683 10,740,629
Pre-Paid 55,355,792 58,901,370 64,469,827 69,510,532 75,229,728 79,244,232
Total 61,837,164 65,952,313 71,726,300 77,449,466 85,012,411 89,984,861
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
2008 2009 2010 2011 2012 2013
NBTC, Thailand, June 25, 2013
Mobile Penetration (131%) (2013 Q2)
85% of Mobile Phones Sold in 2013 are Smart Phones
GfK Retail and Technology Asia 2013
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34. Thailand Internet Usage
Overview
• 60% of Mobile Users Access Internet through Mobile
Device
• 72% of People Under 24 have access to the Internet
• Out of ~22 mil households, only about 1 mil household
have wired Internet
– Internet Cafes traditionally provide Internet connectivity to
the masses but decreasing in significance due to mobile
Internet connectivity
National Statistic Office 2012 Pisal Setthawong (2014) 34
36. Thai Gamer Quirks
• Typically avoid paying for Premium games
• Less resistant to paying Games as a Service
• High tendency of migration between F2P
games
• Female Gamers usually pay than Male Gamers
• Vibrant Item Auction Community
• Mobile is the gaming device of choice
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37. Thai Gamer Quirks
• Social Media is very popular
– Line (22 Million Accts) 1
– FB (18 Million Accts) 2
• Social Media Users are also heavy consumers
of digital media and games
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1. Line 2014
2. Zocial Inc 2013
39. Opportunities
• The Whole ecosystem in Thailand is Now Finally
Complete
– Support from all relevant agencies and units can help
push forward the Industry
• Increased investment both local and abroad
• Increasing maturity of the academic sector in the
production of personnel to the market
• Increasing experience of newly founded Game
Development Studios
• Thais are known to be very creative and artistic
Pisal Setthawong (2014) 39
40. Challenges
• Local Investors and Publishers are relatively
new to the Mobile Ecosystem
• Thai personnel can be very individualized
• Academic may not be supplying the right type
of developer to the gaming industry
• Making the local market more sustainable for
a wider genre/platforms by changing
consumer attitudes
• Increasing Cost
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52. Game Controllers as a Guide
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Hardcore Gamer
Casual Gamer
53. Global Demographics
Age Group Male Ratio Tally Ratio
0-9 646,550,548 9.01% Male 3,613,262,318 50.35%
10-19 616,990,606 8.60% Female 3,562,760,737 49.65%
20-29 604,531,452 8.42% Total 7,176,023,055 100%
30-39 522,738,915 7.28%
40-49 468,630,544 6.53%
50-59 353,658,579 4.93%
60+ 400,161,674 5.58%
Age Group Female Ratio
0-9 604,935,074 8.43%
10-19 576,088,296 8.03%
20-29 576,824,052 8.04%
30-39 507,294,288 7.07%
40-49 461,051,859 6.42%
50-59 362,431,963 5.05%
60+ 474,135,205 6.61%
Pisal Setthawong (2014) 53
US World Census 2014
54. The Hard Core Gamer
Hardcore
Gamer
15%
Remaining
85%
Potential Hardcore Gamers
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Male (18-35)
56. The Mobile Generation
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58%
42%
Potential Mobile Generation Demographics
Mobile Generation
Remaining
Male/Female (20-65)
Mobile
Generation
Remaining
NOT MUTUALLY EXCLUSIVE WITH
57. World Internet Users
WORLD INTERNET USAGE AND POPULATION STATISTICS
June 30, 2012
World Regions
Population
( 2012 Est.)
Internet Users
Dec. 31, 2000
Internet Users
Latest Data
Penetration
(% Population)
Growth
2000-2012
Users %
of Table
Africa 1,073,380,925 4,514,400 167,335,676 15.6 % 3,606.7 % 7.0 %
Asia 3,922,066,987 114,304,000 1,076,681,059 27.5 % 841.9 % 44.8 %
Europe 820,918,446 105,096,093 518,512,109 63.2 % 393.4 % 21.5 %
Middle East 223,608,203 3,284,800 90,000,455 40.2 % 2,639.9 % 3.7 %
North America 348,280,154 108,096,800 273,785,413 78.6 % 153.3 % 11.4 %
Latin America / Caribbean 593,688,638 18,068,919 254,915,745 42.9 % 1,310.8 % 10.6 %
Oceania / Australia 35,903,569 7,620,480 24,287,919 67.6 % 218.7 % 1.0 %
WORLD TOTAL 7,017,846,922 360,985,492 2,405,518,376 34.3 % 566.4 % 100.0
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Internet World Stats 2013
62. Ambiguity in Classification
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Migration
Potential
Migration???
Competing
OVER
LAPPING
GENRE in
Every Platform!!!
Phablet?Linux?
63. Drilling Down
Pisal Setthawong (2014) 63
AAA
MMOG
ETC.
Casual
Niche/Indie
[%?]
[%?]
[%?]
[%?]
[%?]
Puzzle
One
Click
CardEtc.
Puzzle
Hidden
Object [%?]
[%?]
[%?][%?]
[%?]
[%?]
Platform Drilling Down to Genre Genre Drilling Down to Sub Genre
64. Game Types by Age and Gender
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65. Game Type by Usage and Retention
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76. Console Install Base
Mobile Console Home Console
Microsoft 0 83.7
Nintendo 153.99 101.06
Sony 80 80
0
50
100
150
200
250
300
InstallBaseInMillions
Last Generation Console Install Base
(DS)
(PSP) (PS3)
(XBOX360)
(WII)
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Aggregate Data 2014
77. Smart TV Install Base
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Smart TV
33%
Normal TV
67%
• Rise of New Platform
• 76 million units in 2013
(33% of Total Sales)
• Internet Connectivity to
All Mid-High End TV by
2017 (73% of total TV sales)
• Continuous Growth
(55% in 2013 and
increasing)
Global TV Sales
in 2013
Normal 152
Smart TV 76
0
50
100
150
200
250
SalesinMillions
Global TV Sales 2013
M
M
Strategic Investment Report 2014
86. Discovery / Attractiveness
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Discoverability Attractiveness
Top Charts Customer Ratings
Customer Also Bought Customer Comments
Apple
- New and Noteworthy
- Staff Pick’s
- What’s Hot
- Apple Feature
In-Store Appearance
- Icons
-Screenshots
- Description
Cross Promotion Number of Ratings/Comments
Free Apps/Discounts Regular Updates
Ad Networks Popular Developer
91. Free Content
• “Generally people want free content more
than they want to avoid ads or to pay for the
absolute highest quality content possible"
- Flurry
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92. Freemium Fundamentals
• Choose the right market
• Distinguish between free and paid content in a
way users care about
• Track the metrics that matter
• Create clear “paths” for promising prospects
• Free is no longer a differentiating strategy
Pisal Setthawong (2014) 92
93. Looking at Freemium Consumers
• Only 1.5% of total install made in-app
purchase within a month
• 50% of revenue is derived from the
top 10% of those players who do
make purchases (0.15%)
• 49% of all payers make only a single
purchase per calendar month
• Only 13% of paying players make five
or more purchases
• The average time to first purchase is
just under 24 hours
• For second purchase, the average
time lapse between first and second
purchase is a mere 1 hour 40 minutes
• 53% of players who make a purchase go
on to make a repeat purchase within 14
days, while 47% do not.
• 13.7% of new players accrue more than
four purchases in their first 14 days.
• Of revenue accrued within the first 14
days of a player’s life, over 60% is accrued
on the first day of life.
• The average value of an in-app purchase is
$5.94
• Purchases between $1 and $5 (67%)
contribute only 27% of total revenues
• Purchases of over $50 consist of 0.7% of
all purchases and contribute 9% of all
revenues
• Is this sustainable?
Pisal Setthawong (2014) 93
Swerve 2014
94. PR and Reviews
• The Typical User
– does not buy apps from PR and Reviews
– rely on Information from the App Storefront
• Mobile Sales are not usually impacted by
Good Review in External Media Sites
• Mobile Review Sites May Charge to Review
your Games
Pisal Setthawong (2014) 94
96. Targeting Niche (Hardcore Indie)
• Find a Niche
• Build Communities
• Build a Track Record
• Market Specifically to Target
Audience
• Tailor Distribution Method
• Target Specific Niches Neglected
by Mainstream Developers
Pisal Setthawong (2014) 96
97. Targeting Niche (Mobile)
• The download market on Mobile is larger,
but it is chart-based
• Difficult to get Niche games to
Top Chart to drive sales!!!
Pisal Setthawong (2014) 97
98. Publishers
Pros (In Theory)
• Skilled Producers
• Knowledge of the Market
• Detailed Metrics
• Media Contacts /Advertising
• Distribution Channels
• Contacts
• Potential Funding
Cons
• Revenue Share with Digital
Distributor + Publisher
• Additional Work/Investment
Required
• One of Many Games, not
Likely to be main focus of
Publisher
Pisal Setthawong (2014) 98
112. What is Your Motivation?
• Get Rich?
• For Self-Ego?
• Being Ordered?
• For Fun?
• For the Challenge?
• For My Boss?
Pisal Setthawong (2014) 112
Know Yourself Before Starting!!
115. Lesson of AAAAAA
• Ambition
• Absolutely No Idea What I Was Doing
• All Those Graphics
• Aging
• Always Sticking to the Plan
• Albatross
Pisal Setthawong (2014) 115
Adam Butcher
http://www.youtube.com/watch?v=2b0tSu0QDQ0
116. Save Money on Things that Don’t
Count
Pisal Setthawong (2014) 116
120. Time Between Investment and
Income?
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Production starts
Game submitted to Nintendo
Game approved by Nintendo
Game on sale
1st royalty payment
May
10
Jun
10
Jul
10
Aug
10
Sep
10
Oct
10
Nov
10
Dec
10
Jan
11
Feb
11
Mar
11
Apr
11
May
11
Jun
11
Jul
11
Aug
11
Sep
11
Oct
11
18 months!
1st threshold reached
Case Study - “Spot The Differences!” on Wii
– Sanuk Games
126. Attend Game Developer Meetings
Pisal Setthawong (2014) 126
Indie Game Developers and Development Meetup Group
[http://www.meetup.com/Indie-game-developers-and-development/]