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Digital Goods, Real Billions Asia’s Digital Life & What it means for the West @benjaminjoffe  | CEO, +8* Virtual Goods Summit, San Francisco | 2010.10
@benjaminjoffe
4 years 1 year 5 years
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Angel Investor, Advisor, Keynote Speaker
My Interests ,[object Object],[object Object],[object Object],[object Object],[object Object]
All the world’s a… All the world’s a  stage … All the world’s a  game … … And one man in his time plays many  avatars . William Shakespeare Gabe Zichermann Benjamin Joffe
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quiz!
Quiz!
Quiz
Quiz
Quiz
Quiz
Quiz
More than Facebook and USA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],And more…
Billion Dollar Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],And more… $B $B $B $B $B $B $B
Market Caps (2010.10) $780M $3.3B $43B $4.2B
ngmoco:) news $400M < 2010 Profit!
South Korea
Cyworld ,[object Object],[object Object],[object Object]
2009.10 | Nate App Store ,[object Object],[object Object],[object Object],[object Object]
Portals join the dance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Facebook Rising ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Virtual Worlds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
PuppyRed
PuppyRed | Conversion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Inside Social Games, Oct 2010, PuppyRed data from Nov 2009 to Jan 2010
PuppyRed | Monetizing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Inside Social Games, Oct 2010, PuppyRed data from Nov 2009 to Jan 2010
Online Games ,[object Object],[object Object],[object Object],Source: KOCCA
Answer ,[object Object],[object Object],[object Object],Min Seo, CEO
Nexon Today ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Nexon
Foreign Players in Korea? ,[object Object]
 
And… Starcraft Cheating Scandal! ,[object Object],[object Object],[object Object],Pro Gamer sAviOr (Ja Mae-Yoon)
Japan
Mobile SNS Make a Killing ,[object Object],[object Object],[object Object],[object Object]
Mixi ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mixi ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mixi | Users ,[object Object],[object Object],Total Mobile Mobile Total
Mixi | Pageviews Applications Platform 2009.08 Mobile 2009.10 PC Ad prices for mobile =  1/3  of PC price
Mixi | Apps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Machi Tsuku (3M MAU) by Unoh / Zynga Japan Source: Masaru Ikeda @ Asiajin
Answer ,[object Object],[object Object],Tomoko Namba, CEO
DeNA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DeNA | Sales
Mobile Game Town| Sales Breakdown 78% 12% 9% 1% $250 million (2010.04~06)
Mobile Game Town | Users ,[object Object],[object Object]
Mobile Game Town | Open Platform ,[object Object],[object Object],[object Object],[object Object],[object Object]
DeNA | Target: Global Leader
Answer ,[object Object],[object Object],Yoshikazu Tanaka, CEO
Gree Home Advertising Avatars & items Games Advertising & Affiliates B2C virtual goods (avatar + games)
GREE | Service Strategy Media Ad Sales VG Sales Social Games Virtual Goods SNS Diary/Notes Q&A Community/BBS Page views Members GREE
GREE ,[object Object],[object Object],20M $133M Users Revenue 2010.06 2010.04-06 Digital goods  (82%) Ads  (18%)
GREE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
GREE | Monthly Page Views 35.7 Billion Google Images = 1 billion/day
GREE ,[object Object],[object Object]
2010.09 | GREE on iPhone  ( + Android soon)
Community Safety ,[object Object],[object Object],[object Object],[object Object],[object Object],Pipo-kun Tokyo Police Mascot Gree’s Patrol Center
Have you heard of…?
CyberAgent ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
    | Social Games ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],    | Social Games
| 2D Virtual World
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],| 2D Virtual World
[object Object],| Revenue split
| Subs & ARPU ,[object Object],[object Object]
| Fishing Game
Facebook Making Inroads ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],KDDI’s Summer Line-Up
Foreign Players in Japan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
China
Social Games Growing But… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
…Online Games Still Dominate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: iResearch, Lazard Capital Markets
Answer ,[object Object],[object Object],Ma Huateng (Pony), CEO
QQ IM & QZone
Digital Goods? ,[object Object],[object Object],[object Object],[object Object]
Tencent Bigger Than Ever? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd. Hardware Innovation: “Shanzhai” ( 山寨 )
PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
QQ Farm
Rest of Asia
Time-Shifted Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Virtual Goods Time Machine
Mig33 ,[object Object],[object Object],Source:  VentureBeat , March 2010
Mig33 ,[object Object],[object Object],Source:  VentureBeat , March 2010 Made in China Not iPhone! Not rich countries!
About Mig33 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions ,[object Object],[object Object],[object Object]
Asia: $7 Billion USA: $1 Billion US market potential $35 Billion ? Digital Goods in 2009 Source:  +8* , October 2009
Digital Goods in 2010 Asia: $10 Billion USA: $2 Billion Source:  +8* , October 2010
$100 billion within the decade? ,[object Object],Trip Hawkins CEO, Digital Chocolate Founder, Electronic Arts Source:  Trip’s OMG Blog , April 2010
Market Potential? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Globalization Durian Strudel (Singapore)
Ideas, Talent & Markets ,[object Object],[object Object],[object Object]
Platform Partnership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  Mixi , September 2010
Virtual Goods in Asia The US Gold Rush Begins Benjamin Joffe | CEO, Plus Eight Star Virtual Goods Summit, San Francisco | 2009.10 Chinese family in Oregon during the Gold Rush
Nexon ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: +8*, Nexon
DeNA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Tencent ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Other Chinese Companies ,[object Object],[object Object],[object Object]
China + Russia + South Africa 29% 10% 35% $35B $3B $18B Source:  +8* , October 2010
DST | Digital Sky Technologies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
NASPERS
From Asia to the World Durian Strudel (Singapore)
Paradise Paintball  by  Cmune ,[object Object],[object Object],[object Object],[object Object]
Paradise Paintball |  World’s First Social FPS! www.facebook.com/paradisepaintball     www.cmune.com Disclosure I am an investor in Cmune
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Asia is part of your world too! +81  | Japan +82  | Korea +86  | China Telecom & Internet +  Added Value *  High quality

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Ben Joffe\'s Virtual Goods in Asia at Virtual Goods Summit West

Editor's Notes

  1. http://www.chinadaily.com.cn/bizchina/2006-12/26/content_767613.htm
  2. http://economy.donga.com/CEO/3/0104/20100703/29583723/3
  3. http://stocks.finance.yahoo.co.jp/stocks/detail/?code=2121.t http://stocks.finance.yahoo.co.jp/stocks/detail/?code=3632.T&amp;d=1y http://stocks.finance.yahoo.co.jp/stocks/detail/?code=2432.T&amp;d=6m http://finance.yahoo.com/q?s=0700.HK
  4. http://metropolitician.blogs.com/scribblings_of_the_metrop/2010/06/facebook-taking-over-korea-as-predicted.html www.cyworld.com/iammicy
  5. http://appstore.nate.com/ http://blog.playrubi.com/2010/07/page/2/
  6. http://apps.yozm.daum.net/ http://apps.naver.com/
  7. http://www.tri-d.com/Proposal-Social_Network_Game.pdf http://www.puppyred.com/demo/jsp/contact_main.jsp http://www.tri-d.com/Intro_to_Puppyred.pdf http://appstore.nate.com/Apps/Canvas?apps_no=1153&amp;use_network=CY
  8. http://www.insidesocialgames.com/2010/10/07/how-design-choices-impact-virtual-goods-purchases-in-games/
  9. http://www.insidesocialgames.com/2010/10/07/how-design-choices-impact-virtual-goods-purchases-in-games/
  10. http://news.mmosite.com/content/2010-09-25/korean_game_market_value_hits_5_9bn_in_2009.shtml
  11. 넥슨 김정주 사장 http://cafe.chosun.com/club.menu.bbs.read.screen?p_club_id=y http://www.koreagamewatch.com/wp/companies-2/nexon-holdingsnxc/oung&amp;p_menu_id=2&amp;message_id=365603
  12. http://www.gamepron.com/news/2010/04/12/starcraft-cheating-scandal-rocks-korea/ http://www.the-games-blog.com/bad-week-for-korean-gamers-scandals-and-curfews/
  13. http://asiajin.com/blog/2009/09/21/mixi-echo-becomes-mixi-voice-to-chase-twitter/ http://japan.cnet.com/news/business/story/0,3800104746,20414363,00.htm
  14. http://asiajin.com/blog/2010/09/10/mixi-launches-social-app-platform-for-smartphone-users-too/
  15. http://www.dena.jp/en/ir/pdf/FY10Q1%20Operating%20Results.pdf
  16. Launch | 2004 IPO | December 2008 Users | 10 million (2009.4) Under 30 y/o | 61% SNS market share | 12% Monthly PV | 121,8 billion Revenue 1Q09 | 29 MEUR - B2C | 21.6 MEUR - Advertising | 7.4 MEUR Net profit 1Q09 | 9.9 MEUR
  17. Gree: please forget our PC site! http://asiajin.com/blog/2009/10/26/
  18. Financials | http://eir.eol.co.jp/EIR/View.aspx?cat=yuho_pdf&amp;sid=1483363 Latest quarter | http://eir.eol.co.jp/EIR/View.aspx?template=ir_material&amp;sid=6831&amp;code=3632
  19. http://247wallst.com/2010/07/21/google-images-hits-one-billion-page-views-a-day/
  20. http://gree.co.jp/news/press/2010/1007.html
  21. http://gree.co.jp/news/press/2010/0930.html
  22. GREE | http://japan.cnet.com/mobile/story/0,3800078151,20368425,00.htm http://www.nikkeibp.co.jp/news/it08q1/563342/
  23. http://ir.cyberagent.co.jp/ir_e/
  24. http://ir.cyberagent.co.jp/ir_e/result/2010/pdf/2q_presentation_eng.pdf
  25. http://ir.cyberagent.co.jp/ir_e/result/2010/pdf/2q_presentation_eng.pdf
  26. http://venturebeat.com/2010/07/07/facebook-emerging-markets/
  27. http://www.gamesbrief.com/2010/06/the-online-games-market-was-worth-15-billion-in-2009-and-will-grow-to-20-billion-in-2010/ http://news.cnet.com/8301-13846_3-10374667-62.html
  28. http://www.prnewswire.com/news-releases/following-in-tencent-qqs-footsteps-mobile-community-mig33-proves-there-is-real-money-in-developing-markets-89485502.html http://mobile.venturebeat.com/2010/07/15/mig33s-virtual-gifts-business-grows-400-percent-in-second-quarter/ http://mobile.venturebeat.com/2010/03/17/mig33s-move-to-asia-puts-it-head-to-head-with-chinas-mobile-chat-king/
  29. http://www.prnewswire.com/news-releases/following-in-tencent-qqs-footsteps-mobile-community-mig33-proves-there-is-real-money-in-developing-markets-89485502.html http://mobile.venturebeat.com/2010/07/15/mig33s-virtual-gifts-business-grows-400-percent-in-second-quarter/ http://mobile.venturebeat.com/2010/03/17/mig33s-move-to-asia-puts-it-head-to-head-with-chinas-mobile-chat-king/
  30. http://www.insidevirtualgoods.com/us-virtual-goods/ http://www.virtualgoodsnews.com/2009/10/chinas-online-games-worth-over-900m-in-q2-alone.html
  31. http://www.insidevirtualgoods.com/us-virtual-goods/ http://www.virtualgoodsnews.com/2009/10/chinas-online-games-worth-over-900m-in-q2-alone.html Virtual goods = $6B in china, $2B?? In japan, $2B? in Korea = $9B
  32. http://blog.digitalchocolate.com/?p=518
  33. http://www.koreaittimes.com/story/3969/global-game-hub-center-launched-note-high-hopes
  34. http://eir.eol.co.jp/EIR/View.aspx?cat=tdnet&amp;sid=828335
  35. http://webcache.googleusercontent.com/search?q=cache:J1-VknkYzToJ:www.koreatimes.co.kr/www/news/biz/2010/07/123_30556.html+nexon+holdings+ceo&amp;cd=1&amp;hl=en&amp;ct=clnk&amp;gl=us&amp;client=firefox-a http://venturebeat.com/2010/10/04/nexon-invests-in-spanish-developer-boombang-games/ http://venturebeat.com/2010/05/27/korean-online-game-firm-nexon-acquires-stake-in-gamehi-for-59m-exclusive/ http://www.industrygamers.com/news/nexon-acquires-mmo-developer-ndoors/ http://finance.yahoo.com/q?s=ERTS
  36. http://techcrunch.com/2010/09/24/japanese-company-dena-expands-footprint-in-u-s-invests-in-social-game-studio-astro-ape/ http://techcrunch.com/2010/09/14/japanese-company-dena-buys-mobile-social-gaming-studio-gameview/ http://techcrunch.com/2010/04/02/aurora-feint-debuts-social-gaming-app-for-the-ipad/ http://techcrunch.com/2010/06/15/japanese-gaming-company-dena-sets-up-27-5-million-investment-fund/ http://www.icebreakgames.com/
  37. http://techcrunch.com/2010/07/14/naspers-dst/ http://venturebeat.com/2009/12/15/zynga-raises-180m-from-russian-investor-digital-sky-technologies/ http://techcrunch.com/2009/05/26/facebook-takes-that-200-million-investment-from-the-russians-at-a-10-billion-valuation/ http://techcrunch.com/2010/06/20/what-valley-companies-should-know-about-tencent/ http://www.economist.com/node/16539424?story_id=16539424 http://www.thomascrampton.com/social-media/naspers-dst-tencent/ http://www.allfacebook.com/dst-now-owns-10-percent-of-facebook-2010-05 http://www.crunchbase.com/company/digital-sky-technologies http://dst-global.com/About http://eu.techcrunch.com/2010/08/31/dst-completes-purchase-of-odnoklassniki-ru-exits-nasza-klasa-pl/
  38. http://www.naspers.co.za/cmsAdmin/uploads/Fact-sheet-Sept-2010_002.pdf http://www.reuters.com/finance/stocks/overview?symbol=NPNJn.J