This document summarizes lessons learned from the Japanese mobile games industry. It outlines that Japan had mobile social networks and payment systems earlier than the West. It also discusses common monetization mechanics seen in Japanese games, such as gacha systems, collection/upgrading elements, and time-gating. The document advocates for improving player retention through regular events, login bonuses, and achievements. It stresses having a long-term focus and patience, as some games can take 8-10 months to reach peak performance.

1. East Meets West
Lessons from Japan
Harry Holmwood
CEO, Marvelous AQL Europe
Marvelous AQL Europe
Union House, Eridge Road, Tunbridge Wells, UK • phone: +44 (0) 1892 513407• fax: +44 (0) 1892 800050
info@maqleurope.com • www.maqleurope.com

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East Meets West
• Who we are
• Why Japan is different from the west
• Why Japan is the same as the west
• Why we should care
• What we can do

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“Little King's Story is a game of stunning breadth,
imagination and slickly implemented design, and filled with
an envious degree of heart and soul. 10/10. ” D-PAD
87
metacritic out of 100

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“No More Heroes is a love letter to
83
videogames that never grows old, tired, or
dull. 93%. ” Nintendo Gamer metacritic out of 100

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Mobile Social Networks
• Play games against people who want to play
them
• Not spamming your real-world friends

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Different Game Genres
• Dating Simulations
• Idol Raising Games
• Card Battlers

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The Differences
• Less history of PC/mouse
• Phones primary way to access content
• More powerful phones in early 2000s
• Gaming on phones more advanced, earlier
• Payment by phone culturally normal
• Game-focused social networks
• Play against strangers
• Strong service culture
• Different game genres

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Some KPIs (approx)
• Mature PC browser games in Japan
• Over 2 years old
• In excess of $200 ARPPU (per month)
• Retention rates 70%+

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Mobile Versions
• Retention rates much lower (40-50%)
• ARPPUs still strong ($150+)

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Mechanics
• Time gating
• Collection
• Upgrading /merging
• Rarity
• All seen in western games too
• Flexibility in payment types

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Mechanics Not Presentation

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Gacha

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KompuGacha

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Improving GachaMonetization
• Kompu Gacha delivered the best monetization
• But it’s not allowed in Japan any more
• Be careful, let’s avoid a backlash
• Temporarily increase probability of rare items
• Can deliver a 10* ARPPU increase/day

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Team Battles
15% of users want to
spend money to help
them contribute to a
team or community

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Retention
• 7-day retention is early sign of
success
• (percentage of users logging in
daily for 7 days)
• Biggest titles have achieved 40%
7-day-retention
• Going on to generate 1bn Yen +
($12m+) revenue

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Make it Fun
• Retention is the most important KPI
• But it’s also the hardest to fix
• 150 new games each day
• What did you do today to bring
users back?
• Were you the most interesting thing they saw
on their phone?

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Improving Retention
• Login bonus
• Achievements and rewards
• Team battles
• Regular events
• Give away rare item as tutorial is finished
• These will help, but won’t dramatically
improve retention if people aren’t having fun

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Think Long Term
• Some games take 8-10 months to
get to peak performance
• Social games really are a service –
your team will be on them forever
• Be patient
• Acquire users only when you’re
ready
• Budget for all of this
• Or partner with someone

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• The future is exciting but…
• 2013 will be the hardest year the industry has
ever had
• User Acquisition model is broken, but you still
have to do it
• Development costs are rocketing
• You need deep pockets to buy the time to
succeed
• Long term partnerships are essential

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Ask me now or…
harry@maqleurope.com
@hholmwood