CCR. Company
Information
Fiscal Year 2003: Q3
Jayne Yun
Overseas Business Development
CCR Corporation
This report is strictly confidential. It is made available by CCR on the strict understanding that it will not be shown, read or passed to any person who is not authorized.
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CCR Corporation
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The purpose of this presentation is to facilitate a discussion about
CCR’s products and business.
Interested prospective investor should contact Jayne Yun directly for
more information.
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CCR Corporation
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CCR at a Glance
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CCR Corporation
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Fact Sheet
Company Name
CCR Corporation
Address
13th Fl. Wonbang Bldg.
143-42 Samsung-dong, Gangnam-gu
Seoul, South Korea 135-090
Main International Contact Number
+82 2 6246 2007
Fax Number
+82 2 6246 2002
Business Area
Online Game Development & Publishing
District & Country of Incorporation
Gangnam-gu, South Korea
President & Chief Executive Officer
Seok Ho Youn
Chief Operating Officer
Joon Seog Park
English Website URL
www.ccr.co.kr/english
Date Founded
March 10, 1995
Number of Employees
262
Number of R&D Employees
170
Ownership
Private
Capital
USD 2.3 million (USD 1 = KRW 1,250)
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Corporate Bio
CCR established on March, 1995, as the business of having born the national game 'Fortress 2 Blue,' and is
proud of 14million subscribers, is going to become the leader of the online game industry.
CCR is deploying the domestic and overseas character merchandising industry such as animation, publication,
toys, having introduced the 'One source, Multi use' concept, and plans to develop as the professional
entertainment company using both on- and offline in the future.
In 1999, CCR reached out further on a global scale by making its appearance at Comdex 2000, held in Las
Vegas with its US patented technologies X2Web and X2Search where The US Wall Street Journal as well as
MSNBC commended CCR by commenting that its advanced technology will help enable CCR to emerge as
a new technology leader in the Korean economy.
In 2001, CCR has sought yet another success and recognition by launching its on-line game Fortress 2 Blue
in South Korea with over 10 million subscribers and Avg. 150,000 concurrent users gained in the same year.
Soon, CCR marked a critical milestone by successfully launching its paid service through PC Bangs, or
Internet Café’s. This helped others in the industry to follow suit. Accordingly, CCR immediately secured its
position as an industry leader. Recognized as one of world’s most successful online games next to NCSoft’s
Lineage, Fortress 2 Blue’s popularity has also reached the rest of Asia-Pacific markets with its service launch
in China, Japan, and Taiwan by partnering with Shanda Networking, Co. Ltd., China’s largest online game
operator, Ban Dai of Japan, and Acer of Taiwan respectively. CCR is planning to list public on the tech-heavy
KOSDAQ exchange in the third quarter of FY 2003.
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Corporate Bio
CCR offered the open better service of the 'Fortress 3 Conqueror Battle,' the next phase work of the 'Fortress
2 Blue,' from last December. Following it, it plans to debut 3 dimension RPG Online Game, 'RF Online,' and
'Search Eye Online Game 2,' which is the mistaken picture finding game, etc., in sequence. Through them, it
may come to secure diversified game groups from casual games, which young or old can enjoy, to hard-core
games the manias can enjoy.
Also, CCR has been playing the role of enhancing the possibility and prestige of the domestic online games
advancing to the overseas markets such as Japan, China and Taiwan. At present, it is playing the pioneering
role of Asianization of the domestic online game as 'Fortress 2 Blue' secured the paid subscribers of over 10
thousand at the advanced game country Japan, and established the record of breaking 10,000 thousand
subscribers within the shortest period at Chinese mainland.
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Business Areas – 1 of 2
CCR’s mission is to make the internet a truly interactive environment through extensive research and
development focused on mass-market oriented online/mobile interactive content.
 In-house Online Game Development
The explosive growth of interactive digital entertainment industry proving to be a worldwide phenomenon, fueled by rapid
broadband adoption across borders. With positive outlook and conjectures on the future online gaming market by major
industry leaders as well as research institutions, major game developers and telecom operators alike in the US, Europe, as well
as Asia-Pacific are trying to find ways in which they’ll profit from online interactive entertainment. Taking advantage of
superior internet infrastructure in Korea, CCR managed to become one of the world’s most profitable online game operators,
averaging a whopping US 3 million dollar revenue monthly within 5 months of Fortress 2 Blue’s launch in 2001.
 Fortress 2 Blue – Previously world’s most popular MPOG (Multi-player Online Game) with 14 million domestic (South
Korea) subscribers (Cumulate) and 50,000 average concurrent users (Present).
 Fortress 3: Siege Warfare - Sequel to Fortress 2 Blue, F3 recently launched its Open-beta service in January of 2003 and is
averaging 30,000 concurrent users with 1 million domestic (South Korea) subscribers.
 RF Online (Rising Force Online) - Currently in development by CCR’s Odin Team, CCR’s RPG production studio, RF
Online already started closed beta service and closed beta service will be finish in end of October 2003.
 Digimon Online - Developed by BanDaiGV, CCR’s joint venture with BanDai, Digimon Online is CCR’s first premium
content license backed online game product.
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Business Areas – 2 of 2
To further diversify CCR’s business, CCR began investing heavily in its online game publishing
business as well as its online comics business, X2comix.
Online Game Publishing
After years of maintained growth, CCR is seeking new business opportunities in publishing online games in Korea. This means
CCR will not only invest in its own development studios, but will reach out on a global scale to source premium content across
various platforms as well as publishing them globally.
 SearchEye Online – Developed by SkySoft, one of CCR’s newly acquired game development studios, SearchEye Online seeks
to provide free of charge value-added service to CCR’s entertainment portal, X2Online (www.x2online.com), or its sub gaming
portal X2Game (www.x2game.com).
BadBall Online – Developed by SkySoft, BadBall is another free of charge value-added service to X2Online, or X2Game. It’s
a ‘Bricks’ clone with online gameplay and additional gameplay variables that make possible the maintenance of loyal userbase.
Online Comic Buisness
As a part of CCR’s product diversification strategy, CCR signed a deal with Korea’s leading comic content publisher, Daewon
C&C to service Daewon’s popular comic content exclusively on the web. X2Comix is a sub-brand of CCR’s mega
entertainment portal X2Online (www.x2online.com).
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 X2Comix Online® (www.x2comix.com)
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Online Game Business Description
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Fortress 2 Blue
We believe that online games will be one of the most competitive yet profitable arena for digital
entertainment businesses, fulfilling constant demand for interactivity by gamers as well as internet
surfers.
Overview
Taking advantage of Korea’s highly praised internet infrastructure, CCR has emerged as
one of the world’s top online game development and publishing companies. With over 50%
of its workforce dedicated to research and development in online games such as
‘Fortress 2 Blue’, CCR plans to further extend its product line under its unrelenting
pursuit of making internet a truly interactively entertaining medium. CCR firmly
believes that the online game industry will witness an explosive growth worldwide in
terms of its revenue and customer base in the next 5 years. CCR is determined to make
its online games readily available for licensing as it is highly sought after by
multiple game industry leaders worldwide.
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CCR’s flagship online game Fortress 2 Blue is now proving to be a global phenomena, dominating the
Pan-Asian online games market with plans to further expand into the western hemisphere.
Global Operational Coverage
Country
Operator
Began
Charging
Avg. Monthly
Revenue
South Korea
CCR
March, 2001
US $3
million
China
Shanda
Networking
Open Beta
-
Japan
BandaiGV
Taiwan
AcerTWP
Nov. 8,
2001
US $50,000
Japan
Korea
China
Taiwan
Key Points
 Fortress 2 Blue is one of the most popular on-line games in Korea with over 13 million subscribers
and 50,000 concurrent users, topping NCSoft’s Lineage in subscriber numbers.
 As a joint venture with BanDai® of Japan, BanDaiGV® is servicing Fortress 2 Blue in the Japanese
market.
 Acer TWP®, a gaming unit of Acer group, commenced its charging service of Fortress 2 Blue in Taiwan.
 Shanda Networking, Co. Ltd., China’s No. 1 online game operator is servicing Fortress 2 Blue in
mainland China and recently recorded 8 million subscribers with 130,000 concurrent users (current).
 CCR is currently in talks with major prospective partners to bring Fortress to US, UK, and France.
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Fortress 2 Blue, with its user-friendly controls and attractive characters combined with interactive
chat function is a perfect online gaming experience for the mass.
Success Factors
 Amicable and Diversified Characters
The characters play-out a very cute and attractive image which makes the 10 million subscriber
population in Asia possible. They each have distinct characteristics that allow people to choose
from a diversified performance traits of the characters, enabling various strategies to be played
out according to the map in which the game is being played.
 Easy-to-Play Method and Controls
Since the objective of the game is to hit the targeted opponent by estimating the trajectory of the
players’ selected weapon, the only controls needed to play the game are power and angle of the
weapon being shot along with consideration for mobility energy remainder and wind velocity. Such
ease makes the game popular to people of all ages and sex.
 Chat Function
While players wait for their turn to shoot, they can chat with other players that are waiting for
their turn. This function adds great value to forming stable communities of Fortress lovers,
extending to both online and offline communities such as guilds, clubs, and societies, which in
turn, promotes the playing of the game.
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Fortress 2 Blue’s unique characteristics have brought the game three key revenue streams aside from
the subscription based model.
Ramifications
 Successful Merchandise Business Operation
There are many merchandise business operations being carried out by CCR with increasing revenue in
royalty payment from licensing Fortress’ characters and related copyrights. This is due to the 10
million subscriber population which accounts to approximately 1/5 of the entire Korean population.
 Advertisement Revenue
Taking advantage of the immense population, networked environment, and the gaming interface layout,
CCR has managed to seek growth in advertising revenue. This is strictly differentiated from ordinary
online ads in that it has its own network and interface to display banners as well as screen shots
during screen transitions.
 Large-scale Joint Marketing Campaign
Companies looking for extra visibility have turned to Fortress 2 Blue’s 10 million population. Joint
marketing efforts include TV advertisements with Coca-Cola® and Chee-tos™ by Frito-Lay® among others.
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Amicable characters of Fortress 2 Blue was certainly one of the major success factors that led the
game to a Pan-Asian online game craze.
The Characters
Ion Tank
Mine Lander
Missile Tank
Super Tank
Cross Bow
Multi-Missile Tank
Sec Wind
Catapult
Duke Tank
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Carrot
Tank
CCR Corporation
Laser Tank
Poseidon
Canon
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In the Pipeline or On Beta 1-1
With CCR’s heavy focus in online games, future development plans combined with strategic title
acquisitions will provide CCR with the edge to become a leader in the online gaming industry.
Rising Force Online (RF Online)
Type: MMORPG (Massively Multi-player Online Role Playing Game)
Number of Players: Over 30,000 / 1 Server Group
Genre: Sci-fi
As CCR’s much awaited blockbuster MMORPG, Rising Force Online is expected to launch its closed-beta
in June of fiscal year 2003. RF Online will target the hardcore RPG gamers at the same time luring
them into a world of action, digressing from the redundant role-playing world of virtual life. RF
Online will be a direct challenge to the world’s most profitable online game title, Lineage and its
sequel Lineage II by NCSoft.
Fortress 3: Siege Warfare (Open Beta)
Type: MPOG (Multi-Player Online Game)
Number of Players: 1 ~ 16
Genre: Action Arcade
To further serve the loyal Fortress followers, Fortress 3 will launch in the third quarter of fiscal
year 2002. Developing the game from scratch, Fortress 3 will boast 3-D effects as well as other
advanced online features.
Digimon Online
A fortress clone with Digimon characters being developed by BandaiGV, CCR’s joint venture with Bandai
of Japan. BandaiGV will publish Digimon Online globally through Bandai’s subsidiaries worldwide.
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In the Pipeline or On Beta 1-2
With CCR’s heavy focus in online games, future development plans combined with strategic title
acquisitions will provide CCR with the edge to become a leader in the online gaming industry.
Digimon Online
'Digimon Online’ (<http://www.digimononline.com/>, as the online shooting game jointly developed with
Bandai GV, Ltd. of Japan, started the open better service first on July 25 last year. The company
(CCR) finished the upgrading as the 'Digimon Online v1.5' in 2003.
'Digimon Online v1.5' is the online shooting game produced reflecting the original work of the
‘Digimon,’ which is the popular TV animation series. Based on the character of Digimon become
familiar worldwide, it is characteristic of easy operation and intimate character having
been developed applying the game system of Fortress 2 Blue, the domestic representative online
shooting game. Especially, it drew the attention by applying the evolutionary system, which is the
best characteristic of the Digimon, to the online game too. The evolutionary system is to be evolved
into 3 phases of growth, maturing and completion, and characteristic of the change of the use of the
weapons according to phases.
. present, 'Digimon Online v1.5' records members of about 1,000 thousand persons, and synchronous
At
connectors of 10 thousand persons, and started the service as the title, called 'Digimon Battle
Server,' in Japan too this February.
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Other Game Titles 1-1
Along with CCR’s blockbuster game Fortress 2, a number of other games are being serviced on GV’s
X2game online gaming/games news webzine portal.
Travia
Type: MMORPG (Massively Multi-Player Online Role playing Game)
Number of Players: over xxxxx / 1 server Group
Genre: ?????Casual Arcade????
Zemi Interactive (Representative, Woo Bin Hwang), the professional development company of
new games, developed it as the newborn game, as the full 3D MMORPG game being serviced in
closed-beta at present. Travia (www.travia.co.kr) is conquering the "gamers" putting forth
solid planning ability, colorful 3D graphic and diversified game elements. 3D EAX Sound
System too may grasp the locations of monsters of all around by the attraction and sound, and
they may absorb themselves more into the game by the strengthening of the sound of each
according to the locations such as field, dungeon, cave, and room. Quest base, in which the
growth system, scenario and establishment high in free degree combined with the items, levels
and skills are melted naturally, is the strong point the "Travia' only has.
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Other Game Titles 1-2
Along with CCR’s blockbuster game Fortress 2, a number of other games are being serviced on GV’s
X2game online gaming/games news webzine portal.
Bad Ball Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 2
Genre: Casual Arcade
BadBall is a HardBall clone with improved features and game-play action. The objective of the game is
to clear blocks by returning a ball using an interceptor. Whoever misses the ball or clears the block
first wins the game.
Twin Hexa Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 1 ~ 8
Genre: Casual Arcade
Twin Hexa is an improved version of the traditional Hexa game. The objective of the game is to match
three same-colored blocks vertically, horizontally, or diagonally, thereby clearing rows of blocks.
Search Eye Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 1 ~ 8
Genre: Casual Arcade
Search Eye is a ‘Seek & Find’ type game where two seemingly congruent images are placed adjacent to
each other for comparison by the users where the objective lies in finding disparities between the
two images.
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Other Game Titles 1-3
Along with CCR’s blockbuster game Fortress 2, a number of other games are being serviced on GV’s
X2game online gaming/games news webzine portal.
Bad Ball Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 2
Genre: Casual Arcade
BadBall is a HardBall clone with improved features and game-play action. The objective of the game is
to clear blocks by returning a ball using an interceptor. Whoever misses the ball or clears the block
first wins the game.
Twin Hexa Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 1 ~ 8
Genre: Casual Arcade
Twin Hexa is an improved version of the traditional Hexa game. The objective of the game is to match
three same-colored blocks vertically, horizontally, or diagonally, thereby clearing rows of blocks.
Search Eye Online
Type: MPOG (Multi-Player Online Game)
Number of Players: 1 ~ 8
Genre: Casual Arcade
Search Eye is a ‘Seek & Find’ type game where two seemingly congruent images are placed adjacent to
each other for comparison by the users where the objective lies in finding disparities between the
two images.
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Business Models Analysis
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Online gaming industry in Korea is one of the most profitable industries, generating substantial
revenue for its developers as well as publishers alike.
No.
Business Model
Characteristics
Consequences
1
Lineage Operation
Model (Online)
• Low initial costs to playing
games (accessing content)
• Must have extensive PC Bang
sales network
• High network cost
• Content must be highly addictive
• Financial burden on personal users
• No room for other content to be
marketed
2
Fortress Operation
Model (Online)
• Low initial costs to playing
games (accessing content)
• Must have extensive PC Bang
sales network
• Online promotion and
marketing is critical
• Appeals to mass-audience
• Faster adoption of online services
in the market.
• Less financial burden on the
players
3
Ultima Online Game
Operation Model (PC
Package)
• High initial costs to playing
games (accessing content)
• Only accessible to hardcore
gamers
• Slower adoption of online services
in the market.
• Consumers have less incentive to
upgrade their internet connections.
4
Starcraft Operation
Model (PC Package)
• High initial costs to playing
games (accessing content)
• One-time purchase without
added revenue
• Faster adoption of online services
in the market.
Source: CCR, 2002
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Lineage’s operation model is currently the most profitable online gaming model in Korea.
1. Lineage Operation Model – NCSoft, South Korea
Pay-per-use
Gamers
(
PC Bangs
Free Game Software
Game
Servers
Prepaid Monthly
Gamers
Gamer Developer/Publisher
Free Game Software
Pay-per-use
Gamers
ISPs
Critical Issues:
• Expensive for gamers who must pay for monthly membership
• Game content must be highly addictive
• High network cost
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CCR Corporation
Money Flow
Service Flow
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As the second most profitable business model in Korea, Fortress boasts a monthly revenue of USD 3
million with content that is not as graphically stimulating as other leading games in Korea.
2. Fortress Operation Model – CCR
Pay-per-use
Gamers
(
PC Bangs
Free Game Software
Game
Servers
Gamers
Gamer Developer/Publisher
Money Flow
Service Flow
Critical Issues:
•
•
•
•
Low-cost for gamers who don’t have to pay for game software and monthly membership
Game publishers are able to focus on service oriented business through online marketing and promotions
Targeting low-income gamers, at the same time creating revenue
Players don’t feel financial burden
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Below is a stereotypical model shared by most of American game developers. This model forces Korean
users to keep up with the American service with limited localized customer support in Korea.
3. Ultima Online Game Operation Model – Electronic Arts
Game Software
One-time charge
Retail Store
Gamers
Publisher
Money Flow
Service Flow
Game
Servers
Gamer Developer
Critical Issues:
•
•
•
•
Expensive for gamers who must pay for game software and monthly membership
Game publishers are strongly motivated to sell only game software
No pay-per-use payment method
High network cost
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Below is a non-online multi-player business model which has been and will be successful only for
Starcraft.
4. Starcraft Operation Model – Hanbitsoft (Licensed by Blizzard)
Game Software
Gamers
One-time charge
Retail Store
Publisher
Gamers
Pay-per-use
(
PC Bang
Game
Servers
Gamer Developer
Money Flow
Service Flow
Critical Issues:
•
•
•
•
Expensive for gamers who must pay for game software
Game publishers are strongly motivated to sell only game software
Only one time payment without steady service revenue
Difficult to monitor pirate use
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Various pricing models for different business models are in place.
No.
Business Model
Charging Options
Price
1
Lineage Operation
Model (Online)
PC Bang
Personal
KRW 88,000 / IP
KRW 29,700 / month
KRW 22 / min.
2
Fortress Operation
Model (Online)
PC Bang
Personal
KRW 210,000 / 40 Ips
None
3
American Online Game
Operation Model
(Online)
PC Bang
Personal
None
Various (Avg. USD 20~40)
4
Starcraft Operation
Model (PC Package)
PC Bang
Personal
Package – KRW 40,000 (Bulk-rate)
Package – KRW 53,000
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Contact
Jayne Yun
Publisher Account Manager
Overseas Business Development
e-mail: jayneyun@ccr.co.kr
phone:
+82 2 6246 2007
fax:
+82 2 6246 2002
As a Global Business Manager of Overseas Business Development operation at CCR, Seung has worked
extensively to help CCR reach out further on a global scale.
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