Opportunity for Social Mobile in
Japan, China, and Korea
Tetsuya Mori
Managing Director
DeNA Asia Pacific Holding
A Few Interesting Factoids
about mobage
and JP mobile social market
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We run Social Game business
and own a Professional Baseball Team
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JP Social Mobile Games – Explosive Growth
DeNA Net Revenue
US$2B
Mobile Social
Games
launch
• Japan’s mobile social
game market
US$1B
– 0→$5B in 3 years
– Highest ARPU x20 US
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Over 50% of Mobage Game Revenue
Comes from 3rd Party Developers
3rd Party
Games
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Big Title Revenue Scale
 Mobage top 20 title aiming at $1M/month
 Mobage top 5 title double digits millions /
month
 Market Enabling Rev Share Model
 Gross Rev → Carriers 13%, DeNA 87%
 Out of 87% → DeNA 30%, Developers 70%
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Big Traffic and Big Data Mining
Big traffic – 20 billions PV / Day
20% of Japan’s mobile data traffic
1.2TB event log data / Day
480 CPU cores and Hadoop for real time
processing
 Internal analytic tools
 Data miners (business analysts+ engineers)
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Mobage Net Effect
Start from a single
user
An invite to 1 core user led to 15,000 user sign ups
DeNA Global Presence – 2012 Q1 Snapshot
DeNA
Sweden
DeNA
Studios
Canada
DeNA
Seoul
Rough
Cooki
e
ngmoco
GameView
Pakistan
91JV
DeNA
Asia
ngmoco
(Freeverse)
DeNA
DeNA
China
GameView
Studio
Punch
Vietnam
Atakama
Chile
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Partnership Model
DeNA drives ARPU, Partners drive user reach
ARPU
Data Traffic
User Reach
Partners
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Partnership Model
DeNA drives ARPU, Partners drive user reach
ARPU
Data Traffic
User Reach
Partners
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4 Mobile Gaming Platforms
Go broad and deep
Japan
China
Korea
Global
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mobage China
• Timeline
–
–
–
–
2006:
2007:
2009:
2011:
Established DeNA Beijing
Launched SNS services
Investment in
Launched mobage China
• 2011/4: Web version
• 2011/7: Android version
• 2011/11: iOS version
• Entry Strategy
– Organic growth + staged investment
• Organization
– HC 180 (including 5 expats from Tokyo)
– Management team – 4 Chinese + 1 Japanese (CFO)
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mobage Korea
• Timeline
– 2011/6: Established DeNA Seuol
– 2011/11: Strategic partnership with Daum
– 2012/2: Launched Daum mobage
• Android version (2012/2)
• iOS version (coming)
• Entry Strategy
– Organic growth + partnership
• Organization
– Still under development
– HC 20 (operation support from Tokyo)
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China Mobile Social Game Market
Mobile
infrastructure
3G reasonable speed but not cheap
Android+iPhone user reaching 100M in 2012
Billing
Carrier billing, Aliyun(Paypal model), pre-paid cards
Many iOS Jailbreak, no official Google Play
Game users
Huge user base
Very low paid user rate 1-2%
Small group of strikingly high pay users (guild
model)
Download many apps at once time
Low retention rate
Popular game
categories
Card Battle, SLG, MMORPG, Farm
Japanese IPs, US IPs
Freemium vs.
Paid download
Freemium model well established
Web vs. Apps
App centric.
Big hit title
iOS Top 5 SLG: Gross $200-250K/months, MAU 200K,
ARPU $1.5-2/month
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Korea Mobile Social Game Market
Mobile
infrastructure
One of the best in the world
-3G+4G, WIFI everywhere, very high SP penetration
Billing
Many options (carrier billing, credit cards, etc.)
Game users
Android Apps Top download per capita in the world
User base – broad and matured
Heavy influence from PC Online games
Capable of mastering complex game plays
Love Person vs. Person battle
High retention rate
Popular game
categories
SLG, Sports, Action RPG, Farm
Japanese IPs, US IPs, K-POP IPs
Freemium vs.
Paid download
Transitioned from paid download to freemium in 2011
Web vs. Apps
App centric, Webview getting good traction
Big hit title
‘Rule The Sky’ Gross $2-3M/months, DAU 400K
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Our Experiences in China and Korea
It worked
It did not work
We
thought
it’d work
• Social Game ops know-how
(KPIs, Parameter tuning, ingame events etc.)
• User reach through
partnership
• Japanese Anime IPs
• US popular games
• Some JP game play (e.g. steal
from others – Bandit Nation)
• User segmentation model (e.g.
China’s super users)
We
thought
it might
work
• Ninja Royal in China (1
million users, 300K new sign
ups per month)
We
thought
it’d not
work
• Card Battle Game
• Universal virtual item pricing
(need to adjust to the local level)
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New Wining Formula for all regions
– Card Battle Games
Japan
US
China
Korea
Soon to come
JP market turned
completely to CBG
Android No.1
iPhone No.1
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Come to mobage
Develop Card Battle Games
Go together to the global markets!
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