The document provides background information about Benjamin Joffe, the CEO of Plus Eight Star, a social media startup based in Singapore. Joffe has over 10 years of experience researching social networks and virtual worlds in Asia, including in China, Japan, and Korea. He has advised several gaming companies on the Asian market. The document discusses key topics about gaming and the Asian market, including the challenges of treating "Asia" as a single market, differences between China, Japan, and Korea, and the size and growth of the digital goods and currencies market in Asia.
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
Asian Eye For The Gaming Guy TGX Edition
1. Asian
Eye
for
the
Gaming
Guy
@benjaminjoffe
|
CEO,
+8*
|
Plus
Eight
Star
TGX
|
Singapore,
September
2011
2. Asia,
Gaming
and
Me
• Background
• 10+
years
in
China/Japan/Korea
• Researched
all
top
SNS
&
virtual
worlds
in
Asia
• Advised
IMVU,
Kabam,
DeNA…
• Organized
40
Mobile
Monday
in
Beijing
• Now
building
a
social
startup
in
Singapore
• Gaming
• “SoLoMo”
startup
Newt
Games
in
2003
(JP)
• Founding
Partner
of
Cmune
(#1
FPS
on
FB)
3. Content
1. What
is
Asia?
2.
China
3.
Japan
4.
South
Korea
5.
Succeeding
in
Asia
6. New
Asian
wisdom
11. #Gimougous
Companies
• China
– Tencent
made
$1B
in
1Q2011
(40%
net
profit,
50%
games)
– 10
others
listed
on
Nasdaq,
NYSE,
HKSE
– Renren
(SNS)
listed
on
NYSE
for
$5B
in
April
2011
• Japan
– DeNA
$1.3B
(2010)
– GREE
$600
million
(2010)
• Korea
– Nexon
$1B
(2010
est.)
– NHN
(Naver,
Hangame)
$1.3
billion
(2010,
35%
games)
– NC
So
$525
million
(2010)
19. Educadon
Primary
School
11.3%
9.2%
Junior
Middle
School
12.0%
27.5%
Senior
Middle
School
Professional
Training
College
40.1%
Undergraduate
EducaCon
and
The
Above
Source:
CNNIC,
2010.07
20. Income
2.8%
2.3%
without
income
8.1%
10.1%
Below
$76
$77-‐153
20.5%
$154-‐229
14.4%
$230-‐306
$307-‐458
14.4%
13.5%
$459-‐764
13.9%
$765-‐1222
Above
$1222
Source:
CNNIC,
2010.07
21. Online
Games
• 120
million
online
game
users
• $5
billion
in
2010
Unit:
billion
$US
7
6.2
6.6
5.6
5
4.1
3.2
2008
2009
2010
2011
2012
2013
2014
Sources:
2008-‐2014
China's
Online
Game
Market
Annual
Report
by
Ministry
of
Culture,
iResearch,
2011
25. Tencent
Other
21%
Online
Games
49%
Non-gaming
digital goods
30%
$3B
in
2010,
$1B
in
1Q2011
26. Renren
SNS
+
Game
Dev.
Value-‐Added
Services
Includes
Nuomi
AdverCsing
(Groupon
Clone)
-‐
Mostly
ads
sold
“per
day”
13%
-‐
Limited
targedng
42%
45%
Online
Games
Top
MMORPG
=
31%
of
game
rev.
(14%
of
total)
$76.5m
in
2010
(Loss)
27. Walled
Garden
Item
Figure
Third-‐party
ApplicaCons
1,000
Revenue
from
$3.5
million
Plahorm
in
2010
(Renren
share)
Renren:
52%
(avg.)
Revenue
Share
Developer:
48%
Most
developers
Look
Overseas
or
at
Qzone
29. Japan’s
Gaming
Market
• Online
Games
– $1.5B
in
2010
– Casual
Games
&
MMOs
from
Korea,
China
– Shiy
to
Free-‐to-‐Play
• Mobile
&
Social
boom
– Konami:
Mobile/Social!
($10M/month
on
GREE)
– Mobile
social
gaming
ecosystem
>$500M
in
2010
30. The
Real
Thing:
Mobile
Social
Gaming
Self-‐published
+
Open
plavorms
Some
ads
SNS
+
Free
games
+
Homepage
Virtual
goods
31. GREE
Service
AdverCsing
-‐
Banners
&
Ce-‐ups
GREE
top
page
AdverCsing
20%
banner
Avatars
-‐
CustomizaCon
with
various
items
(clothes,
accessories,
etc..)
Digital
goods
Social
Games
80%
-‐
Integrated
with
SNS
funcCons
33. Revenue
of
Leading
Plavorms
Net
sales
and
profitability
(million
USD)
Adverdsing
revenue
vs.
digital
currency*
* Considering
that
there
are
no
other
source
of
revenues
34. Not
Only
Kids
&
Housewives
Teens
20s
30s
Male
Female
35. DENA
&
GREE
• Self-‐Published
Games
+
Walled
Gardens
• Proprietary
digital
currencies
• 70/30
Revenue
share
• $500
million
paid
to
third-‐pardes
(GREE,
2010)
Mobile
Social
Apps
Make
Money
in
Japan
46. Market
Cap
(2011.04)
14.0
13.0
12.0
Unit:
billion
USD
10.0
9.2
8.0
6.0
5.4
This
is
sCll
4.0
$300
million!
2.0
1.1
0.3
0.0
Nexon
NHN
NC
Soy
Neowiz
CJ
Internet
(Hangame)
47. Ranking
in
Internet
Cafes
Name Category Publisher Market Share
AION MMORPG NCsoft 15.6%
Tera MMORPG NHN (Hangame) 14.2%
Sudden attack FPS CJ Internet 10.6%
WarCraft 3 RTS Blizzard (US) 5.9%
StarCraft RTS Blizzard (US) 5.0%
Neowiz Games +
FIFA Online Sports 4.3%
Electronic Arts (US)
World of Warcraft MMORPG Blizzard (US) 4.0%
Lineage 2 MMORPG Ncsoft 3.5%
Dungeon & Fighter MMORPG Nexon 3.2%
Lineage 1 MMORPG Ncsoft 2.9%
MMORPG
Massively
Muldplayer
Online
Role-‐Playing
Game
RTS
Real-‐Time
Strategy
FPS
First-‐Person
Shooter
Source
:
Gametrix,
2011.02
48. Secondary
Markets
6M
Users
$480M
Growth
of
ItemBay
users
Unit:
million
Source
:
ItemBay
49. Social
Plavorms
• Fragmented
– Naver
Social
Apps
– Nate
/
Cyworld
– Facebook
Korea
– Daum
Yozm
• All
early
stage
– Limited
revenue
(<$10M
in
2010)
– Facebook
growing
fast
but
weak
payment
soludons
50. Cyworld
|
Digital
Currency
Type of payment
Credit card Regular credit cards
Mobile billing Reported on the mobile phone bill
1588 ARS Call 1588 and bill on fixed line
Rainbow point SK Telecom’s membership
E-Station pointBox SK’s web-to-phone system point
OK Cashbag SK Group’s loyalty points service
BC Top point BC card’s point service
KB Total point KB bank’s point
Hyundai Card point Hyundai credit card point
PointRO(KT point) KT’s point system
Culture Coupon Coupon from Ministry of Culture
Book & Culture Coupon Coupon from Book Organization
Happy Money Coupon Independent firm’s coupon
Teen Cash Independent firm’s coupon
Cyworld Coupon Cyworld’s coupon
53. Western
Companies
China
Japan
Korea
Zynga
(w/
Tencent)
Zynga
OperaCons
WoW
PopCap
(w/
Renren)
RockYou
EA
(FIFA
Online)
PopCap
WoW
(+Netease)
PopCap
Kabam
Licensing
/
Partners
Crossfire
(+Tencent)
Crowdstar
RockYou
Angry
Birds
Playfish
Cmune
Ubisoy
PopCap
Zynga
Zynga
Development
Playfish
Playfish
RockYou
Kabam
Cmune
Ideas
too!
The
First
Farm
Game
was
made
in
China
54. Wealth
of
Plahorms:
How
much
for
you?
• China
– Qzone
$M
for
happy
few
(~10)
– Renren
Sdll
small
– Others
Unclear
• Korea
– Sdll
small:
total
market
was
$10M
in
2010
• Japan
– Mobile
mostly,
but
hundreds
of
$mln!
– Chinese
companies
first
movers
(Rekoo,
Rakoo,
etc.)
56. iOS
Mobile
Rankings
|
Japan
(RPGs,
Adventure)
(Book)
(Adv.
Game)
BioHazard
(RTS,
SEGA)
(Photo)
(Social
RPG)
(Slot)
(Slot)
(AR
Game)
(Adv.
Game)
(Racing
Game)
(Pokemon)
(Music)
(Pirate
RPG,
by
GREE)
(Book)
(Hostess
SIM)
(BioHazard)
(RPG)
(RPG)
57. iOS
Mobile
Rankings
|
Korea
(English,
Tools,
Games)
(English)
(Tool)
(Tool)
(Xvid
player)
(English)
58. Case
Studies
• PopCap
Pragmadc
and
organic
• Angry
Birds
Soon
big
in
China?
• Cmune
Made
from
China
61. Uberstrike
by
Cmune
• #1
FPS
on
Facebook
• Made
from
China
+
Global
reach
• We’re
hiring!
• www.facebook.com/uberstrike
Disclosure:
I
am
an
investor
in
Cmune
63. Mac
App
Store
Uberstrike.com
Facebook
Cyworld
(Korea)
65. Interesdng
New
Things
1.
Nano-‐transacdons
2.
SNS
as
MMO
funnels
3.
New
social
plavorms
4.
Fourth
GeneraCon
Digital
Goods
Model
5.
Smartphone
opportunity
6.
Various
deals
&
partnerships
67. 2.
SNS
as
MMO
funnels
• Renren
revenue
more
from
games
than
ads
• MoneCzaCon
much
higher
in
MMOs
• RetenCon
is
beuer
too
• What’s
your
ROI?
68. 3.
New
Social
Plavorms
• Naver,
Nate,
Daum
Portals
• QQ,
NateOn
IM
• Ameba
Blog
plahorm
• DeNA,
GREE
Mobiles
+
Smartphones
69. 4.
Fourth
Generadon
Model?
• 1G
Box
game
/
Pay-‐per-‐download
(e.g.
COD)
• 2G
Time-‐based
(1
hour
to
1
year)
(e.g.
WoW)
• 3G
Digital
goods:
permanent
(e.g.
IMVU)
• 3.5G
Digital
goods:
rental
(e.g.
QQ)
• 4G?
Digital
goods:
trading
(e.g.
ZT
Online
2)
70. e.g.
ZT
Online
2
• Giant
Interacdve
no
longer
sells
items
in
ZTO2!
– Trading
is
main
revenue
model
– Reward
acdve
users
with
items
– Let
users
decide
on
the
right
price
– 5%
commission
on
transacCons
• Benefits
– Capture
secondary
market
– Avoid
“one-‐price
for
all”
for
digital
goods
– Ensure
fairness
– MoCvate
users
71. 5.
Smartphone
Opportunity
• Smartphones
booming
in
Japan
&
Korea
• Japan:
50%
of
new
phones
in
2011
(today:
5M+
iPhones)
• Korea
>
10M
smartphones
• China
has
lots
of
smartphones
&
feature
phones
• Beijing
Apple
store
is
#1
worldwide
(>Times
Square)
• Android
spreading
but
app
stores
fragmented
• Building
apps
from
China
works
Disclosure:
I
am
an
investor
in
MyGengo
72. 6.
Deals
&
Partnerships
• China
– Funds
by
Tencent,
Giant,
Shanda
(>$1B)
• Japan
– Funds
by
DeNA,
GREE,
Mixi
(>$1B?)
– GREE
acquires
OpenFeint
(US)
– GREE
partners
with
Tencent
(CN)
and
Mig33
(SE
Asia)
– DeNA
acquires
NGMOCO
(US)
• Korea
– Various
M&As
– Some
investments
by
Nexon
in
US
73. Thanks!
More
about
“Innovadon
Arbitrage”
www.plus8star.com
benjamin@plus8star.com
+81
|
Japan
benjaminjoffe
+82
|
Korea
+86
|
China
@benjaminjoffe
Telecom
&
Internet
www.linkedin.com/in/benjaminjoffe
+
Added
Value
*
High
quality
www.slideshare.net/plus8star