PC-based online game market, mobile games, pixiv, NicoNicoDouga, Hatsune Miku, MikuMikuDance, Project Diva

1. Online Games
and
Videos in Japan
Fumi Yamazaki

2. Overview of PC-based
Online Games in Japan

3. Online Game Market Size
unit:JPY
Package sales Operational sales total Data source: JOGA

4. Online Game Market in Japan still small but growing
unit:100million yen

5. Online Game Market Comparison
unit:100million yen

6. Number of online game titles by business model

7. Average monthly fee for PC games paid by the users

8. Number of online game companies

9. Number of PC online game titles

10. Number of PC online games by genre

11. Number of online games by category

12. Average product life of online games in Japan

13. Mobile Gaming in Japan

14. Mobage-Town
sales membership Monthly page view
(unit:1million JPY) (unit:10thousand) (unit:1million)
game
avatar
affiliate
Ad
FY FY FY FY FY FY

15. GREE
(unit:10,000) (unit:100million)
membership pageview
mobile
Sales and business profit
sales Business profit (unit:1million JPY)

16. GREE and its business model
Premium membership
revenue
Site registration
affiliate
Provide “gold”
Register or purchase Paying
services
Provide “gold”
members
Invite friends Ad revenue
Friends
register
Provide “gold”
Use “gold” Avatars,
game items

17. Location Games1-Keitai Kunitori Gassen
Game: Japan is divided into 600 "countries" and the users will register to each country and
start conquering countries by visiting those areas (like stamp rally). The more conquers, the
more status you get in-game. There are also quiz about history and if you have good scores
you can get in-game currency which enables you to buy avatar items.
230,000 users as of June. 33% of the total is over 35 years old, and only less than 4% is
under 19 years old.
Business model: partnerships with JR (Japan Railways) and Gurunavi (a large gourmet
site).

18. Location Games-2 Colony Life Plus
Game: Create towns (like SIM city- build buildings and secure water and food etc),
but you need to physically move. The more you move, the more in-game currency you get.
200,000 players, monthly PV is 280million as of May. 70% of their users are 20-49 years old
Business Model
1) donation from users 2) affiliate ads and sponsorship (traditional shops etc)

19. Websites and Games

20. Pixiv
“Pixiv” is a popular illustration sharing site with 700million PV/month

21. Pixiv-Fantasia
Users started to set up a “game” within Pixiv. They made original
settings, rules, countries, characters, items,stories, etc....

22. Pixiv Fantasia-countries
Windland Kingdom Akatsuhara Empire
Gigandal Commonwealth
v

23. Pixiv-user generated illustrations
User generated characters, vehicles, episodes and stories....

24. Pixiv-how the game works
User generated announcement
Statistics (number of
illustrations and views)
User generated battle stories
User generated rules
(win/loss based on views of
the illustrations)
MVP announcements

25. Pixiv Fantasia-user generated map

26. Pixiv Fantasia-user generated newspaper

27. Online Video

29. NicoNicoDouga

30. NicoNicoDouga -Comment Art

31. NicoNicoDouga-data
12.27 million 329 thousand 3.5 million
Registered Users Paying members Mobile Users
Data source: Dwango IR data
http://info.dwango.co.jp/pdf/ir/news/2009/090513_ir.pdf

32. NicoNicoDouga user demographics

33. NicoNicoDouga-addictive!
Data source: Net Ratings Japan
Average usage per month- NicoNicoDouga was 193 minutes whereas
YouTube was 187 minutes (Data source Comcast 2009/2)
1/12 of Japan’s traffic is NicoNicoDouga

34. NicoNicoDouga and its business model
unit:1million yen
Examples of online video sites'
business models:
-Revenue for YouTube (US) in 2008
100million USD（200million worldwide）
-Revenue for Hulu(US) in 2008
70million USD
Paid membership Ad revenue
affiliate Point revenue
channel cost

35. NicoNicoDouga -Community Building ex) Hatsune Miku
27% market share

36. Hatsune Miku- Music
“Super Cell” Album made with Hatsune Miku
Made it to #2 of daily sales ranking

37. Hatsune Miku- Picture
By kyuukyuu
By makotok1
BY momone
※Crypton Future Media let the community create parodies

38. Hatsune Miku- 3DPV

39. Hatsune Miku- 3DPV
http://www.nicovideo.jp/watch/sm1929913

40. Hatsune Miku- software development] “MikuMikuDance (MMD)”
http://www.nicovideo.jp/watch/sm2420025

41. 3D videos created with “MikuMikuDance (MMD)”
http://www.nicovideo.jp/watch/sm4979127

42. Evolution of “MikuMikuDance” - physical engine on newest version
http://www.nicovideo.jp/watch/sm7528981

43. “Project Diva” game by SEGA featuring Hatsune Miku

44. Example video of a user playing with “Project Diva”
http://www.nicovideo.jp/watch/sm7550687

45. “Project Diva” and its “Edit Mode”
Users can import music (mp3 file that they have), and select characters, costumes,
dance motions, backgrounds, camera angles to create dance videos.

46. Example video of “Project Diva”'s “Edit Mode”
http://www.nicovideo.jp/watch/sm7508452

47. Politicians' channels- NicoNicoDouga is not only for subculture!

48. We tend to thing the companies are in the center
user
s
user user
s s
Company
user user
s s
user
s

49. FAIL
user
s
user user
s s
Company
user user
s s
user
s

50. Users/community is in the center
Users /
community

51. Contents are created by the users
pictures
music softwares
Users /
community
videos games
etc...

52. Which gives REAL WORLD impacts
Music Software
sales sales
pictures
music softwares
Users /
Karaoke Offline
community
events
videos games
etc...
Game
Pageviews
sales

53. NicoNico = Smiley Smiley Eco system
Hatsune
Miku
Crypton
Music Software
sales sales
pictures
music softwares
Offline
events
Karaoke Users /
community
videos games
Project etc... NicoNicoD
Diva ouga
SEGA Dwango
Game etc....
sales

54. Thank you!