1. Opportunity for Social Mobile in Japan, China, and Korea
Tetsuya Mori
Managing Director
DeNA Asia Pacific Holding

2. A Few Interesting Factoids and JP mobile social market
about mobage
and JP mobile social market

3. We run Social Game business and own a Professional Baseball Team

4. JP Social Mobile Games – Explosive Growth
DeNA Net Revenue
US$2B
Mobile Social Games launch
Japan’s mobile social game market
0→$5B in 3 years
Highest ARPU x20 US
US$1B

5. Over 50% of Mobage Game Revenue Comes from 3rd Party Developers
Games

6. 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%

7. 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)

8. Start from a single user
Mobage Net Effect
Start from a single user
An invite to 1 core user led to 15,000 user sign ups

9. DeNA Global Presence – 2012 Q1 Snapshot
DeNA China
DeNA Seoul
Punch Vietnam
91JV
GameView Pakistan
Rough
Cookie
DeNA
Sweden
Atakama
Chile
Asia
DeNA Studios Canada
ngmoco
(Freeverse)
GameView Studio

10. Partnership Model DeNA drives ARPU, Partners drive user reach
Data Traffic
Partners
User Reach

11. Partnership Model DeNA drives ARPU, Partners drive user reach
Data Traffic
Partners
User Reach

12. 4 Mobile Gaming Platforms Go broad and deep
Japan
China
Korea
Global

13. mobage China Timeline Entry Strategy Organization
2006: Established DeNA Beijing
2007: Launched SNS services
2009: Investment in
2011: 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)

14. mobage Korea Timeline Entry Strategy Organization
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)

15. 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 $ K/months, MAU 200K, ARPU $1.5-2/month

16. 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

17. 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, in-game 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)

18. 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

19. Develop Card Battle Games Go together to the global markets!
Come to mobage
Develop Card Battle Games
Go together to the global markets!