Why Mobile Social Games Need a Platform Now More than Ever
Eros ResminiSVP of Marketing & Developer Relations
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Founded
Founder & CEO
January 2011
Naoki Aoyagi
Tokyo
San Francisco
Founded
December 2004
Yoshikazu Tanaka
CEO
International
GREE Overview
Japan’s Leading Mobile Social Gaming Platform
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
OpenFeint Overview
Leading Mobile Social Gaming Ecosystem
• Mobile social gaming standard with millions of users globally
• Cross platform ecosystem: iOS + Android
• Open source & customizable UI
• Founded in April 2009 in Burlingame, California
• Acquired by GREE in April 2011
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Net Sales & Operating Profit
USD 2007 2008 2009 2010 2011
Net Sales 3.8M 34.6M 164.1M 414.5M 750M
O. Profit △ 1.2M 12.3M 98.4M 230.3M 370M
US
D (
Mill
ion
s)
* Fiscal year-end, June 30
GREE Financial Overview
• $5 Billion market cap
• Fastest Growing Tech Company in Japan
• 2,636% revenue growth over 3 years
• Q2 FY2012 record high revenue ($536M) topped Zynga ($311M)
Source: Deloitte Technology Fast 50 Japan 2010
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
GREE’s Global Reach
San Francisco
London
Tokyo
Beijing
Singapore
Amsterdam
São Paulo
Seoul
Dubai
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
2010 2011
7500+Live Games
Live G
am
es
2010 2011
Growing User and Game Network
190+ MM Unique User Accounts
Pla
yers
(M
illio
ns)
2012 2012
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
mobile social designA Platform Symbiosis
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Growth in Free-to-Play Games
Game Design Shifting to Freemium with IAP
Premium games monetize users once
F2P games monetize users many times
Virtual goods market was $7.3B in 2010; will double by 2014
Premium Game
Free-to-play with IAP
Longer play = more $$$$
Download App
Time game played
$ Paid
User Revenue
Source: Zynga SEC filing, via In-Stat market intelligence firm.
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Free-to-Play Games MonetizeUS App Store: 20 of Top 25 Grossing Games are Free to Download
Source: iTunes store February 18, 2012
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
IAP Increasingly Generates Revenue
Source: Distimo Report, 2011 (* Top 200 grossing iPhone apps in the US per month)
% of 2011 US Apple App Store Revenue from Free Apps
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Goal of Freemium Games
=LifetimeValue(LTV)
Revenue Per User X
Player Engagement
Cost Per Acquisition
(CPA)
Increase Player Lifetime Value (LTV)
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Goal of Freemium Games
Cost Per Acquisition
(CPA)
LTV Greater than Cost Per Acquisition (CPA)
LifetimeValue(LTV)
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
SNS or social platform
Game Economics
Social Games are Special
=LifetimeValue(LTV)
Revenue Per User
X
Player Engagement
Cost Per Acquisition
(CPA)
Social is a unique variant of “freemium” that uses social network effects to increase LTV and lower CPI/A
Request
s fr
om
fr
iends
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Social Gaming Ecosystem
Social Games are More Efficient on Platforms
Facebook: Users Start with SNS, then Discover and Play Games
Mobile: Users Start with Games, then Tap into SNS
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Benefits of Social Games Ecosystem
• App portal optimizes distribution
• Cross promotion builds user base
• Social & communication tools engage users
• Games and platform engage users
• Viral effect cross games
• Standard virtual currency across all games on platform increases ARPU
Optimizes Acquisition, Retention, Monetization
SNS
Acquisition
Retention
Monetization
Social Platform
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Why Fragmentation is Inefficient
Multiple campaigns
“Loose coupling” of users
Email, SMS, notifications
Dependent on retentionUniv. currency, VG tools
High cost &
poor results
Low retention
Difficult to increase ARPU
Inhibits Acquisition, Retention, Monetization
AcquisitionThrough
Multiple AdNetworks
RetentionChannels are
Weak
Limited Monetization
Due toEconomic
Scale
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Case Study: Game Evolution on PC & Mobile
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
PC: Casual Game Portals
Early Portals Lacked Strong Social Effects
SNS
Most portals lacked social features, inhibiting player-to-player interaction.
Some portals emerged offering weak social features, badges, and micro-transactions.
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
PC: Facebook
Social Games Emerged on Facebook in 2007
SNS
Facebook won social and dominates the online social gaming market.
Developers leverage Facebook’s high DAU and social effects to retain and monetize users.
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
出所: MorganStanley 「 Mobile Internet Trend 」より当社作成
Smartphone Sales Outpace PC Sales
2012: A Pivotal Moment
Global Smartphone vs PC Sales
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Mobile: Fragmented Network
Games on Mobile are Currently in a Fragmented Player Ecosystem
SNS
Users currently discover social network within each game.
Fragmentation makes acquisition, retention and monetization challenging for developers.
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Arcade GamesFree-to-Play
Games with In-App Purchases
& Virtual Economics
Free-to-Play Social Games (fragmented ecosystem)
Free-to-Play Social Games (within social
network)
Mobile Game Type Evolution
Mobile Game Type Becomes Increasingly Social
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Mobile: Social Gaming Platforms
Platforms are Emerging to Solve Fragmentation
SNS
Acquisition
Retention
Monetization
MobileSocial
Platform
Similar to the shift we saw on PC, mobile games are moving to social platforms.
These platforms provide efficient channels and features for developers.
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Current global marketEmerging Mobile Social Platforms
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
NimbleBit: Tiny Tower
Social games can be successful without platforms and viral friending loops
Apple named Tiny Tower the 2011 iPhone Game of the Year
Boasts 1 million DAU
Zynga recently announced similar title on mobile called Dream Heights
Mobile Social Game Without a Platform
Sources: http://www.pocketgamer.biz/r/PG.Biz/Tiny+Tower/news.asp?c=36660http://www.gamesbrief.com/2011/07/ios-tiny-tower-on-track-to-make-3-million-in-its-first-year/
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Global Mobile Market Challenges
… but several platforms are emerging
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Potential Platform Landscape
SNS Focus
Game Focus
Social Platforms Meta-Platforms
Studio PlatformsOS Platforms
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Business Field
SNS Platform
✔
✔
-
-
Game Mobile
✔ ✔ ✔✔
✔
DeviceGlobal
Unified ID
✔ ✔ ✔ ✔ -
✔
✔
✔
✔
✔
Business Strength
✔
GREE Integrates User IDs, SNS, Games, Platform
Game Center
Google+
✔ ✔ ✔
✔ ✔ ✔
✔ ✔
- ✔
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
GREE global platform
GREE Platform:Addressing Global Mobile Audience
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Social Games 7,000+ Games
Current
GREE Japan
Platform
Current
OpenFeint
Platform
New Global
GREE Platform
150MM+ users 12,000+ developers
High-ARPUusers, plus social
know-how
GREE + OpenFeint
A New Global Platform for Developers and Gamers
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
GREE Platform Strategy
Global
Social
Open
Offer developers the most robust toolset to take advantage of the global mobile gaming market
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Comprehensive Offering
Distribution
Analytics
190 MM Users
Unified global platform Key regional distribution partners
Localization services
Cross promotions through developer announcements
Promotional programs
Wall posting
Gifting
Social sharing
Push Notifications
Universal billing
International currency management
Friend invites
Incentivized invites
Social sharing
Gifting
Dashboard access to game analytics
Game, player, and monetization data
Acquisition
Engagement Virality
Monetization
Thanks! Questions?
facebook.com/gree twitter.com/gree_corpCopyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
Copyright © 2004-2012 GREE,Inc. All Rights Reserved.Confidential
We’re Hiring! Apply Now
- Admin & HR- Art & UX- Business Analysis- Biz Dev & Operations- Engineering
- Legal- Marketing & PR- Operations- Product - Sales
San Francisco office apply at GREEjobs.com
London, Beijing, Singapore, Seoul offices apply at corp.gree.net/uk/en/