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Mobile Social Game Industry Trend
October 25, 2012
Copyright © GREE, Inc. All Rights Reserved.
Agenda
1. GREE Introduction
2. Social Game Evolution
3. Social Game Market Trend
4. GREE Platform
1
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GREE: Mobile Social Game Pioneer
In-House Social Games
SNS
3rd Party Social Games
Avatar
Smartphone
Feature phone
PC
Copyright © GREE, Inc. All Rights Reserved.
Established 8 years ago
(2004)
Social game platform (distribution
up to 169 countries)
Merchandising:
GREE cartoons and goods
Launched first ever mobile social
game Tsuri-Sta (Fishing Star) (May 2007)
1,864 employees (3x the size of previous year)
*As of June 2012; group-wide total
Listed on the
Tokyo Stock Exchange (June 2010)
GREE overview
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Company Financial Trend
Millions of yen
22 107 323 2,937
13,945
35,231
64,178
1,049 8,361
19,578
31,135
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2005.6 2006.6 2007.6 2008.6 2009.6 2010.6 2011.6 2012.6
160,000
140,000
120,000
100,000
158,231
82,729
Operating Profit Sales
In 5 years sales have grown 500x!
Yen 158,200M = US$2.0B
80,000
60,000
40,000
20,000
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11 Offices in 10 Countries
London
Tokyo
Beijing
Singapore
Amsterdam
Seoul
Dubai Osaka
San Francisco Vancouver
São Paulo
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GREE, Inc.
Tokyo Office
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GREE, Inc.
Tokyo Office
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GREE, Inc.
Tokyo Office
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GREE, Inc.
San Francisco Office
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GREE, Inc.
San Francisco Office
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GREE, Inc.
Seoul Office
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GREE, Inc.
Seoul Office
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Agenda
1. GREE Introduction
2. Social Game Evolution
3. Social Game Market Trend
4. GREE Platform
13
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The origin of social games
Social games emerged from the convergence of hardware/software and infrastructure technology
Console
PC
Social gaming
? Console games
Mobile
Broadband
3G
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The evolution of smart devices
Smartphones already approaching consoles
in performance
Now
*source: NVIDIA Corporation
Console Smartphone
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Coevolution of devices and social gaming
Game models continuing to evolve alongside
device and network innovation
Feature Phone
? LTE etc.
Penetration of feature phones
Golden era of feature hones
Penetration of smartphones
Evolution of smartphones
2G: Pay-per-use data plans
3G:Unlimited data plans
3G:Unlimited data plans
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?
Emphasis on gameplay and storyline
Move beyond casual communication to greater emphasis on gameplay and storyline
Increased emphasis on gameplay
and storyline
Action Pet-raising
Emphasis on communication Introduction of gameplay
and storyline
Action Simulation
Simulation RPG
Fishing Star Clinoppe Cerberus Age Dragon Ark
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MONPLA SMASH
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War Corps
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War Corps
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Puffy Puppy
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Puffy Puppy
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Wacky Motors
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Wacky Motors
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Wacky Pilots
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Wacky Pilots
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Agenda
1. GREE Introduction
2. Social Game Evolution
3. Social Game Market Trend
4. GREE Platform
27
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0%
2%
4%
6%
8%
10%
12%
2010年4月 2011年4月 2012年4月 2010/4 2011/4 2012/4
The shift to mobile internet
Mobile will drive internet access
Global shipments of PCs and smartphones
Source: Morgan Stanley「Mobile Internet Trend」
Millions of units
Source: KPCB「Internet Trend」
10%
5%
2%
0
100
200
300
400
500
600
2005 2007 2009 2011 2013
PC SP
Mobile Internet access as a proportion of
overall Internet traffic (global)
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Rapid growth of smartphones globally
Smartphone has growth potential not only in developed countries but also in emerging countries
Source: Statisia, IDC, Gartner, GREE, Inc
• Smartphone set to become a universal device
• Huge potential in emerging markets
• Users new to games will be able to play and enjoy social games once they have access to smartphones
Smartphone shipments
Millions of units
Established
Emerging
2011 2015
1,831
2,238
208
415
4,069
623
11x more than
2011
4x more than
2011
Smartphone shipments (worldwide)
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Market potential for games from Japan
Japan’s success in console games provides a foundation for
creating globally popular social games
Total shipment value of Japanese console games (Jan-Dec 2010 )
Source: 2011 CESA
Millions of yen
425,763 1,371,701
Japan
23.7%
Outside of Japan
76.3%
Total shipment value
Target market
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Game Market (Japan)
Game Market Size
Game market will be 1.5x bigger in 2020
Source: Ministry of Economy, Trade and Industry Report on “FY2011 Cool Japan Strategy Promotion Program”
2010 2020
10
7
(Unit:US$ bn)
*1:France, Germany, Spain, Italy, UK, Russia, US, Turkey, Brazil, South Africa, Saudi Arabia, Japan, China, South Kore, India, Indonesia, Thailand, Singapore, Hong Kong
2010 2020
62
44
(Unit:US$ bn)
Game Market (Worldwide *1)
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Agenda
1. GREE Introduction
2. Social Game Evolution
3. Social Game Market Trend
4. GREE Platform and Social Games
32
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GREE Platform
GREE Platform enables developers to distribute games throughout the world
Partner
Application development
API Development environment
Support service
Application service
GREE users
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GREE Platform Benefit
Support partners for distribution, engagement, acquisition, retention and monetization
Mass Market Success
iTunes Ranking
Head Tail Mid Tail Long Tail
#1
$
$$$ Sharing
Messaging
Announcements
Global Distribution
Invite & Requests
Cross Promotion
Support & Consultation
Leaderboard & Achievement APIs
Deposit & Payment APIs
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World-renowned GREE games
Top-grossing games on App Store
Crime City #1 grossing on the App Store(iPad) and Google Play
in Asia, Central America, Europe
Zombie Jombie #10 grossing on U.S. AppStore
Modern War #1 grossing on the AppStore (iPhone, iPad) in Asia,
LATAM and Europe etc.
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