5. Global :
Users Spending ½ of time playing Casual,
Social, Mobile Games.
Great potential growth in Monetization.
Ref: Newzoo Feb 2012
US EU Emerging Asia
Casual
Time 23% 15% 17% 18%
Money 13% 10% 11% 11%
Social
Time 16% 16% 18% 16%
Money 8% 6% 10% 10%
Mobile
Time 12% 12% 13% 17%
Money 10% 8% 8% 10%
MMO
Time 12% 11% 19% 15%
Money 12% 9% 15% 32%
Global Market Overview-Genre
6. Browser Games Invasion led by China = Quick & New Revenue Stream
We see from the left Pic from 2011Q1 to 2012Q1, there’s a 125% Year over Year growth in revenue from $1.02 billion RMB to $2.31 billion RMB in
browser-based gaming in China. We also see from right Pic, that the user base in browser-based gaming grows significantly throughout the pass through 2
years in China. China has always been one of the pioneers in browser-based games other than Germany; the Browser-based game market trend around
Asia-pacific.
Strong developing powering, China develops approximately one thousand browser-based games each year and the top performed titles are licensed to
oversea markets creating a new game sector of gaming among Asia-pacific.
Lower cost & faster route to user acquisition, comparing to client-based games browser-based games gains a huge advantage, especially in Asia-pacific
where internet infrastructures and Hardware in average is not as advanced as NA and EU.
These games has also greatly impact Taiwanese market since 2011, there was many new companies establish great success with a browser-based game
focus strategy. The most successful one, Cube Magic, went OTC in Taiwan earlier in 2012, and it only took them less than 3 years. In 2011, Cube Magic
generated $487 million NTD in revenue, $105 Million NTD in profit and hit an outstanding EPS at $37.83 NTD. In browser-based gaming sectors, we expect
a steady growth in Taiwan and a rapid growth among Asia-pacific.
Browser
Games
7. Social Casino= Our Best Edge!
The market value of real-money online gambling is 5-6
times larger than overall social gaming, estimated $35.8
billion USD vs $6.2 billion USD in 2012, see Pic below
We see significant growth in social games X online casinos
in the past 2 years from the Pic right. The audience has
grown double. And gradually taping the revenue from
online gambling, we can see the market for social
gambling games has doubled to $1.6 billion worldwide.
Due to the low entry barrier and wide viral spread helps
this sector in gaming industry grew significantly rapid.
Our target should be aimed at the emerging Asia-Pacific
and New emerging markets which has yet been
dominated, and which we have a geographic advantage.
And also our contents, scale of economic and experience
are much more powerful than the local content
providers.
Social Casino Games
10. 2012 Mobile Market Places Reviews
Average Value per Download: $0.12 to $0.175 USD (Our Performance: below $0.001 USD)
Average Revenue per App: $3,750 to $9,032 USD (Our Performance: below $100 USD)
Global Mobile Market
50% from 2012
775K
Apps
775K
Apps
40 Billion
Downloads
25 Billion
Downloads
60% from 2012
$7 Billion USD
Rev. Share to Dev
800K
Apps
$3B USD(e)
Rev. Share to Dev
REF: 2013 Jan. Sociable, Venture Beat
11. Mobile Traffic, User Base, Shipments, Installed Base
Mobile Traffic takes 13% of Internet Traffic,
Smartphone Users to Grow 500% potentially
Mobile Device Shipments Exceed PCs by 4Q10, Total Mobile Installed Base est. to exceed PCs By 2Q13
Mobile Market Overview
Ref: KPCB DEC. 2012
12. Global Mobile
3G Subscribers
+37%
+153%
Mobile Monetization
CAGR%
Freemium
(+IAP) Revenue Share
50%
|
65%
Mobile Market Overview:
3G Subscribers 1.1B, penetration=18%, growth = 37%, Mobile Monetization(App+Ad) = $12B USD, CAGR 153% 2008 - 2011.
Freemium + IAP = 50% in App Store, 65% in Android Market. (Up from approximately 30%, Jan 2011)
The numbers of available apps in App store and Android Market doubled in 2011.
Gree’s ARPU grew from $10 to $24, CyberAgent ARPPU grew from $220 to $418
ARPU Mobile vs Desktop = 1:3 ~ 1:5, still lesser but growing
Total number
of Apps
2X +100%
Mobile (IAP)
ARPU YoY%
Mobile vs Desktop
ARPU
Mobile
Desktop
Ref: Mary Meeker’s 2012 Internet Trends (May, 2012)
Distimo 2011 Full Year Report
Mobile Market Overview
14. Taiwan Market Overview
2011: 264.0 | 2012(e):280 |2013(f): 296($100M NTD)
Extraordinary Growth for Browser Game Focus companies
Revenue of Licensed Game Publishing remains Flat, Profit drops fiercely.
Self-dev/pub MMORPG companies declines dramatically, except for X-
Legend(30% revenue from licensing oversea pubs)
Traditional Dev/OEM dying
7.5% CAGR
Ref: Consolidated Financial Reports
Browser Game Focus Publisher
Traditional Developer/ OEM
Korean/Chinese Licensed
MMO/Casual Publisher
Arcade/Slot Manufacturer
Social Gambling Developer
Publisher
MMO Developer + Self Publisher
Channel/Payment
Virtual Items Trading
*2012 estimated by 2012 average revenue from Jan. to Aug.
*2013 Forecasting by CAGR of each company from 2009 to 2011
If you look at the consolidate Financial Reports, it’s Growing over these year!! But it’s NOT Growing from 11’ to 12’
0% GR
15. Overall disappointment among Investors and the Market towards Gaming in TW
From PE comparison we don’t see a very clear idea about the market. We still see Chinese Gamer and Wayi rising in P/E.
However, if we closely look at the P/B, we see a very clear picture that P/B is lower each year than the previous.
This indicates that the revenue of most companies might be rising/falling gradually, the cost is rising relatively higher and the earnings aren’t that promising.
Taiwan Market : Financial Review
16. Non-consolidate Reports shows:
The sum of Top publisher were up 0.14%
Positive results for 4 companies, CayenneTech,
UserJoy , X-legend and Soft World.
SoftWorld got a 29% boost from Diablo III. 2012 1H with
only 3% income margin.
UserJoy was all time low in 2011, now it has
resurrected.
X-Legend revenue 40%-50% comes from License Fee.
Gamania 1H| Net income 1.6M $NTD, EPS 0.01|Q2 Loss
$47,380,000 NTD.
+29%
+13%
-8%
-16%
-10%
-14%
+11%
+18%
-42%
-26%
+0.14%
Local online game publishing income shows:
Gamania 50% of its online game income comes from
NEXON, the world largest F2P Casual MMO company,
which controls 33% Of Gamania now.
Cayennetech, Casual MMO focus, manager to grow
12.6%
MMORPG Focus developers/Publisher drops 7.9% to
42.2%.
-1.94%
+12.6%
Ref: [Online Game Income] or [Game Points Income]
from each Companies Financial report
-7.9%
-15.8%
-13.3%
-32.4%
+15.0%
-24.6%
-42.2%
-26.7%
+27.4%
Ref: Revenue from each company’s non-consolidate
reports
Revenue
OLG Income
$NTD
$NTD
Market Overview: 2011 1H vs. 2012 1H of Major Game companies in Taiwan
Listed Game Companies Overview
17. How’s Taiwan Market in Mobile?
iOS Users 2.5 Million User, Android 5.8 Million Users
Total Smartphone users est. 7.7 million(Dec 2012), 33% of Penetration of Population, YoY Growth 80% highest among Top 30 countries.
18 Million 3G/4G subscribers, Addressable Market 1.1 Million Users, Growth potential 130% in the following years
Taiwan Mobile Game Market
19. 2012 Report from MIC
• 13.1% of players transfer to mobile platform
• 15.4% of players spend more time playing games because of mobile platform
轉移 10~20% 的原本遊戲時
間至手機 / 平板遊戲上
26.2%
沒有影響,我根本不想玩
手機 / 平板遊戲
31%
沒有衝突,反而增
加玩遊戲的總時間
15.4%
投入程
度增加
轉向以手機 / 平板遊戲為主
6.9%
轉移 40~50% 的原本遊戲時
間至手機 / 平板遊戲上
7.1%
高度
平修
轉移 20~40% 的原本遊戲
時間至手機 / 平台遊戲上
13.1%
21. App Store Highlights, Mar 2013
• Games are driving the app store market today
• While iOS App and Google Play are now very close in game downloads,
iOS still remains the game monetization leader, earning over twice as
much as Google Play in March 2013
• Google Play game revenue is growing quickly, however – and Google Play
revenue is even more concentrated in games than iOS App Store revenue
is
• Over the past year, the in-app purchase business model has gained
momentum, it has been adopted heavily by games
24. Games Downloads by Country
• United States, China drove close to 40% of iOS Games downloads
• In many markets, Google Play now exceeds iOS in Games downloads,
which may set the stage for future Google Play growth
* Top ten countries by total iOS App Store + Google Play Game downloads Mar 2013
25. Games Revenue by Country
• US, Japan, Korea drove about 80% of Google Play Games revenue
• iOS remains the clear revenue leader across most countries, except:
South Korea, home to Samsung, leans heavily toward Google Play
Japan spends across both stores fairly evenly
* Top ten countries by total iOS App Store + Google Play Games revenue Mar 2013
26. Markets Shifting in iOS App Store
• Russia is the emerging market
for downloads
• China has been moving up the
iOS revenue rankings and is now
#3
Rank by game downloads Rank by game revenue
Rank Mar 2013
Chg vs.
Mar 2012
Rank Mar 2013
Chg vs.
Mar 2012
#1 United States - #1 United States -
#2 China - #2 Japan -
#3 United Kingdom - #3 China 4
#4 Japan - #4 United Kingdom 1
#5 Canada - #5 Australia 1
#6 Russia 3 #6 Canada 1
#7 France 1 #7 France 1
#8 Germany 1 #8 Germany 2
#9 Australia 1 #9 Russia -
#10 Italy - #10 South Korea 1
27. Markets Shifting in Google Play
• Russia, Brazil, Mexico are the
emerging markets
• Japan and Korea now on top
• Paid apps returned to Google
Play Taiwan in Feb 2013
Rank by game downloads Rank by game revenue
Rank Mar 2013
Chg vs.
Mar 2012
Rank Mar 2013
Chg vs.
Sep 2012
#1 United States - #1 Japan 1
#2 South Korea - #2 South Korea 1
#3 Russia 3 #3 United States 2
#4 Japan 1 #4 United Kingdom -
#5 Germany 1 #5 Germany -
#6 India 1 #6 Australia -
#7 Brazil 6 #7 France -
#8 Spain - #8 Taiwan N/A
#9 Mexico 6 #9 Canada 1
#10 United Kingdom 1 #10 Hong Kong 8
28. Revenue per Download, March 2013
Revenue per Download, iOS Games, March 2013
Revenue per Download, Google Play Games, March
2013
AppAnnie, May 2013
29. • The casual game categories of Action and Arcade are most popular with
downloads, but the heavier genres of RPG and Simulation are most revenue-
generating
iOS: Top Game subcategories
*In the iOS App Store, a game can be put in up to two subcategories. As a result, there is overlap among the subcategories.
Indexed iOS Game Downloads
Indexed iOS Game Revenue
30. Google Play: Top Game subcategories
Indexed Google Play Game Downloads
Indexed Google Play Game Revenue
• In contrast with iOS, Arcade & Action games are most downloaded and revenue-
generating on Google Play
31. Top iOS Game Publishers by Revenue
• The top five grossing iOS publishers remained consistent from February to
March
32. Top Google Play Game Publishers by Revenue
• In recent months, this list has been dominated by publishers from Japan
and South Korea, but this month’s list included
Electronic Arts, King, and Kabam, who are based in the US and UK
33. Top iOS Games by Downloads
• Many top-downloaded iOS games continued to be Action or Arcade
• Candy Crush Saga has been rising steadily and reached #1 in March
34. Top Google Play Games by Downloads
• Many top games on Google Play were Arcade & Action, as with iOS
• Swinging game Benji Bananas gave Fingersoft two in the top 10
35. Top iOS Games by Revenue
• The top five grossing iOS games have remained the same for each month of
Q1 2013, which is remarkable given how games rise and fall
• Supercell, Kabam, and EA each had two apps in the top ten in March
36. Top Google Play Games by Revenue
• Puzzle & Dragons had the top ranks in both iOS and Google Play
• The SimpsonsTM
: Tapped Out, brought from iOS to Google Play in February,
made its debut in the top ten in March
37. Self-publish or get published
• Get published?
– If you get solid commitments on
marketing budget and
promotional efforts
• Self-publish?
– Promote budget to make
Apple/Google feature your app
– Big Data Analysis to improve UX