1) Japan has a mature mobile phone market with over 89% penetration and growth of 4% year-over-year. Mobile phones are the most popular communications device surpassing PCs and landlines. 2) Mobile social networking is growing in popularity in Japan, with the top 3 networks being mixi, mobage town, and Gree. These networks focus on gaming, communications, and avatars/virtual worlds respectively to differentiate themselves. 3) The mobile social networks make most of their revenue from premium content, ads, and app sales, and are working to attract more developers by opening their APIs and payment programs.