Land of the Rising Revenue -How Mobage-town Became a $1B Business in - - PowerPoint PPT Presentation

Land of the Rising Revenue

• How Mobage-town Became a $1B Business in Japan and

Lessons Learned for US Developers-

DeNA Co., Ltd. Tomoko Namba

1 GDC Online October 5, 2010

DeNA Financial Performance Net Revenues Ordinary Income(Profit before tax)

*Revenue and ordinary income for FY2004 are on a non-consolidated basis. Currency converted with the exchange rate 1USD = 85JPY. Figures in FY2010 is run rate basis. (Million USD) (Million USD) 200 400 600 800 1000 1200

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

100 200 300 400 500 600

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

33 75 166 349 442 565 284 3 months x4 5 22 54 150 189 253 140 3months x4 1136 560

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World biggest Virtual Identity SNS

Games, News, UGC, etc.

21M registered users Virtual Identity SNS

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Community × Games Community & SNS Games

• Avatars
• Group Activities
• Mini Mail
• Celebrity blogs
• Diaries
• Greeting
• Friends request
• Footprints, etc.

In-house Third Party

4 GDC Online October 5, 2010

Stats/Consultation for Monetization

Launched the Mobage Open Platform on January 27, 2010 Partner companies: 222 Game titles ：527 (as of Sep 29) The value of Mobage-town Open Platform Daily Use of Moba-Coins (Index; Jan 2010=100)

*100

Key tools for developers

Ads/Promotion Function API

(invites/avatars/ranking etc)

Community/User Base

200 400 600 800 1000 1200 1400 1600 1800 2000 Jan Feb Mar Apr May Jun Jul Aug Sep

Billing system/ Common Virtual Currency

5 GDC Online October 5, 2010

Mobage-town Revenues

Game etc 77% Avatar- related 13% Others 1% Advertising 9%

Mobage-town Revenue Breakdown （Apr-Jun, 2010）

$245M 3 months

$1B* Virtual Goods Net Revenues

* Run rate, 2010

−In-house Games −Third party games (30% DeNA, 70% Third Party)

from just 21M users!

6 GDC Online October 5, 2010

ARPU Comparison Yearly Revenue Registered Users

$1B* 21M $1.3B*4 500M*4

÷ ÷

1 2 3 4

ARPU

* Run rate, 2010 *2. Run rate, 2010, Business Insider *3. only for Farmville *4. eMarketer, July 2010

Even higher ARPU recorded by Active User basis

＝ ＝ x18

(USD/month)

$600M*2 72M*3

÷ ＝ x6

7 GDC Online October 5, 2010

User Engagement Comparison

Low dependency on Ads/Promotion due to “stickiness”

Typical good games Mobage-town games DAU/MAU (averaged figure for all games)

−“Kaito Royale” sustains 50% for one year 0% 10% 20% 30% 40% 50%

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52M MAU

(as of Mar 2010)

PC-based Social Games SNS launched on Oct 2010, with 100 games from 70 developers

The launch of Yahoo! Mobage

Seamless usage Send traffic

21M Reg Users

(as of Aug 2010)

First “social games focus” PC platform in Japan

9 GDC Online October 5, 2010

Mobage-town Revenues

Game etc 77% Avatar- related 13% Others 1% Advertising 9%

Mobage-town Revenue Breakdown （Apr-Jun, 2010）

$245M 3 months

$1B* Virtual Goods Net Revenues

* Run rate, 2010

−In-house Games −Third party games (30% DeNA, 70% Third Party)

from just 21M users!

10 GDC Online October 5, 2010

How Were We Able to do This?

• Strong Community Base
• Post Launch Operations
• Rapidly Expanding Developer Line Up

11 GDC Online October 5, 2010

Power of Virtual & Game-centric Community 1 MMO Mobage-town Strong Virtual Community Game A Guild A Party A Game A Game B Game C

Diary Friends Request Official Circle

No transition across games Many transitions across all games

7.5mil* updates/day from 21 mil Users

Game B

No shift No shift Shift Shift Shift Shift

Guild B Party B

*Averaged figure in Aug, 2010

12 GDC Online October 5, 2010 Connect friends Active Inactive Make friends in community invite invites

Real Social Graph Dynamics Virtual Social Graph Dynamics 1st game 2nd game 3rd game

Make new friends

1st game 2nd game 3rd game

Make new friends

invite

Make new friends

invite

Power of Virtual & Game-centric Community 2

13 GDC Online October 5, 2010 4 5 42 118 187 1 1 2 25 30 29 31 33 25 23 23 21 22 3

1Q 2Q 3Q 4Q 1Q (Apr-Jun)

Mobage-town Revenue Trend

(Million $)

FY2010 FY2009

Mobage-town Net Revenues

176 245 92

Game-related Avatar-related Ads-related Others

Launched open

platform (Jan, 2010)

Launched 1st social

game (Oct, 2009)

*1USD = 85JPY

62 59

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• Strong Community Base
• Post Launch Operations
• Rapidly Expanding Developer Line Up

How Were We Able to do This?

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Wk1 Wk6 Wk11 Wk16 Wk21 Wk26 Wk31 Wk36 Wk41 Wk46 Weekly Revenue of Title A

(USD)

Radical revision of game design

• Improved operability
• Changed gaming tempo

Lost gaming balance between high and low level users

Effect of Post Launch Operations

Radical revision

• f gaming

balance

• Redesigned

whole parameters

• Enhanced

scalability

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Revenue Trend Image Typical Good Games on App Store Mobage-town games

Communication Buzz enhances effects of Post Launch Operations

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• Strong Community Base
• Post Launch Operations
• Rapidly Expanding Developer Line Up

How Were We Able to do This?

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Rapidly Expanding Developer Line Up 200 more and counting Game Developer for Mobage Open Platform

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DeNA Global Strategy

Operational Support for Strong Monetization Social Games Centric × Virtual Community Multi-Platform (iPhone, Android) × Multi-National (US, Japan, Asia, Others)

Strategy

We welcome THIRD PARTY social games!

20 GDC Online October 5, 2010

Multi-National Beyond US

• Japan
• Asia, etc.

Multi-Platform DeNA Global Road Map Third party games

Social Games

In-house games

Top3* Top3*

*Ranking of “Top Free Apps” at iPhone App Store as of Sep 7th, 2010

+Developer C +Developer B +Developer A

Diary Friends My Groups

Virtual Identity SNS

21 GDC Online October 5, 2010

Any Questions?

⇒bd@denaglobal.com

21

Thank you!