GREE: Going Global with GREE – best practice and current trends in social mobile free-to-play

Copyright © 2004-2012 GREE,Inc. All Rights Reserved. Confidential

Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential

GREE: WHO WE ARE

1


Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential

CREATING THE WORLD’S LARGEST MOBILE SOCIAL GAMING PLATFORM

2


Copyright © 2004-2012 GREE, Inc. All Rights Reserved. Confidential Copyright © 2004-2012 GREE, Inc. All Rights

Reserved. Confidential

Founded

Founder & CEO

February 2011

Naoki Aoyagi

Tokyo

San Francisco

Founded

December 2004

Yoshikazu Tanaka

CEO

International

GREE Overview

Creating the World’s Largest Mobile Social Gaming Platform

April 2011 Acquired OpenFeint




The Leading Platform in Japan

234 mm users

Established only 8 years ago

Japan’s No.1 advertiser for TVCMs

Approx. 1,000 employees, 3x from 1 year ago

5.9 billion euro market cap

Listed on the TSE 1st Section

8,000 game titles Targeting 1.6-1.7 billion

euros in revenue

（December, 2011 consolidated base）

（February, 2012）

（February, 2012）

（June, 2010）

（Estimated June, 2012）

（Number of air-play, November- December, 2011）（March, 2012）

4




San Francisco

London

Tokyo

Beijing

Singapore

Amsterdam

São Paulo

Seoul

Dubai

GREE Current Global Reach

Osaka

◎ ●

◎ ●

◎ ● ◎ ●

◎ ●

◎ ● ◎ ●

◎ ●

◎ ● ◎ ●




0

1000

2000

3000

4000

5000

6000

7000

8000

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

0

20

40

60

80

100

120

140

160

180

200

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

2010 2011

8000 Live Games

Liv

e G

am

es

2010 2011

234 MM Unique User Accounts

Pla

yers

(M

illions)

2012 2012

Growing User and Game Network

*Above data shows users and games numbers of OpenFeint




Sources: Morgan Stanley「Mobile Internet Trend」

Global PC and Smartphone Shipments Trend of Global Time Spent Online

2007 2008 2009

10

15

（%）

5

Social Media

Portal Media

2010 2005 2007 2009 2011 2013

（Millions）

500

600

400

200

300

100

SP PC

(E)

Internet Industry Trends

Smartphone shipments are estimated to exceed PCs and

internet access will become more mobile and more social

7




8

The Mobile Gaming Market and GREE

Gaming Market Growth in Japan, North America, and Western Europe

*Sources： App Store（February 1, 2012）

Top Grossing chart on App Store

*Sources: Ichiyoshi Research Institute Inc. and Ichiyoshi Securities Co.,Ltd. October, 2011

0

5000

10000

15000

20000

25000

2010 2015

Mobile Game Console Game

（Million Euro）

14,000 12,400

3,060

19,800

High LTV Tsuri-Sta Since 2007

GREE games have gained popularity with the

continued growth in the mobile games market in Japan




Platform overview

▼①Web Application

■The same as the current GREE Platform for feature phone

▼② iOS App / ③Android App

■GREE will provide SDK and the games will be distributed on GREE and various App markets.

GREE

Partners GREE

Development

Provide API

Sandbox

Various support

App release

Web Appli iOS

Appli

Android

Appli

iOS

Appli

Android

Appli Web appli

Various Market

GREE

Partners

GREE

Integrate SDK

App App release

GREE Users GREE API

Release as GREE App Provide SDK

Sandbox

Various support

GREE Platform Overview

9




CREATING THE WORLD’S BEST MOBILE SOCIAL GAMES

10




What’s a social game?

A social mobile game is:

• Casual • So it helps to have simple rules, game design, and interface

• It also helps if it’s very rewarding

• And it needs to be playable within a short space of time – ideally within 3-5 minutes

• Free to play • So anyone can try it

• But people play it in different ways – hardcore fans play alongside people who are just trying it out

• With in-app purchases • So people are playing for different reasons than pay-per-download games

• And people are paying money for different reasons too – to show off to friends, or to compete with them.

11




What’s a social game?

A social mobile game is:

• Online • So people can compete or cooperate with friends

• And we can provide players with a new experience every day

• Anywhere, anytime • People carry their phones with them 24/7, 365 days a year.

• People play on the train, at lunch, taking a break, waiting for a bus, etc.

• So games need to be simple, and quick, and possible to divide across the day

• If you’re making mobile games you’re not competing for your players’ money; you’re competing for their time

• You need to make users want to come back

• Global • AppStore and Android Market/Google Play are already global

• So you need to cater to local tastes – co-op is popular in Japan; competition in the west

• And people pay for different things in different places

12




User Acquisition

Retention Monetization

Mechanism to continuously attract users

Creating a game system which maintains user engagement

Mechanism to keep users playing

Mechanism to increase revenue

Social Game Planning

13




Social Game Planning

Good planning requires User Acquisition, Retention, and Monetization

User Acquisition

Retention Monetization

Deta

ils

Exam

ple

Ways to attract new users

Promotion, word-of-mouth,

etc.

Increase paid users and ARPU

Promotion Tie-ups Virtual item

lineup

Promotion Return bonuses Periodical in-game events

Game layout Periodical in-game events

Increase retention and user return rate Decrease unsubscription rate Acquire new users

14




User Acquisition

Game Performance

Viral

Game Design

×

Social Design

15




Fishing Star

Super satisfying fishing!

Game rule：catch fish

Clinoppe

Raise a mystical pet

Game rule：raise a pet

Hakoniwa

Easy and simple gardening

Game rule：Plant and

create your own garden

User Acquisition × Game Design

Universally appealing game concepts featuring easy-to-understand rules

16




Play Game

Wish for Virtual

Currency and Items

Invite Friends

Play Game

Want to Play with friends

Invite Friends

User Acquisition × Social Design

Encouraging users to play with friends

17




Retention

Game Cycle

Game Design

×

Social Design

Communication Among Users

18




A simple game design

The best way to think about the game design is as a cycle, rather than as a path.

• The basic action needs to be simple and quick or the whole game cycle becomes boring – about 30 seconds

• Players need to be able to feel a sense of progress

• The UI needs to be simple

• It needs to be rewarding enough to inspire players to come back for more

• It needs to inspire users, not confuse them

• When creating multiple game cycles it’s important to bear in mind the following points:

• Make the objective clear：

• Keep it simple

• Make the game cycles complimentary：

• So that the sub-cycles have a clear benefit for the main cycle

19




Driland Game System

■Gacha Random Prize Machine ■Synthesis

Free or Paid chance to get random cards These chances are key to transactions Combine cards to make stronger cards

Single Play, Quests are used to Level Up

■Quests

■Raid Battles

Co-op battles with friends to defeat bosses in given time. Greater Reward incentives

■Game Top

Compete with

Friends

Co-op with

Friends

■Battle

Compete with

Friends

Battles are won based on cards and levels

20




✓Game Cycle

✓Simple but addictive and repetitive gameplay

Essential to create a sense of accomplishment for each game cycle

✓Set a milestone for each sub-goal to increase user traffic

and engage users more in-game play.

eg) in-game event: “Gacha” event where you get random, but strong cards

Get Card

battle

result

Get

stronger

card

eg) Driland ・short term ：complete quest / Level Up ・mid term：acquire cards ・long term：acquire stronger cards

Aquire Stronger Card!

Level Up！

Acquire Strong Card!

Win Battle users usually Lose!

Gain momentum!

Retention × Game Design

Place a sub-goal for each short, middle, and long term game cycle to maintain high retention

21




Monetization

Game Design

×

Social Design

Enforcing Challenges and

Visualizing Success

Sharing and

Connecting Users

22




Type of

User

Level of

Satisfaction

Light （85%）

Invite friends Small sense of

accomplishment

Middle （10%）

Heavy （5%）

Buy virtual items

to gain advantage inside game

Competitive

advantage and

honor （ranking and

achievements）

Team up with Friends Play Against Friends

Share

Connect with Friends

Monetization× Social Design

Help players to connect with each other!

23




Social Game Planning Summary

『User Acquisition』『Retention』『Monetization』

Enforcing Challenges and

Visualizing Success

Connecting Users and

Displaying Accomplishments

Various Game models

Interaction between users

Game Performance

Viral User

Acquisition

Retention

Monetization

Social Design Game Design

×

×

×

24




ABOUT METRICS

25




We’re mad about metrics

It’s important to use the right metrics and to understand where they are coming from

• Different metrics matter at different times in the game cycle

• There are a lot of general metrics, but it’s also essential to create custom metrics for your particular game cycle

• User acquisition and virality-related metrics: • CTR, CPC, CPI, cohort analysis, k-factor, invites sent per DAU, invite

acceptance rate, % of virally acquired users

• Retention-related metrics: • 1-7 day retention, drop-off rate, visits per DAU, session times, churn rate

• Monetization metrics: • ARPU, ARPPU, Payment conversion rate, average transaction value, first

purchase trigger, paying user cohort, LTV

26




ABOUT EVENTS

27




Reduce churn rate and raise retention rates:

• Limited events within a certain number of days of logging on

• Extra experience/gold in the first week

• Reduced cost items

• Incentives for completing tutorial etc.

28

Keep people playing!

Dragon Collection

Lunchtime Gacha

Pocket Kingdom

Every day between 10am and 2pm, experience points are increased 1.5x

Early morning Gacha

Powerful Yakyuubu

28




Keep people playing!

• Example Login Bonus Campaign

• Login everyday and collect stamps in return for a reward

29

Login incentive example

590000

2011年

9月

17日

2011年

9月

18日

2011年

9月

19日

2011年

9月

20日

2011年

9月

21日

2011年

9月

22日

2011年

9月

23日

2011年

9月

24日

2011年

9月

25日

2011年

9月

26日

2011年

9月

27日

2011年

9月

28日

2011年

9月

29日

2011年

9月

30日

2011年

10月

1日

2011年

10月

2日

2011年

10月

3日

2011年

10月

4日

2011年

10月

5日

DAU

DAU




WHY PLATFORMS ARE IMPORTANT

30




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.

Growth in Free-to-Play Games

Game Design Has Shifted to Freemium with IAP




SNS or Social Platform

Game Economics

= Lifetime Value (LTV)

Revenue Per User

X

Player Engagement

Cost Per Acquisition

(CPA)

Netw

ork

effects

Notifications

from

friends

Requests

fr

om

friends

Social is a unique variant of “freemium” that uses social

network effects to increase LTV and lower CPI/A

Why Social Games are Special




Optimize Acquisition, Retention, Monetization

Platform provides optimal distribution

through cross promotion

Games and platform

Social & communication tools

Viral effect between games

Standard virtual currency across all

games on platform increases ARPU

SNS

Acquisition

Retention

Monetization

Social Platform

Social Gaming Platforms Win

33




… but several platforms are emerging

Without a platform...

High CPA Weak Viral

Engagement

• App-store trickery • Limited cross-

promotion • Ad networks

dominate

• No clear social graph • Diffused viral

channels • App-store hides

conversion tracking

34




Inefficient User Acquisition

Requires Constant Management and Evaluation

35




Communication Channels are Fragmented

Lower Retention Rates

36




With a Platform… • Platform re-engagement channels enable developers to target users

• Common currency makes transactions more streamlined on Android

Monetizing is Easier on Platforms

37




SNS Focus

Game Focus

Potential Platform Landscape

38




GREE PLATFORM: ADDRESSING A GLOBAL MOBILE AUDIENCE

39




Games Games

Current

GREE Japan

Platform

Current

OpenFeint

Platform

New Global

GREE Platform

Users & Developers High-ARPU users

& Social know-how

A New Global Platform for Developers and Gamers

GREE+ OpenFeint

Successful

social games

7,000 over

games

234MM users




Release your games worldwide and gain access to high ARPU

markets for increased revenue opportunities

Generate viral acquisitions and increased downloads by

tapping into the world’s largest mobile social user base

Unlock the full potential of your games with a flexible cross-

platform API suite that puts developers in control

Global

Social

Open

GREE Platform Strategy

Providing game developers with the most robust toolset to

best take advantage of the global mobile gaming market




Distribution Acquisition

Engagement

Monetization

Virality

Analytics

World’s largest social mobile

gaming community

Unified global platform

Localization services

Cross promotions through

developer announcements

Promotional programs

Wall posting

Gifting

Social sharing

Push Notifications

International currency

management

Unified virtual currency on

Android

Friend invites

Incentivized invites

Social sharing

Gifting

Dashboard access to game

analytics

Game, player, and

monetization data

Platform Comprehensive Offering

42



Reserved. Confidential http://developer.gree.net/sp/globalplatform/en/

Just some of the major titles that will be available on the GREE Platform

GREE Platform Aiming for 1 billion users worldwide

43

GREE Platform Partners

43




*Previously released 8,000 titles available *2nd phase/3rd phase release planned

44

7 Major Developers and More to Come

Japanese GREE Platform Partners

44




45

China & Korea GREE Partners

11 Major Developers and More to Come

45




46

Our Latest Partnership

Game release scheduled within the year on GREE Platform

46




10億人が利用するサービスをつくる

Creating a

1 Billion User Service

47

Future Target

GREE: Going Global with GREE – best practice and current trends in social mobile free-to-play

Entertainment & Humor

Transcript of GREE: Going Global with GREE – best practice and current trends in social mobile free-to-play