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Why China is the Next Mobile Gaming Frontier?

Why China is the Next Mobile Gaming Frontier?. Chris Shen Vice President The9 Limited (Nasdaq: NCTY). China: A Billion Mobile Phone Users…One of the Largest Mobile Markets in the World. 980 million mobile phone users in China, with rapid growth of the market size.

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Why China is the Next Mobile Gaming Frontier?

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  1. Why China is the Next Mobile Gaming Frontier? Chris Shen Vice President The9 Limited (Nasdaq: NCTY)

  2. China: A Billion Mobile Phone Users…One of the Largest Mobile Markets in the World • 980 million mobile phone users in China, with rapid growth of the market size

  3. Smartphones Are Catching On • Longtime popularity of feature phones • Smart Phones: why now?

  4. iOS vs. Android: Growth and Competition • Apple • Officially bundled with China Unicom & China Telecom • 10 million+ noncontract users with China Mobile • Partnerships for all 3 carriers in 2012? • Android • More and cheaper devices = more users

  5. Challenges for Global Devs

  6. Challenge 1: Fragmented Channel Distribution • Apple and Google aren’t in control • Numerous distribution channels • Unique requirements

  7. Challenge 2: Regulations and Culture Differences • Legality • Okay in the U.S., not necessarily in China • Games with gambling, sex and violence • Genre & Visual • Game category • Character style • Playability

  8. Challenge 3: Monetization • Chinese mobile gaming is all about freemium • In-app purchases and in-app advertising • Pricing for micro-transaction • Different distribution channel = different payment solution

  9. Challenge 4: Piracy • Pirates are everywhere • Even big-name enterprise doing that • Responsibility falls on local publishers

  10. Tips for Global Developers Heading for China

  11. Tip 1: Don’t Go It Alone • Without a local partner, even great games can suffer on the distribution and piracy • Example: Fruit Ninja by Halfbrick

  12. Tip 2: Know What’s Popular • RPG is still the favorite, and good for monitization • High expectations on social games • Male users are the majority paying users

  13. Tip 3: Choose the Right Monetization Model • Pay-per-download isn’t the way to go • In-app purchase and in-app advertising are key revenue streams • iOS users are more likely to pay for micro-transactions • Android users respond better to in-game ads

  14. How The9 Can Help

  15. How The9 Can Help: Some Background • Established in 1999, early experience on PC virtual communities…before Facebook • PC online game operation experience • Social gaming communities • Micro-transactions • Engaged into the mobile gaming business since 2010

  16. The9: Venturing into Mobile Social Gaming • The9 Game Zone: Localized mobile social gaming platform powered by OpenFeint and connecting with major Chinese SNS • Sina Weibo • Tencent Weibo • RenRen • The9 Game Zone

  17. The9:Single Publisher and Operator in China • Partnerships • Major telecom carriers • Third-party channels • Device manufacturers … …

  18. The9: One-Stop Shop for Western Developers in China • Localization • SDK Packaging • Monetization Strategies • Advertising • Distribution • Marketing and Promotion • Anti-Piracy Solutions

  19. Our Global Partners Are Seeing Serious Growth • Fast growth on licensed games: 880 titles up to mid of Apr. ’12; 12 million downloads at the publishing network • Contracted distribution channels: 60+ • Register member on The9 Game Zone: 10 million up to May ‘12

  20. The9 Mobile Business Unit: Your Passport to China Chris Shen shenguoding@corp.the9.com m.the9.com/developer/en

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