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The Rapid Growth of Android Market in China Challenges & Opportunity For Western Game Developers Gary Chang SVP & GM Renren Game USA. Smartphone Landscape in China. According MIIT, China has over 1.1 Billion mobile phone subscriber s and over 325M are 3 G subscribers
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The Rapid Growth of Android Market in ChinaChallenges &Opportunity For Western Game DevelopersGary ChangSVP & GM Renren Game USA
Smartphone Landscape in China • AccordingMIIT,China has over 1.1 Billion mobile phone subscribers and over325Mare 3Gsubscribers • That is 100M more than US 3G subscribers and 20M more than entire US population • 3G subscribers in China is growing very fast, there are about 86Mnew 3Gsubscribers justfromthefirsthalfof2013
China–World’sLargestSmartphoneMarket • FlurryreportedthatChina isnowthe #1smartphonemarketintheworldin Feb 2013 • Most of the growth is coming from low-end Android devices • AccordingtopremierglobalmarketintelligencefirmIDC,therewillbeover500MsmartphoneusersinChinabytheendof2013(http://www.199it.com/archives/85564.html)
AndroidDevices vsiOSDevice inChina • 786 million smartphone devices were sold in 2012, athirdofthemweresoldinChina • Currently, Android has nearly 70% of mobile operating marketshare in China; iOS only has 25%
CN Mobile Gaming Growth in 2013 so far • China mobile gaming market grew by 15.7% from Q1 to Q2 this year • Q2 market exceeded $283M USD • 2013 China mobile gaming market on the run-rate to reach $1.2B USD
Android Ecosystem – FragmentedDistribution Channels • There are 3 major distribution channels for Android games to be discovered by Chinese players: • Carriers • 3rd Party Android Marketplace • OEMs
Challenges for Western Developers in China • Expert localization/customization is critical • Complex distribution channels • Multiple payment solutions in China • Cost Effective User Acquisition Requires Local Partnership • Piracy is rampant
China Android Opportunity for Game Developers Currently, there are about 18 titles in China making over $1.6M USD monthly revenue Market is flooded with a lot of low quality Android games. Consumers are demanding higher quality games from Android platform AndroidisabouttoreachanexplosivegrowthperiodinChina, the real growth phase is coming! In 2010, Android paying user % in China is about 1/5 of iOS’. Since then, it has improved 3X in the past 2 years.
Top Grossing Game in China • 18 mobile games in China had gross revenues surpassing $1.6M USD in April 2013 in China • "I am MT" ranked 1st with more than USD $8M in gross revenue, followed by “Fishing Joy” (~USD6M), Space Hunter (~USD5M) • Many game developers claimed to have 70:30 revenue split by OS favoring Android (Source: Ptbus.com and Entbrains profiling)