Online Gamesand

Videos in JapanFumi Yamazaki

Overview of PC-based Online Games in Japan

Online Game Market Size

Package sales Operational sales totalunit:JPYData source: JOGA

Online Game Market in Japan still small but growing

unit:100million yen

Online Game Market Comparison

unit:100million yen

Number of online game titles by business model

Average monthly fee for PC games paid by the users

Number of online game companies

Number of PC online game titles

Number of PC online games by genre

Number of online games by category

Average product life of online games in Japan

Mobile Gaming in Japan

Mobage-Town

FY FY FY FY FY FY

game

avatar

affiliate

Ad

sales membership Monthly page view(unit:1million JPY) (unit:10thousand) (unit:1million)

(unit:1million JPY)sales Business profit

GREE

membership pageview

Sales and business profit

mobile

(unit:10,000) (unit:100million)

GREE and its business model

members

Site registration

Provide “gold”

Register or purchase

Invite friends

Provide “gold”

Provide “gold”

affiliate

Use “gold”

Paying services

Friends register

Avatars, game items

Premium membershiprevenue

Ad revenue

Location Games1-Keitai Kunitori Gassen

Game: Japan is divided into 600 "countries" and the users will register to each country and start conquering countries by visiting those areas (like stamp rally). The more conquers, the more status you get in-game. There are also quiz about history and if you have good scores you can get in-game currency which enables you to buy avatar items.

230,000 users as of June. 33% of the total is over 35 years old, and only less than 4% is under 19 years old.

Business model: partnerships with JR (Japan Railways) and Gurunavi (a large gourmet site).

Location Games-2 Colony Life Plus

Game: Create towns (like SIM city- build buildings and secure water and food etc),but you need to physically move. The more you move, the more in-game currency you get.

200,000 players, monthly PV is 280million as of May. 70% of their users are 20-49 years old

Business Model1) donation from users 2) affiliate ads and sponsorship (traditional shops etc)

Websites and Games

Pixiv

“Pixiv” is a popular illustration sharing site with 700million PV/month

Pixiv-Fantasia

Users started to set up a “game” within Pixiv. They made original settings, rules, countries, characters, items,stories, etc....

Pixiv Fantasia-countries

v

Windland Kingdom Akatsuhara Empire

Gigandal Commonwealth

Pixiv-user generated illustrationsUser generated characters, vehicles, episodes and stories....

Pixiv-how the game works

User generated announcement

Statistics (number of illustrations and views)

User generated battle storiesUser generated rules (win/loss based on views of the illustrations)

MVP announcements

Pixiv Fantasia-user generated map

Pixiv Fantasia-user generated newspaper

Online Video

NicoNicoDouga

NicoNicoDouga -Comment Art

12.27 million Registered Users

329 thousandPaying members

3.5 million Mobile Users

NicoNicoDouga-data

Data source: Dwango IR datahttp://info.dwango.co.jp/pdf/ir/news/2009/090513_ir.pdf

NicoNicoDouga user demographics

Average usage per month- NicoNicoDouga was 193 minutes whereasYouTube was 187 minutes (Data source Comcast 2009/2)

1/12 of Japan’s traffic is NicoNicoDouga

Data source: Net Ratings Japan

NicoNicoDouga-addictive!

unit:1million yen

Paid membershipaffiliatechannel

Ad revenuePoint revenuecost

NicoNicoDouga and its business model

Examples of online video sites'business models:

-Revenue for YouTube (US) in 2008100million USD（200million worldwide）

-Revenue for Hulu(US) in 200870million USD

NicoNicoDouga -Community Building ex) Hatsune Miku

27% market share

Hatsune Miku- Music

“Super Cell” Album made with Hatsune MikuMade it to #2 of daily sales ranking

Hatsune Miku- Picture

By makotok1

BY momone

By kyuukyuu

※Crypton Future Media let the community create parodies

Hatsune Miku- 3DPV

Hatsune Miku- 3DPV

http://www.nicovideo.jp/watch/sm1929913

Hatsune Miku- software development] “MikuMikuDance (MMD)”

http://www.nicovideo.jp/watch/sm2420025

http://www.nicovideo.jp/watch/sm4979127

3D videos created with “MikuMikuDance (MMD)”

http://www.nicovideo.jp/watch/sm7528981

Evolution of “MikuMikuDance” - physical engine on newest version

“Project Diva” game by SEGA featuring Hatsune Miku

Example video of a user playing with “Project Diva”

http://www.nicovideo.jp/watch/sm7550687

“Project Diva” and its “Edit Mode”

Users can import music (mp3 file that they have), and select characters, costumes, dance motions, backgrounds, camera angles to create dance videos.

Example video of “Project Diva”'s “Edit Mode”

http://www.nicovideo.jp/watch/sm7508452

Politicians' channels- NicoNicoDouga is not only for subculture!

Company

We tend to thing the companies are in the center

users

users

users

users

users

users

Company

FAIL

users

users

users

users

users

users

Users / community

Users/community is in the center

Users / community

softwares

etc...

videos

music

pictures

games

Contents are created by the users

Users / community

softwares

etc...

videos

music

pictures

games

Offlineevents

Game sales

Karaoke

Music sales

Pageviews

Softwaresales

Which gives REAL WORLD impacts

Users / community

softwares

etc...

videos

music

pictures

games

Offlineevents

Game sales

Karaoke

Music sales

etc....

Softwaresales

NicoNico = Smiley Smiley Eco system

Hatsune Miku

Crypton

Project Diva

SEGA

NicoNicoDouga

Dwango

Thank you!