China mobile gaming outlook
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Transcript of China mobile gaming outlook
China Mobile Gaming Market OutlookIndependent Studies
For Entering The Market
China Mobile Gaming Market OutlookIndependent Studies
For Entering The Market
Mobile Gaming : Global Market OverviewMobile Gaming : Global Market Overview
5500
6,500
7,350
$5,000 $6,000 $7,000 $8,000
2009
2010
2011
Future Outlook(In $ Million)2
Global Mobile Games Download Revenue ($
Million)1
469
1,070
1,669
2592
3349
$0 $1,000 $2,000 $3,000 $4,000 $5,000
2003
2004
2005
2006
2007
Impetus For Growth Globally
• “Faster network (3G) and devices with larger screens will help improve the discovery process” – Paul Goode, Vice President, Product Development and Senior Analyst, M:Metric3
• “One thing driving mobile gaming in developed market is the availability of faster processor in mobile device, which enable faster response times, 3-D graphics and advanced sound capabilities, as well as less-expensive and bigger storage capabilities for memory-intensive game” – Nick Ingelbrecht, Research Director at Gartner,4 photocontent.com
1.Armitt Claire, “Global mobile game downloads set for six fold increase by 2010”, New Media Age, 4 November 2004, p:15.
2.Ibid.
3. Maidy, Shane A, “MobileCorner:Gaming Goes Mobile”,Licence!, July. 2006. 9(6),p:123.
4. “Gartner Say Worldwide Mobile Gaming Revenue To Grow 50 Percent in 2007”; available from http://www.phonecontent.com/bm/news/1855.shtml; accessed 17 April 2008.
Foreign Participation On Mobile Data Services Was Capped At 50% On “Accumulated Basis For Investment” Under WTO.
Foreign Participation On Mobile Data Services Was Capped At 50% On “Accumulated Basis For Investment” Under WTO.
China Mobile Industry Structure5
Equipment
Network Services (Access)
Mobile Data Services(Content)
UpstreamActivities
Focus Area
Soft
ware
Develo
per
Dow
nst
ream
Act
ivit
ies
Key L
earn
ing
• Mobile Service Offering– Customer get three different services:
Mobile handsets Mobile access Mobile content
• Mobile Content– Describe as value added services, other
than voice. China identify their mobiles service into two different offering:
Basic telecommunication services. Value added telecommunication
services. Included in this categories were, wireless value added services e.g. SMS,MMS, Mobiles Games.
• Foreign Involvement In Mobile Data Services.
– As China accession into WTO in 2001, for the value added sectors, foreign ownership was capped 50% on “accumulated basis for investment”.
– WTO Agreement does not cover game developer which currently need to be 100% owned by local.
• Availability of 3G licenses by 2009– By 2009, all four major Chinese telecom
operators – China Mobile, China Unicom, China Telecom and China Netcom.
• Unbalanced of development– Exist unbalance development in China,
National Penetration rate is 19.5% but in Beijing over 70%.
Sta
ge
Ris
k
• China Mobile controlled 65% of the China mobiles market with total subscribers amounting to 360 million (as Dec 2007). Market entrant had to certain extent dictated by China Mobile.
5.Lam, Michelle, A Value Chain Study Of China’s Mobile Industry (Tekes. December 2003) p:16
Mobile Gaming and Online Market In China Will Depend On Selecting The Right Partner and Audiences As China Accession To IPTV On The Introduction Of 3G Service by April 2008.
Mobile Gaming and Online Market In China Will Depend On Selecting The Right Partner and Audiences As China Accession To IPTV On The Introduction Of 3G Service by April 2008.
20%
13%
11%
60%
50%
Shanda
Giant
The9
Perfect World
Others
Market Player Based on Revenue(In $ Million)7
Mobile Game Revenue(in $ Million)6
298 9234258
14700
65200
$300
$10,300
$20,300
$30,300
$40,300
$50,300
$60,300
20
04
20
05
20
06
20
07
20
08
Online Gamer Demographic Matrix
For China Market8
Age Group• Below 30 years old
with relatively higher education and income.
• From this group, 31.3% between 18-25 and 19.7% between 26 and 30.
Gender• 41.7% of all gamer
are women.
$ Spending• Single represent
dominant group of online gamer with 10.6% are those with a monthly income of more than USD400.
Other profile• 50% of online
game were professional
7.RedlineChina,”Games Market In China Up 60% in 2007 to $1.66 billion”, available from http://redlinechina.com/main/?q=node/745; accessed on 28 April 2008
6.“IDC Predict Steady Growth in China’s Online Gaming Market Over The Next 5 Years” Computerworld Malaysia 12(12), 21 April-11May 2006; available from http://www.computerworld.com.my/printerFriendly.aspx?articleid=536&pubid=4&issueid=90
8.Entertainment Asia,”Survey Show Mainland’s Online Gamers are Mainly Singles With Higher Income”, available at http://www.entertainmentasia.com/news_detail.php?ct=1002&nid=894 accessed on 19 April 2008.
China Mobile Games Industry Focus On W-VAS Content Delivery.China Mobile Games Industry Focus On W-VAS Content Delivery.
DeviceManufacture
r (Equipment Provider)
CarrierPublisher (Service Provider)
Monternet /Uni-Info
Porting Service
(Terminal Provider)
Developer (Content Provider)
Consumer
Key L
earn
ing
• Content Provider– Provide content to
Monternet/Uni-Info– Provide development platform
by collaborating with Terminal Provider.
– Provide content to Service Provider
• Consumer– Get the mobile phone from
terminal provider.– Subscribe for mobile service
from the carrier.• Device Manufacturer
– Provide all the equipments to carrier.
• Monternet, operated by China Mobile
• Uni-Info, operated by China Unicom.
Sta
ge R
isk
• China Mobile require that all games need to be submitted to Monternet before it can be approve.
• Approval process can take up tp 6 month.
W-VAS Content Delivery Business Model mirror NTTDoCoMo’s business model and revenue sharing principal.9
W-VAS Content Delivery Business Model mirror NTTDoCoMo’s business model and revenue sharing principal.9
CarrierPublisher (Service Provider)
Monternet /Uni-Info
Consumer
Key L
earn
ing
• Content Delivery (1A and 1B)– Service provider provide
content to Monternet/Uni-Info.– The available content (on-deck
selection) then offered to the consumer.
• Consumer (2)– Get the monthly statement
from their carrier.– Made 100% payment to the
carrier.• Revenue sharing (3)
– China Mobile take 91% or 85%.
– China Unicom take 90% or 10%.
• Off-deck alternative.– On occasion, if consumer get
content direct from the service provider, consumer will be direct.
Sta
ge R
isk
• China Mobile require that all games need to be submitted to Monternet before it can be approve.
• Approval process can take up tp 6 month.
Sources: Juniper Research.
1A
1B
23
4
5
9.Juniper Research, “China – The 3G Opportunity” Hampshire, UK, 2007 p:6.
China Mobile Games Development Platform Use Similar Development Platform As In The US.China Mobile Games Development Platform Use Similar Development Platform As In The US.
Platform Characteristic Devices
J2ME (Java-based) • Enables Java-based games to be played on mobile phones and PDAs
• Allow mobile device makers, wireless carriers, and enterprise to quickly develop, install, and run new games on wireless networks.
• Widely accepted standard that works with multiple platforms
• Improves graphic and multimedia capabilities to suit mobile devices.
Nokia Series 40 and 60 DevicesN-GageMotorola T720
BREW (C-based) • Optimize memory allocation, making suitable for mobile devices with limited resources.
• Support game operators with such capabilites as secure over-the-air distribution of applications, billing and payment, and service monitoring and support.
• Allow games to be played more quickly because it runs on C rather than Java
Motorola T720Samsung A530Samsung A610
Mophun (C-based) • Enables rich gaming experience with advanced 3D graphics, enhanced audio, and multiplayer capabilites.
Sony EriccsonMotorolaN-Gage
ExEn (Java-based) •Provide good graphical capabilities and fast processing speeds•Enables additional game-development capabilities (such as sprite zooming, parallax scrolling, ray casting, and rotations)
PhilipAlcatelMitsubishiPanasonic
Notes:1. Both Monternet and Uni-Info had been notably accepted both Java and C-based development platform.
7.O.B.Soh, Jason, and C.Y. Tan, Bernard; Mobile Gaming, Communication of The ACM, March 2008 (Vol 51-3).
New Market Entrant To China Need To Follow The On-deck Approach.New Market Entrant To China Need To Follow The On-deck Approach.
CarrierPublisher (Service Provider)
Monternet /Uni-Info
ConsumerK
ey L
au
nch
ing
Stra
teg
ies
• Market Entrant Alternative– Directly through the carrier.
Content Provider can choose either to partner with China Mobile or Chi Unicom.
– Through Monternet Operator does the delivery, billing
and revenue collection. Content provider focuses on
marketing, content production and brand creation.
• Have a local presence– On Dec 17, 2007 joint regulation from
MII/SARFT stating that video download services must from now on be state-controlled, it is aimed at both Internet and Mobile Internet content providers.
– Establish a local business and technology team controlled by your “own-man”.
Sta
ge R
isk
• China Mobile require that all games need to be submitted to Monternet before it can be approve.
• Approval process can take up tp 6 month.• Collecting the cash and getting money out
of China can be difficult.• Protecting your IP right can be extremely
difficult.• Competition companies is about 800
companies.
Developer (Content Provider)
Success Cases Of Entrant To China Mobile Gaming Market – Australian Based Company1 Focused On Mobile Sport Games Based On Java Platform.10
Success Cases Of Entrant To China Mobile Gaming Market – Australian Based Company1 Focused On Mobile Sport Games Based On Java Platform.10
CarrierPublisher (Service Provider)
Monternet /Uni-Info
ConsumerK
ey L
au
nch
ing
Stra
teg
ies
• Market Entrant Alternative– Through Monternet
The company makes strategic alliance with local ISP provider in this case Monternet.
• Have a local presence– Top management transferred from
Sydney to Beijing.– Establish a local business and
technology team controlled by your “own-man”.
• Protect IP right– Makes agreement with China
basketball superstar to gain exclusive right for content related to him.
• Retain money and re-use for expansion
– The company used back the fund generated from the operation to expand their operation without taking the money out.
Sta
ge
Ris
k
• China Mobile require that all games need to be submitted to Monternet before it can be approve.
• Approval process can take up tp 6 month.
Developer (Content Provider)
Notes:1. The Company wants to remains anonymous.
10. Siponmaa, Ari. “How To Fail and How To Succeed in China”, available from http://websrv1.tekes.fi:8080/opencms/opencms/OhjelmaPortaali/Kaynnissa/NETS/fi/Dokumenttiarkisto/Viestinta_ja_aktivointi/Seminaarit/Kiina_mobiili/Mobilemode-AriSirponmaa.pdf ; accessed 20 April 2008