Steve JeongDirector and Division Head

Overseas Business

Keys to Overseas Success for Asian Keys to Overseas Success for Asian Online Games Online Games

Online game market overview

ContentsContents

Segmentation

4 Keys to oversea success

Conclusion

Online game market overviewOnline game market overview

ContentsContents

Conclusion

Segmentation

4 Keys to oversea success

Online game marketOnline game market

34732

2847

54537

9021 5675

106812

0

20000

40000

60000

80000

100000

120000

Arcade Pcgame video game onlinegame

mobilegame

total

The size of the online game market from the total game market is 8.4%

Online game revenue by PlatformMil. USD, 2007

The fastest growing game sectorThe fastest growing game sector

However, the online game is the fastest growing game sector in the world. (Average growth rate, 29%)

6.30%

-6.40%

21.30%

29%

23.30%

15.80%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Arcade Pcgame video game onlinegame

mobilegame

total

Average growth rate by PlatformMil. USD, 2007

5,7176,703

8,070

9,887

4,296

5,060

2,259

2,719

3,130

3,645

4,235

4,846

3,5062,862

2,312

615

418

269

175

102

-

5,000

10,000

15,000

20,000

25,000

2008 2009 2010 2011 2012

Asia Pacific EMEA North America Latin America

Asia Pacific’s still big market, EMEA & North America are fast-growing

50%

25%

21%

Online game marketOnline game market

Online game revenue by regionMil. USD, 2007

Strength on Online gameStrength on Online game

Specialized GenreSpecialized GenreMMORPG, FPSMMORPG, FPS

Competitive Advantage Competitive Advantage as Asian Game as Asian Game

DevelopersDevelopers

Online game market overview

ContentsContents

Conclusion

SegmentationSegmentation

4 Keys to oversea success

Video game Arcade game PC game

Online game Mobile game

Western Market, U.S.Western Market, U.S.

Video game62.4%

Arcade game28.7%

Mobile2.1%

Online game3.9%PC game

2.8%

U.S Market by platform

Mil. USD, 2007

- The entire game market scale is rising.- For the online game, the preference for the casual game is

high.

Western Market, Western EuropeWestern Market, Western Europe

1. To play games 2. To choose games

Points to be considered

Quick processQuick process

1

Easy to learnEasy to learn

Character customizingCharacter customizing

Online connectivityOnline connectivity

Cartoonish graphicCartoonish graphic

High quality graphicHigh quality graphic

StoryStory

Value of repetitive playValue of repetitive play

VerisimilitudeVerisimilitude

Western Market, SuggestionWestern Market, Suggestion

There are many users who are familiar with the There are many users who are familiar with the high quality in the console game, so need to high quality in the console game, so need to approach with the approach with the high-quality online gamehigh-quality online game when when entering the market.entering the market.

The current market is relatively small but it has The current market is relatively small but it has

the the high possibilityhigh possibility in growth so it is an important in growth so it is an important

market.market.

1

2

- Low Broadband Penetration

- Mobile games and Handheld games are very strong

Emerging Market

- Low broadband penetration

- Casual games which are materialized as a browsing form are

strong.

- The role of the MMOG is rising.

Latin America

Eastern Europe

Emerging Market, suggestionEmerging Market, suggestion

This market shows the game utilization focused This market shows the game utilization focused on the internet café as well as the PC, so it is on the internet café as well as the PC, so it is easy to apply online games. easy to apply online games.

1

The growth possibility in the future is high.The growth possibility in the future is high.

2

Chinese MarketChinese Market

1700

4400

10215040

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007 2008 2009 2010

Game Revenue by genre

Online

Mobile

Mil. USD, 2007

Online Game Growth Rate

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010

70%

47.1%

36%

29.4%

%

- The entire game market scale is rising.- For the online game, MMORPG is leading the market.

Online game, 917PC game, 151

Arcade game, 9800

Mobile game, 654

Video game, 9326

Video game Mobile game

Arcade game PC game

Online game

Japanese MarketJapanese Market

JP Market by platform

mil.USD2008

- The arcade and video games are growing and the growth rate

of the mobile market is high.

Compared with the other game market the role of Compared with the other game market the role of the online game is low, and approaching with the the online game is low, and approaching with the mobile game makes the entry barrier low. mobile game makes the entry barrier low.

1

The main genre of the online game are the mobile The main genre of the online game are the mobile game and the community game. When compared game and the community game. When compared with the other market Japanese market has the with the other market Japanese market has the unique preference.unique preference.

2

Japanese Market, suggestionJapanese Market, suggestion

Overall SuggestionOverall Suggestion

Have to differentiate the game plan depending on Have to differentiate the game plan depending on the market.the market.

1

The preferred game by region is different The preferred game by region is different depending on their cultural background, depending on their cultural background, broadband diffusion rate, gamers’ character, broadband diffusion rate, gamers’ character, preferred graphic and preferred genre.preferred graphic and preferred genre.

2

It is important to do an optimized targeting by It is important to do an optimized targeting by thinking about the entering market from the game thinking about the entering market from the game planning step.planning step.

3

Online game market overview

ContentsContents

Conclusion

Segmentation

4 Keys to oversea success

Four Keys to Success in Asian MarketFour Keys to Success in Asian Market

Contents People Management

Partner Experience & Insight

Success of Online

Game

11 22

33 44

ContentsContents

The key is to service market specified contents

Emerging MarketEmerging MarketEmerging MarketEmerging Market MMORPGMMORPG

KoreaKoreaKoreaKorea Web-boardWeb-board

JapanJapanJapanJapan Mobile GameMobile Game

ChinaChinaChinaChina Casual GameCasual Game

U.S.AU.S.AU.S.AU.S.A FPSFPS

PeoplePeople

The key to oversea success is taking care of Management Issues

Local manager-Local manager-centered centered business business operationoperation

Support from Support from resident resident employeesemployees

PartnersPartners

The key to oversea success is partners and support from them

The development of The development of successful, long term, successful, long term, strategic relationships, strategic relationships, based on achieving based on achieving best practice and best practice and sustainable sustainable competitive advantagecompetitive advantage

Key

DistributoDistributorr

PGPGCompanyCompanyPC cafePC cafe

PublisherPublisher

PRPR

Experience & InsightExperience & Insight

PassionPassion

ChallengeChallenge

Open mindOpen mind

Online game market overview

ContentsContents

Conclusion

Segmentation

4 Keys to oversea success

ConclusionConclusion

Do not hesitate until you accomplish final success.