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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

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
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

Smartphones are catching on
Smartphones Are Catching On

  • Longtime popularity of feature phones

  • Smart Phones: why now?

Ios vs android growth and competition
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

Challenge 1 fragmented channel distribution
Challenge 1: Fragmented Channel Distribution

  • Apple and Google aren’t in control

    • Numerous distribution channels

    • Unique requirements

Challenge 2 regulations and culture differences
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

Challenge 3 monetization
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

Challenge 4 piracy
Challenge 4: Piracy

  • Pirates are everywhere

    • Even big-name enterprise doing that

    • Responsibility falls on local publishers

Tips for global developers heading for china
Tips for Global Developers Heading for China

Tip 1 don t go it alone
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

Tip 2 know what s popular
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

Tip 3 choose the right monetization model
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

How the9 can help some background
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

The9 venturing into mobile social gaming
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

The9 single publisher and operator in china
The9:Single Publisher and Operator in China

  • Partnerships

    • Major telecom carriers

    • Third-party channels

    • Device manufacturers

The9 one stop shop for western developers in china
The9: One-Stop Shop for Western Developers in China

  • Localization

  • SDK Packaging

  • Monetization Strategies

  • Advertising

  • Distribution

  • Marketing and Promotion

  • Anti-Piracy Solutions

Our global partners are seeing serious growth
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

The9 mobile business unit your passport to china
The9 Mobile Business Unit: Your Passport to China

Chris Shen

[email protected]