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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
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
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