This document summarizes the state of the global online game industry and discusses trends in game platforms, monetization models, and gamer demographics. It notes the rise of mobile gaming and how the industry is shifting from console/PC to mobile/social platforms. Challenges in global game publishing like platform fragmentation and payment options are also covered. The document recommends platform-agnostic development, applying fair virtual item pricing globally, working with local payment partners, and focusing on a game niche.

1. Paradigm Shift in Global
Online Game Publishing
- Games Solution Centre -
1

2. Presentation Summary
• The state of game industry.
• Emergence of Mobile Internet & Mobile Games.
• Expanding gamers demographic.
• Paradigm shift in online game business.
• Challenges in building global online game business.
• Trend & Direction in Game Industry .

3. The State of Game Industry

4. Game Software Market Growth by Platform

5. Game Software Market Size by Platform

6. Game Software Revenue Share by Platform

7. Global Game Revenue Growth By region

8. Global Game Revenue Share By region

12. Emergence of Mobile Internet &
Mobile Games

21. Expanding Gamers Demographic

22. From MMO Gamers
MMO Gamers Profile:
• Tend to be younger, age between early
teens to early twenties.
• Dependent on their allowance from parents.
• Price sensitive.
• Game retailers & 7 Eleven are popular place
for them to buy their game top-up.
• Play their games at iCafe & home.
• Playing game as serious fun and as their
main form of entertainment.

23. To Social Gamers
Social Gamers Profile:
• Tend to be older, age between late teens to
early forties.
• Convenient factors are priority.
• They don’t mind spending slightly more as
long as it is more convenient for them.
• Credit card, Internet banking & mobile top-up
are their favorite payment mode.
• Play their games on their laptop everywhere,
at home, office, Starbucks, airport, etc.
• Playing game to pass time & relaxation.
• Tend to be first time gamers.

24. Paradigm Shift in
Online Game Business
Web / Mobile
Casual
Hardcore
Console / PC

25. Territory / Country Base Publishing
Value Chain Model

26. Territory / Country Base Publishing
Challenges
• Local publisher bear the main risk if the game they are
signing will not be popular in their territory.
• Game developers has to support many different versions
of the games stretching their development team.
• Compartmentalizing the game territory coverage diminish
the longtail effect of the game monetization.
• Difficult to forecast the growth of the game within particular
country, making the whole investment for servers, bandwidth
and man power very risky.
• Intrusion of same game from other publisher in different country.

27. Same Games, Different Publihsers, Same Region

28. Same Games, Different Publishers, Same Region

29. Global Publishing Platform
Value Chain Model

30. Challenges in Building
Global Online Game Business

31. Which Platform To Choose (iOS)
iOS - iTunes AppStore
• Great game monetization with iOS emerging as popular mobile game platform
• 30% rev share cut for Apple, payment mainly through credit card & iTunes card
• Apple start looking to distribute iTunes card in Asia, beginning with Korea.
• iTunes app store is also very crowded place (data from 148apps.biz)
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32. Which Platform To Choose (iOS)
32

33. Which Platform To Choose (iOS)
33

34. Which Platform To Choose (Android)
Android AppStores
• Open app stores concept, but it is highly fragmented.
• eCommerce site, handset maker, and telco operator all are building their own
Android app stores.
• Mixture of payment service.
• It does not monetize as well as iOS AppStore (only 24% of iOS revenue)
34

35. Which Platform To Choose (Android)
35

36. Which Platform To Choose (Android)
36

37. Which Platform To Choose
(Android VS iOS)
37

38. Which Platform To Choose
(Android VS iOS)
38

39. Which Platform To Choose
(Android VS iOS)
39

40. Android Growth is Slowing Down
40

41. iOS Catching Up Android in US
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42. Which Platform To Choose (Facebook)
Facebook Apps
• Games are the killer apps on
Facebook & it has created mega
company like Zynga, King.Com
• Consolidation of monetization
using Facebook Credits as default
top-up.
• Tricky to manage fraud as game
owners are responsible to look
after the fraud themselves.
• Very crowded market place and
dominated by big boys: Zynga,
EA/Playfish, King.Com.
• Fragmented payment options with
big gap in pricing.
• Localize pricing by mid 2013
• Facebook also losing more
players to mobile.
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43. Facebook App Center
43

44. Facebook App Center
44

45. Facebook App Center
Facebook direct 146 million of its users
To iOS & Android app stores in the past
30 days (Casual Connect Seattle 2012).
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46. Facebook Prioritize Its Users
http://www.businessinsider.com/sometimes-facebook-destroys-startups-built-for-its-platform-2013-3 46

47. Which Platform To Choose
Self Publish Web Platform & Other Regional Platforms
• Total control and ownership of the site.
• Total control on payment flow and better revenue share.
• Required substantial marketing dollar to grow the users.
• To leverage on Facebook Connect.
• Use mixture of self publish web platform, regional & global platform.
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48. Leveraging on Existing Chat Platform
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49. Pricing Parity Issue
• More relevant to games with virtual items monetization and
less relevant to single player pay per download mobile game
apps.
• Prioritize your target gamers:
- Gamers from developed country with high ARPU
but lower number of players, or
- Gamers from developing country with lower ARPU but
higher number of players.
• Popular games with high virtual items pricing, tend to attract
local game clones in developed country.
• Publish your games in multiple platforms & apply pricing
parity in different platforms to target different market with
different buying power.
• The Economist’ Big Mac index provide good pricing parity
index.
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50. Content & Marketing
Localization
• Use crowdsourcing to localize your game language & work with your
local gamers community to coordinate the localization.
• Work with local & regional payment channels to promote your
games to local gamers.
• Run special promotion targeting at local gamers.
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51. Trend & Direction in Game Industry

52. Pla$orm
Agnos-c
(cross
pla$orm)
Facebook
Android iPhone

53. Fremiums
Free
To
Play
Microtransac-ons
Business
Model

54. Digital
Download

55. Digital
Download

56. Digital
Download

57. Digital
Download
By
Retailers

58. Digital
Download
By
Retailers

59. Cloud
Base
&
Streaming

60. New
Upcoming
Players
in
Console
Business
Piston & Ouya Consoles:
Piston / SteamBox Ouya Android Console

61. Biggest
Threat
in
Console
Business

62. Game
Webifica-on
(Kalydo)

63. Game
Webifica-on
(Core
Online)

64. Take Home Points
• Migrate to cloud base servers if possible.
• Choose platform that best suited for your games.
• Apply pricing parity on your game items. If you price your items
for Asian users, you wont have any pricing parity issue.
• Not all payment companies are created equal, work with
payment company which can provide local support for your
games.
• Game industry is becoming specialize, choose your niche well,
focus on the development & monetization, grow the game
globally, and have fun while doing it.

66. :)
Thank you
question &
discussion
Contact:
Rivai Adidharma
(Sr VP International Business)
MOL Global Pte Ltd
Email: rivai@mol.com
Web: www.mol.com
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