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The Chinese Mobile Market and How to Enter it June 2016

Ben Liu, NetEase Games

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Page 1: Ben Liu, NetEase Games

The Chinese Mobile Market and How to Enter itJune 2016

Page 2: Ben Liu, NetEase Games

About us

Page 3: Ben Liu, NetEase Games

01An Introduction to the Chinese Market

Page 4: Ben Liu, NetEase Games

战略研究中心赢在起点

Mobile Gamers Mobile Device Users

Mobile Users VS. Mobile Gamers

4% 76%

2010

35 million mobile gamers

2015

314.8 million mobile gamers

Source: EEDAR Deconstructing Mobile Gaming

Page 5: Ben Liu, NetEase Games

战略研究中心赢在起点

Mobile Games PC Games Web Games Others (Console, TV)

2010

Total mobile game market volume is 1 billion RMB,

compared with the whole game industry at 33 billion RMB

2015

Total mobile game market volume is 51 billion RMB,

compared with the whole industry at 140 billion RMB

84%

3%13%

46%38%

16%

0.2%

A Massive Market, Mobile-Lead

Source: China Game Industry Annual Report

Page 6: Ben Liu, NetEase Games

战略研究中心赢在起点

4,75

6,747,34

7,93

9,84

11,1412,28

13,10

2,433,32

3,86 3,68 4,05

6,17 6,54 6,85

0,0 0

2,0 0

4,0 0

6,0 0

8,0 0

10, 00

12, 00

14, 00

14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4

Total Revenue TOP10 RevenueThe total market volume is still

growing, but at a slower pace.

Market Trends

Top 10 grossing games take more than

half of the revenues

Unit: Billion RMB

Page 7: Ben Liu, NetEase Games

战略研究中心赢在起点

Game Trends: China

0,45

3,06

0,60

1,43 0,44

1,36

1,28

2,25

1,85

2,30

2,83

0,72

0,94 0,52 0,42

14Q4

15Q4

Turn-basedMMO

6%

2.5D MMO8%

ARPG17%

Card games28%

Strategy9%

Casual29%

Turn-based MMO24%

2.5D MMO11%

3D MMO3%

ARPG10%

Card Games14%

Strategy7%

Casual22%

MOBA3%

Shooting4%

Go MMOLess casual.

Shooting, MOBA are new, growing genres.

Source: NetEase Strategy Development Center

Unit: Billion RMB

Page 8: Ben Liu, NetEase Games

It’s not just the Apple App Store and Google Play…

Android:

400 stores

iOS:

AppStore vs. Jailbroken Stores

Source: Newzoo Data 2016.04

360 Assistant 24%

Baidu 19%

Huawei 7%

Vivo 5%

Others 5%

Oppo Store 5%

HiMarket 5%

Page 9: Ben Liu, NetEase Games

In China distribution choice comes at a price..

Advertising space

Apple takes a 30% cut

Android distributors take 40—60%

Distributors compete and offer

preferential terms to big customers or

high-potential titles

Page 10: Ben Liu, NetEase Games

02How to Enter the Chinese Market

Page 11: Ben Liu, NetEase Games

The Road to China – 3 Choices

3. Be surprising1. Be better 2. Be modest

Bring to market what no game has

brought before.Compete head-on Don’t aim for the top 100

Page 12: Ben Liu, NetEase Games

Decide What You Want

Just testing the waters?

Is China one piece of a larger puzzle?

Or are you ready to go all in?

Page 13: Ben Liu, NetEase Games

There’s Room for a Unique Approach

Page 14: Ben Liu, NetEase Games

Otherwise There Are Certain Must haves!

Free to Play

PvP and/or Co-op

Suitable Art

Easy Controls

Page 15: Ben Liu, NetEase Games

Mainstream Art Style and Background Story - Examples

Art: Cute (big head), Chinese

Story: Westward Journey (Classical Chinese

literature)

Art: Cute, leaning to realism

Story: Western magical worldArt: Cartoon, Exaggerated, Lively

Story: No particular storyline,

virtual world

1 2 3

Page 16: Ben Liu, NetEase Games

FIND A PARTNER

Remember it’s a partnership

Be flexible

Commit to the territory

Page 17: Ben Liu, NetEase Games

NetEase Development Philosophy

Apply IP to proven gameplay only

Gameplay over Monetization Design

Attract users to spend their prime time, not their bathroom break.

IP is the icing on the cake, not a bait-

and-switch tool

Make games that players like to play. Money will come.

NetEase games are designed to engage users for

several hours per day

Page 18: Ben Liu, NetEase Games

THANKS

Kristina Blanco: [email protected]