THE BRIDGE

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The problems and opportunities in the Japanese social gaming space [Panel]

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This is a part of our coverage of B Dash Camp Osaka 2013. On day one of B Dash Camp Osaka, we heard from a stacked panel from the world of social gaming, including Gumi CEO Hironao Kunimitsu, inBlue CEO Tomohiro Ootomi, Mobcast director and general manager Takeshi Sato. The moderator was DeNA chief game strategy officer Kenji Kobayashi. Any panel including Gumi’s jovial CEO Kunimitsu-san is naturally going to be an easy-going one. But despite the lighthearted tone, the discussion kept coming back to the many problems that exist for Japanese game developers these days. Kobayashi said that games in the app space are obviously growing at a great pace [1], with titles like Puzzle & Dragons, Candy Crush, and Clash of Clans doing incredibly well. Even console makers are trying to replicate their success, says Kobayashi. But he also pointed out the many games that go unfound on the app store, and that that the environment can be quite harsh if you don’t have a runaway hit. Kunimitsu compared the gaming sector to a gold rush, and pointed out that if you dig relentlessly for gold, you will probably die. If you want to do well in gaming,…

bdash-camp-osaka-gaming
Takeshi Sato, Mobcast; Tomohiro Ootomi, InBlue; Hironao Kunimitsu, Gumi

This is a part of our coverage of B Dash Camp Osaka 2013.

On day one of B Dash Camp Osaka, we heard from a stacked panel from the world of social gaming, including Gumi CEO Hironao Kunimitsu, inBlue CEO Tomohiro Ootomi, Mobcast director and general manager Takeshi Sato. The moderator was DeNA chief game strategy officer Kenji Kobayashi.

Any panel including Gumi’s jovial CEO Kunimitsu-san is naturally going to be an easy-going one. But despite the lighthearted tone, the discussion kept coming back to the many problems that exist for Japanese game developers these days.

Gumi CEO Kunimitsu
Gumi CEO Kunimitsu

Kobayashi said that games in the app space are obviously growing at a great pace [1], with titles like Puzzle & Dragons, Candy Crush, and Clash of Clans doing incredibly well. Even console makers are trying to replicate their success, says Kobayashi. But he also pointed out the many games that go unfound on the app store, and that that the environment can be quite harsh if you don’t have a runaway hit.

Kunimitsu compared the gaming sector to a gold rush, and pointed out that if you dig relentlessly for gold, you will probably die. If you want to do well in gaming, it’s hard work.

“I wouldn’t recommend it for my kids,” he explained. Globalizing is much more complex, he adds:

I think many developers create and app, put it in English, press ‘launch’ (so to speak) and expect it to do well. But it’s necessary to localize. When the competition was not intense, or the market was not mature, it was not so bad. But now localization/regionization is important.

Kunimitsu-san said that his own company, Gumi, has launched and expanded globally. They struggled initially, but their games in Singapore are doing particularly well right now.

Sato from Mobcast mentioned that the problems facing game creators today can potentially distract them from their goal if they aren’t careful:

For game creators that need to deal with so many issues, I don’t think this is really their main role, or what they should be focusing their efforts on.

Sato also spoke a little about the challenge of finding new game creators:

But it is very hard to motivate creators, but our CEO (Koki Yabu) has a good feel for this. I think we should stick with good creators and encourage (and nurture) them, rather than search out new ones.

InBlue’s Ootomi also agreed that the challenges facing game developers are indeed a problem. But he also pointed out the opportunity that exists for supporting services that solve problems:

I founded the company alone, and we used external services like Github, or some GMO services, or Mixi’s DeployGate (which is very convenient). We think there’s much room for these kind of services to enter.

Kunimitsu ended the panel on a high note, saying the he hopes that if we meet again next year that they can speak on some more positive things. You never know who will have a winning idea, he concluded.

inBlue CEO Tomohiro Ootomi
inBlue CEO Tomohiro Ootomi

  1. In comparison to browser games which are relatively stable in Japan, not growing nearly as much.  ↩

Reps from GREE, DeNA, and Gumi discuss how to win in global gaming

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This is part of our coverage of the Infinity Ventures Summit 2013 in Sapporo, Japan. You can read more of our reports from this event here. The late afternoon session of the Infinity Ventures Summit featured a panel on mobile gaming, highlighting the efforts of Japanese game companies to win over the global market. Panelists included GREE International’s SVP Eiji Araki, DeNA’s chief platform strategy officer Junichi Akagawa, and Gumi’s president and CEO Hironao Kunimitsu. The discussion was moderated by Taisei Tanaka, the CEO of Geisha Tokyo Entertainment. Araki-san explained that the US and Japan are very different markets, noting that they have had successes and failures in the US. He cited Modern War, Crime City, and Zombie Jombie as a couple of their success stories. He noted that at GREE International (in San Francisco), they work differently than they do in Japan. In the US, they have a very systemized approach across pre-production, production, beta, and general availability phases. And after every stage, there is a check point to reflect on if the game has potential to be a top 5 title. If they aren’t happy with a progress, they may cancel the game mid-way. DeNA’s Akagawa explained that…

ivs-gaming

This is part of our coverage of the Infinity Ventures Summit 2013 in Sapporo, Japan. You can read more of our reports from this event here.


The late afternoon session of the Infinity Ventures Summit featured a panel on mobile gaming, highlighting the efforts of Japanese game companies to win over the global market. Panelists included GREE International’s SVP Eiji Araki, DeNA’s chief platform strategy officer Junichi Akagawa, and Gumi’s president and CEO Hironao Kunimitsu. The discussion was moderated by Taisei Tanaka, the CEO of Geisha Tokyo Entertainment.

GREE SVP Eiji Araki
GREE SVP Eiji Araki

Araki-san explained that the US and Japan are very different markets, noting that they have had successes and failures in the US. He cited Modern War, Crime City, and Zombie Jombie as a couple of their success stories. He noted that at GREE International (in San Francisco), they work differently than they do in Japan. In the US, they have a very systemized approach across pre-production, production, beta, and general availability phases. And after every stage, there is a check point to reflect on if the game has potential to be a top 5 title. If they aren’t happy with a progress, they may cancel the game mid-way.

DeNA’s Akagawa explained that the biggest challenges for his company in expanding abroad is ensuring that there is a consistency of management principles as well as a synchronization of corporate philosophies across regions. Building trust and communication across different cultures is difficult, and without trust you can’t really do anything. If a game doesn’t meet it’s goal, does the fault lie with the US or Japan office? This is when good communication comes into play. He notes with a laugh that ‘nom-unication’ (a Japanese portmanteau to describe communication through drinking parties together) is a word they throw around a lot.

Solving the puzzle

In terms of developing a successful game, Akagawa made the comparison to baseball, noting that if you want a hit you need to swing many times. But interestingly, Japan’s most popular mobile game, GungHo’s Puzzle & Dragon’s is somewhat of an exception to this rule.

Gumi CEO Hironao Kunimitsu
Gumi CEO Hironao Kunimitsu

Kunimitsu questioned whether or not the money GungHo is making with P&D can be sustained. Akagawa expressed confidence that it can continue at least for a while longer. But it was also noted that many investors overseas don’t know about GungHo, and once they learn about them, there might be some investment coming – resulting in another boost for the company.

But to continue the baseball analogy, if you are swinging and not hitting, then you need to adjust your swing. Akagawa noted that in each market, a publisher needs to figure out what is most likely to resonate in that particular area:

If you want to develop globally, in order to have a game in the top ranking, you need to localize to make sure your game is accepted. At the same time some games are not accepted by the mass public, but if you have core users you can still succeed.

But of course, then there are games that are popular the world over like Angry Birds. But Araki noted that trying to develop such a wide-appealing game can be a gamble. GREE uses a lot of data trying to figure out what will work. Gumi’s Kunimitsu-san pointed to another problem, saying that “content is a zero sum game” and even if your game is popular, but another is more popular – then you still lose.

DeNA's Junichi Akagawa
DeNA’s Junichi Akagawa

Akagawa closed out the session by saying that DeNA has a now or never approach, and that they have to move fast. This is a sentiment that we heard before among some of the country’s more successful internet companies (most notably, Line).

It will be interesting to see how quick all three of these gaming companies can move in the near future, in their efforts to win over global gamers.

B Dash Panel: The next stage in social games

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This is a part of our coverage of B Dash Camp Fukuoka 2013. On day two of B Dash Camp 2013 in Fukuoka, we had a chance to hear from panel of high profile speakers from the social gaming space. Participating speakers included: Naoki Aoyagi, SVP, global operations, GREE Inc. Kenji Kobayashi, the chief game strategy officer, member of the board, DeNA Co. Ltd. Andrew Sheppard, president, Kabam Game Studios Takeshi Sato, director and general manager, platform business division, Mobcast Hironao Kunimitsu, founder and CEO, Gumi Inc. The following are our preliminary live notes from the session. Much of the talk ended up being surprisinly reflective, but there were some notes where speakers looked ahead to the future. 14:28 – Andrew Sheppard says Kabam has 600 employees, 7 offices, been in business three years. Last year they had the top grossing iOS app, top gorrsing iOS game in 50 countries. They were a top 10 mobile gamng comaoaany, with 11 million users. They have $55M in the bank, so doing well! 14:29 – Andrews says that North Amercian is largely an iOS market, and that Asia and Europe are more and more Android. But what’s exciting is that gaming is…

gaming-panel

This is a part of our coverage of B Dash Camp Fukuoka 2013.

On day two of B Dash Camp 2013 in Fukuoka, we had a chance to hear from panel of high profile speakers from the social gaming space. Participating speakers included:

  • Naoki Aoyagi, SVP, global operations, GREE Inc.
  • Kenji Kobayashi, the chief game strategy officer, member of the board, DeNA Co. Ltd.
  • Andrew Sheppard, president, Kabam Game Studios
  • Takeshi Sato, director and general manager, platform business division, Mobcast
  • Hironao Kunimitsu, founder and CEO, Gumi Inc.

The following are our preliminary live notes from the session. Much of the talk ended up being surprisinly reflective, but there were some notes where speakers looked ahead to the future.

14:28 – Andrew Sheppard says Kabam has 600 employees, 7 offices, been in business three years. Last year they had the top grossing iOS app, top gorrsing iOS game in 50 countries. They were a top 10 mobile gamng comaoaany, with 11 million users. They have $55M in the bank, so doing well!

14:29 – Andrews says that North Amercian is largely an iOS market, and that Asia and Europe are more and more Android. But what’s exciting is that gaming is the rare content on mobile that indexes high in terms of reach, engagement, and monetization.

14:31 – Kabam’s game Kings of Camelot was a top 5 grossing worldwide game in 2012, at number 4.

14:32 – Andrew reminds us of their recent announcement of a $50M fund for developers. Apologizes for the reminder with a smile.

14:33 – Mobcast’s Sato: The focus on sports games, now open to foreign partners. From yesterday they opened their development partner site. They also have ‘Mobcast Girls’ for promotion.

14:35 – Both Aoyagi of GREE and Kobayashi of DeNA say they are doing well, but things could be better. Kobayashi sounds slightly more optimistic in tone than Aoyagi.

14:36 – Aoyagi: In terms of sales growth the US shows the best performance, so I’m based there. But sometimes my boss calls for me to help out on Tokyo projects. […] So yes, I’m back here quite a bit. Some people create rumors that I’m here in Japan, but there are not many doing well here besides Gungho. If you look at the top titles from makers like Supercell, they’re in the US. When you think about revenue and profit, the US is taking off finally. I think in Japan there was a peak of funding about two years ago […] but I think right now its kind of declining or shrinking.

14:37 – Kobayashi: Basically I’m supervising on a global level, especially on smartphones. Before it was about execution, but now its more about which fields you compete it.

14:39 – Now speaking about Puzzle & Dragons: Andrew says he’s played a bit, says it has not succeed in US yet. Is a very smart game. Because of the mechanic its great for Asian markets, almost like calligraphy. But Americans are slow and not very smart, so maybe it’s difficult (jokingly).

14:41 – Sato: They have TV commercials and that adds to their users. They did all the basics well, and that’s why they have a hit.

14:42 – Kobayashi: The quality when they started was so high. When they started the commercials it was around mid October, and after that it was a really significant increase, and word of mouth and influences really helped. I think they had the right timing.

14:46 – Kobayashi on what’s next? In different countries, different things work. So you can really make whatever you want. But quality is very important. And if you just try to emulate Puzzle & Dragon’s then you will fail.

14:49 – Aoyagi says that the tablet market is something huge, and tablet first is a phrase we’re hearing. If you’re targeting hardcore gamers, the tablet is something you need to look at, especially in the US market. Sato, as you might expect, says they think sports have potential, sand notes the world cup might result in popular soccer games next year.

14:54 – Andrew says he joined when Kabam created KoC, he was very impressed by their CEO, who he describes as a young person but an ‘old soul’. Right from the beginning he put much trust in him, and that’s why he enjoys his job.

14:56 – Sato mentions that he had very good chemistry with his president as well.

15:03 – Andrew notes they have opened an office in Korea to being their Asia push, and they are very exciting about this.

15:04 – I want to focus on foreign markets, and when we listed I was wondering about where we should head. We have the world cup next year, and our president wants to have a global approach, and maybe we can have some kind of global competition among users, and I think that will be intriguing.

15:05 – Kobayashi: foreign markets are really growing so we want to follow and exceed the trend.

15:06 – Aoyagi: Jokes that they plan to acquire Gumi in the future. Says they want to hit good results abroad, thinks that in the past it has been one hit that really changes the world, and he thinks in the future it will also be a sort of trigger like this.