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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.  ↩

Sports game platform Mobcast hits 3.5 million users, eyes markets beyond Japan

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Tokyo-based gaming company Mobcast announced yesterday that its sports-focused gaming platform now has more than 3.5 million users, adding about 380,000 new members every three months. The company expanded its service to Korea back in February, intensifying its localization efforts by acquiring Korean gaming company Entercrews. Mobcast’s Korean gaming platform surpassed 600,000 users, and 300,000 of those have tried MobaSoccer, a soccer title where both Japanese and Korean users can simultaneously play a Japan vs Korea match. In addition to Japan and Korea, the company has expressed interest in expanding to South East Asian markets, and it has already established a local presence in Indonesia. The company has been seeing good results in user acquisition, thanks to marketing efforts in partnership with sports TV shows and notable football clubs. The company parnered with FC Barcelona and shows off high-profile football players in its online soccer gaming app, including stars like Thierry Henry and Lionel Messi. In a previous interview with the company’s CSO (chief strategic officer) Takashi Sato, he unveiled that the company is aiming to reach at least 30 million users in Japan, and one million users in Korea in this year. To learn more about the service, check…

20130422-100818

Tokyo-based gaming company Mobcast announced yesterday that its sports-focused gaming platform now has more than 3.5 million users, adding about 380,000 new members every three months.

The company expanded its service to Korea back in February, intensifying its localization efforts by acquiring Korean gaming company Entercrews. Mobcast’s Korean gaming platform surpassed 600,000 users, and 300,000 of those have tried MobaSoccer, a soccer title where both Japanese and Korean users can simultaneously play a Japan vs Korea match. In addition to Japan and Korea, the company has expressed interest in expanding to South East Asian markets, and it has already established a local presence in Indonesia.

mobcast-girls
Mobcast Girls cheer and promote the game platform in Japanese media.
(Image: Mobcast website)

The company has been seeing good results in user acquisition, thanks to marketing efforts in partnership with sports TV shows and notable football clubs. The company parnered with FC Barcelona and shows off high-profile football players in its online soccer gaming app, including stars like Thierry Henry and Lionel Messi.

In a previous interview with the company’s CSO (chief strategic officer) Takashi Sato, he unveiled that the company is aiming to reach at least 30 million users in Japan, and one million users in Korea in this year. To learn more about the service, check out a couple of its commercials which we have included below.

Japanese TV commercial:

 

Korean TV Commercial:

 

Japan tech this week: Origami, funding, and fun in Fukuoka

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It was a pretty busy week for us here at SD Japan. In addition to all the regular news that we typically cover, we took a shot at some live event coverage as well. Our team is small but we’re doing our best, and we hope you like some of the results. If you’d like to get this weekly summary plus other bonus content, we hope you’ll check out our shiny new newsletter here. Features Stand up: Lessons on entrepreneurship and innovation from the Japan New Economic Summit 04/24 (also available in ePub format for Kindle or iBooks) Business Japanese online content marketplace raises $3 million from Jafco and Femto Growth Capital 04/24 Business card-based CRM startup Sansan raises $5M, planning global expansion 04/24 Japan’s Mobcast partners with 13 content providers, wants to dominate sports gaming on mobile 04/24 Stealth m-commerce startup Origami raises $5M from KDDI and DAC 04/24 Design EnchantMoon handwriting tablet unveiled, first orders sold out in an hour 04/26 Tokyo City Symphony: Fun 3D projection mapping marks Roppongi Hills’ 10th anniversary 04/25 Apps Moneytree gives Japanese consumers smarter access to their finances 04/27 Japanese microblog ‘Arrow’ lets you vent stress towards a single random stranger 04/25…

e27 Echelon Japan satellite event
e27 Echelon Japan satellite event

It was a pretty busy week for us here at SD Japan. In addition to all the regular news that we typically cover, we took a shot at some live event coverage as well. Our team is small but we’re doing our best, and we hope you like some of the results.

If you’d like to get this weekly summary plus other bonus content, we hope you’ll check out our shiny new newsletter here.

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Japan’s Mobcast partners with 13 content providers, wants to dominate sports gaming on mobile

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See also the original story in Japanese. Tokyo-based games company Mobcast announced on Monday that it has launched a sport-focused social gaming platform. The company also launched a distribution platform for Open Social-compatible apps called Mbc Connect, a payment solution for content providers called Mbc Wallet, and a knowledge base site for partnering developers. In addition to that, the company announced that it has partnered with 13 content developers including Konami Digital Entertainment, Koei Temco Games, as well as a Japanese pro baseball team. According to its financial statements for the fiscal period ending December 2012, Mobcast saw 5 billion yen (approximately $50 million) in revenue, which is 2.5 times what it was the previous year. User growth was not explosive but it did recently surpass 3 million users. We heard from Takashi Sato, the CSO (chief strategic officer) of Mobcast Inc. regarding the growth of the sports category in social gaming and their future international expansion. What differentiates the Mobcast platform from others like GREE or Mobage? We’ll be focusing on the sports category in gaming, and we want to partner with participating content providers to acquiring a userbase that loves sport. We’re hoping to work with as many companies as possible….

20130422-100818

See also the original story in Japanese.

Tokyo-based games company Mobcast announced on Monday that it has launched a sport-focused social gaming platform. The company also launched a distribution platform for Open Social-compatible apps called Mbc Connect, a payment solution for content providers called Mbc Wallet, and a knowledge base site for partnering developers.

In addition to that, the company announced that it has partnered with 13 content developers including Konami Digital Entertainment, Koei Temco Games, as well as a Japanese pro baseball team.

According to its financial statements for the fiscal period ending December 2012, Mobcast saw 5 billion yen (approximately $50 million) in revenue, which is 2.5 times what it was the previous year. User growth was not explosive but it did recently surpass 3 million users.

We heard from Takashi Sato, the CSO (chief strategic officer) of Mobcast Inc.
regarding the growth of the sports category in social gaming and their future international expansion.


What differentiates the Mobcast platform from others like GREE or Mobage?

We’ll be focusing on the sports category in gaming, and we want to partner with participating content providers to acquiring a userbase that loves sport. We’re hoping to work with as many companies as possible.

Considering your recent financials, how much potential do you think there is in the sport games market?

This category accounts for 15% of the entire gaming industry, so we need be in position to dominate the niche. I can’t disclose too much about business performance, but we’re thinking about what to do next to ensure our sustained growth.

Your company recently announced it had branched into the media business. It doesn’t account for much of your overall revenue, so why do this?

We thought it would be important to explore non-gaming services such as media, so we could acquire new users as well as the retain our existing ones. In the future, this will enhance our business channels, like e-commerce for example.

When you took over gaming company Entercrews, you spoke a bit about future international expansion, especially in the Asian region. What’s your plan?

We started overseas operations on March 28th. […] We’re seeing what difficulties are ahead for international services. We just landed in the Korean market and will start expansion to the rest of Asia very shortly. Considering that the World Cup is next year, we’re devoting ourselves to making our platform reach as many consumers as possible.

We expect to acquire 1 million users in Korea alone. To date, we’ve already acquired around 17,000 users in Korea, (just in the early phase).

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.