find the right partner & managing expectations | amy huang-lee
TRANSCRIPT
Amy HuangNetEase
Capital
Finding the Right Partner and Managing Expectations
Consolidation - Top 20 grossing games dominated by 10 publishers*
- ~340M USD generated by top 20 games in June 2016 (~60% of total iOS market)
- Monthly revenue ranges from 60M US to 7M US /game- NetEase and Tencent taking away over 70% of the top 20
revenue- Genres dominated by 50% MMORPG or MMOARPG games, 25% card battle games
Sky high production and marketing costs - $5-10M production cost /game, developed under 12 months- Big IP attached, from PC games, Japanese anime, or TV series- Huge marketing budget
Current market in China
*June 2016 China iOS Appstore data
1-2M 2-2.5M 2.5-3M 3-5M >5M0
1
2
3
4
5
6
7
8
9
OthersMOBAMMORPGARPGSLGCard battle
Monthly Gross Revenue (M US$)
9
3
43
1
Only 20 independent games made into top 50 grossing in 2015
Compared to 39 games by independents in 2014
1-1.5M 1.5-3M 3-5M 8M* 30M**02468
101214161820
City builderFPSAutoplayMMORPGARPGCasualCard battle
18
11
8
1 1
Monthly Gross Revenue (M US$)
7 games
1 game
1 game
• Clash of Clans (SC)• Hearthstone (NetEase)• Boom Beach (SC)• Plants vs Zombies (EA)• SimCity (EA)• Dungeon Hunter (Gameloft)
•Million Arthur (NetEase)
•Summoner’s War (Com2us)
Only 9 non-Chinese games made into top 50 grossing in 2015
#1 #3 #3 #6#5 #15 #15
#17 #18 #19 #21 #23 #27 #29
#31 #36 #36 #41 #44 #45 #49 #50
#13 #18 #21 #32
22 games
4 games
#8 #46#93 games
Compared to 29 games in 2014
Opportunities for independent studios
IP building - For studios with existing self-developed original IP with loyal audience- Find partners with expertise in new markets and platforms to build the IP franchise
Publisher financed games- Mature, experienced studios with robust game engines, solid game design, and timely execution capabilities- Find publisher with strong IP and create partnership; or find IP and pitch to publisher
Build your value proposition
Core expertise- Be focused in your game development, build expertise in a genre and continue to grow that expertise
Proven metrics - Build complete system (social, meta, economy), prove your metrics- Find the publishing partner with know-how in your game genre
Do the math- Build realistic financial models- Align expectations- Show me the ROI!
We continue to invest and build value
-Mobile attribution, aggregation, and analytics company - Helping mobile advertisers optimize their marketing spend and get better ROI, all in one platform
- Ad network company that started out in SE Asia market, and now expanding rapidly into the global market - Successful IPO in China in 2015 with 1B US market cap- Acquired GameAnalytics and NativeX
- Top console team raised millions through crowd funding, building cross-platform global IP franchise through investors and partners- Independent mobile producer launching sequel to his successful original IP game- Top mobile studio building sports game franchise- AAA PC studio building original IP and receiving multiple offers to develop for other platforms
AnalyticsAd Tech/Publishing
Game Developers
