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Federation News
SUBJECT Smart Phone Games change the game industry rapidly DATE 2011-11-17

On 2nd of Nov, the magnates for mobile games gathered at COEX in Seoul, Korea, and put their opinions into perspective at the “Smart Content 2011”, an international conference event. The session was conducted with the subject of “the change of game industry derived by game apps”. Martin Noyong,the Chairman of IMGA (International Mobile Gaming Awards) presided at the session, and Chris James the CEO of Pocket Gamer, Se Wook Oh from Gamevil, and Lee Ing from Tencent participated as presenters.
  Chris James, as the first presenter, defined his opinion about the reshuffle of game market derived from change of game distribution flow with appearance of app store. He claimed, “After the appearance of App Store, developers turned to have more choices, and this brought rapid growth of smart phone game market.” As the role of “gate keeper”, which the license issuing companies or related organizations used to take in the past, has downsized, the chance for small developing company to advance directly into the market has increased, and it brought even more support for merchandizing outstanding ideas.
  He prospected that, as number of female gamers’ involvement grows with increase of social games’ portion, contents purchase per individual also increases, and will increase at 50% of total app sales till 2015. However, he also pointed that not every app brings income to game developing company even though the number of apps keeps increasing, and more than 50% of apps bring in less than $3,000 of income. Also, he said, “more various strategies are demanded to change gamers’ response as positive, such as discount or free purchase event, and brand marketing.” Besides, he also prospected several new trends of smart phone game market: Power of major publishers will increase as they avert their attention on the smart phone game market. Tablet market will be nothing to sneeze. Premium market with high price and high quality will expand. The choice of partial charge model will be diversified. There will be more app stores. Window mobile phone will have public confidence. Smart phone game market will grow as smart phone market grows.
  Lee Ing from Tencent, the second presenter, threw presentation on the status of smart phone market in China. Recent status of mobile market in China for past two years is recording positive achievement exceeding average growth rate of total market, but monthly income of major user group is mostly not even over 3,000 CNY. The price of a game application in Chinese mobile market is mostly around 2 to 6 CNY, and the data usage plan is also relatively expensive, which is 15 CNY/300mb. Due to these causes, high capacity games have trouble with getting popular. As following the global trend, social network games gradually become more preferred. For the platform, android is more preferred by people who spend more money on games. As the reason for it, Lee defined, “In China, text service system, that users send SNS text message to the service provider and pay the bill at the end of the month, is near 60%. However, in case of iOS, since it requires credit card, it is quite inconvenience.” In accordance with this issue, he said it is necessary to adopt payment method matched well with Chinese market.
  As the last presenter, Se Wook Oh from Gasmevil introduced “the difference of settlement method between partial charging games and premium games. He said, “There is gap between partial charging game and premium game as 65:35. However, since both games have both strength and weakness, we provide both and make the customers make a choice.” Recently, partial charging games adopted by a lot of companies including Gamevil extend its strategy to create profit, such as not only old method inducing clicking the bar with the advertisement, but also full page or video advertisement when the game starts. Since gamers can obtain game points when they click the advertisement, it is win-win strategy both for gamers and the company. Also, he prospected that this method will keep increasing at the 10 times of scale until 2015.
Besides, premium policy often shown at old mobile games is suitable to provide high quality, which is hardly seen from partial charging games. He said that it will satisfy the gamers who want remake version of old school games or games of console style by one time payment with no additional payment.
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