Game Issue Report 53_eng.hwp

Date July 27, 2006
Publisher
Vol.
No.
53
Content Marketing Dept
KIPA
www.software.or.kr
02)2141-5434
CONTENTS
Ⅰ. Game Issue ......................................................................... 3
1. Analysis for Main Game Enterprise
◦ NHN Corporation ·
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·3
Opportunity and Problem of Mobile Phone Market in China
<James Chen, iPark Shanghai DCC> ·
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· 15
Ⅱ.
Game Statistics ................................................................ 20
1. Ranking
A. Online Game ·
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· 20
B. Mobile Game ·
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C. PC/Console Game ·
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· 23
2. Statistical Data
◦ Market Size and Outlook of Global Online Game ·
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· 24
Game Issue
Analysis of Major Game Company
Ⅰ. Game Issue
1. Analysis for Main Game Enterprise - NHN(Next Human Network) Corporation
The NHN Corporation, having been established by integrating the search
business Naver and the game business Hangame in July 2000, registered on
KOSDAQ, and grew into the top company based on total market value among
the listed companies on KOSDAQ in March 2004 and keep the position to this
day, and also it is expected that they will show good performances during the
second half of this year as a result of its aggressive activities both in domestic
and abroad markets.
Latest Trends
○ Market Share No. 1 in the Search Service Market
• With the starting of 'Jisik In' service (knowledge providing service) in 2004,
NHN reached 70% market share and established its dominant position in the
market,
which
enabled
NHN
to
maintain
its
high
profitability
in
online
advertisement markets.
- According to the Herald Biz, it is expected that the search & advertisement
market will reach 490billions, growing by 53% compared to the previous year
, and will reach around 700billions by 2007.
- It added that the favorable tendency of NHN performance will continue since
it occupies half of the search & advertisement market which is enormously
growing every year.
○ Took over the search portal‘1noon (www.1noon.com)’(2006. 6. 30)
• The 1noon, having been established separately from Neowiz in June 2005, is
a search site in which unique ranking algorithm is applied. The algorithm
enables the site to collect information based on repetitiveness of web
documents by keywords.
• With the undertaking of 1noon, NHN gained a foothold for advance into foreign
search market by strengthening its search engine platform and enhancing
highly qualified technology manpower.
- They're targeting on Japan market and planning to provide a beta service in
Japan around the beginning of next year.
○ Good Performance in KOSDAQ
• NHN passed one trillion won in its total market value for the first time in May
3
Game Issue
Analysis of Major Game Company
2003 and surpassed 5 trillions won in April 2006, just four months since the
reaching of four trillions won in December 2005.
- Stock experts forecast it will continue to grow steadily due to its leading
position in the search markets and potential performance in the Japanese
and Chinese markets.
• It was awarded a grand prize for its excellent performance in all standards
including
transparency
in
management,
technology
capability,
export
contribution, etc. in the second Korea KOSDAQ Award on June 29, 2006.
○ Opened the Community Service ‘Hangame Story’(2006. 5. 30)
• The 'Hangame Story' is a community service which adds enjoyment elements
besides the game through sharing interesting stories related to the game,
romances, and daily lives of gamers.
• NHN said the service improves a sense of belonging among gamers and
gives joy of interaction through community activities, and they will strengthen
its position for entertainment services which can provide rest and pleasure in
a daily life.
○ Acquired 60% Share of the Game Developer Neople (2006. 4. 27)
•
To
strengthen
the
casual
game
area,
NHN
established
a
foothold
for
reinforcement of global game portal by acquiring Neople, the company which
developed <Dungeon & Fighter>, <New Baseball>, etc.
○ NHN Japan Disclosed Personal Information of 300,000 Users by Accident(2006.
6. 26)
• Personal information of 297,805 users such as ID, e-mail address and server
logging files, etc. leaked out from the server being managed and maintained
by Game Garden, the co-operating company of <Xenepic Online> which Han
Game is supplying.
- The data including members' information was saved in some parts of the
downloading
server
which
is
managed
by
Game
Garden,
so
that
the
information had been exposed just by connecting to the server using a
specific method.
• NHN reported that the exposed information did not include payment information
such as user password and credit card number, etc. and it is highly possible
the information was not handed over any third party.
4
Game Issue
Analysis of Major Game Company
Search Portal Market Share (Recent 1 year)
(source : Ranky.com)
Classification
Market Share
2006.01
66.04%
2006.02
66.82%
2006.03
66.45%
2006.04
68.83%
2006.05
69.17%
2006.06
68.94%
Naver
Visitors per day 8,602,273
Market Share
13.51%
9,048,697 8,818,228 8,759,194 8,665,412 8,749,212
13.92%
13.83%
14.19%
14.05%
14.51%
Daum
Visitors per day 2,947,682
3,194,079 3,043,796 2,696,813 2,876,456 2,993,480
7.84%
7.43%
7.84%
7.26%
6.70%
6.27%
Yahoo Market Share
Korea Visitors per day 1,672,557 1,680,601 1,666,203 1,517,279 1,410,301 1,338,131
Market Share
4.86%
4.60%
4.37%
4.28%
4.39%
4.48%
Visitors per day
954,283
941,720
864,163
826,118
846,202
875,733
Market Share
5.37%
5.01%
5.30%
3.41%
3.68%
3.65%
1,383,432 1,321,260
858,080
919,043
901,737
Empas
Nate
Visitors per day 1,377,607
5
Game Issue
Analysis of Major Game Company
NHN Sales of Recent 5 years(source
: NHN)
(Unit : one million won)
Classification
2002
Subtotal
24,260
Search
2006
2003
2004
2005
74,614
166,625
229,383
357,494
2,300
16,353
41,775
85,555
173,240
Game
13,000
33,771
77,090
87,025
92,065
Ad
7,000
18,026
33,012
34,018
58,590
E-Commerce
1,000
4,507
6,169
10,894
23,341
960
1,957
8,579
11,891
10,258
Operating Profit
5,333
30,229
65,723
75,458
131,491
207,400
Ordinary Profit
2,559
26,233
66,254
62,869
51,717
-
Net Profit
2,860
22,954
55,524
49,829
10,157
163,100
Sales
2001
The Others
(SK Estimates)
530,500
6
Game Issue
Analysis of Major Game Company
NHN Behind the Story
□ NAVER + HANGAME = NHN
• Naver was independently established as Naver.com Co., Ltd. in June 1999 from
Web Glider Team, the first venture team that present CSO of Naver, Lee Hae-Jin
had formed in 1997 while in office at Samsung SDS.
- The word Naver is a combination of [Navigate] and [-er], the suffix meaning a
person, and means an internet guide and a navigator in information flooding.
• Hangame was established by the present CEO, Kim B대m-Soo, who had been
developing a solution for PC communication Unitel in Samsung SDS, and he
planed to combine internet and game businesses.
- Hangame was named by using the character 'Han' representing Korea, hoping
that Korea would lead the online entertainment industry, and the meaning was
expanded as 'one play of game' and 'good at games'.
• The two businesses were integrated as Naver.com with search and game contents
in July 2000, and renamed as NHN in September 2001.
□ Relationship between Nexon & NHN
• It is known that CEO of Nexon, Kim Jeong-ju and CSO of Naver, Lee Hae-Jin
were alumni in the Dept. of Computer Science and Engineering, Seoul National
University and attended the KAIST Graduate School (Computer Science) together,
and they have very close relationships.
• M Play, the second-largest shareholder of NHN (5.3% share holding) is a
subsidiary of Nexon (100% share holding)
- NHN also held some shares of M Play, but Nexon acquired all the shares in
August, 2005.
• Nexon aims to invest only and doesn't want to get involved in management of
NHN, although it has a voting right of NHN.
□ NHN's Diving Force 'Jisik In'
• Knowledge search is a search system in which search and Q&A services are combined
so that contents created by online users are used as database for other users.
• The total number of DB is 46,310,224 and the number of open dictionaries has
reached 230,268 as of July 11, 2006.
• The average number of questions is about 1.2 million cases and the number of
cases replied reaches almost 2 millions on a monthly basis.
Monthly Data
Questions
Answers
2006.01
1,217,680
2,228,280
2006.02
1,214,920
1,942,920
2006.03
1,135,220
1,804,510
2006.04
996,000
1,416,300
2006.05
1,004,400
1,502,880
<Source : inews24>
7
Game Issue
Analysis of Major Game Company
Main Game Service
○ Hangame, the game portal of NHN, gained its ground through casual and web
board games that anyone can enjoy easily and simply, and continued to support
the popularity with additional services such as community, avatars, etc., and
expanded its service areas into action & RPG games, sports games, etc.
• Hangame provides 146 kinds of game services in total: 22 kinds of web games
like GoStop, Card, Board Game, etc., 10 kinds of casual games, 10 kinds of
action & RPG games, 4 kinds of sports games, 91 kinds of flash games, 7
kinds of old games, and so on.
• They made themselves the GoStop/Card/Board Game and casual games, but
started the action/RPG game services in the form of publishing in the initial
stage and gradually provided a great number of self-developed games.
- With the establishment of NHN Games exclusively in charge of developing
games in October, 2004, NHN got to have self development capacity and
made <Arc Lord>, <Gunster>, <Skid Rush>, <R2>, etc.
• Regarding their main online games, <Kwonho> and <Golf King> which opened
their formal services in July 4, are becoming commercialized, and <R2>, the
good bet of this year is under Beta testing.
- <Arc Lord>, the first MMORPG game developed by NHN itself was not very
satisfactory, but the second MMORPG <R2> is coming into the spotlight.
○ It is hard to say its game business is No. 1 in domestic markets, compared to
the search business, due to domination of Netmarble and Pmang, but most
profits of overseas markets are coming from the game business.
• In Japan, their search service failed to attract people’s attention due to name
recognition of services like Yahoo Japan which preoccupied the markets, so
they executed a new strategy focusing on a game service as their main
business.
• NHN once chose the respective representation system in which Kim Beom-Soo
CEO, the founder of Han Game took charge of the overseas business while
Choi Hui-Young CEO managed the domestic business. This was because the
advancing strategy into overseas markets grounded on the game business and
was supported by other services such as community, search and so on.
- They changed the co-representative system with two CEOs, Lee Hae-Jin and
Kim Bum-Soo of the initial stage, to the single representative system of Kim
Beom-Soo CEO in order to enhance its decision-making power due to the
leap into a global company in 2004.
8
Game Issue
Analysis of Major Game Company
- After that, as its overseas business continued to grow with performance of
Japanese corporation, they changed to the respective representation system
having each CEO in domestic and overseas businesses separately.
○ Hangame in Japan had been chosen as the Best Site of the Year in 2004 and
2005 consecutively and established its position as Japanese largest game portal.
And
Ourgame
(www.ourgame.com),
the
company
jointly
established
with
SeaRainbow Holding Corp. in 2004, became a leading company in Chinese game
portals.
• They started with Pachinko game and strengthened its community character in
Japan while providing services suitable for domestic markets, such as Mah
Jong or Chinese Janggi, etc. in China.
- It is reported that the number of users simultaneously connected to the site
from Korea, China and Japan reached 1.1 million as of June, 2006.
• They are planning to keep the top position of NHN Japan firmly in Japanese
market and make the joint-venture company Ourgame in China grow to a
global game portal beyond Asian markets. Once the inroads into American
market succeed, they will expand their services into Europe, South America, etc
and establish a global game platform on the basis of American corporation.
NHN Global Game Market Status
Classification
Korea
China
Japan
Members
24,000,000
170,000,000
16,000,000
Simultaneous
Connection
230,000
120,000
700,000
U.S.A
July 7, 2006
Service Open
9
Game Issue
Analysis of Major Game Company
HANGAME Game Portfolio
□ Web Game : GoStop/Card/Board/Casual Game, Flash Game, Classic Hangame
□ Online Game
• Kwonho<Radiogames, Partially Charged>
- Online battle fighting game in 3D action
• BOUT <N-LOG Soft, Partially Charged>
- Battle action game for children
• R2(Reign of Revolution)<NHN Games, Beta Test>
- Game with a background of the Middle Ages and castle siege is its main system
• Skid Rush<NHN Games, Beta Test>
- Featuring RPG elements such as car reinforcement, quest performance, etc. combined
with the existing racing game
• Gunster<NHN Games, Open Beta Test>
- Gun shooting game utilizing FPS game system and featuring easiness and simplicity of
casual games
• Gold Wing<NHN Games, Partially Charged>
- Real-time online flight and shooting game where SD (Super Deformation) type of
characters appear
• Age of Voyage<KOEI, Flat Fee System>
- Simulation RPG game with a background of the sea, providing a channeling service
through Netmarble
• Blitz1941<Mowel Soft, Partially Charged>
- Online streetcar game with a background of the Second World War
• Pristontale<Priston, Partially Charged>
- Real-time fighting online game in full 3D with a main story of warriors’ adventures in
the Priston Continent
• Golf King<NHN Games, Partially Charged>
- Online casual golf game developed by NHN over 2 years
10
Game Issue
Analysis of Major Game Company
Stock Price Change
○ Since the introduction of knowledge search service in 2002, NHN has gained an
absolute influence on the search markets. It is estimated that its boom will
continue because the recent internet market has been expanding, driven by
search advertisements. In addition, it is expected its aggressive activities in the
overseas markets including not only positive performance both in the Japanese
and Chinese markets but also the opening of services in America, will lead to
increase in sales.
• Despite some weak points such as fiercely increasing competition in the
domestic game portal areas and limitation on growth caused by absence of a
hit game, experts estimate NHN will hold its high market shares thanks to
expansion
of
the
accumulated
knowledge
DB,
brand
recognition,
and
preoccupation effect, etc.
• MERITZ Securities: It is expected although the growth of NHN Japan will have
been slowing down during the first and second quarters due to influences of
the seasonal slack and World Cup, the sales of NHN will increase because lots
of new games including various casual games developed by Neople are
planning to be launched from the second half of this year
• Samsung Securities: It is expected NHN has been keeping its leading position
at the banner advertisement and e-commerce markets based on its high
market shares in the search advertisement markets and its publishing business
has been enhanced, and therefore, the sales will continue to increase and
NHN will show good performances in the future as well.
NHN Stock Price Change
(Source : Yahoo Korea)
345,000
320,400
300,000
250,000
200,000
150,000
10,000
50,000
36,600
10
2002
1
2003
6
12
6
2004
12
6
2005
12
6
2006
11
Game Issue
Analysis of Major Game Company
General Status
○ Company Outline
• Company Name : NHN Co., Ltd.(www.nhncorp.com)
• Foundation Date : June 29, 1999
• Representative Director : Kim Beom-Soo, Choi Hui-Young
• Capital Stock : 7,750,398,000 won
• Total Market Value : 5,113,712,600,400 won(as of July 4, 2006)
• No. of Employees : 1,088
• Address : 25-1 Bundang Venture Bld. Jungjadong Bundanggu Sungnam
○ History
1999.06
1999.12
2000.01
2000.02
2000.04
2000.05
2000.06
2000.07
2000.08
2000.09
2000.10
2000.11
2001.04
2001.09
2002.10
2003.01
2003.03
2003.05
2003.10
2003.12
2004.01
2004.06
2004.10
2005.04
2005.07
2005.08
2006.01
2006.04
2006.06
Founded 'Naver.com'
Opened the game portal service, Hangame
Opened Naver free mail service
Opened the Naver game and card services
Opened the new electronic commerce service, Zero Market
Opened the extra-large game zone, 'Naver Plaza'
Opened the special search service for individual homepage
Combined Hangame, OneQ, Search Solution
Opened the high standard search service, 'Nexearch'
Founded Hangame Japan Corporation
Opened electronic album and photo album services
Founded Naver Japan Corporation
Opened the encyclopedia service
Formed co-representative directors(Lee Haejin, Kim Bumsu)
Changed the company name of NHN
Listed on KOADAQ
Opened Naver multilingual translation search service
Took over 'Solution Holdings', the software development company
Took over 'Kuku Communication', the operating company for automated
web-based address list management
Integrated Japanese corporation into NHN Japan
Took over 'IV Technology', the company developing mobile multimedia
technology
Took over 'Future Valley', the company developing digital contents delivery
technology
Started the single representative system of Kim Beom-Soo
Entered into the co-management of SeaRainbow Holding Corp. and Ourgame
Founded 'NHN Games', the studio for game production
Changed the representative director(respective representative: Kim
Beom-Soo, Choi Hui-Young)
Started 'Happybeen(happybeen.naver.com)', the online donation portal
Founded U.S.A Corporation(NHN USA)
Founded R&D Center in China
Opened formal services of the internet phone 'Naver Phone'
Acquired shares of Neople, the game developer
Took over '1noom(www.1noon.com)', the search portal
12
Game Issue
Analysis of Major Game Company
○ History of Representative Director
Kim Beom-Soo(1966.3.27)
1986
1992
1998
2000
2004
Now
Choi Hui-Young(1964.4.29)
Graduated Department of Industrial
Engineering, Seoul Univ.
Graduated Graduate School of
Industrial Engineering, Seoul Univ.
Samsung SDS(Unitel Planning and
Development)
Founded Hangame Communication
Co., Ltd.
NHN Joint CEO
NHN Single CEO
President of Korea Game Industry
Institute
NHN, Overseas Part CEO
1990
Graduated Department of English
Literature, Sogang Univ.
YonhapNews, Reporter
YTN, Reporter
YahooKorea, News Head
NHN, Naver Headquarter Planning
Manager
NHN, Naver Department Manager
NHN, Domestic Part CEO
1991
1995
2000
2002
2004
Now
○ Stock Distribution(as of March 31, 2006)
• Stock Holding Status of Stockholders over 5%
Common Stocks
Rank
Name
1
CRMC
949,553
2
Lee Haejin
3
M play
Total
Stocks
Quota(%)
Preferred Stocks
Subtotal
Stocks
Quota(%)
Stocks
Quota(%)
6.1
-
-
949,553
6.1
854,918
5.5
-
-
854,918
5.5
818,160
5.3
-
-
818,160
5.3
2,622,631
16.9
2,622,631
16.9
• Stockholder Distribution
Classification
Minority Stockholders
Minority Stockholders
(Corporation)
Minority Stockholders
(Individual)
Majority Stockholders
Main Stockholders
Other Stockholders
Total
Other Stockholders
(Corporation)
Other Stockholders
(Individual)
Total
Stockholders
Rate(%)
Stocks
Rate(%)
Remark
11,610
99.79
9,183,437
59.24
-
914
7.86
7,755,945
50.04
-
10,696
91.93
1,427,492
9.21
-
9
0.08
1,654,669
10.67
-
-
-
-
-
-
15
0.13
4,662,690
30.08
-
14
0.12
3,942,688
25.44
-
2
0.02
720,002
4.64
-
11,635
100.00
15,500,796
100.00
-
13
Game Issue
Analysis of Major Game Company
○ Finance Information
(Unit : one million won)
Classification
2001
2002
2003
2004
2005
Sales
24,260
74,614
166,625
229,383
357,494
Operating Profit
5,333
30,229
65,723
75,458
131,491
Ordinary Profit
2,559
26,233
66,254
62,869
51,717
Current Term Net Profit
2,860
22,954
55,524
49,829
10,157
○ Related Company Status
Related Company Shares NHN Holds
Classification
Media Web
1,000,000,000
Holding
Stocks
92,853
Search Solution
1,700,000,000
All At
Capital Stock
Quota
NHN Shares Related
Company Holds
Holding
Quota
Stocks
46.43%
-
0.00%
340,000
100.00%
-
0.00%
5,000,000,000
200,000
20.00%
-
0.00%
Net Mania
515,750,000
28,030
27.17%
-
0.00%
Zero Market
300,000,000
18,000
30.00%
-
0.00%
Future Velly
131,640,000
263,280
100.00%
-
0.00%
Digital YTN
2,000,000,000
200,000
50.00%
-
0.00%
Taekuk I&E
U-City Contents
Consortium
NHN Global
4,357,200,000
610,008
70.00%
-
0.00%
450,000,000
300,000
33.33%
-
0.00%
(USD)8,001
800,101
100.00%
-
0.00%
NHN China Technologies
(USD)150,000
-
100.00%
-
0.00%
NHN USA, Inc.
(USD)12,000,000
120,000
100.00%
-
0.00%
NHN Japan
(JPY)865,100,000
182,760
100.00%
-
0.00%
NHN Games
4,384,615,000
600,000
68.42%
-
0.00%
NHN Service
100,000,000
20,000
100.00%
-
0.00%
N3C
114,290,000
6,858
30.00%
-
0.00%
14
Game Issue
Analysis of Major Game Company
Opportunity & Problem of Mobile Phone Game in China
iPark Shanghai DCC
James Chen
([email protected])
1. Opportunity
Since Yang Lei(杨镭), the leader of LinkTone(掌上灵通) and the pioneer of market
development changed his job, the heated discussion on the survival of SP service
providers has been progressing in domestic markets. In March 2006, the competition for
survival in wireless service business started to become more fiercely. In addition, the
news on merger and acquisition between CP and SP in the industry is being heard more
often, which proves this year will be a major turning point in the wireless service industry.
“Large companies are focusing on the development of mobile games.”
Beijing
Hurray(华友世纪),
the content
provider of
information and
communication
services, announced that they would buy entire stocks of Shanghai Magma Digital, the
mobile phone game company. This is the third stock purchase by Hurray since the
second half of 2005. It shows that Hurray is focusing on the music and game business
for their entertainment services among additional wireless services.
Shanda(盛大) Network has already established the mobile phone game portal Game-V.
At the same time, Shanda has cooperated with development companies worldwide in
order to supply games to EAMINI, the mobile device of their own.
January 19 of this year, the wireless service provider LinkTone, which is the first
company listed on the NASDAQ in China, announced that they will invest 1.8 million
dollars and buy 51% share of a mobile phone game developer, Beijing Ojava(奥嘉). Ojava
is a leading developer and seller of mobile games in China. Buying Ojava shares at this
point will enable LinkTone to go into the rapid growing market and have a favorable
influence on creating a new source of profits other than the text messaging service.
Monstermob, UK's development company of ring tones and games for mobile phones
announced that they will invest about 30~35 million dollars and take over M Dream
China, the developer and seller of mobile games headquartered in Hangzhou.
The recent trend of merger and acquisition in the wireless service industry shows that
the wireless services including mobile games, etc. would be a major target for
competition in the coming 3G age.
Over recent years, the profits of service providers from text messaging business have
been steadily dropping. Even though they continue to release various services such as MMS
(Multimedia Messaging Service), Ring-back Tone Service and so on, the SP businesses in
the market which is already flooded with lots of services are losing attraction. After several
cases of market adjustment, many SP companies lost willingness to change.
15
Game Issue
Analysis of Major Game Company
Under these tough circumstances, as 3G age is coming, the mobile games are coming
into the spotlight more strongly. Large SP companies are focusing more on Kjava
applications.
“The mobile games will be the target for 3G business competition.”
As the 3G internet was used and new technology operation and data service level was
improved, the changes attracted a lot more gamers, and accordingly, demands for
mobile games have increased. Suzushin(世资询) estimated that demands for mobile
games in the market of this year will increase by 54.9%, compared to 2005.
In addition, according to the recently released report of Analysys International(易观国
际), the consulting provider of information and communication industry, online mobile
games have been gradually developing, and it is expected that the total market size of
this year will reach 1.4 billion and 41 million won, increased by 8% compared with the
previous year. This report explains mobile games make a feature of interacting at real
time by connecting to the server through the internet. The games became a potential
digital service due to the use of high quality internet, the improvement of level in digital
service experiences, the reduction of mobile expenses and the supply of intelligent
mobile phone, etc.
By the way, Is there any possibility that the promising mobile game business stops its
growth?
A related expert mentioned the development of the domestic mobile phone game
industry is facing a big challenge. The similarity and low quality in mobile games,
excessively strong control of the entire industry chain by the mobile communication
carriers and existing unfair competition both in the 2.5G communication networks and
the SP businesses themselves, etc. are the reasons that the majority of SP, especially
the small and medium-sized SP fall in financial difficulties.
However, despite above-mentioned restrictions, it is impossible to stop those who
have a favorable expectation from progressing. Compared with the text messaging
service, it is expected that operating the mobile games will significantly increase capacity
of the mobile communication carriers.
At present, with the help of multimedia, the industry is interacting more closely, and
mobile games of high quality in screen and sound are appearing largely in GPRS1). This
shows that the competition of SP will be severe as mobile games are released and
improved. This is not only an opportunity, but also a challenge. It is worth while
expecting which one dominate in this business.
1) General Packet Radio Service: 2.5 age mobile phone available for superspeed internet and visual communication,
contrary to the mobile phone available for voice call only.
16
Game Issue
Analysis of Major Game Company
2. The improvised management system(粗放式) is a potential danger of the
rapidly growing mobile games
As people become more interested in the mobile network games and more people use
mobile games, and user demands for service quality of mobile games increase
accordingly, the problem of 'improvised management system' is gradually appearing at
the back of prosperous mobile games. From the spring of this year, a lot of news on
various mobile network games has been heard continuously. As a great many of new
games are steadily released and the existing games are upgraded, people tend to enjoy
mobile games rather than simple entertainment gears. The network game using mobile
phones has become a new charming source in the current mobile game industry, and
so, many manufacturers are getting into it. The mobile network games have solved the
issue on using an illegally copied version of games. The mobile phones have more
merits than PC does like the so-called 'anytime, anywhere' feature. With the help of
multimedia and enormous investments from each manufacturer, the network games using
mobile phones have been ever rapidly developing. However, as people become more
interested in the mobile network games and the number of mobile game users increase,
and users’ demand for service and quality of mobile games increase accordingly, the
problem of 'improvised management system' is gradually appearing at the back of
prosperous mobile games.
Regarding the current management system of most mobile network games, an executive
in development and management company of mobile network games explained as follows:
Most developers don't prepare a complete plan at the developing stage of network
games. Generally, they just copy general ideas from other sources, make their plan
roughly, start quickly to implement a program, and then release their incomplete products
into the market which haven't went through any strict security test, without proper
measures for security issues. They charge user fees just after some events with
unplanned advertisements. In most cases, the number of game users significantly
decreases and positive responses sharply decline after user fees are charged. A lot more
of games are just thrown away by gamers even before the user fees are charged.
Furthermore, as the problems at the developing stage become gradually revealed, gamers
decrease accordingly. And the poor customer services make the manufacturers fail to
operate or finally recall their product and have to revise them until people totally forget
the game by a new game.
When analyzing the above-mentioned problems, we can see the problems are already
known ones. The incompletely planned and made products are recalled immediately after
releasing, and that is the biggest problem at the developing stage. They make a game in
haste and release it online quickly, and use the internal and external tests for product
marketing only, not for quality improvement of products. Even more, in case of charging
user fees without any external test, they become locked in a vicious circle of
continuously making up for the weak points of the game.
17
Game Issue
Analysis of Major Game Company
It is often the case that most mobile game providers don't have many previous
experiences in operating network games and are lack of understanding in operation. The
'Standards for Online Release' of network games specify that the providers need to have
not only qualified customer service and GM, but also procedures and measures for
solving problems raised by gamers, and they should make sure stability in connection
and the entire operation cycle of games, and have emergency procedures and measures.
When looking through one by one, currently, it is general that most game GMs carry out
two kinds of works or are in both positions. Some GMs don't have any previous
experience in the field and are not professionally trained. As for the customer service,
operating only a superficial customer board or a call center cannot be considered as a
proper service for listening to users' complaints. In case that stable and enough
measures are not prepared before releasing online, and if the server shut down with
heavy load of users, it could have a bad influence on advertising in the future.
Besides the lack of experience in operating, a fundamental cause of the improvised
management system in the current mobile game industry lies in establishing a short-term
goal.
The short-term goal means operation and development of games aiming to get
benefits in a short-term period on speculation
The mobile network game is a new business area which enormous supports are
pouring into, referring as a so-called rising 'new gold mine' or 'high-speed growth
point'. A good few people are just following the new trend blindly on speculation. Is it
possible to become a leader and obtain the gold in the mobile network game market at
this developing stage simply by copying or taking the existing games? How would be the
size of markets? How much do you think you can take from it?
Network game industry is not a manufacturing business, but a service one. More than
90% of its business begins after developing games. What kind of corporation do you
want to organize, and what type of competitive power does your team have? What is the
competitive power of the game you developed?
There is a point that many manufacturers are failing to notice when they release the
unready poor products and charge user fees for games which just start being advertised.
That is what makes the users buy your product.
In fact, many manufacturers are earnestly concentrating their efforts on studying and
developing products. They develop a high quality game by fully studying and researching
users' demands and industrial characteristics. They just fail to consider the operation
issue in many aspects so that they face several problems after releasing games.
For an ideal operation plan, the followings must be carried out.
18
Game Issue
Analysis of Major Game Company
“Enough preparation for online release”
The test should not be carried out in a hurry to meet the schedule. There has been no
case of success in such a way.
The internal test should not be neglected. It is difficult to proceed with additional
revising works of a game once gamers meet the game. There in no change to make up
any weak point any more.
Make a customer service process in the system. If the issues raised by users are not
solved and accumulated, enormous side effects could happen. Especially, in case the
problems on a board are not dealt with immediately, many visitors who see the poor
service will turn away from it.
Make a customer service team. 90% of the network games are a service work. The
level of customer service will have a direct influence on your service quality.
Scheduled update :
Your game is continuously being improved and changed. You should keep customers
interested with various new items and let them know you always strive for studying and
developing, and make them have expectation of upcoming results.
Maintain the server all the time. If you would upgrade the version of your game
irregularly, by upgrading on a regular basis from now on, you could make users familiar
to changes, and so they don't feel difficulties in connecting the server any more.
Make a presentation material explaining the upgrade. Gamers would want to know the
reasons and contents of the upgrade.
Release a perfect information process :
With the help of your marketing partner, deliver information to many users as fast as
you can.
If you're not able to upgrade your homepage, you'd better not use it. Users may think
the contents didn't exist from the beginning.
Inform any notice in advance. Gamers wouldn't like to visit again and find solutions
after any problem happens.
Conclusion: Since the entire mobile network game market is in the initial stage of
development, it will take time to grow the industry. If the development and operation
company of games pursue short-term visible profits, it will ruin trust of users in mobile
network games, and make users uninterested in the mobile network games. For a
successful network game, you should not only spend time and efforts in developing
games, but also fully recognize the importance of operation in the game business.
Operation is not marketing. The network game has more to do with services as well as
developing games.
James Chen is working as DCC(Digital Content Consultant) at Korea IT Industry Promotion Agency's
Shanghai office, iPark Shanghai, and is making his effort to export Korean contents abroad.
19
Game Statistics
Ranking
Statistical Data
Ⅱ. Game Statistics
1. Ranking
A. Online Games
1) Survey Results from [Rankey.com]
○ Survey Period: June 25 - July 1
○ Survey Method: The number of visitors to the webpage per hour was collected with the use of
Navvy, a ranking program software
○ Sample Size: 60,000 panels among Navvy users, selected in accordance with the population
component ratio
(collection date : July 7, 2006)
Rank
Game Title
Market Share
Average Number of Visitors per day
1
Freestyle
19.72%
233,267
2
Dungeon & Fighter
12.67%
159,197
3
Mabinogi
9.35%
134,849
4
▲1
Yul-Hyul-Kang-Ho Online
5.99%
108,910
5
▲1
Rohan
5.62%
77,348
6
▲1
Ghost
5.53%
113,201
7
▼3
Sun Online
5.22%
83,062
8
Lineage 2 /NC Soft
3.77%
57,891
9
World of War Craft
3.35%
58,651
10
Lineage /NC Soft
3.31%
60,869
Source: Ranke (www.rankey.com)
20
Game Statistics
Ranking
Statistical Data
2) Survey Results from Gametrics
ᄋ Survey Period: June 30 ~ June 6
ᄋ Survey Method: The actual hours for which users play games in Internet cafes were measured.
ᄋ Sample Size: Selecting 1,300 out of 20,000 Internet cafes in Korea, in accordance with the ratio
of each region
(Confidence Level : 95%, Sampling Error : ±4.71%)
Rank
(Collection Date : July 7, 2006)
Game Title
Share (%)
Total time used
(Hour)
Time used per
Commercial
PC cafe(Min.)
1
[ - ]
Special Force
11.91%
606,686
1,994
Commercial
2
[ - ]
Starcraft
8.72%
444,257
1,295
Commercial
3
[▲2]
FIFA Online
8.63%
439,758
1,418
Beta
4
[▼1]
Lineage 2
6.69%
340,807
1,203
Commercial
5
[▼1]
Lineage
6.21%
316,492
1,083
Commercial
6
[ - ]
World of Warcraft
6.08%
309,918
1,165
Commercial
7
[ - ]
Sudden Attack
5.89%
299,929
967
Beta
8
[ - ]
War Craft 3
4.38%
223,272
927
Commercial
9
[ - ]
Kartrider
3.69%
187,822
575
Commercial
10
[ - ]
Sun Online
3.51%
178,886
740
Beta
Source : www.gametrics.com
3) Survey Results from Metrix Corp.
ᄋ Survey Period: June 26 ~ July 2
ᄋ Survey Method: The number of visitors were collected by installing PcMeter™, Metrix's log
tracking software, in the panelists' PCs and trace the path on the Internet.
ᄋ Sample Size: 12,500 panelists were selected among those who meet sample requirements
by using the Random Digit Dial(RDD) method to place random calls in order to request
participation in the survey.
(Collection Date : July 7, 2006)
Rank
Web site
No.of Reach No. of
Visitors (%) Visited
(1000)
Days
Visits
(1000)
No. of
Page
Views
(1000)
Per Person
Per Visit
No. of
No. of
No. of
Page Stay Time Page Stay Time
Visits
Views
Views
1
netmarble.net
3,476
12.9
3.1 23,249 146,659
6
42 32:20:00
6.3
4:50
2
nexon.com
4,126
15.3
2.5 18,984 121,455
4
29
22:32
6.4
4:53
3
hangame.com
2,959
11
3 16,061 304,903
5
103
2:05:42
19
23:09
4
mgame.com
825
3.1
2.8
4,441
35,963
5
43 28:55:00
8.1
5:22
5
playforum.net
786
2.9
2.8
4,450
72,551
5
92 50:16:00
16.3
8:52
6
d-fighter.com
593
2.2
2.9
3,888
38,079
6
64 40:20:00
9.8
6:09
7
mabinogi.com
407
1.5
2.4
1,538
15,280
3
37 25:50:00
9.9
6:50
8
gamemeca.com
419
1.6
1.8
1,619
17,539
3
41 24:04:00
10.8
6:13
9
inven.co.kr
310
1.2
2.3
1,095
32,168
3
1:00:28
29.4
17:07
169
0.6
3.9
1,284
10,196
7
60 29:17:00
7.9
3:51
10 fighterforum.com
103
Source: www.metrixcorp.com
21
Game Statistics
Ranking
Statistical Data
B. Mobile Game
1) By Telco
(Collection Date :July 7, 2006)
Rank
KTF
LGT
1
2
3
4
5
6
7
8
9
10
Super Action Hero(W)
Super Action Hero
Imo
Come2Us Soccer 2006(W)
Epic Chronicle2(W)
Come2Us Soccer 2006
Superman Returns(W)
Mini Game Paradise(W)
Nom2(W)
Epic Chronicle2
Com2Us Soccer 2006
Dragon Heart
Superman Returns
New Matgo 2006
SamgukJangpae
Cross Destiny
Hero Lore-Ian
Master of Mini Games
Pirate King 2006
Kartrider Puki
A) KTF
(Collection Date :July 7, 2006)
Rank
Game Title
Developer
Genre
Release
Date
1
Come2Us
Come2Us
Come2Us
Come2Us
7
Super Action Hero(W)
Super Action Hero
Imo(W)
Com2us Soccer 2006(W)
Epic Chronicle2(W)
Com2us Soccer 2006
Superman Returns(W)
8
Master of Mini Games(W)
Come2Us
GNC
Come2Us
9
Nom2(W)
Epic Chronicle2
Nexonmobile
Adventure/RPG
Adventure/RPG
Adventure/RPG
Sports
Action/Arcade
Sports
Action/Arcade
Action/Arcade
Action/Arcade
Adventure/RPG
2006.06
2006.06
2006.05
2006.03
2006.06
2006.03
2006.06
2005.08
2005.07
2006.06
2
3
4
5
6
10
Nexonmobile
Gamevil
*(W): WIPI
Cost
Phone Fee
Program (Download) Total
2,500
2,500
0
2,500
3,000
2,500
2,500
2,500
2,500
3,000
1,260
1,550
1,105
1,865
3,110
2,120
3,380
1,850
1,410
2,020
3,760
4,050
1,105
4,365
6,110
4,620
5,880
4,350
3,910
5,020
No. of
Downlo
ads
21,787
13,272
11,231
8,302
5,590
5,438
5,414
4,540
3,723
3,394
Source: http://www.magicn.com/ Weekly Game Ranking
B) LGT
(Collection Date :July 7, 2006)
Cost (Unit: won)
Rank
Game Title
Developer
Genre
Release Date
Program
1
Come2Us Soccer 2006
2
Dragon Heart
3
Superman Returns
4
New Matgo 2006
Samgukjangpae
Cross Destiny
Hero Lore-Ian
5
6
7
8
9
10
Come2Us
Fundory
GNC
Joy Mobile
Gamevil
Ensony
Enfoma Korea
Sports
Adventure/RPG
Action/Arcade
Board
Adventure/RPG
Adventure/RPG
Adventure/RPG
Master of Mini Games Wiz Communication Quiz/Puzzle/Board
Adventure/RPG
Pirate King 2006
Entaz
Cheezecake Production Quiz/Puzzle/Board
Kartrider Puki
2006.03
2006.06
2006.06
2005.09
2006.06
2006.05
2006.05
2006.05
2006.06
2006.05
2,500
2,500
2,500
2,000
2,000
2,500
2,000
2,500
2,500
2,000
Phone Fee
(Download)
1,630
4,500
3,340
1,000
2,405
1,330
2,565
870
3,655
655
Total
4,130
7,000
5,840
3,000
4,405
3,830
4,565
3,370
6,155
2,655
Source: LG Telecom e-zi Weekly Game Ranking
22
Game Statistics
Ranking
Statistical Data
C. PC/Console Games
1st week of July(collection date: July 7, 2006 )
Rank
Game
Title
Game Title
Prince of Persia 3: The Two Thrones
Distributor
Intralinks
1
new
PC
2
▼1
PS2
Winning Eleven 10
Uniana
3
-
PSP
Gitaroo Man Lives
EA Korea
4
▲2
PC
2006 Fifa Worldcup
EA Korea
5
▼1
PSP
Winning Eleven 9 Ubiquitous Evolution
Uniana
6
▼4
PS2
7
▲1
PSP
8
▲2
PSP
9
new
PC
10
▲3
PS2
Prince of Persia 3: The Two Thrones
11
new
PS2
Ghost Rekon: Advanced Warfighter
12
▼1
PS2
13
▼1
XBox360
14
new
15
Valkyrie Profile 2 -Silmeria2006 Fifa Worldcup
Narutimate Portable
Heroes of Might and Magic 5
Samurai Warriors 2
SCEK
EA Korea
Bandai Korea
Intralinks
Intralinks
Blue Interactive
KOEI Korea
N3 (Ninety Nine Nights)
Microsoft
PSP
MLB06 the show
SCEK
-
PSP
DJ Max Portable
Pentavision
16
new
PSP
Dragonball Z Sparking!
Bandai Korea
17
▼10
XBox360
TOP SPIN 2
CJ Joycube
18
new
PC
19
-
PSP
20
▼4
XBox360
Sims 2 Expansion: Open for Business
Fight Night Round 3
Call of Duty 2 (Korean Version)
EA Korea
EA Korea
CSR Entertainment
Source : B&T Entertainment (http://www.game21.co.kr)
23
Game Statistics
Ranking Statistical Data
2. Statistical Data
Market Size and Outlook of Global Online Game(2001~2011)
* Source : DFC Intelligence(2006.06)
The size of global online game markets will grow by 287%, from 3.4 billion dollars in 2006
to 13.1 billion dollars in 2011, and in the market share of online games by the PC and
console platforms, even though the PC platform took up about 95%, it is estimated the ratio
between the PC and console platforms will be 75:25 by 2011.
Market Size and Outlook of Global Online Game
14,000
PC
Console
12,000
3,272
2,861
10,000
2,321
8,000
1,528
6,000
809
482
4,000
5
587
18
810
64
1,388
133
2,069
3,185
4,050
2001
2002
2003
2004
2005
2006
2,000
0
(mil)
6,812
211
7,871
8,934
9,874
5,098
2007
2008
2009
2010
2011
(in millions)
year
PC
Console
Total
PC:Console
2001
587
5
592
99:1
2002
810
18
828
98:2
2003
1,388
64
1,452
96:4
2004
2,069
133
2,202
94:6
2005
3,185
211
3,396
94:6
2006
4,050
482
4,532
89:11
2007
5,098
809
5,907
86:14
2008
6,812
1,528
8,340
82:18
2009
7,871
2,321
10,192
77:23
2010
8,934
2,861
11,795
76:24
2011
9,874
3,272
13,146
75:25
24
Game Statistics
Ranking Statistical Data
Market Size and Outlook of Online Game in North America
5,000
4,500
PC
Console
4,000
3,500
3,000
2,500
2,000
1,500
1,000
1,811
1,558
1,303
824
447
500
0
3
154
10
217
37
403
79
605
(mil)
2001
2002
2003
2004
143
278
892
1,161
1,453
2005
2006
2007
2,360
2,684
2,902
2,053
2008
2009
2010
2011
(in millions)
year
2001
2002
2003
2004
2005
2006
PC
154
217
403
605
892
1,161
Console
3
10
37
79
143
278
Total
156
227
440
684
1,035
1,439
year
2007
2008
2009
2010
2011
PC
1,453
2,053
2,360
2,684
2,902
Console
447
824
1,303
1,558
1,811
Total
1,900
2,877
3,663
4,242
4,714
Market Size and Outlook of Online Game in Europe
3,500
PC
Console
3,000
2,500
829
721
2,000
510
1,500
356
1,000
500
0
(mil)
0
36
2001
0
60
5
105
2002
2003
142
14
183
28
337
78
572
741
2004
2005
2006
2007
1,290
1,511
2008
2009
1,798
2010
2,058
2011
(in millions)
year
2001
2002
2003
2004
2005
2006
PC
36
60
105
183
337
572
Console
0
0
5
14
28
78
Total
36
60
110
197
365
651
year
2007
2008
2009
2010
2011
PC
741
1,290
1,511
1,798
2,058
Console
142
356
510
721
829
Total
883
1,646
2,021
2,519
2,888
25
Game Statistics
Ranking Statistical Data
Market Size and Outlook of Online Game in Japan
1600
PC
1400
Console
1200
552
511
1000
456
800
314
600
198
400
200
0
(mil)
2
4
2001
8
20
17
52
2002
2003
32
114
151
251
340
92
2004
2005
2006
2007
34
564
2008
676
2009
808
902
2010
2011
(in millions)
year
2001
2002
2003
2004
2005
2006
PC
Console
2
8
17
34
32
114
4
20
52
92
151
251
Total
6
28
69
126
183
365
year
2007
2008
2009
2010
2011
PC
340
564
676
808
902
Console
198
314
456
511
552
Total
538
878
1,133
1,319
1,454
Market Size and Outlook of Online Game in Asia
4500
PC
4000
Console
79
70
3500
52
3000
34
21
2500
2000
8
12
1500
5
1000
0
500
0
(mil)
0
393
513
2001
2002
829
2003
7
1,805
2,066
2005
2006
2,565
2,906
3,323
3,644
4,012
1,189
2004
2007
2008
2009
2010
2011
(in millions)
year
2001
2002
2003
2004
2005
2006
PC
393
513
829
1,189
1,805
2,066
Console
0
0
5
7
8
12
Total
393
513
834
1,195
1,813
2,079
year
2007
2008
2009
2010
2011
PC
2,565
2,906
3,323
3,644
4,012
Console
21
34
52
70
79
Total
2,586
2,940
3,375
3,714
4,090
26
Game Statistics
Ranking Statistical Data
Global PC-Based Market Size and Outlook of Online Game
(in millions)
year
North America
Europe
Japan
Asia
Total
2001
154
36
4
393
587
2002
217
60
20
513
810
2003
403
105
52
829
1,388
2004
605
183
92
1,189
2,069
2005
892
337
151
1,805
3,185
2006
1,161
572
251
2,066
4,050
2007
1,453
741
340
2,565
5,098
2008
2,053
1,290
564
2,906
6,812
2009
2,360
1,511
676
3,323
7,871
2010
2,684
1,798
808
3,644
8,934
2011
2,902
2,058
902
4,012
9,874
<2005 Percentage per Area>
<2011 Percentage per Area>
27
Ranking Statistical Data
Game Statistics
Global Console-Based Market Size and Outlook of Online Game
(in millions)
year
North America
Europe
Japan
Asia
Total
2001
3
0
2
0
5
2002
10
0
8
0
18
2003
37
5
17
5
64
2004
79
14
34
7
133
2005
143
28
32
8
211
2006
278
78
114
12
482
2007
447
142
198
21
809
2008
824
356
314
34
1,528
2009
1,303
510
456
52
2,321
2010
1,558
721
511
70
2,861
2011
1,811
829
552
79
3,272
<2005 Percentage per Area>
<2011 Percentage per Area>
28