GREE experience: how to make a successful social game

Last week, Eiji Araki, vice president of GREE, told Inside Mobile Apps about how you can earn $ 26 million per month on a game. He shared his hypothesis why social games are popular in Japan, and how similar popularity can be achieved in the American market. We translated his interview for Russian developers of mobile games on App2Top.ru and made a special version for Habr.

Why are social games so successful in Japan?

Japanese games have many social features. For example, in the American market for mobile games, these functions come down, as a rule, to gift cards, sharing resources, and adding friends. Japanese games in this regard provide significantly more opportunities: players can compete or cooperate with each other to achieve a common goal. Deep social integration just encourages players to fight in virtual spaces with friends, and, accordingly, pay money.

Are there differences between Japanese and Western players?

I believe that there are no differences, as such, they are similar. The difference is only in features, the players themselves are no different. Once again, in terms of social integration, Japanese mobile-social games are more advanced.

That is, it turns out that the monetization of Japanese games is done better than American?

Yes. And this fact confirmed the launch of Zombie Jombie. Compared with other Japanese projects, the game is quite simple, but at the same time it brings more money than most games in the American store.

And specifically, how much more?

8-10 times. I will not name specific numbers. ( from the editors: the company's sales per quarter are $ 500 million, its top- level projects in the homeland earn more than $ 26 million per month )

What do you think about the differences in the level of conversion between Japanese and Western players?

As for the Japanese market, there are much fewer differences between payment schemes. Players can freely pay for purchases through the operator, while entering any information from a credit card is not required. Everything is extremely simple.

Is there a difference in transaction size?

It is almost nonexistent. Between games with the same mechanics, the difference in the size of transactions between the Japanese and American markets differs slightly. Although, depending on which countries. For example, between the USA, Canada and Australia, in principle, it is not.

That is, it turns out that the average total profit from the consumer for the duration of the game (lifetime value) is also the same?

Not really, it just depends on the country as well. Although, the genre of the game is also important.

Now some social companies, including Gloops and KLab, are beginning to expand into the US market. What do you think about this?

I understand them perfectly. Despite the fact that the Japanese market continues to grow, the main players in it have long been identified. Only for GREE about 40% of the Japanese market. For this reason, many not so large companies are interested in entering the world market, whose growth rate is much higher, and where else there is a place.

And what can this turn out for GREE in terms of competition?

I think an interesting rivalry. In addition, the arrival of new players will increase the size of the market, expand it.

Healthy competition - yes. But the arrival of large market players can hurt small companies. Do you think this will lead to mergers and acquisitions and how quickly can this be expected?

In my opinion, in a couple of years, two or three successful large companies will remain on the market.

How do you feel about the possible ban in Japan and the USA of gambling projects for real money?

While I am not ready to comment on the opinion of the company in this regard. Whatever the law, we will adhere to its norms in any case.

What do you plan to achieve in the American market?

Our global goal is to create a platform that will be used by 1 billion users. Speaking specifically about the United States, then in the American market we plan to become a social gaming studio No. 1.

High bar.

We have already achieved great success. For example, last weekend in a cash top 30 or 40 on iOS, we had three or four projects. It is unlikely that any company can boast of the same results in the US market.

Who can you attribute to your competitors in North America? DeNA, Zynga, who else?

DeNA, Zynga and some young teams. There are also companies like EA, which sometimes produce good projects. To be honest, we are competing with everyone.