Why Enter the Japanese Market
Japan's gaming is dominated by two major gaming platforms, Mobage and GREE. These platforms,
unique to Japan, are social networking sites that focus on mobile social games.
What makes these two platform special is their massive number of users and their system of
monetization that brings in billons of dollars in revenue per year.
To illustrate how massive the user-base of these platforms are the lates count in 2012 poses GREE with
190+ million members while Mobage had 36 million members by the end of 2011.
The GREE platform alone houses more than 7500 games that are ready for download, each one with its own
set of virtual in-game items or Gacha which is the main sources of the game developer's revenue.
Compared to premium games wherein the developer's opportunity for earning is limited to the number of
times they update their app, Japanese social games have more opportunities for revenue through their Gacha System
The Gacha system of monetization allows for a continous flow of money by providing valuable in-game items
for certain price. Games further promote the use of these Gacha by adding the element of surprise since users
have no way of knowing what item they will receive.
This system is greatly responsible for the rapid increase of revenue in GREE and
Mobage, with 50% of their revenue coming from items gained from Gacha alone. Other
sources of revenue are the other in-game items that could be purchased in order to improve the game-play of the user.
The top two social game platform are projeted to grow bigger as the social gaming
market expands further outside Japan. towards other Western countries.
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