Wednesday, February 8, 2012

3 Things You May Not Know About Mobile Social Games

I heard this remark recently, "Are Mobile Games Aladdin's Treasure Trove?" Is there a huge market potential in how mobile games are being reinvented or made "social"? Are the key market players laughing their way to the bank? With these questions in mind, here is now my introduction on the 3 things you may not know about the new uptrending market potential in mobile social games.


(1) What are mobile social games?
Mobile Social Games are multiplayer mobile games which are played on smartphones and tablets. These games are played in its own gaming social networks. Examples: Gree from Japan.

Its close relative "Online Social Games", are multiplayer online games which are played in social networks like Facebook. Example: Zynga.

Whereas, MMO games or "Massively multiplayer online" games refer more heavy loading games (graphics intensive and thousands of simultaneous online game play) and are played on PC or console, availed via retail or digital download. Example here would be Activision Blizzard games.

(2) Who are the key players in mobile social games?

When people mention "social games", Facebook games and Zynga come to mind, apparently owning the category in most parts of the world. Zynga has come to dominate the Online Social Games market which is played on the PC online platform. Other noteworthy market players in this space include Playfish (owned by EA) and Playdom (owned by Disney).

However, one should not forget the growing mobile social games market which is growing huge, especially in Asia (China, Korea, Japan). Big players here include Gree and DeNA from Japan.

(3) What is the market for mobile social games?
One word - HUGE! Did we not hear that 12% of Facebook revenues are accounted for by Zynga Facebook games? And there are various other market stats like:

Worldwide social gaming market are set to grow from ~USD 6 billion in 2012 to ~8.6 billion in 2014 (the non-facebook games revenue out-stripping the facebook games revenues by more than 50%).

40% of worldwide social gaming revenues will come from Asia, given that Asians are more status conscious, and will purchase more avatars or in-game items to better represent themselves.

Zynga made US $300M in a quarter in 2011 via PC online social games whilst Gree made US $400M in the same quarter.

The social gaming space, especially the mobile social gaming market, is really hotting up - all the more relevant in Asia where social networks and mobile penetration is outgrowing that of the rest of the world.

What is your take on the mobile social games market?

Talk soon on this,
Nelson Wee
Twitter: @nelsonwee

1 comment:

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