Video: https://www.youtube.com/watch?v=sib_9dRBw-c This is a presentation I gave during Casual Connect Asia 2015 in Singapore.

1. Demystifying Japan:
What Pitfalls And Chances Does The
World’s Biggest Game Market Offer?
- by Dr. Serkan Toto
(www.serkantoto.com)

2. About Me
• CEO of Tokyo-based game consultancy “Kantan Games Inc.”
• based in Japan since 2004
• MBA and PhD in economics
• hardcore gamer for 30+ years
• Japan contributor for TechCrunch.com from 2008-2012
• advisor to various game makers in the US, Europe and Asia

3. My Website On Japan’s
Gaming Industry
- www.serkantoto.com

4. Quick Status Quo Of Japan’s Mobile
Game Market In 2015

5. Mobile Gaming In Japan:
Fragmented Landscape
• about 500-700 mobile game providers in Japan
• Japan only: roughly 40 are listed, 6 are large-cap
• 20+ game platform providers (all mobile) operated by a range of
companies covering the entire spectrum (incl. adult content)
• 3 companies as platform and game provider hybrids: GREE, DeNA
and LINE
• iOS is extremely popular, Android fragmentation doesn’t exist
(Google Play is dominant)

6. Japan’s Mobile Game Ecosystem

7. Mobile Gaming In Japan:
Top 5 Myths

8. Myth 1:
“Japan Is Not That Much Different
From Korea Or China”

9. Reality: Definitely Not True

10. Reality: Definitely Not True

11. Reality: Definitely Not True

12. Myth 2:
“Japan Is The World’s Most
Lucrative Mobile Game Market”

13. Reality: Generally True

14. Reality: Generally True

15. Reality: Generally True

16. Beware Of The Duopoly

17. Beware Of The Duopoly

18. Myth 3:
“Japan’s Mobile Gamers Spend
The Most Money In The World”

19. Reality: Definitely True

20. Reality: Definitely True

21. Reality: Definitely True

22. Beware: ARPPU Is Not Evenly Distributed

23. Myth 4:
“Our Games Work Well In The US,
So We’ll Also Win In Japan”

24. Number Of Foreign-Made Titles In
Japan’s Top 100 Selling Video Games
Between 2001 and 2013
0

25. Reality: Definitely, Definitely Not True

26. Reality: Definitely, Definitely Not True

27. Reality: Definitely, Definitely Not True

28. Reality: Definitely, Definitely Not True

29. Foreign Game Makers Active In Japan
With Their Own Offices
• Supercell (Finland)
• King (UK)
• Gameloft (France)
• Gamevil/Com2uS (South
Korea)
• Happy Elements (China)
• Wooga (Germany)
• Goodgame Studios (Germany)
• Tencent (China)
• EA/Playfish (USA)
• Rovio (Finland)
• Rekoo (China)
• 6Waves (Hong Kong)
• Playtika (Israel)
• Wargaming (Belarus)

30. Myth 5:
“Localization Is Key In Japan”

31. Reality: True - To Some Extent
• Candy Crush, Clash Of Clans, Game Of War: these top apps are identical
worldwide and in Japan (apart from Japanese text)
• no real localization made: no changes in design/sound/UI, no special
Japan-only live operations or events, no country-specific monetization
techniques, etc. in these specific apps
• “localization” outside the content (customer support, marketing,
community management) should be handled the Japanese way
• warning: adding samurais or characters that “look a bit more Japanese”
to boost sales will most certainly backfire

32. Mobile Gaming In Japan:
Chances (For Smaller Developers)

33. Potential For Smaller Makers In Japan
• Japan is one of the hardest mobile game markets to break into worldwide
• even bigger developers (domestic ones included) have a hard time
generating significant sales
• if you don’t have a huge marketing budget (Machine Zone, Supercell,
King), only enter if you have:
• a great game based on an innovative core concept and/or with high
production value and/or targeting a specific niche
• a local partner/publisher
• monetization techniques generating reasonable sales even with low
user numbers

34. Niches Suitable For Foreign Mobile
Game Makers
• core games (RPGs, strategy)
• games targeted at children
• games targeted at female users
• edutainment
• casino
• etc.
and
Do consider Android in Japan, also for paid content!

35. Potential Partners For Smaller Makers
(Past And Present)

36. • certain Japanese game makers are or have been relatively open to partnerships with
foreign game developers, i.e.
• KLab
• Colopl
• gumi
• DeNA, GREE
• other options for marketing and distribution include:
• features by Apple or Google
• “alternative” platforms (see slide above) such as Mobage, GREE, LINE
• the telco app stores (even Rakuten has an Android app store now)
• app subscription plans such as KDDI’s Smart Pass or NTT Docomo’s Sugotoku
Potential Partners For Smaller Makers
(Past And Present) (2)

37. Thank you for listening!
• Twitter: @serkantoto
• LinkedIn: http://linkedin.com/in/serkantoto
• Email: serkan AT serkantoto.com