China First Strategy for Mobile Game Developers

“China-First” Strategy: Optimize Your Game for the

Soon-to-Be World’s Largest Mobile Games Market

William Heathershaw, Head of International Marketing, SkyMobi

Updated October 2014

Hollywood’s “China First”

Today’s Presentation

• Market Overview

• Top 10 Games in September 2014

• Largest User Segment Preferences and Trends

Market Overview

China Mobile Internet Users as % of Internet Users

Source: KPCB

1.48

3.2

8.1

1.1

3.1

7.9 77%

96% 97%

0%

20%

40%

60%

80%

100%

0

2

4

6

8

10

Jun 2013 Dec 2013 Jun 2014

Total Numbers of Devices Actively Used and Devices Used for Games

Between June 2013 and June 2014

Active Mobile Device Active Game Devices Proportion

Total Number of Active Devices and Devices Used for Games

6/13-6/14

Conversion of Users to Paid and ARPU (Android)

6.62

0.39

11.49

8.56

6.11

2.49

2.08

14.26

Casual

Puzzle

RPG

ACT

STG

SLG

Table

Card Battle

ARPU

4.25%

1.19%

2.70%

2.08%

1.60%

1.70%

3.08%

3.74%

Conversion Rate

4.45

0.48

12.59

9.99

7.89

2.26

1.73

14.42

Casual

Puzzle

RPG

ACT

STG

SLG

Table

Card Battle

ARPU

0.19%

1.45%

1.52%

0.77%

0.74%

0.71%

0.35%

1.05%

Conversion Rate

Conversion of Users to Paid and ARPU (iOS)

1st Tier cities only have 10%

of China’s population

1st Tier Cities: Beijing,

Shanghai, Guangzhou,

Shenzhen

Distribution of Active Devices in Chinese Cities

Top 10 Games in September

Fun Fest

Fighting the Landlords

Fishing Joy 3

Dark Blade

Temple Run 2

PvZ 2

Subway Surfers – Beijing Edition

PvZ All Stars

Space Hunter

Lightning 2014

Summary of Top 10

• 2 strategy

• 2 runners

• 2 fighting

• 1 match 3

• 1 STG

• 1 card battle

• 1 other casual

SkyMobi Portfolio

Dungeon Quest, ShinyBox

(ARPG)

Major Mayhem, RocketJump (Shooting)

King Pele, Cosi Productions (Sports)

Skiing Fred, Dedalord (Runner)

Battle Towers, Game Insight (Strategy)

Preferences and Trends of Gamers from

3nd Tier Cities and Lower

Game Preference

Source: Maopao appstore

Game Preference Trend

Casual

Action

Card

Racing

RPG

Adventure

Time

Source: Maopao appstore

Game Play

• Easy to learn

• Difficult to master

• Easy controls

In App Purchase

• Pass level

• Speed up play

• Customize outfits

• VIP

• Gifting

Technical Requirements

Wifi vs Cellular Network Usage for Downloads

Source: Maopao appstore

238 251

271

316

377

282 298 303

323

354

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14

AVG.RAM

AVG.ROM

Handset Performance Increasing,

but yet Relatively Low End

Source: Maopao appstore

• Maopao app platform

– 30 million MAU

– 400,000 new users daily

• Publishing– 100+ distribution partners

– 9 year operators relationships

– Use Maopao for testing before publishing

• Nasdaq-listed, Sequoia funded

developers@sky-mobi.com

Contact Us

Proudly based in Hangzhou, China

San Francisco

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Thank You! 谢谢! Ačiū