GREE Experience: How to Make a Successful Social Game

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

Why are social games so successful in Japan?

There are many social functions in Japanese games. For example, in the US mobile gaming market, these functions boil down, as a rule, to gift cards, sharing resources, and adding friends. The 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 stimulates players to fight in virtual spaces together with friends, and accordingly, to pay money.

Are there any differences between Japanese and Western players?
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I believe that there are no differences as such; they are similar. The difference is only in features, the players themselves are no different. Again, I repeat, 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 the American ones?

Yes. And this fact was confirmed by the launch of Zombie Jombie. If you compare it with other Japanese projects, the game is quite simple, but at the same time it brings more money than most games in the US.

And if specifically, how much more?

8-10 times. Specific numbers will not be called. ( from the editors: the company’s sales in the quarter are $ 500 million, its top 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 significantly less differences between payment schemes. Players can easily pay for purchases through the operator, while entering any information from a credit card is not required. Everything is very simple.

Is there a difference in the amount of transactions?

It is almost none. Between games with the same mechanics, the difference in the amount of transactions between the Japanese and American markets differs slightly. Although, depending on which countries. For example, between the United States, Canada and Australia, in principle, there is none.

That is, it turns out that the average total profit per consumer for 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 American market. What do you think about this?

I understand them perfectly. Despite the fact that the Japanese market continues to grow, the main players on it have long been defined. 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 rates are much higher and where there is still room.

And how can this turn 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 fast 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 a possible ban on real money gambling projects in Japan and the USA?

While I am not ready to comment on the company's opinion on this matter. Whatever law is adopted, in any case we will adhere to its norms.

What are you planning to achieve in the US market?

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

High bar.

We have already achieved great success. For example, last weekend at the box office top 30 or 40 on iOS, we had three or four projects. It is unlikely that any company can boast 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.