BITKRAFT Summit LA 2020 | Jeff Chau on The Promise Of Mobile Esports

we started the day talking about some of the catalysts around eSports and one of them one of the big ones is mobile eSports and it's certainly something that we've seen take off in a big big way in Asia and still is early in making its way here and we're very lucky today to have Jeff Chow with us speak about this Jeff is uh probably the most outspoken guy on the potential of mobile eSports and he's bringing a lot of expertise from on the ground experience from Asia he's CEO of a mobile social eSports app called game gather he may say something about that I'll leave that to him but he's also involved with several of the top eSports teams on their mobile eSports initiatives including the Immortals TSM Team Liquid and he's also been a caster so he's worked with Tencent on their mobile esports productions you've been a

coach I think and a pro player so this guy's he's done it all in eSports so please welcome Jeff Joe all right this is a topic I'm very very excited about before I kind of kick off I want to talk about where we are eSports as you know PC started because online multiplayer was basically the catalyst was broadband internet PC bongs which gave birth to PC eSports so what we're seeing now is a phone is a PC in your pocket and online multiplayer core multiplayer gaming has now reached the smart forum and before I kind of introduced my background I just want to show you this video of the mobile eSports event in China here in Wuhan in 2019 [Music] [Applause]

[Music] [Applause] [Music] so like Scott said I was a pro player and I competed all over the world in the US these people that play on their smartphones they are literally rockstars I mean who'da thought if you guys listen like we're watching someone play a mobile game on a smartphone and they're getting paid six figures Plus that is the life right there in China and this is a 1500 seat stadium in Wuhan the kpo sells out the stadiums from 15,000 to 18,000 seats consistently tickets go from $20 at the upper seats to $50 at the closer seats

and the VIP tickets can go up to $2,000 because it's a it's a kind of bidding system yeah so it's amazing to see the growth of mobile eSports it's not something that's known in the West but it has its growing everywhere outside of the West Brazil Southeast Asia China and I'll talk about the numbers and what's really driving this phenomenon that has happened literally within the past few years a little bit of about my background I co-founded a mobile eSports org hammers eSports I was a professional player I was a mobile streamer I also worked on mobile initiatives with Team Liquid where I helped field it and lead a team to compete at Tencent arena valor Asia international competition in South Korea I also was a competitor thing for immortals I also became their GM and head of mobile and currently I'm working with TSM which is which is not announced but I'm working with them on helping them enter eSports in India and Brazil which teamliquid has just entered

recently announced their free fire squad I also talked a lot about mobile and why it's happening there's a lot to understand why this is an eSport basically the traditional sports people that complain about PC eSports and saying that's not a real sport have now become the new boomers where they start talking about mobile eSports is not real eSports or not real gaming and it's very interesting to see that kind of trend happen here as a new generation a new phenomenal kind of takes hold in the eSports industry so let's start with this chart you can see mobile in 2011 group bigger than pc and council 25 billion dollars in 2011 estimated to grow now up to 80 billion dollars and now a lot of what is driving the growth it's not the candy crush's that you see the candy crush always gets brought out when I talk with mobile it hits 550 million monthly active players in June of 2014 today candy crush is sitting around 250 million monthly active users what's

driving a lot of the growth in mobile gaming is core games a hundred forty games make over a hundred million dollars and the ones that make a billion dollars or all the mobile eSports titles like honor of Kings that I just showed you pop G mobile free fire which I'll go into more detail and the interesting thing is even though 82% of all mobile game Donald's or casual games we get it it's big 56% the time spent on mobile gaming or these core games multiplayer games right and 76% of the spending our core games and these action multiplayer games have been taking up a large piece of the pie so now a pani has released their kind of state of mobile for 2020 and they have a much more aggressive prediction they're saying that Mobile's gonna be a hundred billion dollar industry this year that's kind of insane that means it's more than PC and console combined and already as of 2019 it's 25% bigger than all other gaming put together so mobile is a massive massive

trend and the main point that I want to talk about today is it just takes one game one game is what will change and introduce eSports to a platform like Starcraft counter-strike go League of Legends did for PC there are some amazing games on mobile that now have become eSports and made some people pretty pretty wealthy and you can see gooeyness valuation has increased because of that one game you can see the amount of revenue that has increased amount of money they made almost ten percent of those users now are paying users which is very very high for any mobile gaming company and they're also one of the top performing stocks you compare them the Apple all the other tech companies all the other game companies garena was the top performing tech gaming stock of last year growing at 255 percent and there's humble beginnings every eSport starts as a very humble beginning I just talked to someone that is from Club G but pub G is extremely popular

pub g pc specifically is extremely popular in Vietnam people think mobile eSports is because they don't have access to PC that's that's some of the reasons but a lot of these countries have thousands of PC bongs so Vietnam has thousands Indonesia tens of thousands China two hundred thousand PC cafes Korea twenty thousand PC bongs fifteen thousand now a lot of these studios have been inspired by the PC success of the game so pub G the largest streamer actually on YouTube is from Vietnam called mixi gaming he streams pub GPC he gets around sixty to seventy thousand average concurrent viewers and him alone had more hours watch than the entire overwatch League that's how popular pub GP sings in Vietnamese but the main the main story line that I want to tell you guys is because pub GPC was so popular these passionate people that love pub G wanted to bring this experience on mobile so garena here the very early version or a sorry free fire was made by 111 dot studio which Kareena

picked out is before there's any garena branding I looked into the history I know some developers based in Vietnam and there are a very small independent studio apparently we don't know when green oh if green either funded them or self developed them but because they found this talent right they made the game was one versus nineteen the hardware back then what didn't really support you know you know hundred people into a game was just literally a free-for-all which is called free fire and then from there a garena took over helping with distribution and they became a billion-dollar or hit what if you invested in Garino right what if your fun invested in that game early that studio you'll probably turn your entire fund so now what we do is see in mobile right it's growing in the number of gamers across the entire spectrum like PC is growing council is growing but mobile specifically is growing a lot in the hardcore segment which is online multiplayer gaming and in the past three years these multiplayer action games like honor of Kings have started to dominate

and appear on the top ten revenue charts you can see honor of Kings that I showed you in the first slide of the East port was launched in 2015 it actually had a very humble beginning as well launched as a three versus three game which is a copy of League of Legends on PC which is the most popular eSport and actually flopped a lot of Chinese people were like why am I gonna play a watered-down version of League of Legends on my phone and the T me the studio behind it actually almost closed down but because they the the four five inch smartphone revolution in terms of adoption came into play better hardware they then changed it to five versus five and then the rest is history that game makes one to two billion dollars a year and you can see now all the biggest titles pub G mobile knives are garena free fire they're all reaching the top of the revenue charts they're also reaching on top of the YouTube charts globally four out of the

top ten games the most watch games on YouTube are mobile eSports games and also if you look at downloads in the past year free fire and pop G mobile were the two most downloaded mobile games last year across the Google Android and iOS why is this a big deal because you see number three subway surfers someone's probably played it here it it was the most downloaded game of the entire decade a 2.7 billion downloads so what we're seeing is casual games are now not the most downloaded games it's now becoming these mobile eSports titles triple-a experiences we heard a lot of the other portfolio companies talk about it yesterday Triple A experiences are coming to mobile and the smartphone is a very powerful device if you just narrow it down to the top seven games that are eSports games then mobile is four out of seven which is pretty significant and we also see this in tournament this is a one-time event this is the championship event fortnight was not the most popular neither was League of Legends outside of China it was free fire they had 1.2

million average viewers for their world series and that actually eclipsed fortnight League of Legends and so on that's a bear that's a very big deal but of course average viewers for one championship event doesn't really tell the whole story mobile eSports is still growing there's not a lot of franchise leagues they're not consistent competitions that we see with League of Legends dota 2 counter-strike and that's why these PC eSports are still still the kings especially League of Legends is still the biggest and most successful eSports by far but number 5 is a renown valor right they have now broken into one of the top 5 eSports and this will start this chart will change some people might not agree for that come from PC sports but in five years this will be all mobile eSports so let's talk about like what does it look like right now as of 2018 League of Legends their peak viewers unique viewers was they set a record for the entire East Coast energy was ninety nine point six million

Tencent also didn't really make a big announcement but it's in their career earnings report that I show you here they announced and share that honor of Kings the game that you saw reached 75 million unique viewers that's pretty close and this is just China keep in mind one in 15 Chinese people play this game it has over 200 million monthly active users and per the the president of Tenten eSports who I actually met when Tenzin hosted me in Shenzhen he shared in a news articles that honor of Kings did its best eSports ever last year they grew 41% total views of all of their eSports content which is media news videos Xterra from 17 billion to 24 billion 2019 and we're now starting to see this not only in China but in Southeast Asia in India and that's something I'll talk more about here but let's talk a lot of which are a little bit more so this is a report from Gamma Delta or CNG they share that the Chinese

eSports game market was about 14 billion US dollars this includes the eSports titles not just eSports revenues by the way and it was an increase of 16 percent and predominated by the development of mobile eSports the main driving force so so that is a significant deal there's other mobile titles not just honor of Kings in China that are very popular there's crossfire mobile there's game for peace mobile which has 50 million daily active players and so on and let's look at how the growth has happened of Kings this is pretty scenic this is a deck that $0.10 sent to me when they were trying to recruit me to come become their talent caster for their mobile titles in the West and you can see how much the growth has happened so now mobile eSports in China is saturated they have to basically hire the Katy Perry's and Matthew McConaughey's of China to base the user to get more user acquisition in in China and you can see now they've grown 4x you know stage

audience of just a thousand to thirteen thousand to fifteen thousand and also billions in viewership for their sport competitions revenue wise it's also making a big deal so they released their their kings expedition update and the moral bank from from Japan share that honor kings actually made 1 billion in revenue in the u.s. back in them in just a month and that is how popular this game is and just recently on earth Kings hit a 100 daily active users there's only 14 countries in the world I hover over 100 million people living in it so this game hit actually one 100 million daily active users just this past February and my team competed here we qualified as a top 16 representing immortals to compete at the king pro league winter championship and let me show you just the audience I was inside and I'll show you kind of the audience and talk more about the demographic mix there [Music]

you can see it's it's it's pretty full there's 60% of that audience are female so every event I've been to three live events now in China and Shanghai and Beijing and in Chengdu and 60% of the audience is female it's pretty remarkable actually when you think about mobile eSports and I'll share more of that with you this is the king pro league in Shanghai mercedes-benz arena has a capacity of 18,000 and they sort out for their championships as well this is in Xi'an the one of the ancient capitals of China they had an outdoor competition for their kpo and it's also a big part of culture so let me show you a really cool video and in the recent Wuhan competition and they had [Music]

so go on has two very famous bridges they lit up seven hundred buildings and they had two flying dragons across both buildings from one bridge to the next and as they meet they then advertise the kpo is happening in the city so we have localized and franchise there eSports across all these cities and because of the popularity of the kpo the franchise costs have increased tenfold from 1 million to now around 8 to 10 million so it's pretty crazy how big this game has gotten in China reminds me of the Starcraft craze in South Korea and we're seeing that not just in China but now mobile eSports is showing us this eSports craze is happening all over the world so let's talk about the audience real quick you know 200 million monthly active players 54% of those 200 million monthly active players or females this is the beauty of mobile is a democratization and access to online

multiplayer gaming where females are now much much higher in terms of percentage of player base and they're the biggest pants I mean I sat in these stadiums and I almost lost my hair because they're screaming so loudly and cheering for their Rockstar mobile gamers and it's it's amazing to see the fandom in in China and you can see they're just look at the picture mostly females it's it's crazy so one thing the Tencent director shared with me was he's like on earth King is so popular in China that it's one of the top dating apps young people this is how young people meet they meet through the game you can find people nearby you can to Adam on WeChat and all of a sudden if you carry them you're a good player you're your good guy player then then you can find a girlfriend it's pretty cool so you can see PC it's opposite right PC even in China and US ten usually ten percent of the player basis is male it's still very popular eSports as you see but the audience demographic is a little different this this is very interesting to me too this is a smaller eSports event but 90% of

this audience is female look very very closely 90% of that audience is female for honor of Kings kpo and then you look at dota 2 PC 90% is male still popular just different different type of gender mix and because honor king is so popular with females you get to cool do really cool activations like this so they took the lip the color of all the famous female heroes in that game or the top five and it's sort out within an hour that's how popular the game is and how it really cool collaborations like this can happen mobile eSports game game for peace which is basically pub G mobile for it for a child for China which is on track to do over 1 billion USD if you're not already accomplished it has 51% of their female 51% of their entire fanbase audience is female you also see this in free fire in Brazil this is actually a team from Thailand but they competed in the Brazil free Fire World Series that I mentioned earlier the third-place team which is really hard you're competing it's countries on the best team from all over

the country they placed third and they had a female pro player on that team which is amazing for eSports in the growth of the entire industry and speaking of Thailand this is greener world it's crazy 300 people attend over a Saturday and Sunday and it used to be PC eSports was the flagship draw for this event but now it's mobile it's mobile eSports you can see the audience it's pretty insane like who needs chairs when you have that many people you can't everyone just sit on the floor and you see a lot of this everyone is playing eSports games together this is the local social kind of thing that PC bongs have created and which led to the birth of eSports in South Korea because I was there I grew up and went to school in South Korea from 1999 to 2003 so I'm seeing very similar parallels to the birth of PC eSports in terms of state-owned eSports in Korea too now the birth of mobile eSport here because it's kind of bringing back that PC bang show show experience where there's a lot of social

interaction Mobile legends just recently here this is another game in that's that's really popular in Indonesia and Southeast Asia has over 500 million downloads just this past Saturday on February 8th they peaked at 700 476 thousand concurrent viewers which is equal to League of Legends League European Championship Series which also peaked at 476 thousand but that's global viewers mostly in Europe this is just one country in Indonesia so the penetration a saturation of some of these games it's just it's it's insane how popular these mobile eSports titles so let's give you an example of what mobile Legends eSports looks like here with the video [Applause] so you can see they're just like any

other eSports man console pc the main point that i wanted to talk about during the presentation is it's not about the platform just think of it is about the game and the love of the game pub Jean mobile they have a huge eSports that they announced this year but they're doing a huge eSports program there are 50 million daily active players outside of China it is the most popular game in the world right now ten cents shared in a recent quarterly earnings report that pub demo is the largest game by da you and Mau in the world in terms of multiplayer action games it's also the sixth most most watch game on YouTube arena valor the growth from 2018 to 2019 2.5 X growth in terms of beers here you can see the number of growth for arena this is the fifth most watch eSports by eSports hours in globally in four for mobile and PC eSports so what is the future of eSports like I said think less about the platform a lot of people talk about mobile they think about the

technical part they really focus on the technicality of it like it's not a mouse and keyboard you're touching a screen and all that don't worry about the the interface it's more about the enjoyment of the game players and fans really determine what an eSport is so and the eSports fundamental is really about the game quality so China was it's the biggest PC game market and now it has a thriving mobile eSports market Vietnam to the Philippines to Indonesia they all had thriving PC gaming market but mobile has just increased the accessibility of online multiplayer to their hands and it's just much easier to play on the go and so on instead of sitting at home playing on a PC and you can see the in terms of the total magnitude of these downloads so free-fire has four and fifty million downloads pub Gees six hundred million downloads total it's around 1.8 billion downloads for these games within the past just two years so

there's probably about a billion people playing mobile battle Rell because there's some overlap of course some of these games have launched separate a but it's pi round a billion people playing mobile battle and all these games are making pretty much 1 billion dollars or more a year it also has very very high engagement rate people think that mobile gamers aren't real gamers they are and they're also real fans so if you look at it the engagement rate for over someone's go over a million Instagram followers a 6% engagement rate is very very high most Instagram like like most people with over a million flowers gets 1% he has 22 percent and if you compare to PC eSports or other eSports they hover around the 10 to 15 percent engagement rate which is very very high as well so I want to underplay a PC or console here but mobile is showing us that the engagement is very high and you can see the report by app Annie the top gains by downloads and the rank by average time per user it's those three multiplayer action core

games where a lot of people are spending so much time with why because in-person social interactions you can have cool mobile tournaments and malls that we see in China so in China there's a hundred thousand plus mobile esports sermons that happen pretty much almost every month and this is what facilitates and helps mobile eSports thrive because of this social interaction also and also you see that's the same thing not only in China but in Malaysia this is a at the mall in Petaling Jaya Malaysia and they fill up the entire mall for a mobile eSports competition pretty insane right so this is mobile it's basically growing the entire eSports industry and the number of gamers significantly you know because a lot of people have not tried out gaming or multiplayer action gaming but because of the smartphone it's introducing them and they're now becoming eSports fans and consumers which is great for all of us and mobile esports impact the gaming events this is

a very interesting thing about India here the do arena which is the largest competitive bid competitively do game event in India and Pakistan they had 22,000 participants which is which is good right and it grew to 70,000 in 2018 and then they added a game called pub G Mobile which has 15 million daily active players and his surge to 1.5 m participants this is the scale of mobile and they're very rabid fans I mean they love the game and they love playing PC as well but just a scale of mobile is just on a whole different level and it's just starting out it's just within the past two to three years the the free-fire just started their eSports last year mobile legends which which we saw earlier had their eSports going for about three years and and now they're in their fifth season arena valor has been an eSport for about three years as well and there's growth year to year mobile

use force and social how many gamers will share their profile picture in a video game you see this with Gen Z across the world they're very very comfortable it's their identity right if you think about if you if you grow up and you're playing mobile multiplayer games like like scimitar how Americans grew up playing console Call of Duty or fortnight this is a big part of their social identity so they're very comfortable sharing their profile pictures and it's become kind of its own social network for a lot of these people within the countries that these games are very very dominant in and mobile eSports has helped eastwards become even more mainstream as we know eSports is growing all across the world but this is the percentage of gamers that are strongly drawn to eSports you can see China and Greater Southeast Asia it's much higher than the United States but the reason why I love this chart is because that tells me how much more growth there is in the West we know eSports is a global phenomenon you know

every country once they have access to these games they get a big massive player base to get a big audience and an eSport starts to take off and you can see because of mobile the countries that are leading the pack in terms of this is a different survey here shared by HootSuite is that this is the percentage of Internet users who said that they recently watched an eSports tournament and you can see China Vietnam Philippines Indonesia Thailand and India which are all have embraced mobile sports that percentage is much higher it's just common unit economics and math at this point and in Southeast Asia which is pretty exciting so it's not just a China thing like Korea you know stark it was like a Korea thing back in the 2000s it's a whole world thing outside the West so 180 million mobile gamers that's 36% of smartphone users in Greater Southeast Asia if you look at the total population of greater southeast Chinese Taipei plus Southeast Asia that's six hundred seventy nine million people that means one out of

four people play a mobile eSports game this is a great study that that nikko partners has done and shared with us here and that's quite amazing that's basically rivaling the eSports craze in South Korea cuz when I was in South Korea one in five Koreans was an eSports fan in Korea you know it was a national sport the only sport that was more watched in StarCraft back then was soccer in Korea so we're seeing mobile eSports kind of take over because of the massive scale here that we're seeing with the player base and also female fans as well we're seeing that it's it's encouraging more female players we're seeing the same trend in in the United States for example Fortnight is about one out of four players on four night or female actually we're versus like MOBAs traditional Mobile's on PC it's ten percent female so we're seeing a lot more females in the United States and across the world now getting involved with these multiplayer action games so if you isolate mobile esports specifically and not the entire eSports

industry then the percentage of female fans is going to be much higher especially in China so great mobile is huge what's next this is an awesome report here on smartphone penetration rates there is a lot more growth to go there's a lot more free fires that have not been discovered and this is a 100 billion dollar industry right with billions of players and you can see the smartphone penetration rates across all these countries Indonesia we saw with how many eSports fans they have they're only sitting at around 30% or so smartphone penetration rates other countries like Vietnam which is very big and Philippines very big a mobile eSports they're they're small from penetration rates is not that high as well Philippines is a thousands of islands and archaeological so it's actually really hard to get data and access to solid internet wireless 4G connection in the Philippines so if that continues to grow by 2025 a lot of these countries will hit 80 to 90% plus smartphone

penetration and we're gonna see mobile eSports continue to explode now and it really is about one game one game that gets introduced to a country or a region and it becomes the most popular game that gets played there right free-fire all the games I mentioned they all dominate their own territories free-fire is very popular in Brazil mobile Legends is very popular in Indonesia arena valor is not popular in Indonesia it's kind of formed its own kind of social network effects where once it reaches critical mass no other competitor can really compare but arena battler has a stronghold in Thailand which I showed you earlier the greener the greener world arena valor is is the dominant mobile mobile there and mobile Legends which is basically the same game cannot compete with them so we're seeing what we saw with Starcraft back into 2000s but we're seeing multiple countries now having this massive eSports craze and mobile eSports is really driving there

so they want to share this story here because I was there in Korea back in 1999 going to high school and stark have changed my life because I was good at the game about hanging one of the popular kids when this game kind of blew up and yes I did get a girlfriend because I was good at it and this is when it peaked it had a hundred twenty thousand fans show up in Pusan for the pro league sky finals and the reason why this game became a phenomenon it's very it's a very similar parallel to mobile eSports is because of the social interaction PC bombs in Korea from 1998 basically grew 405 percent to twenty thousand PC bombs in 1999 and that was in broadband internet and Starcraft and online multiplayer literally took off it was a tech catalyst and then it led us to see the birth of star and that's why this did not happen in China this doesn't happen in any other country right it was unique to Korea because of the environment the technology catalyst

that happened there the investment into broadband and it was a very interesting phenomena I didn't I would never have thought what it reached to United States right because I thought this was a very weird Korean thing that I was a big fan of and I went to Cornell University and left eSports behind unfortunately but if you look at the history and the the tech and social trends they're very similar very very similar right tech catalysts and as as investors you guys know that new pattern match new technologies come out in it that creates new products and platforms and so on you can see it's very similar the tech back in 1998 was broadband and PC online multiplayer games it was tens of millions of people today it's smartphones right over 70% or 80% of smart phones are now five inch screens and the smartphones are strong enough or powerful enough that they can support these kind of core multiplayer action games and what is the other tech cast is is Wireless 4G China just like Korea actually Korea heavily invested in

broadband ahead of any other country and in China also put massive amounts of funding and investment into their wireless infrastructure as well and you can see why mobile eSports has become very very popular there the question is will this ever make it to the United States we don't know I'm hopeful it well it took 10 years for StarCraft to come here because again Starcraft 1 was not the game that took off in the West the one game that took off in the West was Starcraft 2 right that was the game that that kind of brought eSports into the limelight and made it a little bit more mainstream so the question is what mobile game will that be and whoa there be a mobile game that will help the United States embrace mobile eSport so I was a part of vainglory which was super evil Megacorp I was one of the original cofounders of the eSports orys and I competed in there it had a very niche audience but I think there's a lot of traction I think I feel

like in the West mobile eSports is like a struggling startup that has really really high traction because there's a lot of Fortnite mobile players that prefer to play on their iPad or phones Fortnite Mobile has a hundred million donald's in iOS so there definitely is the man there and I think that's what really matters not about the controls or whatever it's something about the demand and and how much they enjoy playing the game so speaking of that that is what eSports looks like for today it's it's always a mod of a popular PC game so a lot of the inspiration from early sports comes from PC games that's adapted to mobile in a very unique way so free fire battle arouses you have a hundred people jumping into an island free fire is a much smaller island and it's only 50 people so it can be it's optimized to run in mobile right and the games are much much faster it's the same thing as honor of Kings which is basically a copy of League of Legends on mobile the games are half the time so free fire an average game is 10 to 15 minutes honor

of Kings an average game is 15 to 20 minutes League of Legends an average game is about 45 minutes it's a little longer so you have to kind of simplify it you add less complexity but you keep the same core gameplay experience that made that PC game very very popular in the first place it's optimized for 2 gigs of RAM and they're quick games and finally the one thing that I've noticed I don't know if this could be a pattern matching trend here but League of Legends was the biggest and most popular PC game still is in China and the studio that built honor of Kings is from China if you look at Vietnam as well the studio that made free fire is from Vietnam and pub G PC is it took the entire country by storm it came the most popular game that was played at PC cafes in Vietnam and I feel like because of these passionate PC gamers they want to take this experience to mobile and that's why they decide to make that jump when a lot of PC core gamers would say why would you ever play

pub G on a phone why would you ever play League on a phone but I feel like these people who are passionate and believe that they can have that same core experience on the phone they start these studios and they build these games and the rest is history so in the future what does mobile eSports look like I think that it won't be negatively played on PC or console if you think about StarCraft again you could not play that game on console Starcraft was a uniquely and beautiful PC game and it leveraged all of the technology that PC had to offer because back then consoles weren't connected to the Internet pcs were connected to land right so it has to be something I feel like the next mobile East was gonna leverage the mobile tech that a lot of these games don't really do they're kind of modded and copies of what PC games are and then in the fit in a long-term picture I used to work for Apple I was a GM for them and I ran a 70 million dollar business with Apple and the future is their mobile custom silicone that is gonna be the next decade here it's gonna basically empower

the next aar and VR devices we already see the current processor is able to have ray tracing their net ease and Wow and Huawei sorry was able to demonstrate that ray tracing is possible on a mobile processor which is to me mind-blowing and better battery check there's lithium there's new lithium technology that when proved the battery effect and that's gonna create a whole new era of awesome games where some of these multiplayer games are going to be some very very big mobile esports hits so thank you and appreciate you guys listening to my talk here so are there any questions oh sorry

yeah I think they design itself definitely plays a role because a lot of the heroes in the game are very cute and designed for females but also for males but I think where it really starts is is the young generation where when they grow up they don't really have a council they have access to a PC bong or PC cafe but they grow up playing this game on their smartphone and that's how actually honor of Kings took off because a lot of people didn't want to get into League was much more complicated game on PC so they just started playing honor of kings and a majority of those new players or female and because the female put base

grew and became really popular with females in in in like school social circles teenagers the guys started paying attention and be like I can play this game get really good at it and impress these girls and that's why honour of Kings 54% and I don't think any other game has accomplished this for a hardcore multiplayer action game 54% of that player basis Pima and that's why it's also able to generate so much revenue so I've met a lot of these these girls that when I was in China and they visited LA they spent you know 100 or 200 dollars on these cosmetic skins I mean that's how much do some of these skins cost and and they have they can definitely play on PC but they just love the accessibility and and the ease that mobile gives them so I think it more has to do with the life stage of the consumer and I think what mobile is doing is its capturing and introducing a lot of these gamers to multiplayer online gaming on a mobile device so so I think that is a reason why a lot of

mobile sports is taking off all over the world because they're not gonna they don't their parents are gonna buy them a console or why would they pay play at a PC cafe and pay you know in Vietnam is thirty cents an hour to pay on a PC cafe why even pay that when you can have that same core gameplay experience on your phone so I think that's what's really driving the the massive adoption for female and and male the best decision to take advantage yeah I thought a lot about this is so what happens is the way that free fire and a lot of these like independent studios test their game they launched it on third-party Android stores like a ap apk peer and you can actually look at what the popular games are because a lot of the users use those third-party stores and in base on the traction of those games you can basically see if you really like that studio then invest in

that studio that's what I would do if I was a VC I would be literally scanning the third-party Android stores to see what games are becoming hits but it's also trends tutors there's patterns right right now mobile battery route we don't know if there's gonna be another free fire for mobile battery but let's say escape from tarkov or another new game like another overwatch or another pub G comes out that's like a new format a different type of game I would say start looking at any type of mobile mobile independent studios that are developing a modded version of and trying to take that PC experience to mobile and we see that time it like moon town was a game that saw what honour of Kings did in China they saw like how much traction I was getting and he literally developed the the game for to launch in Southeast Asia and then they basically took market share away from $0.10 because they were able to put that game out immediately and now that game is a billion dollar game

yeah there's I think there's two answers to that so I I played been glory and also played a lot of the other mobile games so cyber hunter is another game that's cross-platform on PC and Mobile vainglory was as well but because it was a mobile first game there's not a lot of PC play on it because it's if you think about the the technology and like the graphics are just not as nice on a PC when you take that mobile game to PC but you look at fortnight there's a lot of potential there because you see fortnight has over 5 million reviews on the App Store and it had a hundred million downloads on iOS and another 20 or so million on Android and it's very

popular because kids when they play fortnight at home on their console mostly console and PC they then play it with their friends at school on mobile so that cross-platform play was very smart for epic to do that so I do see that being something that would help increase the reach and the player base but in terms of mobile esports fortnight hasn't really pushed mobile esports that hard in the West because they probably see that a lot of their player base are probably paying it on console and PC and then they're taking the game to to school to play after school or at recess on their phones with their with their teammates so but I believe that cross play is gonna be a big part of how the the accessibility for these games in general the easier that we lower the barrier to entry that's why smartphone gaming is is taking off is because it significantly lowers the barriers of entry to experience and try out these these great multiplayer smartphone games

awesome so looks like there's no questions thank you so much guys for your time I appreciate [Applause]