Hypercasual 2.0 PG Connects Digital #2

this is Baris autistic from netmarble who's here to talk about half a casual 2.0 Baris are you are you in the house there we go fantastic side join us um like before if you have any questions about the the talk by oh she's gonna give do drop it in there you'll find the button for the Q&A at the bottom of the window and I'll keep track of those and put them to you there Baris welcome you to thank you for joining us I'm gonna recede into the background ah the floor is yours welcome thank you very much hello everyone it's really a pleasure to be with you here of course it was a little fun to participate all the offline hands that beat with a groom on face to face and have some drinks but

I think we are get accustomed to the new boards the new reality so let me share our approach about application games and equal to fight application 2.0 I'll try to explain why what we do in application market and also I'll try to explain a bit about netmarble so let me share my screen first share about the history of netmarble I'm sure most of you familiar with that marvel but in Asia to give a brief information about our history so we have more than 6,000 people all over the world our headquarter is based in

Korea so in most of the Asian countries we have offices like Japan China Taiwan Indonesia Thailand buy in the Western Hemisphere we have offices in Turkey and knighted States at Marvel founded on 2000 so it is the 20 years since the establishment in 2006 that marble became one of the top three publisher in Korea and in global as well and there was an acquisition investment by CJ at that time after the CJ acquisition for a period of time you may hear the name s CJ game stance wish to make my net marble back again and especially on 2013 we made a major shift

to a mobile game industry we were dominant in PC game please especially mid core hardcore games and shift to mobile was a was a major topic at that time on 2013 and such a big PC game developer and publisher moving to mobile many people were curious especially in in Asia but it ended up with a huge success the our first game first more successful mobile game was cha-cha-cha at that time I was in Korea and I remember the sound of cha-cha-cha coming from everywhere I remember more than 10 million people were playing this game in Korea please remember the total population is 50 million so the other successful games

followed like modoo marble 7i Stone Age and we had we had investments partners from transcend and NCsoft and since 2016 that marble is pretty active in acquisitions as well in the gaming industry so gem city formerly the name was Sen was acquired by netmarble then Kabam and also the BTS the owner of the meatiest neck Marvel made a major investment and published a popular game BTS rot so let's jump into the replication games as I mentioned netmarble the dominant player in the mid corner and hardcore genre we are really strong

especially in terms of RPG game development and publishing that means we are strong in love operations and coming to the occasion of course it has major differences so what we see in hyper occasion games simple very easy to download it mostly they have single mechanic me non-sticky a user interface design and mostly give a sense of satisfaction to players but as the result of that what we see there is a huge crowd in terms of number of players in the application region so that's the reason of this hype so the goals are very clear very simple the onboarding process is very fast for the users and the users the players they don't need to build and complicated strategies to

understand and play the game and as a result of that let me check the mobile game ball game market what we say is people must play mobile games and welding him at home doing multitasking or waiting someone during transportation and just a break at work or at school so I broke Asian games perfectly fit with the market market meat and as a result of that last year when we checked the top downloaded 20 games which means over 2 billion and downloads 78 percentage of these games were hyper cacher so I believe this is pretty significant so I still is enough to hype on the developer site and these numbers show the reason why mainly especially in the

game developers and also the large publishers such as netmarble are entering this field but let me share a more important beta for you so according to this data as you can see almost half of the mobile game market hyper casual games that is pretty significant 20% of the new gamers are coming from application games so we are talking about hundred million people coming into the game gaming basket thanks to the hype occasion ok so the major growth reason of the mobile game market in terms of gamers number of gamers is the application but of course we see a huge potential here in terms of the players

expectations and the players growth players journey in the game industry hyper casual is perfect for the players who play first time a second time game experience and for the ones who rarely play games but after they they they start playing they get engaged they get accustomed we are sure they will be exacting deeper content the right of content and more and more experience so as a result of that expectation and this vision and also be we see that's happening so we have defined an strategy as hyper casual 2.0 yeah we are known as

masters of RPG we have games like 7/9 our blockbuster game and one of our blockbuster game miniature revolution another IP from that Marvel Stone Age I mean we have plenty of IP is very strong RPG titles and we know the successful data of all these games I believe this is the most important part what I have seen in the gaming industry whenever someone is a hardcore gamer they think that they they know all the game industry they are expert in games but that's not the true part is if you are exporting gaming that means you have to know the KPIs will have to know the data analytics of the game so you all see many games with successful image with successful with beautiful videos but

just a few of them reach a huge success and on the net Marvel site we know which features solve it for which KPI we know whenever we we add a feature if it increases the retention if it increases the monetization if it decreases the chart so we know all the data of all these types of games and always the RPG games RPG MMORPG games they they include all the features whatever we see in the in the game industry so what we have decided is we know all the data from the RPG games we know which features serve for which KPI and we know the players so if we combine the good and strong size of these RPG games with

the and strong sides of our occasional games then we can fulfill the expectations of the of the players so we can expect better results that's our idea combine our know-how in these meat core hard core titles with strong sides of hyper casual games so just to have an overview in a typical hyper occasion game mostly in a very easy core gameplay very simple meta or even doesn't exist and as a result of this we see more attention especially on the date 14 day 30 and retention rates are pretty low and pretty low retention and mostly the revenue comes from in

advertisement but the good part the strong side the sepia and cost per install is really low in the hype occasion games the onboarding process is very easy so players can can be engaged to the game very easily it doesn't require maintenance or just low maintenance and production time which is the cost of the development it's pretty long so this is typical application on the typical netmarble we're developing a game we we are very strong in mid core and hard core gameplay which means the content is extremely rich as a result of that we have high retention high LTV and the business model in approaches at some times subscription but when demand then you have such variety of content that

means you may have high CPI cause of course the production time gets longer and longer which means any production and it becomes very expensive at that type of games of course recoil knobs and our approach board application 2.0 we are you know we are aiming again easy core gameplay and a better content and I can I can call it a mild matter with your collocation and median LTV and a typical hyper casual 2.0 game should have in-app purchase net advertisement a subscription all that all together and the target is the game should have low CPI as hyper casual it may have a bit

longer production production lifecycle compared to application again it should have low maintenance that is our strategy that's our target so we are working with many studios to develop application to point all games we think the future of applications the margin is becoming tighter and tight every day so the CPI costs are rising competition is rising so high per occasion games should need to increase their activity and that's why we take application 2.0 it's a solution for that add those on the clear side players education games I'm great if you are a first-time player but if you start

played games every day half an hour one hour every day the hypergate changing to changing to gain every day you play it means it may not be a good idea it's not a good feeling for the fourth player that's why combination this game combining these games with some RPG features it will also increase the experience of the player as well and solve this tight margin should we expect higher alchemy higher altitude outcome will not come only from the advertisement so in-app purchase a subscription revenue should also be included this means in a short period of time we say in year we will see in a advertisement in a purchase a subscription revenue distribution has 60

30 triangle 10% approximately and the development cycles will be like two more in two to three months of launch four to six months ground knowledge with iterations because multi but the longer period including all these iterations but of course on the production side again for hype occasion 2.0 what we do we keep testing prototypes media sites make mechanics before starting to development but the development starts it takes a bit longer at it includes a variety of features and the right of monetization models so to do this we are working with indie developers and especially with the developers who are willing to develop applications to pointers we know some of these and some of the developers are highly interested in developing own

educational games and have their own methodology to do this I respect that but on the other hand some of the developers they want to develop games with deeper content and a bit better quality and variety of monetization features so especially we are working with this table of developers and so we can put on know-how years of experience to develop the best application 2.0 a games for today and for the future we do lots of activities by the way till now we are mostly working with the studios from Turkey Eastern Europe some Middle East some Asian countries but we are looking globally we're open to work with any studio from Europe from South America we are open to open to all

studios we can work with all studios with the same mindset with same vision with the studios who share the same vision with us we do lots of activities we have an accelerate we have specific game verticals they are supporting two studios in the region we are we are also supporting in the game developers for educational games especially in this time period we have support the game studios to develop games for health games for here through our accelerator we also do investment or collaborations or individually discuss with the studios one by one we support time for the development or you can also discuss investment opportunities as well so that's that's how we do we have a

program called netmarble hyper hits so whenever we agree with this to you and especially whenever we agree with studio to work exclusively and we support them in terms of the development and we assign a fully fully dedicated publishing managers so we support in terms of game design test analytics we do all the usual regression tests we share the data everything transparently very very often on a weekly basis and we we allocate or our resources to coach the studio sort of work with time so our idea is to become a partner with the studio so today we are partners the studios at the publishers they are all partners we are developing the game all together sometimes we give the ideas sometimes

the studio creates on the idea studio develops the game but whenever needed our development team joins the forces and help for optimization or just to accelerate everything we have on the game art as well so in a nutshell will become with the studios we join our forces to develop the next big hit on the hyper casual 2.0 well thank you very much for listening me of course I'm here to answer any question Thank You Barriss that's fantastic really interesting really interesting about how you're applying the phonology having RPGs to enhance the hyper casual experience and also I thought it was a fascinating that all these new gamers that we hear about 20% of them are coming from hyper casual area that that's great we've got um about four questions in the Q&A so I'm

gonna put these to you we have a little time if anyone else here would like to ask questions please do use the Q&A box at the bottom there and I'll them I'll try to get them to it tomorrow so firstly we were asked by Avinash whether you're able to share any examples of success in particularly you know I guess the specific examples of success in an MMORPG Plus hyper casual which you're which you're showcasing well we have a game called city bus it's pretty popular nowadays China especially this year is getting more and more popular in China so to the city bus we have we have added a couple of features from RPG and now the new features are coming with the new features we will open the new built to the Western market as well now the game primarily popular in China but what I can say which type of features we are

adding to the new comic games of course ranking but the ranking in the hyper occasional games most of the games yes some ranking exist but very simple we are now adding more complicated ranking features to these occupational games which means it doesn't touch to the onboarding process where the application games are very strong but for the late gamers it gives a good content we are also bringing some social communication tools kind of live features to the games type of things a couple of exams that's great thank you I'm Avinash also asks what are the top criteria that net bubble looks for in an indie who may wish to partner with net mobile I say development capability I'm not only

talking about coding I'm talking about game design so for us the most powerful side of against you is the game design part so remember I say development I'm talking about gauge capabilities so if a studio is really good in game design understanding of the KPIs and designing of the game according to the KPIs according to the metrics in a creative way that's good and talented studio on top of it development technical capability that it can be it can be supported but it's hard to support the creative and game design part so that is the that's the core function of yeah of against to the IV I'm gonna we've got a number of questions but I just want to skip ahead to one that seems relevant to your last answer Division one asks what should a developer then expect from a publisher and what's the ideal collaboration between you and them and

what do you offer whenever we assign a dedicated team this team is dedicated to share or no heart so we we have to understand which type of know-how we have the know-how we have is yes we have years of experience and we have successful data of successful games that is the critical part so everyone knows what retention rate means what Tron means everyone knows by user right RPP you but many people they don't know which people features source for the ARP people which feature source for the retention rate which feature for the day Turkey which feature for the day someone so we have this know-how so having this know-how we locate the team to work with

the game developers so they can optimize their game they can polish their game or they can discuss what should be the next big game what should be the features game based on the KPIs by based on the success data so my team they don't share knowledge based on their general learnings or assumptions they share their know-how based on KP based on data they have that is our the biggest value that we share with the divorce and actually a relevant question here from another anonymous attendee who's lost a couple of things actually but one of the questions that this person has asked is are you able to share KPI examples from your successful releases in the u.s. KPI I mean too many KPIs for education 2.0 I

can say because success cases are from China to Nam we hope to know these games coming to the Western market we also have cases but mostly our success is to increase the ARP Pugh and LTV and so our main major success comes from the increasing monetization which expected I believe because we know of this because of our PGA experience student Guren asks thankful says thank you for your presentation was full of very interesting information show degrees could you please share some examples of specific hyper casual 2.0 games would you consider our Arturo as hyper casual 2.0 for instance Archer is a perfect case for 2.0 application 2.0 I

believe I believe we have on the same page but they never tested they're quicker to be successful to her global success I think it's a perfect example for education 2.0 thank you and in other words an anonymous anonymous attendee asks about the studio pledge Andheri has been doing similar things hyper casual 2.0 style games for quite some time by combining what you've been speaking about RPG options and supporting it with live ops and what how do you do you differ from them what's your difference from them well I know I don't studio play play play Jaden do I play gender II like Legend really yeah I mean this is a huge market I mean we don't need to differentiate we don't we don't

have ugly competition we're all friends we are in a huge market and which is the mobile game market is growing over 13% which every year so in such a market of course I'm not saying we have the only vision without occasion 2.0 some companies also call this hybrid kgo which was I agree so we are not on the we are not the only one developing hi plication 2.0 investigation games so I believe the companies who are in this industry and who are willing to develop that type of games and they will be the winners for the next couple of years because the trend is moving yes hyper casual games acquired hundreds of millions of users to the industry now these users will expect better content

input content and they will be ready for some monetization that they will be rated some of this will be ready to pay some so the features of the application will be occasion to point or or implication of course we will not be the only one I will I'm sure there will be handsome companies doing successful way well exactly rising tide lifts all ships right well we've also had one final question from Anthony ball who's asked will you be sharing copies of your slides great thank you and if people want to catch up with Baris to ask further questions I'm sure maybe they can reach out to you via the the meeting platform or what country in some other way that's perfectly Barriss thank you very much I thought that was actually fast night I'm gonna give you a round of applause you'll have to imagine that it's coming from all the people in who are watching remotely perfect thank you

so thank you for that what a great presentation there from from netmarble