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Why 5 million mobile downloads in China per month isn't a big number
Key insights
7 takeaways- 01Western developers should prioritize finding a local publishing partner for Asian markets, as self-publishing is high-risk and requires the scale of companies like Supercell to succeed independently.
- 02Korea and Japan must be treated as distinct markets despite their shared high smartphone and internet penetration, as their specific gaming preferences differ significantly.
- 03Data costs are a major barrier in China, where a 5GB data plan costs 17% of an average monthly salary, compared to 1.5%–1.7% in the US and Korea, necessitating strict game file size optimization.
- 04In the Chinese mobile market, 5 million downloads per month is considered a baseline figure rather than a sign of success, with 30 million monthly downloads being the threshold for a truly significant hit.
- 05Culturalization is critical for success in China, as Western game designs often fail to resonate with local consumer tastes, leading to high download numbers but low retention rates.
- 06The mobile gaming market is becoming increasingly difficult for independent developers, who now require both innovative game design and sophisticated marketing strategies to compete with large-scale incumbents.
- 07China is projected to become the world's largest mobile gaming market within three years, driven by rapid consolidation and the increasing flow of titles between China and the West.
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Transcript
cool well we're here again uhar and we've got another great guest uh already a friend of a friend of Pocket Gamer but I'm going to let him introduce yourself anyway so so tell us introduce yourself Jeff uh hi pocket Gamers viewers I'm Jeff Lyon a long time follower of Pocket Gamer since 2008 2008 yeah corly uh and uh I'm a co-founder and exec president of I Sky uh we are one of the leading publisher in China we published a very popular title like food ninja temper run uh uh and B uho jum and never heard of them yeah probably never heard of them okay but know they still real in China yeah um so we have the proba for very popular uh games um globally and uh currently we have over uh 400 million user base in China uh and uh you know we are in a very happy
position you're happy man so what What's um what what's the kind of why you in gar why you in career today looking for more games or just holiday what's the uh well that's what my wife thinks okay um but you know I'm I'm looking for more games in Korea uh uh you know China Market is uh is is is evolving um you know we see a a new trend coming up which is Korea games going to China Japanese game going in China um because they're more locally um the the the culturally more accepted it's closer yeah yeah it's closer especially you know Korea have been heavily influenced by the game uh Chinese gaming market so actually a lot of Korean developer when they're developing the game they actually have thought about you know what my game comes from China um so you know we uh this uh August we signed one of the best ker game okay that's the big that's the the the the top within the top three uh they break many many
records uh I remember I read the any index they the top 10 in the world well you're working with the big guys you got more that's good okay so so you I mean obviously you're you guys uh based in China and you're bringing games to the Chinese market so so it sounds like you're obviously very focused on the Asian market is the most important to you but do you um what's your you know globally where where do you see as the most important markets in the mobile mobile game Space right now you know is Asia overtaken kind of Europe and the US now I I think you know if you look at it you know like puzzle and dragon uh and kir run you know Kook run is just published in Korea right and just with their Korea uh Revenue they have got thems into the top 10 on Google over in the world right so you can see definitely Korea is can generate lots and lots of cash okay yeah yeah yeah um and especially because you know it's all
Gamers here you know it's like I think the gamer penetration is the highest in the world sure you know it makes a lot of sense so I think you know in coming month or you know the coming quarter you know we're looking at more like you know us is North America is always going to be key Focus region um you know Europe kind of as a whole and then Korea Japan and China is going to the the key region um for smart gaming yeah Okay cool so again so yeah I say you based in China you're obviously an expert in the Asian market generally so I'm a I'm a western developer or uh you know Europe us whatever I mean what what's the kind of main thing or couple of things that I I should need to consider when I'm I'm coming either to China or kind of Korea what's what my Strat you be to you know what do I start with so you know I won't call myself expert of Asia you know Asia is pretty big okay Asia okay and most I would say I'm an expert in China okay China's pretty big China's pretty big too um and and uh you know with with
Korea the first uh recommendation I can give any West developer when they're coming to Asia uh is definitely look for a good partner to work with um trying to take the the the the the control yourself and trying to build it yourself is it's not something that anyone can do you know uh uh it takes you to be like a supercell or the team you know then yeah you can probably do that but if you're like not at that kind of level there's not many that level there like for two that's it um building studio is a is very risky risky M yeah yeah um and uh that's for Korea and Japan for sure you know and never consider Korea and Japan the same Market no Japan and Korea is very very different um they might have a lot of similarity in terms of you know gamer penetration um internet uh penetration mobile internet penetration smartphones that yes but you know the the game case is very different yeah now when it comes to China I think China is one of the most um different Market um
than any of the few Market that I just mentioned because if you look at it you know Korea Japan North America Europe this a very developed world you know people have a good mobile connection uh smartphone you know it's kind of like common thing so you know uh to this on GAR I'm the only Chinese uh mobile game developer that has given speech so you know in my speech I actually mentioned one thing you know is I compared it you know in order to for you to get a 5 gab data yeah in China compare that with us compare that with Korea right and compare it with the average Jo's um satary yeah in order to get a 5 gig data plan in China with a 3g connection yeah it takes 177% of your monthly income wow and in Korea and US it's 1.7% and 1.5% wow so it's 10 times more expensive compar so you know who will pay 15% on the set you know so so you know when it
comes to China you know game size is definitely something that you need to be very concerned about you know if you're online game how how much B consumption you using um the other things you know like how you do the culturalization you know like Chinese is very different they're very different T you know uh there was one time I treated one of my Italian um Partners in China and I brought him to a pizza place yeah and he he's just disgusted by by the pizza that uh I showed him you know you're like this is not P this this is abomination right but you know that's that's what Chinese need you know like they they have a this different taste you know they may heard about your game oh yeah your game is great you know and they'll play play it and and actually a lot of my partner always comes to me and say Jeff my game is very popular and I'm like what do you mean by very popular oh my game is downloaded more than 5 million times in China and I'm like yeah first of all 5 million in China is not big number okay what is a big number in China a big number will be in if you tell me in a month you got 30 million
wow then then that's a yeah yeah um the second thing is then I'll ask this followup question is like so how much D you have and go like uh not much and I'm like well that means what what do that means like have you thought about what do that means and they like well my game is popular like no people know about your game yeah but people don't like it yeah fair enough I me right uh and why do they not like your maybe your game is just not for time but you know if you already generate 5 milon download it means that it's an interest for them yeah but maybe somewhere in your game disconect there's a disconnect that's what you you need to find in publish is help you build that rebuild your game or you know culturalizing games to um fix that disconnection yeah yeah yeah okay okay that's interesting that's very very thank you very much for that um okay final kind of question we're asking people coming to the end of the year not that chall coming at the end of the uh 20 2014 is is on its way um and we've got a new conference there we looking at
new trends so what do you you know You' seen a lot of Trends what do you think is going to be big in 2014 what's coming what should be aware of what how will market look well globally you know we we already seeing you know uh uh I think it's getting harder and harder for Indies to pop up uh you know I remember in the early days you know it's all Indies you like the top 100 is all it's almost all Indies yeah right if you look at now top you have like you know all the Bitcoin conf right um so you know for Indies it's going to it's going to be a tougher year you know uh uh to Brickle all the noises and you know Big Marketing spend of the big big boys right so you know I think for Indies you know it's getting back to the model which is you need to find publisher no matter if you're publishing in your own region unless you have some really really cool ideas of how to market the and I think for Indies you know this is key you know it used to be for India is
like you can come up with very Innovative idea to make game that's that's all right now is you need to be very Innovative in the game on top you need very Innovative in the market yeah yeah right if you have that two still set definitely you can do it you can still do it yourself but if you don't have the second skill set then you better find a partner to do it yeah yeah now um for China you know I think a lot of consolidation is happening in China uh whether it's Channel whether it's building building platform um there a lot and uh there's also a lot of Chinese company now that is going to the West publishing the game to the west and also a lot of company like like mine which is taking a title from globally to China yeah and uh I I think for a a developer that comes to us you know you really need to be very careful who you pick uh uh and uh because China China is going to be I think within the next 3 years going be the biggest Market yeah I mean I think in downloads it's pretty much there already I mean in downloads is already there already I I mean it's
sheer volume ofation
Summary
The Chinese mobile gaming market represents a unique, high-volume landscape that requires specific strategic considerations for international developers. While global markets like North America, Europe, and Japan share certain infrastructure similarities, China presents distinct challenges regarding data costs, cultural preferences, and market scale. A primary thesis is that success in China is not merely defined by download volume, but by the ability to navigate local infrastructure constraints and cultural nuances through strategic partnerships.
Data points highlight the significant economic barriers in China compared to other regions. Mobile data costs are disproportionately high, with a 5GB data plan consuming approximately 17% of an average monthly income, compared to roughly 1.5% in the United States and South Korea. Consequently, game file size and bandwidth consumption are critical technical factors for developers. Furthermore, the definition of success in China is vastly different from Western markets; while 5 million downloads may seem significant to international developers, it is considered a modest figure in the Chinese market, where 30 million monthly downloads serve as a more accurate benchmark for true popularity.
Methodologically, these insights are derived from industry experience in publishing global titles within the Chinese market. The analysis emphasizes that high download numbers without corresponding retention rates indicate a fundamental disconnect between the product and the local audience. To bridge this gap, developers are advised to prioritize culturalization—adapting games to local tastes—rather than attempting to force Western or other regional models onto Chinese consumers.
Looking toward 2014 and beyond, the industry is trending toward increased consolidation and higher barriers to entry for independent developers. As marketing costs rise and competition intensifies, the necessity for professional publishing partners has become paramount. Developers are encouraged to seek local expertise to manage the complexities of the Chinese market, which is projected to become the world’s largest mobile gaming region within three years.
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