Tuesday, November 6, 2012

Social network game


 In Japan, there are several domestic SNS sites. Among those, famous SNS sites concentrate on mobile games are Gree and DeNA. These sites have been expanding their sales revenue attracting from twenties Japanese to forties Japanese. Though I thought that those companies future were promising, I realized that these companies net profit forecast in 2013 will decrease through the research for final assignment in eMarketing course.
Though there are several reasons for the decline, one of the reasons is Japanese saturated market for social games.

 In order to overcome the stagnant situation, game contents would expand their business into overseas market .As a fact, one of their game contents got the first position in iApps for game contents in North United market.

 However, I think that there might be one problem for Gree and DeNA.
Actually, as conventional business model, they basically have acted as platform vendor in order for 3rd party vendor to propose their games to either Gree or DeNA platform.
In Japan, they have been able to source their revenue by three ways: payment from 3rd party who use their platforms, in-house game development and advertisement income.

 In my opinion, they would lose some revenue due to Google play and iApps because their OS techniques have been widely integrated into smart phones, and it would be difficult for Gree and DeNA to make differentiation compared with Gree and DeNA.

Now I don't have clear answer to support them, and my opinion might be wrong.
In any case, I would like to consider good plans for them to benefit from overseas market.  

 




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