The mobile games market in Asia is starting up rapidly in South Korea and China with the uptake of smartphones. We estimate that the leaders in terms of billings have already reached monthly sales of the ¥1bn level, and that many titles now have sales that bear comparison with top-class native apps in Japan—apart from Puzzle & Dragons with its monthly sales exceeding ¥10bn.
ARPU improvement now looks likely, driven by smartphone uptake and enriching of game content. Against this backdrop, some Japanese packaged software makers and social app providers have started to launch Japanese-made game titles in South Korea and China, and are taking steps aimed at achieving profitable operations. We spotlight the success of Square Enix Holdings’ Kaku-San-Sei Million Arthur as a forerunner of this trend.
Square Enix developed Million Arthur as a game for smartphones, and its April 2012 release in Japan was followed by a tie-up with the Chinese PC-based online game major Shanda Games, and then launches in South Korea (December 2012), and China (July 2013). The game has achieved a top ranking in each of these markets. It has tended to lose momentum recently in Japan and South Korea, but it has maintained a top ranking for iOS billing in China (third as of september 15). Million Arthur is a card battle-type role-playing game (RPG) with appealing graphics, and it has become popular with core players of PC online games in South Korea and China.
We identify two instrumental factors behind the success of Million Arthur: 1) the progressive rollout to Taiwan and China after first assessing its success in South Korea; and 2) thorough localization mainly by Shanda Games. This model has already been applied in PC online games. We also see localization based on a clear understanding of the local market in South Korea and China as an important factor. In the case of Million Arthur, Square Enix worked hard to adapt the game to each market, such as seen in its introduction of cards based on local history and culture.
Based on Nexon’s track record in online PC games in Asian markets, we see a high likelihood of it also successfully taking mobile games originally developed by Nexon Korea or gloops and adapting them to suit the individual tastes of users in Asian nations.