Gree explains how to earn $26 million a month from the game

The vice president of GREE, in his somewhat arrogant manner, told why social games are so successful in Japan, how a similar result can be achieved in the American market and what the mobile games market will be in three years. 

Just yesterday, a rather interesting interview with Eiji Araki, vice President of GREE, responsible for social games on the international market, appeared on the pages of the Inside Mobile Apps online publication. 

But first a few words about GREE itself. The company’s net sales in the quarter amount to $500 million, its top projects at home earn more than $26 million per month. So I think it’s clear that GREE knows the mobile social market better than anyone else. 

IMA: Why are social games so successful in Japan?Araki: One of the most important differences between the American and Japanese markets is the following: Japanese mobile social games have more social functions.

And they are not limited to gift cards, sharing resources and adding friends. Japanese players can compete or cooperate with each other to achieve a common goal. Deeper social integration encourages you to play with your friends, pay money. Players compete with each other, fight in virtual spaces, support their friends in the fight with other players. This is what makes Japanese social games more successful. 

IMA: Do you think there is a fundamental difference between Japanese and Western players?Araki: No.

I believe they are similar. Features in Western and Japanese games work differently, but the players themselves are no different. As I said, Japanese mobile social games are more advanced in terms of integrating social functions. 

IMA: So it turns out that the monetization of Japanese games is done better than in American ones, only thanks to the experience gained by the Japanese in their market?Araki: Yes.

And the launch of Zombie Jombie proved it. Compared to other Japanese projects, this game is very simple. And at the same time, it brings in more money than most games presented on the US market

IMA: Can you share specific figures?Araki:

Can’t. I will only say that 8-10 times.

IMA: What do you think about the differences in the conversion rate between Japanese and Western players?Araki:

I think it’s not about the users here. There are much fewer differences between payment schemes in the Japanese market. Players can pay for their purchases through their operators. No need to enter any information from the credit card. Everything is as simple as possible – and people use it.

IMA: Is there a difference in the size of transactions?Araki: No, they are the same.

Between games with the same mechanics, as far as we can tell, the difference in transaction size between the Japanese and American markets is not much different. Although, in principle, there is a difference from country to country, but if we are talking about the USA, Canada, Australia, then there is no difference between them. 

IMA: In this case, is the average total profit from the consumer for the duration of the game (lifetime value) the same?Araki:

This parameter depends on the country and genre of the game. 

IMA: Many social companies like Gloops and KLab are now beginning their expansion into the American market. What do you think about it?Araki:

I am sure that in the next six months, many, many mobile-social game developers will come to this market. Despite the fact that the Japanese market is still growing, we have 40% of its share. It is quite understandable that other Japanese players are now looking towards the global market.

IMA: Do you think their appearance on the American market is good for GREE?Araki:

It will be an interesting rivalry, but I think it will be good for everyone, because their arrival will increase the size of the market, expand it.

IMA: Competition is always good, but the arrival of big powerful players can hurt small companies. What do you think, how actively they will unite or how actively they will be absorbed by larger players in the coming year.Araki:

I believe that in a year or two there will be two, three large successful companies on the market. 

IMA: As in the traditional gaming market?Araki:

This will happen in the next three years. 

IMA: There has been a lot of talk about gambling projects for real money lately. Are you concerned about a possible ban on them in the USA and Japan?Araki:

I can’t talk about it at the moment. I will only say that we develop content that does not violate the law, but brings as much pleasure to users as possible. In any case, whatever law is adopted, we will follow its requirements. 

IMA: What is your goal in the States?Araki: Our common goal is to create a platform that will be used by 1 billion users.

If we talk only about the USA, then we are striving to become the number one social gaming studio here.

IMA: High bar.Araki:

I think we are making progress. For example, last weekend we had three or four projects in the box office top 30 or 40 on iOS. I’m sure GREE is the only company in the American market that has 3-4 titles here. 

IMA: Who do you consider your competitors in North America? DeNA, Zynga or anyone else?Araki: Yes, DeNA, Zynga, many young teams.

Also companies like EA, which sometimes performs very well. In fact, we compete with everyone.