GAMES MARKET STUDY TOP COUNTRIES BY GAME REVENUE IN APAC AREA 2019 $36,5Bn CHINA AP AC revenues in total: $72,2Bn => 47,4% share of Global revenues JAPAN $19,0Bn

SOUTH $6,2Bn

KOREA #1 #2 #3

E-SPORTS INTERNET CHINA CAFES

TOP MOBILE BRANDS & MOBILE MODELS IN CHINA: ØØ The number one platform in games market at China Apple 24,4% ØØANDROID devices are dominating OPPO 24,8% mobile markets ØØGoogle Play store is not available in China. Others 5,5% Vivo 17,5% Samsung 5% PC Xiaomi 10,2% Huawei 12,6% ØØMore than 50% of the worldwide PC game revenue 75,6% ANDROID PHONES comes from China ØØSTEAM is a leading distribution channel for PC games. ØØOther key channels include WeGame and Epic Store

REGULATION: TOP ANDROID STORES: ØØIt is mandatory by law My App () 21.6% to have local, licensed 360 Mobile Assistant 12.3% partner, when publishing OPPO 12.3% games in China Huawei App Market 11.4% ØØEvery game published in Xiaomi App Store 10.2% China needs to have an Xiaomi Game Center 9.0% ISBN approval Baidu Mobile Assistant 6.0% ØØContent regulation Vivo App Store 5.2% 5.0% Ø Vivo Game Center ØSTEAM & Epic Store are Huawei Game Center 4.5% not officially available in China

RPG GACHA JAPAN GAMES MECHANISM $ TOP MOBILE BRANDS & MOBILE MODELS IN JAPAN: ØØNumber one platform in games market at Japan Apple 69,9%

CONSOLE Others 5,9% ØØSecond biggest platform in Huawei 2,6% games market at Japan Samsung 3,7% Sharp 5,3% PC Sony 12,6% ØØThird biggest platform in games market at Japan ØØJapanese mobile gamers are the biggest spenders in the world REGULATION: ØØJapanese gamers are less ØØGames are required competitive compared to to have an official Chinese and South Korean Japanese age rating gamers.

E-SPORTS PC BANGS/ everyday RPG SOUTH INTERNET GAMES KOREA on TV CAFES PLATFORMS IN SOUTH KOREA: TOP MOBILE BRANDS &

Arcade Games 3,6% MODELS IN SOUTH KOREA:

Internet Cafes 16% PC 28,8% Others 1,9% Console 2,8% LG 10,4% Samsung 65,5%

Mobile 47,9% Apple 22,2%

77,8% ANDROID PHONES REGULATION: ØØGames are required to have an official Korean age rating (GCRB)GRAC

BEST PRACTICES ØØSelf-publishing in channels (in Japan and South Korea) ØØStrategic investment from local investors ØØOffering outsourcing services for or buying them from Chinese/Japanese/ South Korean companies ØØCo-operating with with Chinese/Japanese/South Korean companies ie. publishing projects

CREATE ENOUGH CONTENT TO PLAY ØØChinese, Japanese and South Korean players are content hungry

CREATE ENOUGH TO SPEND ØØHave solid KPI testing $ ØØThe opportunities to spend in games and get value for the money invested needs to build in the game from the beginning

CREATE WELL LOCALIZED CONTENT ØØMany of the local business partners and players of games in China, Japan and South Korea do not speak English ØØPay attention on the quality of translation and cultural differences in game.

CREATE CONTENT THAT FOLLOW LOCAL RULES ØØCheck the local regulatory requirements UNDERSTAND THE LOCAL BUSINESS CULTURE ØØMore hierarchy than in Western countries ØØDifferences in working culture ØØAlways communicate respectfully