DOCSLIB.ORG

Battle of the Internet Giants IV: TAM'ing the Profit Pool

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Battle of the Internet Giants IV: TAM'ing the Profit Pool May 17, 2016 China: Technology: Internet Equity Research Battle of the Internet giants IV: TAM’ing the profit pool Turning positive on profits and focusing on the ‘Seven Pillars’ For the first time since 2010, we have a high degree of confidence in the BUY-RATED NAMES WITH KEY EXPOSURE TO SEVEN PILLARS long term growth and potential (operating) profit pool for China Internet. Tencent* Baidu Alibaba JD.com This is in contrast to 2010-15 when margins slipped on high competition, Games Online Ad. there was a need to acquire customers, and an impetus to tackle new E‐commerce entrants. As such, we believe now is the right time to examine the 2020E Travel Local Services industry profit pool verticals we call the ‘Seven Pillars’ – games, online Internet Finance advertising, e-commerce, travel, local services, internet finance, and cloud. Cloud Computing *Denotes stock is on our regional Conviction List Four key takeaways Source: Company information, Goldman Sachs Global Investment Research. On TAM: Mobiles have exploded the overall total addressable market (TAM), with our estimates (ex-fins) suggesting a ~US$10tr opportunity by SEVEN PILLARS OF CHINA INTERNET 2020. We believe the market has underappreciated the stickiness of PC 1. Games: China, living in a virtual world 2. Online advertising: Social, online video and search are gaming and the attraction of mobile games. The next main sector growth growth engines drivers should come from financial services and local services going online. 3. E-commerce: 3x increase to US$1.5tn by 2020E On profit pools: We believe there is immense online profit opportunity 4. Online Travel: A US$200bn opportunity by 2020E 5. Local services O2O: Building a second BABA, US$1.4tn (~US$70bn by 2020E) were these businesses to be run solely to maximize TAM (2020E) profitability, as was the case with Ctrip in 2010, Baidu in 2011 and Alibaba 6. Internet Finance: Tapping the underbanked China in 2013, when operating profit margins were at record levels. consumer; a US$5.4tn opportunity (2020E) 7. Cloud computing: A ~US$20bn opportunity (2020E) On reinvestment: With the profit pool dampened by investment into new businesses, we have started moving towards SOTP valuations to reflect an RELATED RESEARCH Tencent Holdings (0700.HK): Weixin: the north star (2); increasing degree of confidence in synergistic growth. Leveraging current multiple drivers intact; reiterate CL-Buy, April 13, 2016 assets and positioning for the next major opportunities (internet finance, China: Technology: Internet: Upcoming MSCI inclusions: What to own; Tencent to CL-Buy, November 30, 2015 O2O) will be key. NetEase Inc. (NTES) Buy: Games leader and new growth On who is best positioned: Those with social network assets appear best seeker; initiate at Buy, November 25, 2015 China: Technology: Internet: Shopping sans frontières: Buy positioned, due to the growth opportunity, the significant barriers to entry, China online retail – BABA/JD/VIPS, November 6, 2015 the substantial upside to ad-loads, and the time spent on the app. China: Technology: Internet: Planes, Trains, and Hotel Rooms; Buy Ctrip, Qunar, October 26, 2015 Alibaba, Baidu, and Tencent could be major beneficiaries China: Financial Services: Internet Finance Part 1: Clash of the Titans unfolds; Midcap banks face risk of We are positive on Tencent (CL-Buy), Baidu (Buy), and Alibaba (Buy) given marginalization, November 14, 2014 their exposure to the three major growth drivers for the online advertising industry into 2020E – social advertising, online video, and search. Also, Alibaba dominates e-commerce via its unique monetization proposition, Tencent is the dominant gaming platform in China, and Baidu the default search engine in China. All three have exposure to local services, while Baidu is ramping up its internet finance arm. Of the remaining pillars, Baidu has online travel exposure via Ctrip (Buy) investment, while Alibaba and Tencent lead in cloud computing, one of the fastest growth areas. Piyush Mubayi +852-2978-1677 [email protected] Goldman Sachs (Asia) L.L.C. Goldman Sachs does and seeks to do business with George Meng, CFA companies covered in its research reports. As a result, +852-2978-0178 [email protected] Goldman Sachs (Asia) L.L.C. investors should be aware that the firm may have a conflict of David Jin, CFA interest that could affect the objectivity of this report. Investors +852-2978-1466 [email protected] Goldman Sachs (Asia) L.L.C. should consider this report as only a single factor in making Fan Liu, CFA +86(10)6627-3192 [email protected] Beijing Gao Hua Securities Company Limited their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non- US affiliates are not registered/qualified as research analysts with FINRA in the U.S. The Goldman Sachs Group, Inc. Global Investment Research May 17, 2016 China: Technology: Internet Table of contents China Internet Opportunity in Pictures 3 China Internet in Numbers 5 PM Summary: ‘Seven Pillars’ drive a ~US$70bn profit pool in 2020E 6 The Seven Pillars of China Internet 10 1. Games: China, living in a virtual world 11 2. Online advertising: Social, online video and search are growth engines 19 3. E-commerce: 3x increase to US$1.5tn by 2020E 30 4. Online travel: A US$200bn opportunity by 2020E 35 5. Local services O2O: Building a second BABA, US$1.4tn TAM (2020E) 38 6. Internet finance: Tapping the underbanked China consumer; a US$5.4tr opportunity (2020E) 42 7. Cloud computing: A ~US$20bn opportunity (2020E) 46 Appendix 1: China internet usage 51 Appendix 2: M&A summary 52 Appendix 3: Valuation and risks 56 Appendix 4: TAM table in details 57 Appendix 5: TAM detail in RMB 59 Disclosure Appendix 60 All prices in this report as of May 13, 2016, unless otherwise noted. The authors would like to thank Jason Huang, Elsie Cheng, Shaphan Ng and Kenneth Bang for their valuable contributions to the report. Exhibit 1: China Internet Comps P/E, non-GAAP PE at TP Last Target +/- Mkt CapPerformance diluted EV/Revenue PEG non-GAAP Company Ticker fx Price Price Side Rating (US$mn) 3Mo YTD 2016E 2017E 2016E 2017E 2016E 2016E 2017E China Internet 58.com WUBA $ 50.50 64.0 27% Neutral 5,803 14% -23% NM 27.8x 4.2x 2.9x NM NM 35.2x Alibaba BABA $ 77.16 100.0 30% Buy 196,758 27% -5% 27.0x 21.6x 8.7x 6.8x 1.1x 35.0x 28.1x Autohome ATHM $ 24.80 - - Not Rated 2,904 4% -29% 16.2x 12.6x 2.6x 2.2x 0.6x - - Baidu BIDU $ 159.75 220.0 38% Buy 56,520 5% -15% 26.6x 17.8x 4.2x 3.5x 0.6x 36.7x 24.5x Changyou CYOU $ 17.67 16.9 -4% Sell 934 9% -29% 9.2x 8.4x 0.7x 0.7x 1.1x 8.8x 8.0x Ctrip CTRP $ 43.01 55.0 28% Buy 21,017 16% -7% 80.8x 30.0x 7.1x 5.3x 0.8x 103.3x 38.4x JD.com JD $ 22.64 33.0 46% Buy 31,092 -2% -30% NM 50.5x 0.7x 0.5x NM NM 73.7x Jumei JMEI $ 5.29 9.5 80% Neutral 799 -4% -42% 14.2x 8.8x 0.5x 0.4x 0.3x 25.4x 15.9x NetEase NTES $ 153.40 182.0 19% Buy 20,281 11% -15% 14.0x 14.3x 3.2x 2.5x 1.9x 16.6x 17.0x Qunar QUNR $ 35.75 45.0 26% Neutral 5,272 2% -32% NM 98.5x 6.3x 4.5x NM NM 124.0x Sina SINA $ 45.50 48.0 5% Neutral 2,683 9% -8% 28.1x 21.3x 1.2x 1.0x NM 29.7x 22.5x Sohu SOHU $ 39.52 41.0 4% Sell 1,529 -11% -31% NM 21.5x 0.4x 0.3x NM NM 22.3x SouFun SFUN $ 5.58 6.8 22% Neutral 2,376 15% -24% NM 16.5x 1.3x 0.9x NM NM 20.1x Tencent 0700.HK HK$ 155.10 193.0 24% Buy* 188,386 16% 2% 28.6x 22.5x 8.6x 7.0x 1.2x 35.6x 28.0x Tuniu TOUR $ 8.97 15.0 67% Neutral 1,190 -18% -44% NM NM 0.4x 0.3x NM NM NM VIPShop VIPS $ 12.00 17.5 46% Buy 7,663 10% -21% 18.8x 14.7x 1.0x 0.8x 0.8x 27.4x 21.4x Weibo WB $ 23.30 22.0 -6% Neutral 5,195 93% 19% 43.7x 24.4x 8.0x 5.6x 0.7x 41.3x 23.0x Median (Sum for Mkt cap) 26% 550,401 9% -23% 26.6x 21.4x 2.6x 2.2x 0.8x 32.3x 23.0x Notes: *Denotes stock is on our regional Conviction List. All target prices are on a 12 month basis. Source: DataStream, Goldman Sachs Global Investment Research. Goldman Sachs Global Investment Research 2 May 17, 2016 China: Technology: Internet China Internet Opportunity in Pictures Exhibit 2: Seven Pillars of China Internet Notes: TAM = Total Addressable Market. The TAM numbers for e-commerce, travel, O2O, cloud, and internet finance relate to the whole industry size. CAGR is for 2015-2020E (in USD).Top 2 players is by market share. For RMB version please see Appendix 5. Source: iResearch, eMarketer, NBS, CNNIC, Analysys, Wind, Sina news, Goldman Sachs Global Investment Research. Exhibit 3: We expect China’s internet penetration to increase from 50% in 2015 to 60% by 2020 (to 847mn, 97.6% of which would be mobile internet users vs.
Load more

Recommended publications
  • Significant of Social Media and Event Marketing in Developing Countries
    The Ministry of Education of Azerbaijan Republic Significant of Social Media and Event Marketing in Developing Countries Amina Azadli UNEC SABAH Azerbaijan State Economic University MAY 2018 ACKNOWLEDGEMENT First of all, I am very grateful to everyone who supported me for my dissertation. I would like to express my thanks to my advisor Sabina Akberova. My special thanks go to Elshan Mehtiyev and my family. They gave me moral support during preparation of dissertation. 2 ABSTRACT Under changing world conditions, people see that things change rapidly, either technologically or humanly. People are better able to understand the extent to which this change is compared to changes. In today's consumer- dominated world, marketing executives must evaluate every opportunity they face to start a relationship with the buyer. Marketers must focus on winning a good name and image on the market and earn the trust of their customers. To do this, it must be tightly packed with marketing tools and tactics that require the least amount of time and money. But in reality, achieving this business is not about companies. A sound marketing mix involving Social Media Marketing is crucial for connecting as many potential customers as possible. In this study, social media and event marketing were discussed in developing countries where the young population is older than the elderly and social media is used more by young people. On the topics of Social Media and Event Marketing, a literature study was performed first. Later, a research study was conducted among the citizens of the Developing Country in Social Media and Event marketing.
    [Show full text]
  • Miniclip Free Games to Download
    Miniclip free games to download Downloadable Games. Play 3 Foot Ninja 3 Foot Ninja Download · Play 3FootNinja 2 3FootNinja 2 Download · Play Slacking Slacking Download · Play Alien. Play Free Online Games, fun games, puzzle games, action games, sports you can try the games for free on Miniclip and then download them to your iPhone. 8 Ball Pool - Miniclip, free and safe download. 8 Ball Pool - Miniclip latest version: Free and addictive Multiplayer Pool Game. 8 Ball Pool - Miniclip is one of. Download 8 Ball Pool - Miniclip for Windows now from Softonic: % safe Free pool game with realistic physics A Full Version Sport game for Windows. Top Download Free Games by , Free Online Games, Adventure Games, Shooting Games, Action Games, Arcade Games, Sports Games, Racing. Find Miniclip software downloads at CNET , the most games are extremely popular because they are fun, free, high quality. Miniclip Roll on Miniclip War on Angry Gran Toss Free Run, Free Kick Expert. Free Board, 3G Free Kick, Free Kicker, A Game About Kingdoms CCG. All Games from Miniclip. Games from Miniclip. Sorted by date | Sorted by total downloads | Sorted by last week downloads Miniclip Alien Attack Updated: 07/29/ Miniclip FREE GAMES DOWNLOAD - PC Games Free Download. How to Download Miniclip Games. You can download Miniclip games, free and legitimately. Downloading "Miniclip games" is simple to do on a computer or on. This video is showing how to Download Miniclip Games Link: If you want to use the. Free download. Vote: 1 2 3 4 5 As a single player "practice" game, 8 Ball Pool stands up quite well.
    [Show full text]
  • The Limits of Commercialized Censorship in China
    The Limits of Commercialized Censorship in China Blake Miller∗ September 27, 2018 Abstract Despite massive investment in China's censorship program, internet platforms in China are rife with criticisms of the government and content that seeks to organize opposition to the ruling Communist Party. Past works have attributed this \open- ness" to deliberate government strategy or lack of capacity. Most, however, do not consider the role of private social media companies, to whom the state delegates information controls. I suggest that the apparent incompleteness of censorship is largely a result of principal-agent problems that arise due to misaligned incentives of government principals and private media company agents. Using a custom dataset of annotated leaked documents from a social media company, Sina Weibo, I find that 16% of directives from the government are disobeyed by Sina Weibo and that disobedience is driven by Sina's concerns about censoring more strictly than com- petitor Tencent. I also find that the fragmentation inherent in the Chinese political system exacerbates this principal agent problem. I demonstrate this by retrieving actual censored content from large databases of hundreds of millions of Sina Weibo posts and measuring the performance of Sina Weibo's censorship employees across a range of events. This paper contributes to our understanding of media control in China by uncovering how market competition can lead media companies to push back against state directives and increase space for counterhegemonic discourse. ∗Postdoctoral Fellow, Program in Quantitative Social Science, Dartmouth College, Silsby Hall, Hanover, NH 03755 (E-mail: [email protected]). 1 Introduction Why do scathing criticisms, allegations of government corruption, and content about collective action make it past the censors in China? Past works have theorized that regime strategies or state-society conflicts are the reason for incomplete censorship.
    [Show full text]
  • Clickscapes Trends 2021 Weekly Variables
    ClickScapes Trends 2021 Weekly VariableS Connection Type Variable Type Tier 1 Interest Category Variable Home Internet Website Arts & Entertainment 1075koolfm.com Home Internet Website Arts & Entertainment 8tracks.com Home Internet Website Arts & Entertainment 9gag.com Home Internet Website Arts & Entertainment abs-cbn.com Home Internet Website Arts & Entertainment aetv.com Home Internet Website Arts & Entertainment ago.ca Home Internet Website Arts & Entertainment allmusic.com Home Internet Website Arts & Entertainment amazonvideo.com Home Internet Website Arts & Entertainment amphitheatrecogeco.com Home Internet Website Arts & Entertainment ancestry.ca Home Internet Website Arts & Entertainment ancestry.com Home Internet Website Arts & Entertainment applemusic.com Home Internet Website Arts & Entertainment archambault.ca Home Internet Website Arts & Entertainment archive.org Home Internet Website Arts & Entertainment artnet.com Home Internet Website Arts & Entertainment atomtickets.com Home Internet Website Arts & Entertainment audible.ca Home Internet Website Arts & Entertainment audible.com Home Internet Website Arts & Entertainment audiobooks.com Home Internet Website Arts & Entertainment audioboom.com Home Internet Website Arts & Entertainment bandcamp.com Home Internet Website Arts & Entertainment bandsintown.com Home Internet Website Arts & Entertainment barnesandnoble.com Home Internet Website Arts & Entertainment bellmedia.ca Home Internet Website Arts & Entertainment bgr.com Home Internet Website Arts & Entertainment bibliocommons.com
    [Show full text]
  • Tencent and China Mobile's Dilemma
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by AIS Electronic Library (AISeL) Association for Information Systems AIS Electronic Library (AISeL) Pacific Asia Conference on Information Systems PACIS 2014 Proceedings (PACIS) 2014 FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA Jun Wu School of Economics and Management, Beijing University of Posts and Telecommunications, [email protected] Qingqing Wan School of Economics and Management, Beijing University of Posts and Telecommunications, [email protected] Follow this and additional works at: http://aisel.aisnet.org/pacis2014 Recommended Citation Wu, Jun and Wan, Qingqing, "FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA" (2014). PACIS 2014 Proceedings. 265. http://aisel.aisnet.org/pacis2014/265 This material is brought to you by the Pacific Asia Conference on Information Systems (PACIS) at AIS Electronic Library (AISeL). It has been accepted for inclusion in PACIS 2014 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact [email protected]. FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA Jun Wu, School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, [email protected] Qingqing Wan, School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, [email protected] Abstract With the coming of mobile internet era, Giants in the different industry begin to compete face by face. This teaching case presents the event of charging for WeChat in China context to delineate the new challenges that Online Service Provider and Mobile Network Operator will face.
    [Show full text]
  • Weibo's Role in Shaping Public Opinion and Political
    Blekinge Institute of Technology School of Computing Department of Technology and Aesthetics WEIBO’S ROLE IN SHAPING PUBLIC OPINION AND POLITICAL PARTICIPATION IN CHINA Shajin Chen 2014 BACHELOR THESIS B.S. in Digital Culture Supervisor: Maria Engberg Chen 1 Table of Contents 1. INTRODUCTION .............................................................................................................2 2. INTERNET AND MICROBLOGGING IN CHINA ......................................................5 2.1 INTERNET, MEDIA AND POLITICAL LANDSCAPE IN CHINA: AN OVERVIEW .......................... 5 2.2 MICROBLOGGING AND CHINESE WEIBO .........................................................................7 2.3 SINA WEIBO: THE KING OF MICROBLOGGING IN CHINA ................................................... 8 3. DOMINANT FEATURES OF WEIBO IN SHAPING PUBLIC OPINION AND POLITICAL SPHERE ........................................................................................................10 3.1 INFORMATION DIFFUSION ............................................................................................11 3.2 OPINION LEADERS AND VERIFIED IDENTITY ..................................................................12 3.3 PLATFORM FOR FREE SPEECH, COLLECTIVE VOICE AND EXPOSURE ................................. 14 3.4 PARTICIPATION OF MASS MEDIA AND GOVERNMENT ......................................................15 4. CASE STUDIES ..............................................................................................................18 4.1
    [Show full text]
  • The Mobile Games Landscape in 2015 | Newzoo
    © 2015 Newzoo NEWZOO TREND REPORT The Mobile Gaming Landscape 2015 And the power users who shaped it INCLUDES CONTRIBUTIONS FROM What I believe we’ve seen in mobile gaming in 2015 is the beginning of a broader trend toward convergence. As shown by the success of FOREWORD Bethesda’s Fallout Shelter on mobile in June 2015 and Fallout 4 on PC, PS4 and Xbox One, game companies are beginning to realize that consumers desire gaming content to fit the various contexts that form It has been another big year for mobile gaming. In fact, it has been the their lives. biggest year in the history of the industry so far. With the sector generating revenues of over $30 billion and King, arguably the biggest As a result, we’ll be seeing in 2016 onward a move player in the market, valued at $6 billion, it’s fair to say that mobile gaming has reached heights in 2015 that few of us would have expected away from defining games by their platform toward a decade ago. Unfortunately, what this means for the industry now and models that allow game content to be played and, in the future has been clouded by antagonistic models of thinking. Whether deliberately or otherwise, mobile gaming’s success has tended equally important, viewed everywhere. to be framed as a battle with console or PC. Sony’s announcement that PS4 Remote Play, which allows console When I unpacked the data from this report, a different picture emerged. owners to play content without carrying the product around, comes hot In contrast to the usual narratives about mobile versus console or PC on the tail of Microsoft allowing Xbox One titles to run on Windows.
    [Show full text]
  • Social Media Contracts in the US and China
    DESTINED TO COLLIDE? SOCIAL MEDIA CONTRACTS IN THE U.S. AND CHINA* MICHAEL L. RUSTAD** WENZHUO LIU*** THOMAS H. KOENIG**** * We greatly appreciate the editorial and research aid of Suffolk University Law School research assistants: Melissa Y. Chen, Jeremy Kennelly, Christina Kim, Nicole A. Maruzzi, and Elmira Cancan Zenger. We would also like to thank the editors at the University of Pennsylvania Journal of International Law. ** Michael Rustad is the Thomas F. Lambert Jr. Professor of Law, which was the first endowed chair at Suffolk University Law School. He is the Co-Director of Suffolk’s Intellectual Property Law Concentration and was the 2011 chair of the American Association of Law Schools Torts & Compensation Systems Section. Pro- fessor Rustad has more than 1100 citations on Westlaw. His most recent books are SOFTWARE LICENSING: PRINCIPLES AND PRACTICAL STRATEGIES (Lexis/Nexis, 3rd ed. forthcoming 2016), GLOBAL INTERNET LAW IN A NUTSHELL (3rd ed., West Academic Publishers, 2015), and GLOBAL INTERNET LAW (HORNBOOK SERIES) (West Academic Publishers, 2d ed. 2015). Professor Rustad is editor of COMPUTER CONTRACTS (2015 release), a five volume treatise published by Matthew Bender. *** Wenzhuo Liu, LL.B., LL.M, J.D., obtained China’s Legal Professional Qual- ification Certificate in 2011. In 2014, she became a member of the New York state bar. She earned an LL.M degree from the University of Wisconsin Law School in Madison, Wisconsin in 2012 and a J.D. degree from Suffolk University Law School in Boston. She was associated with Hunan Haichuan Law Firm in Changsha, China. Ms. Liu wrote a practice pointer on Software Licensing and Doing Business in China in the second and third editions of MICHAEL L.
    [Show full text]
  • Marketing Plan
    ALLIED ARTISTS MUSIC GROUP An Allied Artists Int'l Company MARKETING & PROMOTION MARKETING PLAN: ROCKY KRAMER "FIRESTORM" Global Release Germany & Rest of Europe Digital: 3/5/2019 / Street 3/5/2019 North America & Rest of World Digital: 3/19/2019 / Street 3/19/2019 MASTER PROJECT AND MARKETING STRATEGY 1. PROJECT GOAL(S): The main goal is to establish "Firestorm" as an international release and to likewise establish Rocky Kramer's reputation in the USA and throughout the World as a force to be reckoned with in multiple genres, e.g. Heavy Metal, Rock 'n' Roll, Progressive Rock & Neo-Classical Metal, in particular. Servicing and exposure to this product should be geared toward social media, all major radio stations, college radio, university campuses, American and International music cable networks, big box retailers, etc. A Germany based advance release strategy is being employed to establish the Rocky Kramer name and bona fides within the "metal" market, prior to full international release.1 2. OBJECTIVES: Allied Artists Music Group ("AAMG"), in association with Rocky Kramer, will collaborate in an innovative and versatile marketing campaign introducing Rocky and The Rocky Kramer Band (Rocky, Alejandro Mercado, Michael Dwyer & 1 Rocky will begin the European promotional campaign / tour on March 5, 2019 with public appearances, interviews & live performances in Germany, branching out to the rest of Europe, before returning to the U.S. to kick off the global release on March 19, 2019. ALLIED ARTISTS INTERNATIONAL, INC. ALLIED ARTISTS MUSIC GROUP 655 N. Central Ave 17th Floor Glendale California 91203 455 Park Ave 9th Floor New York New York 10022 L.A.
    [Show full text]
  • Nz Gdc 2013 Programme Keynote Speakers
    NZ GDC 2013 PROGRAMME KEYNOTE SPEAKERS 9:00 Registration Open at WG Building, AUT University The Next Big Thing Alex St John, Co-creator Direct-X, Founder of Wild Tangent.com, Former GM Entertainment 10:00 Opening by Stephen Knightly, NZGDA for Microsoft, Former President of Hi5.com 10:20 The Next Big Thing, Alex St John, Founder Wild Tangent Alex St. John (AKA The Saint) was the Microsoft executive 10:40 The Future of Gaming, Jason Harwood, Producer, Halfbrick responsible for leading the effort to create the DirectX gaming APIs Room WG 403 Room WG 404 Room WG 126 and Windows Media platforms which lead to the introduction of the 'DirectXBox'. St. John went on to found WildTangent which became 11:00 Path of Exile Open Animate Technologies Cross Platform Indie Tools of the largest online game network in the US and the third largest in Beta Post Mortem the Trade the world through 2011. He went on to become CTO of Hi5.com 11:30 Bloons Monkey City - RPG item design for Windows Phone 8 the world’s third largest social network and by cloning Facebooks The Evolution of IP Different player types API’s was able to publish hundreds of Facebook compatible social 12:00 Lunch (thanks IGEA) games before selling the company in late 2012. Alex has over 23 patents in online game publishing, DRM, streaming, compression 1:00 Panel: Best Practical Motion Capture Month of Hell: Launching Path and online business models. Practices in Mobile for Gaming (Room of Exile 1:30 Customer Acquisition WG212) Gamified Beta Testing No matter who the big players are in the market or how tightly they seem to have the and Monetisation platforms and gaming audiences sewn up, there is always an upstart out there that 2:00 Panel: The Future of Jane Austen Post- Defining the post-modern completely disintermediates them and succeeds wildly in spite of the barriers.
    [Show full text]
  • Paradox Interactive Listing Attracts Tencent As Fan and Long-Term Investor
    FOR IMMEDIATE RELEASE Paradox Interactive listing attracts Tencent as fan and long-term investor Leading online games publisher and platform to contribute to Paradox’s future journey (May 27, Stockholm) Tencent Holdings Limited, which operates China’s largest social network and online games platform, has subscribed to and been allocated shares in the initial public offering of Paradox Interactive (”Paradox”) on Nasdaq First North Premier. Tencent has been allocated 5.28 million shares at the offering price of SEK 33 per share, and hold 5% equity interest in Paradox Interactive post transaction. Fredrik Wester and Spiltan will continue to be key shareholders in Paradox with 33.3 % and 30.5 % shareholdings, respectively. A long-time fan of Paradox games, Tencent will work to explore opportunities with Paradox to build up the emerging grand strategy, simulation, and story-driven RPG fan bases in China. Tencent has a history of supporting new game genres in China, where it operates globally renowned titles such as League of Legends, Cross-Fire, Dungeon & Fighter, Call of Duty Online, FIFA Online and Need for Speed, as well as many popular locally-developed games. Tencent also has a track record of building strong partnership with game industry leaders, such as Activision Blizzard, Riot Games, CJ Netmarble and Miniclip, via equity investment and support in distribution and operations. Fredrik Wester, CEO and principal owner of Paradox, said: “Tencent approached us as big fans of our grand strategy games and with a genuine interest in Paradox and our onward journey. It has always been very important for us that any partners we bring on board can contribute in a unique and attractive way to Paradox and have a long term commitment to the company.
    [Show full text]
  • KARELIA UNIVERSITY of APPLIED SCIENCES Degree Programme in Business Information Technology
    KARELIA UNIVERSITY OF APPLIED SCIENCES Degree Programme In Business Information Technology Teemu Kokkonen MICROTRANSACTIONS IN AN ANDROID GAME Thesis June 2014 THESIS June 2014 Degree Programme In Business Information Technology Karjalankatu 3 80220 JOENSUU FINLAND 013 260 600 Author(s) Teemu Kokkonen Title Microtransactions in an Android Game Commissioned by - Abstract The objective of this thesis is to explore the products sold within mobile applications and games, called in-app purchases or microtransactions. The thesis studies the history and nature of these microtransactions and examines their positive and negative effects on game design, as well as analyzes their usage in modern mobile games. To reinforce the research, a mobile game codenamed TownBuilder was developed alongside the thesis. The game paid attention to the designs explored in the earlier chapters and incorporated design choices that attempted to optimize the effectiveness of the microtransactions. In addition to the design, a portable code package was set to be developed to simplify the usage of the in-app purchases in conjunction with Google Play services. The game that was developed during the thesis reached an early alpha stage, with the microtransaction functionality demonstrably in place and some gameplay to go with it. The design of the game was inspired by several successful examples on the field, and even though it is not finished, the design was set a solid foundation for including microtransactions in a player-friendly way. With all its perks and disadvantages, it remains still yet to be seen if microtransactions are the way of the future for the games industry. Despite the success stories, there are a lot of alternatives, some of which yet undiscovered.
    [Show full text]