Part 1: Company profile
This is a young start-‐up game company in Shenzhen. The founder, Rocky Fan, named the company-‐ Fun Play (I just translate directly and the Chinese name is more interesting). It’s a mobile game company. Mobile operation system (OS) market land is different from US and other developed countries. Mainstream OS are MTK (China local invention) and android. IOS only comprises a small share 12.9%. This start-‐up targeted the mainstream OS and providing free download mobile games. Most of the games are social games. Right now it’s a high speed developing market in China. And the completion is brutal and bloody!
Most of the mobile games in China are free. The popular and effective monetization model is in-‐game purchasing. Since the margin is very high, so many people started a mobile game business, especially in Guangzhou, Shenzhen and Shanghai. And this young start-‐up, Fun Play, targeted the same market with the same monetization model. At the same time, this company is also experimenting one-‐time pay model, which means players can just pay only once when they download the game. The rest part is totally free!
For Fun play, the most challenge part is similar as the other young start-‐ups that is how to survive when it comes to compete with Tencent. Tencent has monopoly position in game industry for a long time. Since Fun play is targeted younger generation of Chinese (16yr~26yr), which means it compete with Tencent directly. As a small team, Fun play is more agile and the founder used to work in Tencent for around 6 years. He knew there’re only 2 results after the competition: one is bankrupt obvious and the other is getting the attention from Tencent to be acquired. However, the funder, Rocky Fan, is very ambitions. He uses his network and gets the
great opportunity to work together to serve the large consumer base. Then share the profit with Tencent. (The founder refused to disclosure the details)
How does it work? Fun play launched its game in Tencent game center. This game center has over 1 billion exposure just in one day! However, it’s also very competitive. Since Rocky Fan is not the only one who has good connection and network with Tencent. At the same time, Tencent started the open platform strategy 2 years ago. This new policy also attracted many great candidates.
Besides this so called magic platform, Fun play also very active on other prospers local platforms. Such MTK perks group and etc. They also built SMS viral system, which use to send out promotion and new games invitation through SMS. Well Mobile market in China is quite different from US. People, especially young generations, are very active using SMS.
About the new market, one-‐time purchase game, Fun play is till doing its experiment. Since this business model is still new in China, Fun play found it hare to learn from successful case to learn from. And also the whole paying channel and online banking are still immature in China, people have to overcome the very high barrier to finish the purchasing. Even though some players are very interested into that type of game, the tolerance for the inconvenient is very low.