{"id":10630,"date":"2010-10-13T00:14:45","date_gmt":"2010-10-12T15:14:45","guid":{"rendered":"http:\/\/asiajin.com\/blog\/?p=10630"},"modified":"2010-10-13T00:14:45","modified_gmt":"2010-10-12T15:14:45","slug":"will-dena-crack-the-japanese-code-for-international-expansion","status":"publish","type":"post","link":"https:\/\/asiajin.com\/blog\/2010\/10\/will-dena-crack-the-japanese-code-for-international-expansion\/","title":{"rendered":"Will DeNA Crack The Japanese Code For International Expansion?"},"content":{"rendered":"<div style=\"text-align: center\">\n<a href=\"http:\/\/img.asiajin.com\/blog\/wp-content\/uploads\/2010\/10\/deba-ngmoco.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10632\" src=\"http:\/\/img.asiajin.com\/blog\/wp-content\/uploads\/2010\/10\/deba-ngmoco.png\" alt=\"\" width=\"231\" height=\"158\" \/><\/a>\n<\/div>\n<p>DeNA, the company behind one of the big three social networking sites in Japan, Mobage-Town (20m users in Japan), cannot be clearer on its current strategy.<br \/>\nIt&#8217;s called international expansion.<br \/>\nEveryone is abuzz of today&#8217;s acquisition of <a href=\"http:\/\/www.ngmoco.com\/\">Ngmoco<\/a>, an US iPhone game developer for a staggering USD 400m.<\/p>\n<blockquote><p>The big tide in social gaming is coming, right now. We\u2019d like to capture it and quickly become the world\u2019s No. 1 mobile gaming platform<\/p><\/blockquote>\n<p><a href=\"http:\/\/dealbook.blogs.nytimes.com\/2010\/10\/12\/japanese-company-to-buy-iphone-game-developer\/\">says<\/a> Tomoko Namba, founder and CEO.<br \/>\nWow. But let&#8217;s roll back in time for a minute. DeNA Global business initiatives actually started in July 2006 with the creation of its Beijing subsidiary, which launched Jia Jia Cheng, a Chinese Mobage-Town, the following year. In January 2008, the company established <a href=\"http:\/\/www.denaglobal.com\/\">DeNA Global<\/a>, its full-fledged international arm. Its location was not innocent: San Mateo, California.<br \/>\nTrue to its core business, <a href=\"http:\/\/m.mbmgl.com\/\">MobaMingle<\/a> was <a href=\"http:\/\/asiajin.com\/blog\/2008\/09\/19\/mobage-town-launched-world-wide-english-service-mobamingle\/\">released the same year<\/a> with more than USD 3m investment. A virtual community for mobile phones. Avatars, friends, games, blogging. A <a href=\"http:\/\/www.mbga.jp\/.pc\/\">Mobile Game Town<\/a> (i.e. <em>Mobage-Town<\/em>) for the US and Europe (and <a href=\"http:\/\/asiajin.com\/blog\/2009\/08\/19\/japans-dena-brings-its-mobile-social-gaming-platform-mobamingle-to-india\/\">India<\/a> a bit later), in short.<br \/>\nI can&#8217;t say it was mind blowingly successful, especially due to the lack of those flash-based mobile games that gave it traction in Japan. Or simply because we&#8217;re talking about markets that never got used to flash-based mobile gaming. Or even more simply since not all handsets were actually supporting Flash in the first place.<br \/>\n150,000 members (March 2009) might not have been braking any record, but it was a good exercise in testing the international waters.<br \/>\nIntelligently sensing the move towards an application-based phone ecosystem, DeNA brought its <a href=\"http:\/\/asiajin.com\/blog\/2010\/05\/10\/dena-begins-free-games-and-community-on-english-iphoneipad\/\">games and community<\/a> to the iPhone\/iPad last May. Just for its overseas users. An iteration of MobaMingle of sorts, if you want.<br \/>\nAnd things were going faster on all fronts.<br \/>\nDeNA took a <a href=\"http:\/\/venturebeat.com\/2009\/10\/29\/aurora-feint-raises-funding-from-big-japanese-mobile-portal-operator\/\">20% stake in the gaming platform Aurora Feint<\/a> -a Ngmoco competitor- last year to facilitate distribution. It acquired IceBreaker, a US-based game publisher a few months later. Then bought <a href=\"http:\/\/techcrunch.com\/2010\/09\/24\/japanese-company-dena-expands-footprint-in-u-s-invests-in-social-game-studio-astro-ape\/\">Astro Ape Studios<\/a> then <a href=\"http:\/\/techcrunch.com\/2010\/09\/14\/japanese-company-dena-buys-mobile-social-gaming-studio-gameview\/\">Gameview Studios<\/a>, two US-based game developers, this year. Then set up a USD 27.5m <a href=\"http:\/\/asiajin.com\/blog\/2010\/05\/04\/dena-reports-usd100m-on-quarterly-profit-they-to-focus-on-social-app-business\/\">investment fund<\/a>. And now that 400m deal.<br \/>\nUSD 403m actually. 303m to be paid in November, 100m more depending on Ngmoco 2011 earnings.<br \/>\n403m. That makes it the world&#8217;s largest mobile social gaming platform. Or so they say [<a href=\"http:\/\/www.businesswire.com\/news\/home\/20101012006059\/en\/DeNA-Acquire-ngmoco\">full press release in English<\/a>].<br \/>\n403m for what? Unlocking that elusive international market.<br \/>\nThe company plans to integrate Ngmoco&#8217;s social platform which plays nicely with both iOS and Android phones. Read that again. Or read this <a href=\"http:\/\/blog.ngmoco.com\/post\/1296593011\/dena-to-acquire-ngmoco-a-note-from-the-founders\">from the founders<\/a>:<\/p>\n<blockquote><p>ngmoco will lead DeNA\u2019s efforts in the Western world, including launching a new western smartphone version of the incredibly successful Social Games Network, Mobage (we say \u201cMo-ba-gae\u201d) that we\u2019re building together with DeNA.<\/p><\/blockquote>\n<p>DeNA is smart. It&#8217;s talking about <a href=\"http:\/\/www.ngmoco.com\/openmobage\/\">OpenMobage<\/a>, a <em>platform<\/em>. iPhone, Android, keitai. That&#8217;s key. If the company is able to create such a thing on mobile -think how Zynga used Facebook&#8217;s platform for its growth-, then it has a shot at being very successful.<br \/>\nAnd remember, the company&#8217;s revenue estimates for this year are about USD 1bn. That&#8217;s as much as Facebook. Good firing power, heh?<\/p>\n<blockquote><p>Becoming the premier [global] social gaming company appears extremely feasible<\/p><\/blockquote>\n<p>I want <a href=\"http:\/\/techcrunch.com\/2010\/08\/05\/denas-strong-q1-2010\/\">to believe<\/a> Tomoko Namba, DeNA&#8217;s CEO. Really. But the list of Japanese tech companies that have successfully ventured abroad is dramatically short. Last time such noticeable investment happened was more than 5 years ago when Japanese mobile content giant Index Holdings <a href=\"http:\/\/www.index-hd.com\/press_english\/?p=85\">bought Seattle-based Mobliss<\/a> and <a href=\"http:\/\/www.allbusiness.com\/media-telecommunications\/telecommunications\/5243433-1.html\">123 Multimedia<\/a>. Or, closer to the numbers we&#8217;re talking today, when <a href=\"http:\/\/www.independent.co.uk\/news\/business\/news\/japanese-buy-itouch-for-pound180m-526607.html\">For-side bought iTouch<\/a>, a mobile content provider.<br \/>\nRight. No one remembers.<br \/>\nHence, only one name comes to mind. Rakuten.<br \/>\nIts <a href=\"http:\/\/asiajin.com\/blog\/2010\/05\/20\/rakuten-to-go-global-by-acquiring-buy-com-for-usd250m\/\">acquisition of Buy.com<\/a> for USD 250m -with a relatively weaker yen- is too recent to pass any judgement. But it&#8217;s one story that will allow us all to judge how Japan will do abroad this time.<br \/>\nWhat will it be?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DeNA, the company behind one of the big three social networking sites in Japan, Mobage-Town (20m users in Japan), cannot be clearer on its current strategy. It&#8217;s called international expansion. Everyone is abuzz of today&#8217;s acquisition of Ngmoco, an US iPhone game developer for a staggering USD 400m. The big tide in social gaming is&hellip; <a class=\"more-link\" href=\"https:\/\/asiajin.com\/blog\/2010\/10\/will-dena-crack-the-japanese-code-for-international-expansion\/\">Continue reading <span class=\"screen-reader-text\">Will DeNA Crack The Japanese Code For International Expansion?<\/span><\/a><\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[17],"tags":[49,325,883,885,1316,1666,2370,2401,2579,3047,3751],"class_list":["post-10630","post","type-post","status-publish","format-standard","hentry","category-japan","tag-123-multimedia","tag-astro-ape-studios","tag-dena","tag-dena-global","tag-gameview-studios","tag-index-holdings","tag-mobage-town","tag-mobliss","tag-ngmoco","tag-rakuten","tag-tomoko-namba","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/posts\/10630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/comments?post=10630"}],"version-history":[{"count":0,"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/posts\/10630\/revisions"}],"wp:attachment":[{"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/media?parent=10630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/categories?post=10630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/asiajin.com\/blog\/wp-json\/wp\/v2\/tags?post=10630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}