If you have met with online gaming or social networking people recently, you probably heard of “free to play” and “virtual goods“
While it remains a mystery to many how something free can make money and why would anyone pay for a virtual haircut, it seems to make a lot of sense to many users and companies.
Among them, Chinese online game companies and China’s shining star Tencent are making very healthy revenues with juicy profit margins (Tencent should announce its 2008 results soon - likely something close to a billion USD in sales and a 50% profit margin, a third of which from online games).
…What about mobile gaming?
Our panelists in January mentioned it as a sector to watch, so we invited mobile gaming entrepreneurs to introduce their content, business and share their perspective on the sector.
How big is the market? What are the most popular games? Who are the mobile game users? What are the market trends in 2009? Free to play? Download? Multiplayer? What are the competitive advantages in this fast moving sector where IP is hard to defend?