SoftBank and GungHo invest in Finnish game maker Supercell to leverage paradigm shift, time shift and market disconnects

Akihabaranews.com - Eurotechnology - SoftBank and GungHo invest in Finnish game maker Supercell

Smartphones and the “freemium” business models are bringing a dual paradigm shift to games and create a new truly global market. To take advantage of this global paradigm shift, its necessary to overcome the cultural disconnects between markets. SoftBank and GungHo‘s investment in the Finnish smartphone/tablet game maker Supercell, announced on Oct. 15, will help to overcome the disconnect between Japan’s and other game markets for both Supercell and GungHo.

The disconnect between Japan and other countries is often surprising – when BusinessWeek in 2006 commented on rumors that SoftBank might introduce an Apple “iPod-Phone” to Japan, BusinessWeek remarked that “Apple would normally never talk to a small-fry such as SoftBank” …. at that time SoftBank’s annual revenues were about twice Apple’s, and BusinessWeek printed my correction pointing out that SoftBank even at that time was anything but a “small fry”.

One of SoftBank‘s aspects is it’s “time-shift” investment model, another is SoftBank‘s 30/300 year vision – both are important factors to understand the Supercell investment.

(Please see image above.)

This Figure contrasts the market caps of new mobile and smartphone centric game companies (GungHo, Supercell, DeNA and GREE) with traditional console, video game and arcade game companies.

SoftBank announced that because of the majority investment, Supercell will become a subsidiary of SoftBank, and GungHo will account for Supercell’s profit/loss under the equity method.

A

GungHo and Supercell both are top-ranking mobile game companies: GungHo inside Japan with “Puzzle and Dragons”, and Supercell outside Japan with “Hay Day” and “Clash of Clans”. Expect both to leverage each other’s resources.

Both GungHo and Supercell show explosive growth:
GungHo’s operating profits increased 4050% (x 40) for Jan-June 2013 compared to the same period one year earlier.
Supercell’s revenues (mainly in-game purchases) jumped 500x from EURO 151,000 in 2011 to EURO 78 million in 2012.

Culture can be an issue between Japan and other countries, however, SoftBank has invested in more than 1000 comparable companies, and many of SoftBank’s investments have been outstandingly successful including Alibaba and Yahoo.

However, investment and management support by SoftBank does not automatically guarantee success in Japan – despite SoftBank’s investment and support, Zynga closed operations in Japan earlier this year. Success in Japan will remain Supercell’s responsibility, despite SoftBank’s and GungHo’s help and investment – as Zynga can tell.

(c) 2013 Copyright by Eurotechnology Japan KK. All Rights Reserved.

Source: 

Related Articles

Commuter Gamer #4: Passing the Time on Tokyo Trains (REVIEW)
Whether it’s collecting cherry blossoms after a cold winter wind, venturing into a unique wilderness in search of birthday cake or stamping documents in a Cold War-era, Eastern bloc country, your next commute to the immigration office will never be the same again.
Tokyo Game Show 2014: Day One on the Floor (VIDEO) - AkihabaraNews.com

The Tokyo Game Show Industry/Press Days are Over. Long Live the Industry/Press Days
We're preparing to head out for our last day of #TGS coverage (it's Cosplay Night!), and of course it's exciting to be able to spend more time at this great event, but today a sobering reality weighs heavy. 

Unusual combination but so cool!

Has anyone imagined that Mario from Super Mario Bros. would be driving around in one of the most luxurious cars? Well, currently he is driving a Mercedes in the TV commercial for the new Mercedes-Benz GLA.

To celebrate the 15 year anniversary of ONE PIECE first being aired on TV, the Real Dasshutsu Game in collaboration with ONE PIECE will take place this summer at the concert venue Zepp in its various locations around Japan.

Real Dasshutsu Game, which in English means "user participation type escape-the-room game" has been an extremely popular event, set-up and run by the Japanese event planning company, SCRAP Entertainment Inc.

 

The Igarashi Lab. at the University of Tokyo is developing a new type of physics engine which can faithfully recreate in 3D the stylizations common to 2D anime.

"Physics engines are used in 3D animation, to generate the motions of hair and clothes. They can do physically correct computing, but the problem is, that's all they can do. The engine we've created makes it possible for artists to adjust such physics computations, in other words, to deform things."

Game Life Asagaya: Nintendo Famicom Exhibit

From Contributor Reece Scott; be sure to check out the full-sized images below. Old-school gaming nostalgia in 3...2...1...  
-Ed.

•••

Commuter Gamer #5: Passing the Time on Tokyo Trains (REVIEW)
Take a walk in the well-worn shoes of a homicide detective, wax lyrical with Hamlet’s ghost over the ineffectual ways to murder your uncle, or just straight up run for your life from unseen, impending doom. This morning commute has everything.

Mouse Computer has started accepting advance orders of a super-geeky gaming laptop computer from their gaming brand G-Tune yesterday in a limited quantity - Only 100 units.

The model is called unity-chan! Collaboration Pasokon NEXTGEAR-NOTE i540BA1-Unity. Pasokon means "personal computer" in Japanese.

BitSummit - AkihabaraNews.com

You’re Invited...
How do you sell indie games in a country that's traditionally wary of online sales and where the local word for "indie games" (doujin games) is more akin to "games just for us?" And how do you sell those games to the outside world and change the minds of critics with a Phil Fish ‘They Just Suck’ point of view? If you're James Mielke, you throw a party.

Why Mario Kart 8 Proves Everyone is Wrong about Nintendo - Including Nintendo

Nintendo's bleeding cash--they're done for.

Nintendo just makes the same game over and over again.

Nintendo is going to start releasing GAMEBOY ADVANCE games for Virtual Console for Wii U on April 3.

You can download Nintendo's games that were released in the past for old game consoles, such as Family Computer (Nintendo), Super Famicom (Super Nintendo Entertainment System), Nintendo 64, and arcade games, and play with the Wii U - called Virtual Console.

Tokyo Game Show 2013 - On the Ground at Gaming's Premiere Event

The world's largest game exhibition "Tokyo Game Show 2013", is now taking place at Makuhari Messe in Chiba and the AkihabaraNews team was there yesterday on Press Day taking in the excitement and getting some hands on experience with many new games.

Reno J. Tibke - December 05, 2013

PS4 Sales - AkihabaraNews.com

Sony’s Sold a Boatload of PS4s
There’s not a whole lot we can say about the PS4 hasn’t already been said - except this: Unsurprisingly to most, it’s actually a wildly successful Sony product with an effective, well-received, multinational launch befitting a global electronics firm that operates not just in Japan, but around the world in diverse markets with diverse consumer bases.

Pages