Giant Games' wagers: Premium mobile models, and Western ...

CEO Bill Wang explains why Giant Network's new publishing arm is focused on bringing Chinese games to global audiences. RebekahValentineSeniorStaffWriterTuesday14thJanuary2020SharethisarticleRecommendTweetShare11yearsago,BillWangwasworkingwithPerfectWorldtobringitsMMOofthesamenametointernationalaudiences.Atthetime,hesays,itwaseasytolaunchafree-to-playgameintheWest."Backthen,therewasn'tasmuchcompetitioninthemarket,"hesays."Free-to-playwasnewtomanyWesterndevelopers.Sobylaunchingourhigh-quality,free-to-playgamePerfectWorldinternationally,wewereabletocrackthemarketandgrowfromthere.Withastrongcashflow,wereabletoacquireandinvestinmoredevelopersintheUS.Backthen,therewasnotmuchcompetition.Buttoday,[youhave]Tencenthere,NetEasehere,Epic,allactivelyinvestingindevelopersandacquiringcontent.Sothemarketisverycompetitive."Itisn'tjustthemarketthat'schanged.Wangisn'twithPerfectWorldanymore,havingacceptedanewrolejustoverayearagoasheadofShanghai-basedGiantNetwork'snewUSbusiness:GiantGames.Whiletheparentcompanyhasbeenaroundsince2004andhasabout2000employees,GiantGamesisamuchsmallerendeavorofaroundtenpeoplebasedintheBayArea.ItsfocusfornowisongloballaunchesofgamesmadebyGiantNetwork'sexistingChinesepartners,includingNightoftheFullMoon,Undying,andanupcomingpremiummobiletitlecalledPascal'sWager.WhystartaWesternbusinessafteralltheseyears?Wangsaysit'sinlargepartduetoincreasedChinesegovernmentrestrictionsongameapprovalsinrecentyears."FormostChinesepublishersanddevelopers,it'sveryhardtolaunchnewtitlesinthelocalmarket,"hesays."Theyareforcedtogooverseas.GiantNetworkhasbeenlookingintoWesternmarketssince2017."Pascal'sWagerisaparticularlygoodexampleofGiantGames'businessstrategy.DevelopedbyChinesestudioTipsWorks,thegame'siOSreleaseandpromotionoverseaseffectivelyrepresentstwodifferentgamblesbeingmadebyitspublisher:oneonthepotentialforChinese-developedgamesoverseas,andanotheronthepotentialforpremiummobiletitlesworldwide.BillWangWangsaysthatwhilethepremiummobilemodelhashistoricallystruggledagainstthedominantfree-to-playmodelinChina,GiantNetworksawpotentialinwhatTipsWorkshadtooffer,andacquiredthestudioinearly2018tosupportitinfinishingthegame."WhenwesawPascal'sWagerinlate2017,wewereprettyimpressedbythequality,"hesays."ThedevelopmentteampitchedPascal'sWagertomostofthepublishersinChina,butnobodythoughtapremiumsingle-playermobilegamehadanyfuture.Butwewereimpressedwiththeteam.Thefounderofthestudio,TipsWorks,gotsickwithakidneyissueandhadtogothroughdialysisthreetimesaweek,buthewasstillfocused100%ondevelopmentandputallhismoneyindevelopment.Hehadnomoneytogetanewkidney.WewereprettyimpressedbyhisdedicationtoPascal'sWager,whichisoneofthereasonswedecidedtoinvestintheteam."IaskWanglatertoclarifyifthismeantGiantGamestooksacrificingpersonalhealthtomakeagameasapositivewhenconsideringdeveloperstosupport."Thefounder'shealthwasn'tapluswhenweconsideredthisopportunity,"hereplies."However,thisissuedidn'tdeterusfromacquiringthestudioaswewereimpressedbythetalentthereandthefounder'sdedicationtothisproject."(TipsWorksfounder,YangYang,didgetanewkidneylastyear.)"Peopleusedtothinktherewasabigqualitygapbetweenmobilegamesandconsolegames.Buttoday,thegaphasgottenmuchsmaller"Wangreturnsmultipletimesduringourchattotheimportanceofquality,andthehighbarthatPascal'sWagerstrivesfor.That,hesays,istheotherreasonwhyGiantwaswillingtosupportthegamewhereotherpublisherswouldnot.Despitethestateofthepremiummobilemarket,Wangthinksthatamixofmorepowerfulmobiletechnologydrawing"hardcore"gamerstomobileandapromisetoeventuallybringthegamecross-platformwillensurePascal'sWager'ssuccess,regardlessofitsbusinessmodel."TherewereconcernsfromChinesepublisherswhentheysawthegame,"Wangsays."Theysaidthegamequalitywasgood,buttherewasnotmuchpotentialfromtherevenueandprofitperspective.Wethinkaboutitinadifferentway.Wethinkthattoday,goingcross-platformistheapproachtotake,similartoPUBGorFortnite,whichhaveproventhatwhenyougomulti-platform,youcancreateabiggeruserbase.ForPascal'sWager,wesawpotentialingoingmulti-platformfrommobiletoPCandconsole,andalsoformobileplayers."Peopleusedtothinktherewasabigqualitygapbetweenmobilegamesandconsolegames.Buttoday,thegaphasgottenmuchsmaller.Wewanttobeoneofthefirstonestolaunchconsole-qualitymobilegames.Wethinkit'sanichemarket,andthathardcoregamerswanttoplayhigh-qualitygames.Theydon'tthinkaboutprice.Theydon'tworryaboutpaying$6.99--it'snotabigburdenforthem.Sowewanttotargetthoseusers.Theremightnotbe100millionusersthere.Butifwecansell,forexample,onemillionortwomillion,that'dbegreat."$6.99,incidentally,istheamountPascal'sWagerwillcostatitsiOS-exclusivelaunchthismonth,withpaidDLCplannedforlater.ItwillcometoAndroidsometimelater,andPCandconsoleafterthatwithenhancementstographicsandcontroladjustmentstofitittothelattertwoplatforms."TheuserbaseforiPhonehasbiggerspendingpower,generallyspeaking,thanAndroidusers,"WangsayswhenIaskhimwhytheyoptedforaniOS-exclusivelaunch."Forpremiumgames,it'seasiertosucceedoniPhonethanonAndroiddevices.Ifyouhavefree-to-playgames,definitelydobothfromthebeginning.Butwewanttotargethigh-enduserswithcutting-edgegraphics,andtheiPhone11istheperfectplatform.""TheuserbaseforiPhonehasbiggerspendingpower,generallyspeaking,thanAndroidusers.Forpremiumgames,it'seasiertosucceedoniPhonethanonAndroiddevices"SowhydiditmakesensetoshowoffanewpremiumgameoniOSatthesameeventasnewsaboutasubscriptionservicebeingsoldasananswertothestrugglesofpremiummobiletitles?"WewereofferedtopublishgamesonAppleArcade,"hereplies."Wedecidednottodothat,becauseourqualitywillstandoutamongothermobilegames.Wewantthisgametobealong-lastingfranchise.WehaveatitleforAppleArcadeinthefuture,butforPascal'sWager,wewantedtomakesureitsucceededbyitself."Ipresshimonwhypremiumwasthebestchoiceforagamelikethis,withsomanydevelopersoptingoutofthisbusinessmodelinfavorof,ifnotmodelslikeAppleArcade,thensimplyfree-to-playtitleswithmicrotransactions.Wangdisagrees,pointingatanincreasein"hardcoregamers"playingonmobile,andpreferringtopayforgamesoutrightoverwhathecalls"paytowin"modelsorpayingforcosmetics."Weseemoreandmorepeopleplayingonmobilephones,evenhardcoregamers.Today,mostsuccessfulfranchises,includingCallofDuty,havemobilegames.Wethinkpeoplewillplaygamesatdifferentlocations.TheycanplayathomeinfrontoftheTV,ontheroadontheirphone,andhardcoregamersplaygamesacrossdifferentdevices.Idon'tthinkthat'sarestrictionanymore.Youdon'tonlytargethardcoregamersonconsoleandPC.""Today,mostsuccessfulfranchises,includingCallofDuty,havemobilegames...Idon'tthinkthat'sarestrictionanymore.Youdon'tonlytargethardcoregamersonconsoleandPC"OnceahandfulofGiantNetworktitlesaresuccessfullylaunchedintheWest,WangsaysGiantGameswillbeginseekingpartnershipswithotherNorthAmericanandEuropeandeveloperstoinvestin,acquire,andpublishtheirgamesworldwide.WangaddsthathisandGiant'swillingnesstosupportthesegamesshouldbeseenaspartofabroaderphilosophytosupporthigh-qualitycontentregardlessofthebusinessmodelbehindit."ImetUnknownWorldsinSanFrancisco[inWang'spreviousjobworkingwithPerfectWorld],"hesays."Theymadeapremium,multiplayergamecalledNaturalSelection2.Itdidokay,butIwasreallyimpressedbythefounders,Charlie[Cleveland]andMax[McGuire].Later,theydecidedtoworkonanunderwater,single-playerexplorationgame.WhenmycolleaguesfromChinacametothestudio,theytoldme,'Nochancethisgamecansucceed.Noonewantstoplayasingle-player,underwaterexplorationgame.Nochance.'ButItrustedCharlieandMax.SowhentheylaunchedSubnautica,thegamebecameahugesuccess.SoldovertwomillioncopiesacrossPCandconsole.That'sastudioIinvestedinalmostsixyearsago,andwhentheymadeasingle-playergame,noonefrom[PerfectWorld]thoughttheyhadachance."Sosamestory.Manypeopledon'tbelieve[Pascal'sWager]willdowell,butwebelieveinquality.That'smybelieffrompastexperienceworkingwithdeveloperslikeUnknownWorlds,Runic,DoubleDamage.Youcancreategreatcontentnomatterwhatkindofbusinessmodelyouuse.It'snotaboutbusinessmodel,it'saboutcontent." SignupforThePublishing&RetailnewsletterandgetthebestofGamesIndustry.bizinyourinbox. EnteryouremailaddressMorestoriesActivisionapologiesfordisrespectfuluseofQuraninCallofDuty:VanguardPagesofIslam'ssacredtextwererenderedonthefloorofaZombiesmapByJamesBatchelor8hoursagoReport:TencentacquiresmajoritystakeinNinjalastudioparentBloombergsaysonlinegiantpaidroughly$44millionforSoleilownerWakeUpInteractiveByBrendanSinclairYesterdayRelatedJobsFrontendWebDeveloperKwaleeRoyalLeamingtonSpa SeniorFullStackEngineer/ServerProgrammerKwaleeUnitedKingdom LeadFrontendWebDeveloperKwaleeBengaluru DiscovermorejobsingamesLatestcomments(1)CharlieCleveland GameDirector/Founder,UnknownWorldsAyearago Thanksforallyourhelp,Bill.Subnauticaisnowatover5Mcopies! Can'twaittoseewhatyoudowithGiant. Edited1times.LasteditbyCharlieClevelandon14thJanuary202010:36pm 0SigninorRegistertorateandreplySignintocontributeEmailaddressPasswordSignin Needanaccount?Registernow. 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