brazil, an emerging market
TRANSCRIPT
Brazil, an emerging market Gilberto Akisino - CEO
Company Introduction
Was created to promote innovation in this segment in Brazil
Based in São Paulo
Offers top quality in on-line entertainment for its clients
Invests in human resources and cutting-edge equipment( )
OPENED IN2007
Innovation in customer support
Pionner in24/7 support
Company Introduction
20072008
Game World Award 2007
Best publisher 2007Best Advertisement 2007
Game World Award 2008
Best publisher 2008Best Advertisement 2008
Elected by technical analysts and public acclaim
most populated country in the world
Information about Brazil
Territory:8,5 million km²
190 million inhabitants
5th
Descendency from:European
NativesAfricans
Asian
Information about Brazil
Official Language
PortugueseThe Brazilian population is
MULTIRACIAL( (
The 4 Social classes in Brazil
More than USD 5.900
From USD 1.001 to USD 5.900
From USD 201 to USD 1.000
Social Profile 2009 – Monthly Revenue
Up to USD 200
62,5 million people have ACCESS to the internet.
More than 11,8 million people have
Broadband Access
6,2%of all Brazilian population.
Internet Penetration
( )
Source: NetView – IBOPE//NetRatings Jan 2009
Source: NetView – IBOPE//NetRatings Jan 2009
United Kingdom 24:37United Kingdom 24:37
Internet Penetration
France 24:35France 24:35
Brazil 24:49Brazil 24:49
Average internet browsing – monthly
1st1st
2nd
3rd
Highest connection speed sold
Internet – ADSL & Cable
Lowest connection speed sold
No officially-defined minimal speed
Fonte: April 2009
Mobile – 3G
250 Kbps – USD 28500 Kbps – USD 411 MB – USD 57
Cable – ADSL
1 MB – USD 382 MB – USD 474 MB – USD 628 MB – USD 9512 MB – USD 114
Broadband - Prices
Remove lower speeds, and substitute it to higher connection speeds
ADSL
Growth Perspective
Growth Perspective
Internet Access places
Home
Work
School
Others
Home
Work
School
Others
2006 2007 2008
30,2% 34,6% 38,4%
24,6% 22,1% 19,3%
25,8% 23,2% 20,1%
19,4% 20,1% 22,2%
2009 Estimate
Source: GNETT / NetRatings 2009
41,8%
17,3%
17,4%
23,5%
2.000 cities (of 5.565 total) are broadband-ready
Investment ofUSD 1,7 billion until 2010
Source: Agência Brasil 2008
Infrastructure
Growth Rate Overview
Brazil PopulationBrazil Population 185 Million 190 Million
LowestConnection SoldLowestConnection Sold 250 Kbps 1 MB
2008 1st Quarter 2009
HighestConnection SoldHighestConnection Sold 8 MB 12 MB
People withAccess to internetPeople withAccess to internet 59 Million 62,5 Million
People withBroadBand internetPeople withBroadBand internet 7,5 Million 11,8 Million
Average Internetbrowsing time -Monthly
Average Internetbrowsing time -Monthly
23:48 24:49
Rate
2,7%2,7%
400%400%
50%50%
5,9%5,9%
57,3%57,3%
4,2%4,2%
Blogs and community/social networking sites.
Huge amount of Brazilians in Orkut (www.orkut.com)
Social Networking is the most popular category
Fonte: NetView – IBOPE//NetRatings July 2008
Internet Usage
Internet Usage – Ranking 2008
Fonte: NetView – IBOPE//NetRatings Dec 2008
Communities with more users
15,2 Million15,2 Million
6,4 Million6,4 Million
870 thousand870 thousand
Categories with the biggestincrease in visits
Feb 2008 ~ Feb 2009
Corporate Info - 23,8%
Travel and Tourism - 19,8%
e-Commerce - 17%
Portal and Community - 13,6%
Entertainment - 13,6%
Internet Usage
Fonte: NetView – IBOPE//NetRatings March 2009
Cyber Cafes represent 70% of the PC room market and offer the services below:
Cyber Cafes & Lan Houses
Snack Bar
Photocopy
Cash/GTC card sale
Technical support – PCs
Printing
VOIP telecommunication
Great growth potential for Cyber Cafes
Cyber Cafes & Lan Houses - Audience
74% of this public is low-income consumers. ( )
Cyber Cafes – Family Environment LanHouse– Gaming Environment
Pentium IV 2 GHz1 GB RAM80 GB HD
Video 256 MB
Pentium IV 2 GHz1 GB RAM80 GB HD
Video 256 MB
Average config at Lan Houses & Cyber Cafes
North USD 0,60 / HourNortheast USD 0,60 / HourMidwest USD 1,20 / HourSoutheast USD 1,20 / HourSouth USD 1,50 / Hour
Average Pricing
2008Sold11,8 million
5th place in worldwide PC sales
2009Estimate
13 million
Source: IDC 2009
Computer Acquisition rates in Brazil
Average
Intel Celeron 2.2 GHzWindows Vista Home1 GB DDR2 RAMLCD 15”HD SATA 160 GBGraphic Card OnboardSound Onboard48x CD-RW, DVD-ROM
USD 619,10
Top
Intel Core i7 Xtreme 4.0 GHzWindows Vista Business12 GB DDR3LCD FULL HD 24”SATA 1 TB2 x Nvidia GTX295Sound OnboardBlue Ray Combo
USD 14.283,90
Average PC config in Brazil + Pricing
Average
Intel Celeron 2.0 GHzWindows Vista Home2 GB DDR2 RAMHD SATA 160 GBGraphic Card OnboardSound Onboard8x CD-RW, DVD-RW
USD 1095,90
Top
Intel Core2Duo 2.4 GHzWindows Vista Ultimate4 GB DDR2 RAMHD SATA 320 GBGeForce 9500M GS 512 MBSound Onboard8x CD-RW, DVD-RW
USD 2.809,60
Average PC config in Brazil + Pricing
Nintendo Wii
USD 670
Sony Playstation 3
USD 860
Microsoft XBox
USD 910
Console - Pricing
Huge amount of bootleg products
Mainly due to very high import/Customs taxes
For each 10 games/consoles sold, 9 are illegal products
Social awareness about games - Products
Gamers are undervalued:Obese and ugly
The Media is changing this imageThe Media is changing this image
Social awareness about games - Users
It is changing itself into a new model of:
ENTERTAINMENTBUSINESS
SPORT
Social awareness about games - Market
INPI – Instituto Nacional de Propriedade Industrial (National Institute for Intellectual Property)
Governmental organism that regulates technological products in the Brazilian market
All companies operating in Brazil that have a formal contract with a foreign technology company must submit this contract to the scrutiny of INPI. This organism is responsible to approve said contract or not.
Laws and regulations that directly affect games
Steps to INPI
1. Legalization of the contract in both consular bodies2. Sworn Translation3. Presenting the contract to INPI4. Wait for the official INPI decision5. Presenting the contract to the Central Bank of Brazil
Brazil and South Korea have a dual-taxing agreement
Laws and regulations that directly affect games
An emerging market th
at grows e
very year
Games in Brazil
OFF OFF
Titles published in Brazil and their present status
Ragnarok Gunbound Cabal Grand Chase Priston Tale
WYDHabbo Hotel Maple Story
8 most popular games in Brazil
Ragnarok and Gunbound: first MMOGs published in Brazil (2004)
Lots of advertising and curiosity for being something new to us
Cabal Online created a new standard with its advertisement
Reasons for Popularity
Gamers Preferences
Brazilian gamers LOVEBrazilian gamers LOVE
RPG: Role-Playing Game
PvP: Player vs Player
GvG: Guild vs Guild
Ranking
To show up their skills
Meeting with players
Event in Amusement ParkPlaycenter
Campus Party - LanParty Event
Squeeze
T-Shirt
Magazine
CD
Sample Marketing Actions
Broadband does not reach most of the population
Population share that has a cutting-edge computer is minimal
Present Game Tendency and some projections
Ideal titles to be brought to Brazil: published from 2 to 1 years ago
Present Game Tendency and some projections
Recent titles strain the hardware marketRecent titles strain the hardware market
Establishment of UbiSoft in BrazilDeveloper of Rayman and Assassin’s Creed
Establishment of UbiSoft in BrazilDeveloper of Rayman and Assassin’s Creed
Top Gaming News - 2008
Announcement of Zeebo, a console manufactured in Brazil by TecToy Digital,
with the partnership of Qualcomm.
Cost: USD 270
Campus Party - BrasilThe biggest LanParty in the World
Campus Party - BrasilThe biggest LanParty in the World
Top Gaming News - 2008
SONY announces the production of PlayStation 2 in Brazil
SONY announces the production of PlayStation 2 in Brazil
From now on, Brazil will be included in worldwide launch of games. Example: Resident Evil 5
From now on, Brazil will be included in worldwide launch of games. Example: Resident Evil 5
Launching of Taikodom; the first MMORPG developed in Brazil,
with the partnership of IBM
Launching of Taikodom; the first MMORPG developed in Brazil,
with the partnership of IBM
These courses offer just a general overview about game development
Education Offered - Estimate
Education – Courses by Area
Done by over 40 companies
Produces a part of the whole and ships it abroad
Source: Ministério da Cultura and Abragames
Offshore Outsourcing
- 8.500.000 m² territory, 85 times bigger than South Korea- Over 190 Million inhabitants- Multiracial society: European, Natives, African, and Asian- Slowest Internet access - 1 MB- Fastest Internet access - 12 MB- 32% of the population have access to the Internet.- 6% of the population have broadband access.- Brazil is the 1º in the world in Browsing time: 24:49.- Average access price for 1 MB is USD 38,00- Most visited internet content: Social Networking sites.- Increase in Internet infrastructure until 2010.- Lan House has 2 models: Cyber Cafe –family environment and Lan House – gaming environment- In 2008, 11.800.000 computers were sold and the 2009 projection is 13.000.000.- Gaming piracy is a deterrent to the growth of this market.- There are 27 MMOGs published in Brazil.- We have courses focused in games and it is a growing market.- Brazil practices Offshore Outsourcing
Brazilian Market Overview
Sightseeing Suggestion - Brazil
Pernambuco – Porto de Galinhas shoreline
Sightseeing Suggestion - Brazil
Bahia – Praia do Forte beach
Sightseeing Suggestion - Brazil
Mato Grosso do Sul – Bonito City
Thank You!Any doubts or questions?
Contat Us
Gilberto AkisinoCEO
Phone: 55 11 3377-8727E-Mail: [email protected]
Languages: Portuguese, English
Byong Hwan Kang -강병환Business Opportunities Consultant
Phone: 55 11 3377-8703E-Mail: [email protected]
Languages: Portuguese, English, Korean