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In This Issue - January 2011 Pearl Research Newsletter

+Gamification in social networking sites
+ Free excerpts available, exclusive "Online Game Publishers in Asia" study released

"Gamification" in social networking sites

Gamification is the use of game play mechanics outside of the gaming world. Examples would be the use of point systems and badges to reward and influence behavior. While "gamification" has become a trendy buzzword, the concepts have been in use since the emergence of social networks.

Challenges of gamification
One of the challenges with gamification is that often times, it is not implemented well and feels like work for a user. For example, marketers often use the tactic of having users collect points by purchasing products or by performing tasks such as viewing an advertisement.

Collecting points can be mundane, as gamers generally like being able to strategize and to feel a sense of accomplishment. It’s not about just reaching level 100 because I purchased certain products, but rather that to reach level 100, I as a user, had to beat a game, use strategy and outwit opponents. Collecting points can be a boring process without any inherent challenge and can feel like a chore, even if there is a reward in the end.

Qzone uses gamification to encourage use
An example of a social network that has used gamification is Tencent's Qzone, which in the past tried to retain its users by creating a leveling system, ranging from Level 0 to 7. This is similar to the character-leveling model found in online role-playing video games. This strategy compels users to continually pay for Qzone services because it gradually unlocks features such as video, larger photo albums and makes certain goods such gifts, picture frames free for continued use.

Subscribers can also increase their level ranking from zero by the amount of time they remain on the paid subscription service. Users also accrue levels by adding paid features such as Mobile Qzone. As user levels rise, rewards such as backgrounds enhancements, dynamic profile photos, additional room for notes and pictures, and the ability to upload videos become available for use.

Background customizations

With this level rewards system, Qzone hopes to lengthen the time spent by users interacting with the site and lock them in for the long run. It hopes to be a self-perpetuating growth model, as these rewards will lead to further purchases of virtual goods, which then leads to more rewards.

Besides directly adding games, integrating elements of gameplay mechanics, as in gamification, can encourage users to stay with a Web site.

Please contact us for more information.

Online Surveys and Data Analysis

With a highly skilled staff, including PHd statisticians, Pearl Research offers online survey and data analysis services at cost-effective rates.

Please contact us for a free quote. We conduct both business-to-business and business-to-consumer surveys.

New Study: "Online Game Operators and Publishers Across Asia"

Pearl Research is pleased to announce that a new market research report "Online Games Publishers and Market in Asia" is available. This study analyzes more than 25 top online game publishers in Asia.

Pearl Research's "Online Game Publishers in Asia" study contains profiles of key market players including market share, financial data, key metrics, product analysis; and strategic outlook. The study contains more than 160 pages. Companies covered in the report include Changyou, CJ Internet, Giant Interactive, NCsoft, Neowiz, Netease, Nineyou, NHN, Perfect World, Shanda, Soft-World, Tencent and Vinagames and much more. Pearl Research also tracks licensing deals, investment, and mergers and acquisitions across the region.

Please contact us at 415-738-7660 or email research (at) pearlresearch.com for a free sample.

Pearl Research Exclusive Studies

Please contact us for an excerpt of these reports.

i. Games Market in China, Korea, India and Vietnam

These comprehensive studies examines the emerging games market in China, Vietnam, Korea and India. The reports include an executive summary, key metrics, forecasts, deep marketplace analysis, profiles and conclusions.

Screenshot of India study

China Table of Contents: http://www.pearlresearch.com/files/TOC_PearlResearch_Chinareport_201004.pdf


Korea Table of Contents: http://www.pearlresearch.com/files/PearlResearch_Korea_TOCweb_1007.pdf

ii. Phoenix Generation - Online Games Tournaments, Success of Casual Game Audition, Virtual Currency

Pearl Research's "Phoenix Generation" study tracks the latest trends among Chinese youth. These primary research studies are based on interviews and surveys with Chinese consumers in first- and second-tier cities across the country. This update analyzes the growth of online game tournaments, the success of games such as Audition and the latest laws regarding virtual currencies.

iii. How the World's Biggest Social Networking Sites Monetizes

This study analyzes the monetization of social networking sites such as Qzone (with 200+ million members), Kaixin, and Renren, along with exclusive consumer survey results for Facebook and Myspace conducted by Pearl Research. The study also provides key insights based on the growth of these sites. Please contact us to view a complimentary excerpt.

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