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In This Issue - July 2010

+ Feature: Korean game operators expand internationally
+ Research studies available

Korean game operators prioritize international expansion, “Online Games Market in Korea" study released by Pearl Research

Please visit the link below to view Pearl Research's newly-released study. Contact us for an excerpt: http://www.pearlresearch.com/files/PearlResearch_Korea_TOCweb_1007.pdf

Highlights from Pearl Research’s new “Online Games Market in Korea” study.

- Three of the top five game operators in Korea saw their revenues grow more than 50% in 2009, a notable achievement.

- Korean game companies have prioritized establishing international operations with the United States, Europe, Japan and China as the leading target markets. Game operator Nexon announced for the first time, non-Korean contributions accounted for the majority of its global revenue of 703.6 billion won ($585 million) in 2009. NHN expanded its business in the United States in 2007 and its revenues rose more than 50% in 2009. Neowiz’s overseas revenues, which consists of licensing and revenues from international, was the biggest growth segment for the company, with sales rising 526% to 62.1 billion KRW ($52 million).

- Companies are experimenting with new business models including micro-transactions in MMORPGs that already also charge a subscription fee. It remains to be seen if this hybrid model will be accepted by consumers and spread to other countries.

- The excitement and publicity from the World Cup series held in South Africa in July 2010, helped EA’s FIFA Online 2 capture the top online game ranking at Internet cafes. Other top online games include NCsoft’s Aion and Lineage series, CJ Internet’s Sudden Attack, Nexon’s Dungeon and Fighter and Blizzard’s World of Warcraft.

- South Korea has one of the highest Internet and personal computer (PC) usage rates worldwide at 80%, making it a robust market for PC-based games. In 2010 and beyond, Pearl Research believes the release of several high-profile titles including Starcraft II will contribute to an expansion of the games market in Korea. Both MMORPG and casual game forecasts are provided in the study.

While South Korea has a robust online games market, critical challenges include a glut of content on the market, increasing government scrutiny; and rising development costs.

The “Online Games Market in Korea” report provides an in-depth analysis of the Korean
online games market and contains an executive summary; seven years of forecasts for
the online games platforms; inhibitors and drivers to growth; deep marketplace
analysis; discussion of key market players, and strategic conclusions. To purchase
this report or to view an excerpt, please call (+1) 415-738-7660 or email research@pearlresearch.com.

Visit link below to view Pearl Research's newly-released study. Contact us for an excerpt: http://www.pearlresearch.com/files/PearlResearch_Korea_TOCweb_1007.pdf

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Pearl Research Exclusive Studies

Please contact us for an excerpt of these reports.

i. Games Market in China, India and Vietnam

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

Screenshot of India study

http://www.pearlresearch.com/files/TOC_PearlResearch_Chinareport_201004.pdf

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

Pearl Research's "Phoenix Generation" study tracks the latest trends among Chinese youth. These primary research studies are based on interviews and surveys with first- and second-tier youth 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 survey results for Facebook and Myspace. 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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