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Masaru Ohnogi, gumi Inc

wnconf
December 05, 2018

Masaru Ohnogi, gumi Inc

How to Shape the Entertainment and Business Industries Using AR/VR and Blockchain/Crypto Technology

The official conference website — http://wnconf.com
(White Nights Conference Moscow 2018)

wnconf

December 05, 2018
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  1. 2 Company Name : gumi Inc. Founded : June 13,

    2007 Listed Market : Office locations : Tokyo, Fukuoka, Seoul, Taipei, Singapore, Manila, San Francisco and Paris. No. of employees : 850 (IPO: December 18, 2014) Company Profile gumi is a leading global mobile gaming company.
  2. 4 • Since 2012, gumi has developed and released more

    than 20 original smartphone native games. • Compared with other Japanese companies, gumi is the only one who use almost only original IP but makes all the released game rank within top 50. Existing Titles − Japan Market BRAVE FRONTIER Genre : RPG #2 Top grossing Phantom of the Kill Genre : Simulation RPG #7 Top grossing FINAL FANTASY BRAVE EXVIUS Genre : RPG #1 Top grossing The Alchemist Code Genre : Tactics RPG #7 Top grossing CRYSTAL OF RE:UNION Genre : Strategy RPG #29 Top grossing Dolls Order Genre : Action #34 Top grossing
  3. Existing Titles − Overseas Market • gumi is the most

    successful Japanese game company who publish Japanese mobile games abroad and achieve great success BRAVE FRONTIER Release Date: December 12, 2013 (US) May 16, 2014 (Europe) Genre : RPG Released Countries: More than 100 countries Total Downloads: Over 16 million 1st Year Sales (after release): Over 8 BN JPY (USD $71M) Total Sales by the End of Jan 2017: Over 20 BN JPY (USD $178M) Ranked at Top 10 in 26 Countries by Gross Sales FINAL FANTASY BRAVE EXVIUS Release Date: June 30, 2016 Genre : RPG Released Countries: All countries except Mainland China Total Downloads: Over 13 million 1st Year Sales (after release): Over 5 BN JPY (USD $44M) Ranked at Top 10 in 23 Countries by Gross Sales 0 20 40 60 80 100 120 140 160 180 200 Sales Ranking (US) 0 20 40 60 80 100 120 140 160 180 200 Sales Ranking 1st Year (US) 5
  4. 6 Global Publishing and Operations • gumi group has an

    integrated global publishing and operation system • The whole system covers from Development Operation & User Acquisition to Customer Support & Community Management, to make sure every gumi’s title rank on the top
  5. 8 Approach to New Business • Such as Smartphone first,

    VR first, Blockchain first, etc. – create business or contents that “can only be done by” or “unique to” that technology and medium • Create brand-new content, experiences, UI/UX, etc. that have never been seen from Zero, rather than on the extension from the past New Technology First! Smartphone VR/AR Blockchain
  6. 9 Investment policy to new business Investment Open Innovation Business

    Scheme • Determine startups which can be win in the growing market in the future 3 to 5 years • Invest to multiple companies through Fund etc. • Open innovation to prepare the business environment and to seek the potential of cooperation • Form business scheme e.g. cooperation or Capital and business alliance
  7. 10 Schemes on Mobile Motion Business • Aggressively investing in

    the firms which create “High quality motion only on the smartphone” contents. Main Investments dely, Inc. : • “Kurashiru”, an app for cooking, released in May 2016 and hit 13 million downloads. It is the largest cooking video app in Japan. • Raised the total funds of JPY 7 billion. • In July 2018 it became a consolidated subsidiary of Yahoo Japan Corporation. Lute inc. : • Operates the mobile motion media “lute”, mainly transmit cutting–edge music and cultural information by using SNS with a focus on Instagram. • Raised the total funds of JPY 200 million. Candee Inc : • A leading company in the mobile video market. Social live commerce “Line Shop!” released in May 2017. • Raised the total funds of JPY4.15 billion. TABILABO Inc. : • Operating media “BRAND STUDIO” which is about lifestyle for info-sensitive users in generation millennial, offering total promotion combining the real life and digital evolving around the smartphone. • Raised the total funds of JPY 560 million. 3Minute Inc : Plans and creates high quality movies specialized in the field of fashion. It has one of the largest numbers of instagrammers in Japan. It was acquired by GREE, Inc. in Feb 2017 for JPY 4.3 billion. Breaker Inc. : Had big hit first-ever drama-series in Japan on Youtube. Video production studio specialized in digital domain.
  8. 12 Tokyo XR Startups • Mentors are global leaders and

    executives from gaming and entertainment industry, together with Professors of universities. Mentors Palmer Luckey (Founder of Oculus VR and designer of the Oculus Rift) Kenei Unoki (Developer, Technical Evangelist at Microsoft Japan Co., Ltd.) Hiroki Omae (Regional Director at Unity Technologies Japan GK) Mike Chi (Director, APAC Sales& Operation/ Head of VIVE X Accelerator) Kazuyuki Hashimoto (Senior Director, Entertainment Technology at NVIDIA Japan) Toyohiro Oura (General Manager, Communications Development Dept, Thirdwave Diginnos Co., Ltd.) Tipatat Chennavasin (The Venture Reality Fund General Partner) Hikaru Adachi (Chief Planner at Digital Platform Center of Dentsu) Yoshikazu Kato (Head of VR Business Office at Softbank Corp.) Tatsuhito Kato (Media Business Division Vice President of TBS) Kohei Noda (Technology Producer of Technology Business Center at Hakuhodo Inc.) Makoto Yamaguchi (Senior Executive Director of Content Creation and Distribution Department at Fuji Television Network, Inc.) Masahiko Inami (Professor, Research Center for Advanced Science and Technology, University of Tokyo) Ryo Shimizu (CEO at UEI Corp.) Hiroyasu Shimizu (CEO at Formulation, Inc.) Takahiko Akiyama (CEO at 4Dbrain Inc.)
  9. 13 Tokyo XR Startups • 4 out of these 5

    companies completed Series A fundraising. 1st Batch Member Companies and Products Oukaichimon : The VR horror game “Chain Man” utilizing physical calculation Hashilus : VR attractions and amusement park InstaVR : - VR contents creation and publishing platform “INSTRA VR” - Completed next financing in 2 million Yen of Series A, and 520 million Yen of Series B Yomune.co : - VR Escape Game “Enigma Sphere” - SWORDS OF GARGANTUA (MORPG) is under development and will be released in winter 2018
  10. 14 Tokyo XR Startups • All these 4 companies completed

    Series A fundraising. 2nd Batch Member Companies and Products GATARI Co., Ltd. : Developing social VR application in which the voice is able to be visualized for communication. Jolly Good Co., Ltd. : Develop and operate the VR Solution “GuruVR Media Pro” for TV Stations and producing companies. HoloEyes Co., Ltd. : Developing VR applications for medical use
  11. 15 Tokyo XR Startups • All these 7 companies completed

    fundraising. 3rd Batch Member Companies and Products ActEvolve : Developing VR e-Sports game: “BRITZ FREAK” EXPVR, Inc. : Developing VR Manga Hero Action Game “BE THE HERO” mikai inc. : Developing AR camera app “MARGIC”, offering magical AR experience Graffity Inc. : Developing AR graffiti video community “graffity” Pretia, Inc. : Developing social AR app utilizing AI technologies Active8 : Developing and operating the 1st virtual YouTuber “Kizuna Ai”, who has millions of fans
  12. 16 Tokyo XR Startups • Started the TXS 4th batch

    in June 2018. Invested in 6 companies. TXS 4th Batch Member Companies and Products unicreate Co., Ltd. : Develop new Vtuber characters unisonlive, inc. : Develop musician VTubers like animation Geocreates, Inc. : Develop the architectural design tool by utilizing eye tracking and electroencephalogram analysis Healthy VR Co., Ltd. : Develop cutting-edge healthcare app utilizing AR for Apple Watch edoga inc. : Develop on-the-job training for companies by using VR technology fav Inc. : Create the Youtube version of “Turtle Talk with Crush”, and operating “Warashibe Kogyo” which produce variety VTubers Coming soon
  13. 17 Seoul XR Startups • In September, 2016, gumi established

    Seoul XR Startups (SXS), together with YJM Games Co., Ltd(※) , a major listed game publishing corporation in South Korea. • SXS provides varies of supports to the startups of South Korea, who are developing products utilizing VR technology. Name Seoul XR Startups Co., Ltd. Capital KRW 1.74 Billion Business contents Support the startups in Korea who are focusing on the product development utilizing VR technology. Found date September 2016 Mentors Tipatat Chennavasin (The VR Fund) Micheal Lewis (2049VR) James Blaha (Vivid Vision) Hashimoto Kazuyuki (NVIDIA) Takebe Eika (KOTRA Tokyo IT B/C) Harri Manninen (Nordic XR Startups) Kim Beom Seok (BonAngels Venture Partners) Rim Jong Gyun (oneImmerse) Ryu Sang Woo (oneImmerse) Yoon So Jeong (AJU IB Investment) Kang Eun Hyun (Kang.E.H Law Firm) Heo Jeong Hoon (Lodam Patent Law Firm) No Jeong Seok (Reality Reflection) Ryu Jung Hee (Future Play) Kim In Sook (UNITY KOREA) Lee Jae Hyuk (Samil Pricewaterhouse Coopers) Lee Ho Jae (The Pitch)
  14. 18 Seoul XR Startups • 3 out of these 4

    companies completed Series A fundraising. 1st Batch Member Companies and Products Atticfab : Develop VR specialized chair through development of motion sensor that can recognize motion such as walking and running Awarded the IMPACT-ech Award 2018 in Korea (Master of Science in Information Technology Award) AtoJet Inc : Develop a tool that could produce VR apps and VR web easily, with a market place for VR picture/video contents Hongbin Network Korea : Develop and operate indoor VR arcade center and experiential VR attractions
  15. 19 Seoul XR Startups • 2 out of these 3

    companies completed Series A fundraising. 2nd Batch Member Companies and Products INSQUARE : Develop plenty of VR title & VR Hardware including「VR Magic Flying Dragon」etc. MAMMO6 : Develop Arcade VR action game including 「Virtual Ninja VR」etc.
  16. 20 Nordic XR Startups • Founded with Nordic Film, the

    largest film producing corporation in North Europe. • Tekes, the tech bureau of Finland, and FIVR, the largest VR community of North Europe, are NVS’s official support partners. • NVS will provide varies of supports to the startups of North Europe, who are developing products utilizing VR technology. NAME Nordic XR Startups Oy. CAPITAL EUR 1.53 Million BUSINESS CONTENTS Support the startups in North Europe who are focusing on the product development utilizing VR technology. FOUND DATE May 2017 Mentors Antti Kuosmanen (Devices Lead, Microsoft) Peter Vesterbacka (Founder, Slush) Marco DeMiroz (Partner, The VR Fund) Tipatat Chennavasin (Partner, The VR Fund) Olli Sinerma (Chairman, FIVR) Mikko Kodisoja (Co-Founder, Supercell) Tobias Sjogren (CEO, White Wolf Games) Oskar Burman (CEO, Fast Travel Games) Ilari Kuittinen (CEO, Housemarque) Jiri Kupiainen (CEO, Matchmade)
  17. 21 Nordic XR Startups • 4 out of these 6

    companies completed fundraising. 1st Batch Member Companies and Products PIKSELI : The first Nordic VR arcade and custom content management platform Adverty : An device agnostic, non-intrusive advertising platform for games and applications in VR/AR/MR CATLAND : A physics-driven VR bartending simulator. Hip Fire Games : A multiplayer VR game that combines First Person Shooter with Real Time Strategy elements Hip Fire Games
  18. 22 Incubation Program • To contribute in improving the competitiveness

    through accelerating open innovation of the virtual reality (VR), to develop a business foundation and a better environment for the startup to compete in the global market by investing • Invested in total 42 companies in Tokyo, Seoul and North Europe. 24 firms of 29 completing incubation program had the additional fundraising • Until the 3rd batch of TXS, the accumulated market to book value ratio(※) is total up to 4. The 4th Batch started from June Totally 15 out of 16 companies successfully completed fundraising (※) Calculated based on gumi's subsidiary, gumi ventures II llp (i.e. Fund)'s investments. Market to book value ratio is calculated by "(Funds' realized gain + Funds' unrealized gain + Funds' investments amount) / (Funds' investment amount)". Realized gain is calculated by "the amount collected by exits of the Fund - invested amount." Unrealized gain is calculated by "(Current valuation of investees * equity ratio) - (Invested amount by Fund)" The valuation of the investment is based on the current value and it does NOT assure our future profit. Totally 5 out of 7 companies successfully completed fundraising Atticfab – member company of the 1st batch - Awarded the IMPACT-ech Award 2018 in Korea Founded in May 2017, totally 6 companies joined the 1st batch Decided to start the 2nd batch
  19. 23 Venture Reality Fund • Joined as a general partner

    in Feb 2016 to VR FUND and invested to 26 companies. Name VR FUND, L.P. Fund Size Maximum USD50million Investment Territory Invest globally in VR/AR territory GP Members Marco DeMiroz, Tipatat Chennavasin, gumi America GP Members Marco DeMiroz Tipatat Chennavasin Hironao Kunimitsu Led the largest financing round in VR for Jaunt VR at $65+M. Operational expertise as CEO of PlayFirst (exit to GLUU), Racktivity, and CFO of General Magic (IPO). Board/Advisory Member: Jaunt, Swrve, adaptiv.io, OnKore, Itavio, and others. Deep understanding of VR/AR, mobile gaming, and social media. Pioneer in gesture-based computing, VR/AR thought leader and developer. Creator and co-director of River, the first VR-focused Accelerator. Speaker & Author at SVVR, Upload Demo Day, Casual Connect, VentureBeat. Met & reviewed over 1400+ VR startups. Founder and CEO of gumi Inc., one of Japan’s leading mobile gaming companies, listed with 1st section of the Tokyo Stock Exchange. Ex-creator and director of Atmovie Inc., expertise in film and TV drama contents production.
  20. 24 Venture Reality Fund • Joined as a general partner

    in Feb 2016 to VR FUND and invested to 26 companies. Part of Portfolio Companies Hyperbolic Magnetism : ‘Beat Saber‘ record No.1 sales on VR game ranking in year 2018 The Wave VR : Develop multi-platform to allow EDM performance by VR Mindshow : Develop platform to enable animation to create in VR space AGAINST GRAVITY : ‘Rec Room‘ record No.1 in VR game MAU Vivid Vision : Develop system for curing cross-eye & weak eyesight making use of VR SLIVER.tv : VR E-Sports live streaming Platform Raised 20 million USD ICO SPACES : Develop massive VR and AR Arcade Content VIRTUALITICS : Develop VR/AR data visualization tool Exit Owlchemy Labs : ‘Job Simulator’ record No.1 sales on VR game ranking in year 2017. Acquired by Google in May 2017
  21. 28 Investment Activities • According to the report of VRVCA,

    gumi group’s investment covered the 3 out of the top 5 in the ranking.
  22. 30 No.1 content in VR category Rec Room:VR game MAU

    No.1 Beat Saber:No.1 in VR game ranking in Year 2018 Job Simulator:No.1 in VR game ranking in Year 2017 The Climb:No.1 in VR game ranking in Year 2016
  23. 31 VR Game Development • Making strategic investments to a

    potential companies and studios in and out of Japan. • Aiming to monetizing VR/AR business in early stages through acquiring publishing rights Developed a VR game "Enigma Sphere" that combines giving the feeling of being at the place and multiplayer function. A brand-new RPG “SWORDS OF GARGANTUA” for VR which provides immersive feeling experience is under development Their first VR title - "The Mage's Tale" won first place in the sales ranking in Oculus Store “Wasteland : Frost Point” is under development and gumi group acquired the right of global publishing. The team members were the core members of Crytek’s VR projects - "Robinson: the Journey" and "The Climb“ – which reached over than 10 million USD sales. New title “Shaman: Spirit Hunter” – a high-end multiplayers online hunting game – is under development.
  24. 32 VR Game Development • VR multiplayer action RPG which

    enables users to experience a sense of immersion that only VR can deliver • Supports different VR devices e.g. Oculus Rift, HTC VIVE, Windows Mixed Reality • Planning to release in 2018 SWORDS OF GARGANTUA
  25. 33 VR Game Development • An multiplayer online hunting game

    which under developing by Playsnak • Planning to release in 2018 Shaman : Spirit Hunter
  26. 34 VR Game Development • An opened world survival VR

    game is under developing by inXile • Planning to release in 2019 • Acquired the right of global publishing Wasteland : Frost Point
  27. 35 VR Contents Development • Actively supporting the development of

    virtual YouTuber (VTuber), which is showing explosive spread, totally invested in 11 dominant companies. • Including the investment from gumi group, Activ8 completed additional JPY 600 million fundraising. Portfolio Companies fav Inc. : Create the Youtube version “Turtle Talk with Crush”, and operating “Warashibe Kogyo” which produce variety VTuber Activ8 : Activ8 has more than 3 million registers on its YouTube channel of VTuber talent – Kizuna AI, who serve as a goodwill ambassador for travel of Japan. Activ8 opened the network "upd8”, having Kizuna AI and other more than 10 diverse talents participated. Cover : Virtual JK “Toki no Sora (Time Sora)“, a VTuber with Top 10 YouTube channel subscribers. Cover is also offering VTuber live distribution service "HOLO LIVE" utilizing VR / AR technology. Zig : Zig has Vtuber “Musubi Kokoa”, who reached no. 1 in weekly sales on 17Live. The company also has Vtuber group called “Ryuseigun”. Mikai : mikai is operating the idol focus VTuber project “Kagayaki Stars”, foster over than 10 VTubers who can sing and dance
  28. 36 Reasonable HMD • In May 2018, “Oculus go” –

    a reasonable standalone Head Mounted Display (HMD) released as 199USD. • Planning to release a high-end model “Oculus Quest” in April 2019. Oculus go Release Date:1st May, 2018 Price:199USD Oculus Quest Release Date:Apr. 2019 (on Plan) Price:399USD
  29. 38 Blockchain/Cryptocurrency Initiatives • Founded gumi Cryptos LLC. to join

    the cryptocurrency・blockchain business. To invest globally in blockchain & cryptocurrency territory through the capital fund. • In the fastest-growing blockchain & cryptocurrency market, we are targeting to monetize by investing in and out of Japan and developing the original contents. gumi Cryptos LLC. Summary 1. Structure Anonymous Association Agreement 2. Fund Size Maximum USD30million 3. Duration Around 3 years(Can extend 2 more years depends on the business judge) 4. Summary Name gumi Cryptos LLC. Location Shinjuku, Tokyo Business Invest globally in blockchain & cryptocurrency territory Founded February 1, 2018 Managing Partner gumi ventures, Inc. Miko Matsumura
  30. 39 Managing Partners • As a 25 year operating exec

    in Silicon Valley, Miko has raised over $50 million in venture capital for Open Source startups and over $200M in ICO capital • The founder of the crypto exchange Evercoin • Venture Partner with a cryptocurrency fund-of-funds BitBull Capital • An investor in FileCoin, Brave, CIVIC, Propy, Polymath and Lyft • Pantera Capital ICO Fund 及びFocus Ventures にLP出資 • Currently advises cryptocurrency startups Naga Group ($50M ICO Stock Trading) SwissBorg ($50M ICO Swiss Banking) Playkey ($10.5M Streaming Gaming) Bee Token (Decentralized AirBnB) Celsius (Ether Lending) etc. Miko Matsumura
  31. 40 Blockchain/Cryptocurrency Initiatives • gumi Cryptos LLC. invested in 3

    more companies. • Blockchain project “Financie” by our investee Unicon Pte. Ltd. is under development and started the CBT. (Not available within Japan). Part of Portfolio Companies Basis : A Price-Stable Cryptocurrency with an Algorithmic Central Bank Theta : A decentralized video streaming network, powered by a new blockchain and token ※Invested by gumi ventures ORIGIN Protocol : The sharing economy without intermediaries ROBOT CACHE : The first decentralized PC video game distribution platform with a revolutionary digital resale model Pryze : An automated sweepstakes protocol built on the Ethereum blockchain Sagewise : Develop the first problem solving tool for the smart contract in the world Wificoin : Develop the first blockchain global wifi network in the world Spacemesh : Spacemesh is a fair blockmesh operating system designed to run general-purpose smart contracts at web-scale
  32. 41 Bitinvestors • Provides the unique evaluation with scores according

    to the experience of evaluating over than 200 ICO Projects. • Aim to provide a trustable information of the evaluation to increase the transparency of projects, contribute a healthy Blockchain/Cryptocurrency economy system.
  33. 42 Additional Value gumi Cryptos provides • We have strong

    connections with all major IT corporations, major investors, and exchanges in Japan and Korea. We will be able to help our portfolio companies to head into the largest cryptocurrency market. • We have built strategic partnerships with ICO media in Japan and Korea that would be able to support your marketing and promotion in Japan and Korea. • BitInvestors (https://bitinvestors.co/) is the first ICO evaluation media in Japan with a large investor user base. (we are one of their shareholder) • 「初めてのビットコイン」 (https://www.newscrypto.jp/) is a cryptocurrency info media. (we are one of their shareholder) • The Bridge (http://thebridge.jp/) is a large IT/High tech genre media, with more than 500K active readers every month. Source: https://www.cryptocompare.com Exchange Ranking # Market Volume 24H (BTC) Country Currency 1 bitFlyerFX 121,473.67 Japan JPY 2 Bitfinex 51,302.46 US USD 3 bitFlyer 18,994.56 Japan JPY 4 GDAX 15,171.37 US USD 5 Bithumb 13,656.95 Korea KRW 6 Kraken 12,074.81 Europe EUR 7 Bitstamp 11,418.27 US USD 8 BitTrex 8,115.85 US USD 9 Zaif 8,014.44 US USD 10 TrustDEX 7,884.45 US USD 11 Coinone 3,723.30 Korea KRW 12 Korbit 3,315.65 Korea KRW
  34. 44 Approach to New Business • Such as Smartphone first,

    VR first, Blockchain first, etc. – create business or contents that “can only be done by” or “unique to” that technology and medium • Create brand-new content, experiences, UI/UX, etc. that have never been seen from Zero, rather than on the extension from the past New Technology First! Smartphone VR/AR Blockchain
  35. 45 The Role of gumi • gumi will become a

    "bridge" to bring new technology into Japan from overseas to raise Japan's technological capabilities in the future, and then take Japan’s originality to overseas • Absorb high technical strength and know-how, aiming for commercialization and monetization Japan Overseas
  36. 47