1. The Rapid Growth of Android Market in China Challenges & Opportunity For Western Game Developers Gary Chang SVP & GM Renren Game USA

2. Smartphone Landscape in China  According MIIT, China has over 1.1 Billion mobile phone subscribers and over 325M are 3G subscribers  That is 100M more than US 3G subscribers and 20M more than entire US population  3G subscribers in China is growing very fast, there are about 86M new 3G subscribers just from the first half of 2013

3. China – World’s Largest Smartphone Market  Flurry reported that China is now the #1 smartphone market in the world in Feb 2013  Most of the growth is coming from low-end Android devices  According to premier global market intelligence firm IDC, there will be over 500M smartphone users in China by the end of 2013 (http://www.199it.com/archives/85564.html)

4. Android Devices vs iOS Device in China  786 million smartphone devices were sold in 2012, a third of them were sold in China  Currently, Android has nearly 70% of mobile operating marketshare in China; iOS only has 25%

5. Source: Newzoo, 2013 Global Games Market Report

6. Mobile Gaming Market in China

7. World’s #4 Game Revenue Market

8. CN Mobile Gaming Growth in 2013 so far  China mobile gaming market grew by 15.7% from Q1 to Q2 this year  Q2 market exceeded $283M USD  2013 China mobile gaming market on the run-rate to reach $1.2B USD

9. Android Revenue > iOS Revenue

10. Android Ecosystem – Fragmented Distribution Channels  There are 3 major distribution channels for Android games to be discovered by Chinese players: 1.Carriers 2. 3 rd Party Android Marketplace 3.OEMs

11. Challenges for Western Developers in China Expert localization/customization is critical Complex distribution channels Multiple payment solutions in China Cost Effective User Acquisition Requires Local Partnership Piracy is rampant

12. China Android Opportunity for Game Developers Currently, there are about 18 titles in China making over $1.6M USD monthly revenue Market is flooded with a lot of low quality Android games. Consumers are demanding higher quality games from Android platform Android is about to reach an explosive growth period in China, the real growth phase is coming! In 2010, Android paying user % in China is about 1/5 of iOS’. Since then, it has improved 3X in the past 2 years.

13. Top Grossing Game in China  18 mobile games in China had gross revenues surpassing $1.6M USD in April 2013 in China  "I am MT" ranked 1st with more than USD $8M in gross revenue, followed by “Fishing Joy” (~USD6M), Space Hunter (~USD5M)  Many game developers claimed to have 70:30 revenue split by OS favoring Android (Source: Ptbus.com and Entbrains profiling )

14. Thank You!