Published on Thursday, September 30 2010 by Sung Hwan Ahn
The biggest portal service, Naver, launched its AppStore ”Social Apps“ on 30 Sept. 2010. Is it a coincidence or an intention? Social App’s launch date overlaps with that of Nate, which launched its Nate AppStore last year in late September. Whatever the underlying meaning may be, Naver’s presence itself has great implications in the Korean social gaming industry. Before any further approach, understanding of Naver is prerequisite.

Naver, which initially started off as a search engine back in 1999, now expands its business model to multiple platforms such as blog, cafe, and Me2Day. According to Naver, currently they have over 18 million blogs, 6 million Cafes, and 2 million Me2Days (Me2Day is a similar service to Twitter), excluding potential users who simply use the search engine without subscription. As mentioned in one of our previous blog posts, Naver attracted many developers (both domestic and foreign) to publish their games on their platforms by giving various incentives. As a result, 32 developers have published 47 apps by the first day of launch.

Naver’s Social Apps, however, takes a different approach in virality. Utilizing its blogs is somewhat similar to that of Nate’s Cyworld, but as Nate AppStore expanded its pool from Nate to NateOn, Naver uses its 6 million “Cafes” as a leverage. Naver Cafe is a name, which refers to user community or clubs. What is significant about Naver Cafe is that games are played within the Cafe members only. In other words, even if someone plays the same game in two different Cafes, his/her user data will be different in each container. This makes it difficult for users to play simulation games that requires mass storage of user data. Thus simulation games, which requires continuous play time, will tend to lean towards blogs and Me2Day networks. Another interesting feature is that the Cafe master or staff members have full authority to choose which games to be installed in their Cafes. Big Cafes with more than million members, will have bargaining power over game developers who are willing to acquire big pool of users. Are we expecting some kind of lobby in the social game biz now? No one knows.

(Picture reference: Naver)
Naver, the leading portal service versus Nate, the leading SNS is indeed a big match to watch. Whether they will lead the way as a partner or a rival, Korea’s social gaming industry has definitely entered its second phase of growth, providing more rooms for developers and publishers to penetrate in the market. As a developer, we look forward to Naver’s success as a platform provider.