Immersive Gaming - Japan & Korea
Services Provided: International Licensing Development
The Assignment
A new retail immersive gaming concept has been growing rapidly in developed markets in the USA and the EU. Friends and families can visit self-enclosed venues in malls or high streets and enjoy playing games together by using their body movements. The concept is fully digital in terms of reservations, payment and check in. We were approached by the leadership team to investigate partnership opportunities in the developed markets of Asia, given our prior experience with virtual reality gaming.
Our Approach
We chose to focus on the markets of Japan and Korea given the high income levels and venue development potential. Our Japanese and Korean teams reached out and met with a wide variety of real estate developers, amusement park operators, gaming arcade groups, and Karaoke chains. These interviews were all conducted in person in Tokyo and Seoul with key team members at the target company’s offices. Obtaining interviews of this type in Japan and Korea is very challenging without a deep network to facilitate contacts.
Results
We recommended that the group adjust their terms based on our feedback from potential partners to dovetail with accepted practices in both markets. These target companies expect lower capex per location and a faster cash payback given their own store level economics requirements. A failure to adjust terms would likely lead to an extremely narrow pool of potential licensees which would prevent the group from achieving its global development goals. We are working closely with senior management to adjust the model and ensure that the group is on a strong footing to jumpstart international growth.