East Meets West – How one US game developer is taking online communities to the next level
To a large extent, massively multiplayer online games have always been about community and the connections that users make with each other online. Nowhere has this emphasis on the social aspects of online gaming been more pronounced than in South Korea.
Erik Bethke, formerly CEO at US developer Taldren decided to relocate to Seoul in October 2003 to be at the epicenter of Asian online game development. His new company, GoPets Ltd. (http://www.gopetslive.com) recently began closed beta testing of its eponymous online friendship community. GoPets are cute, three-dimensional characters that live on their owner's desktops and traverse the Internet to the desktops of other users to make friends with them. Users can then enjoy a wide range of activities, such as multiplayer games, through their virtual pets. We spoke with Erik and GoPets marketing manager, Chung Tai-Il to find out more about Erik's adventures in Korea, the differences and similarities between the US and the Korean markets, and his company's attempt to fuse the best of eastern and western online game know-how to come up with an innovative online offering.
What are the main differences in the profile of the 'average' online gamer when we compare South Korea with the US?
Erik: Online gaming is an utterly mainstream cultural activity in Korea. Professional gamers can even become idols here, commanding the same popularity as music or movie stars. In Korea, everyone plays online games at some point, much as everyone in the US goes to see a movie at some point.
Chung Tai-Il: It is an extension of the difference between eastern and western cultures. Online gaming is a very social activity rather than personal entertainment in Korea. When playing with Western gamers, they ask me questions necessary for playing the game, but Korean gamers ask my age, where I live and my gender. The average online gamer is therefore more socially oriented in Korea.
What were the main circumstances that led to the current boom in online gaming in Korea?
Erik: The biggest reason is the high rate of broadband penetration in Korea. This, combined with the fact that Koreans tend to like interacting with each other when playing games instead of alone against the computer, helped online games become the norm in Korea.
Chung Tai-Il: Yes, network infrastructure is the most important reason. The quality of the gaming experience depends on the speed of Internet access. Nearly everyone in Korea has broadband access, and the prevalence of PC rooms (Internet cafes) allowed developers to present quality equal or better than that of console games.
What are the major obstacles to a similar boom occurring in other markets?
Erik: The US will explode in the casual and online game space when users no longer have to get up and reach for their wallet and drag out a credit card every time they need to pay. Once we can have a $0.75 transaction with a fee no greater than $0.15 just a click or two away, the US will become the second-largest market behind China for online games in terms of user numbers.
Chung Tai-Il: The immense size of the US makes total broadband access more difficult to achieve. Also, gaming is largely considered a personal activity in the US. As the world becomes more globally oriented, however, and as the US increases its broadband penetration rate, online gaming is likely to become popular with a wider audience in the US as well.
Given that 'online gaming' is considered a 'mass market' activity in South Korea, what do you think that US companies can learn from Korea to expand the appeal of their games in the US market?
Erik: The item purchase model is critical to achieve the next level of success because it allows users to purchase exactly as much services as they want rather than pigeon-holing them all into the same-sized shoes.
Chung Tai-Il: A variety of diverse online games are currently being serviced in Korea, and they are producing real profits. It will be useful for US developers to analyze how user needs were fulfilled and how customers were managed. Unlike console games, the experience of online gaming is influenced by others who are playing so being attentive to users is more important in online games.
Erik, what were the main reasons you felt you should move to Korea?
Erik: The game industry in North America is consolidating into a mature industry with only a few large companies able to be truly profitable enterprises. As the budgets for AAA games have now surpassed the $10 million+ range, it puts most projects beyond the reach of independent third-party developers. The scale of risk naturally places more emphasis on known quantities and marketing, resulting in what I feel are creatively constrained opportunities. These thoughts were rolling around in my head in 2001-2002, and I started thinking strategically about what sort of game business I want to operate in the long term. Traveling to Taiwan and Korea and seeing their online game industries struck a chord deep inside, as I have always wanted to live and work in Asia and have a true adventure. I am convinced that the future of game entertainment is as a service business rather than as a product business. I wanted to move to the leading edge of the online service business, and that is Korea. Korea has mastered monetizing games in a high-piracy environment and is already two, full business-model generations ahead of the North American market.
So what are the main things you feel you have learned since moving?
Erik: This is going to sound like a canned answer, but I have truly learned so much about the world. Not just Korea, but also Taiwan, Japan, Thailand, and even Europe and South America. In retrospect, I have also learned a lot more about my own country and culture, and I highly encourage all Americans to grab the opportunity to work abroad if they can. I also realized just how much more is going on in the world of gaming beyond the big console games of North America. I am also getting stronger in understanding other cultures and doing business with a global mindset.
Chung Tai-Il, what is it like working with Erik?
Chung Tai-Il: An American boss does not have the authoritarian ways of a Korean boss. Korean CEOs are often arrogant or dictatorial, but Erik is not like that, so it is easy to work with him. The organizational structure is also quite different. A Korean organization is like a pyramid, but an American organization is more horizontal. It has its advantages and disadvantages.
Have there been any problems integrating the working styles of the team?
Erik: Personal space and privacy are very different in North America and Korea, with both sides having positives and negatives. In Korea, it is common for people to know your personal information, such as your wages, your health condition and your romantic life. Even the desks are closer together, and personal touch between people of the same gender is more intimate than what someone raised in the US may feel comfortable with. On the other hand, Koreans really work hard for the group, and it is easier to motivate the team to succeed because they often see their company and coworkers as an extension of their family. Both Koreans and Americans in the game industry are enthusiastic about working hard, long hours, and they are all in it for the love of the game.
Chung Tai-Il: Of course, working styles are not only defined by nationality. Even within Korea, developers have different working styles depending on their personalities. The biggest problem for us is the language. Game development is a creative process, and clear communication of ideas to colleagues and superiors is crucial. Precise communication is difficult, and we often have to expend a lot of effort to clearly understand each other. But I think the effort is worth it!
Can you briefly describe your current project?
Erik: I have an idea that I can connect the entire world into one gigantic online social network. The project is called GoPets - virtual pets that live and play on your computer screen will travel via the Internet to other users' desktops, laying the foundation for friendships across every boundary. Combined with the avatar and item sale model pioneered by the Koreans, the possibilities for cultivating friendships and expressing yourself through GoPets are truly endless. I think this takes one of the more appealing aspects of MMOGs – namely the sense of community, and repackages it for a wider audience.
So you're really reaching out to a new set of consumers here?
Erik: Yes, women between the ages of 15-25 will be our primary target, particularly for the social networking aspect of GoPets. The men who want to interact with them will also naturally be drawn to the service. The pet-raising aspect of GoPets will have a wider demographic, but our core consumers will be hip, computer-savvy young people.