Report

PSA Internet: A Review of Selected Smartphone Game Companies

Despite having been labelled as lockdown stocks, smartphone game companies have not been sold off to the same extent as have other Covid beneficiaries, such as EC companies, against the backdrop of the reopening of the economy. That smartphone game stocks have been relatively resilient suggests that the services they provide have become a part of people’s daily lives. The fact that restrictions to movement have been lifted does not mean that people will stop playing smartphone games or reduce their online time to a significant degree.
Underlyings
CyberAgent Inc.

CyberAgent is an information technology company. Media segment is engaged in the operation of internet TV station "AbemaTV," free live streaming programs without subscription "FRESH!," blog service "Ameba," matching services "Tapple" and music streaming service "AWA." Game segment offers a variety of games for smartphones such as "GRANBLUE FANTASY." Internet Advertisement segment is engaged in the provision of internet advertising agency services. Investment Development is engaged in the corporate venture capital business, as well as the establishment and operation of investment fund. Others segment is engaged in the operation of smartphone media.

DeNA Co. Ltd.

DeNA is engaged in the developing and operation of a wide range of mobile and online services including e-commerce, games and entertainment contents distribution. Co. operates in four business segments. Gaming business is engaged in the developing, operating and marketing mobile games. Co.'s principal "Mobage" social game platform in Japan hosts a wide range of free-to-play mobile games. E-commerce business is engaged in the e-commerce related services including "DeNa SHOPPING." Sports business owns and operates a professional baseball team "Yokohama DeNA BayStars" and operates Yokohama stadium. New business/others business is engaged in the operation of curation platform.

Gree Electric Appliances

Gungho Online Entertainment Inc.

GungHo Online Entertainment is mainly engaged in the planning, development, and operation of online games. Along with its subsidiaries and associated companies, Co. is engaged in the planning, development, operation and distribution of smart phone applications and online computer games, and the sale of console games. Co. is also engaged in the sale of game contents through download service as well as the licensing of self-developed games. Co.'s principal smart phone applications are "Puzzle & Dragons," "Summons Board," "Divine Gate," and "Princess Punt Sweets," and its principal online computer games are "Ragnarok Online" and "Emil Chronicle Online."

Z Holdings Corporation

Yahoo Japan is engaged in the provision of Internet advertising and e-commerce services. Media Business segment provides marketing and advertising services including paid search, display, in-feed video advertising and other advertising-related services for corporations; and Yahoo! News and media-related services. Commerce Business segment provides e-commerce related services including YAHUOKU! (net auction site), Yahoo! Shopping, ASKUL, LOHACO and other shopping websites; membership services including Yahoo! Premium, Yahoo! BB and other services; and financial and payment-related services including credit card, e-money, foreign exchange margin trading and other related services.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Thao Nguyen

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