Asia, the World and the Future of VR | Masaru Ohnogi

© 2017 gumi Inc. All rights reserved.CONFIDENTIAL 1

Asia, the World and the Future VR Masaru “Nogi” Ohnogi


Our vision is to become the world’s No.1 entertainment company

of the information revolution


Company ProfileCompany

Name :gumi Inc.

Founded : June 13, 2007Ownership : Public

Office locations :

Tokyo, Fukuoka, Shanghai, Seoul, Taipei, Singapore, Manila, San Francisco and Paris.

No. of employees :

697 (at the end of July 2016)

gumi is a leading global mobile gaming company.


Global Offices

gumi ChinaShanghai

gumi EuropeParis Primu

sSeoul

gumi TaiwanTaipei

gumi AsiaSingapore

gumi AmericaSan

Francisco

gumi WestFukuoka

gumi / Alim / FenrisTokyo


Existing Titles

BRAVE FRONTIERGenre : RPGWithin top 10 grossing in major 10 countries.

FINAL FANTASYBRAVE EXVIUSGenre : RPG#3 Top grossing in Japan

Phantom of the KillGenre : Strategy RPG#7 Top grossing in Japan

For Whom the Alchemist ExistsGenre : Tactics RPG#6 Top grossing in Japan

CRYSTAL OF RE:UNIONGenre : Strategy RPG#29 Top grossing in Japan

Dragon GenesisGenre : RPG#29 Top grossing in Japan

BLAZING ODYSSEYGenre : RPG#22 Top grossing in Japan

SHINOBI NIGHTMAREGenre : RPG#33 Top grossing in Japan


gumi’s VR Initiatives


gumi's Effort in the VR World

VR Business

Investing Globally

Established 2016.2

In-House Developme

nt

Incubation

Investment

Incubation Program

Partnership

Sponsorship/Business Collaboration


In-House Development

Working on VR for Current Titles


Tokyo VR Startups/Seoul VR Startups


Program1. 6 month-program

The participants develop VR products and services for six months.

2. Development and business supportTVS supports the participants to accelerate their development.

3. Mentorship from expertsThe participants can get advice from experts from Japan and abroad.

4. Demo DayDemo Day is held in the end of the program. The participants can demonstrate their products and services in front of VC, investors, and industrial companies.


Mentors List


Tokyo VR Startups MentorsNaoki Aoyagi

Former Board member and Senior VP at GREE

Takahiko Akiyama CEO of 4D BRAIN

Eiji ArakiBoard Member and VP, Social Games at GREE

Yoshiharu GotandaCEO of tri-Ace

Shun SasakiCEO of historia Inc

Masahiko InamiProfessor, Research Center for Advanced Science and Technology, University of

Tokyo.

Hikaru AdachiChief Planner at Digital

Platform Center of Dentsu

Hiroki Omae Regional Director at Unity Technologies

Japan GK

Yoshikazu KatoHead of VR Business

Office at SoftBank Corp.

Hiroyasu Shimizu CEO of Formulation Inc.


Tokyo VR Startups Mentors

Masashi NakaoMedia Business Division

President of Tokyo Broadcasting System

Television (TBS)

Kazuyuki HashimotoSenior Director,

Entertainment Technology at NVIDIA

Makoto YamaguchiHead of contents business at Fuji

Television

Ryo Shimizu CEO of UEI Corp. Akihiko Shirai

Associate Professor at Kanagawa Institute of

Technology

Joel BretonVice President Global

VR Content at HTC Vive Tipatat Chennavasin

General Partner at The Venture Reality Fund

Naotaka FujiiCEO of Hacosco Inc.


Seoul VR Startups MentorsYongjae Min YJM Games / CEO

Kunimitsu Hironao

gumi, Inc. / CEO

Yeonjun KimYJM Games / Vice

PresidentDee Lee

Seoul VR Startups, Inc. / Director

Benjamin ParkSeoul VR Startups,

Inc. / Director Sangbum KimYJM Entertainment, Inc.

/ Advisor

Jung-hee Ryu Futureplay / CEO

Chester Jungseok Roh

Reality Reflection / CEO

Suzie Kim Unity Technologies

Korea / Country Manager

Ray ParkEpic Games Korea /

Representative Director

Tipatat Chennovasin

The VR Fund / General partner

Jaehyuck Lee Samil

PricewaterhouseCoopers / Manager


Mentoring Day1 February 26, 2016


Mentoring Day2 April 15, 2016


Mentoring Day3 May 20, 2016


Demo Day1 March 30, 2016


Demo Day2 June 29, 2016


Tokyo VR Meetup （ Monthly ）


1st Class Portfolio- VR attractions and amusement

park- VR contents creation and publishing

platform


- VR Escape Game “Enigma Sphere”

- The VR horror game “Chain Man” utilizing physical calculation

- Self Drone 「 ELFLY 」

1st Class Portfolio


2nd Class PortfolioHoloEyes

Developing VR applications for medical useThe models created based on CT scan data become visualized

MiletosDeveloping haptic device and supporting software for VR to reproduce the feeling of touch through providing “pressure” and “vibration” and "temperature".GATARIDeveloping social VR application in which the voice is able to be visualized for communication.

COVERDeveloping social VR platform that enable people in different regions around the world to communicate and to play with each other.


1st Class Portfolio1. Hongbin Network Korea・ Business

VR STATION

[ 제품 3D Image ]

360 도 회전

[ Sensor Gadget ]

360 도 회전

Sensor Module

Front Support

Rear Support

2. Rooftop, Inc.・ Business- 　 Develop and operate indoor VR arcade center - 　 Develop experiential VR attractions - 　 Standardize the VR simulator, controller & API

- Develop VR specialized chair through development of motion sensor that can recognize motion such as walking and running


1st Batch Portfolio3. AtoZ, Inc.・ Business

- Develop a tool that could produce VR apps and VR web easily

- Develop a market place for VR picture/video contents

4. Dobermann Squad・ Business - Development of VR Games


Venture Reality FundIn February of 2016, gumi invested in the venture capital fund “VR Fund, L.P.”

and become a joint GP member of the Fund.

VR Fund Summary

NAME VR FUND, L.P.

Fund Size Maximus USD50million to USD80million （ Targeted ）Investment Territory Invest globally in VR/AR territory

GP Members Marco DeMiroz 、 Tipatat Chennavasin 、 gumi America


VRF Team, General Partners

Marco DeMiroz

Tipatat Chennavasin

Hironao Kunimitsu

Stanford University Post Grad, Carnegie Mellon University MBA, SJSU MSME10+ years of VC at EMC, Trinity, Selby, GameChange, U.S. Bancorp VenturesLed the largest financing round in VR for Jaunt VR at $65+MOperational expertise as CEO of PlayFirst (exit to GLUU), Racktivity, and CFO of General Magic (IPO)Board/Advisory Member: Jaunt, Swrve, adaptiv.io, OnKore, Itavio, and othersDeep understanding of VR/AR, mobile gaming, and social media

Stanford SymSys, Human Computer InteractionPioneer in gesture-based computingVR/AR thought leader and developer

Creator and co-director of River, the first VR-focused Accelerator Speaker & Author at SVVR, Upload Demo Day, Casual Connect,

VentureBeatMet & reviewed over 1500+ VR startups

Designed “VR Industry Landscape” featured by Venture Beat

Founder and CEO of gumi Inc., one of Japan’s leading mobile gaming companies, listed with 1st section of the Tokyo Stock ExchangeEx-creator and director of Atmovie Inc., expertise in film and TV drama contents production Fudan University, Santa Monica College


Venture Reality Fund (VRF) StrengthExclusive access to the inner core VR communities in Silicon Valley, Japan and other Asian countries.

Early bird acquire/JV/M&A of VR companies using very low price made possible.

IPO

Seed ･ Early Stage

Pre-seed Seed/Series A

VRF focus

Series B-D ～

Late Stage

Foreign Companies




PortfolioInside-out high precision scene

reconstruction tech

Immersive and interactive

storytelling platform in VR

VR ad network

AI-based interactive character creation

platform for VR

VR game studio developing AAA titles with

a major Hollywood Director

Content publishing platform in VR and AR

Music VR for EDM sector with both DJ & audience

elements

Leading VR game developer with top titles and gesture interaction

toolkit

VR Authoring Tool

We’ve invested in 18 different VR / AR / MR related companies


Partnership


gumi AR/VR Global Eco SystemInvestmentIncubation

Meet upStartup CommunityEurop

eKorea

Japan

USA


Status of VR in Asia


China


VR devices in China

About 30 companies have already launched devices


VR media in China

There are more than 80 VR media


VR cafe in ChinaOver 3,000 VR cafes have

opened up around China, showing a strong interest in new immersive technology.


Video


Korea


Pros and Cons in Korean marketPros Cons

Abundance of engineers/game planners

Positive support from the government

and the companies

The market is not yet launched


Japan


VR Industry Landscape in Japan


VR ZONE Project I Can






ZERO LATENCY VRZero Latency is one of the first companies to bring "Free-Roam” VR to the public. They offer an open VR space for up to 6 people to join in numerous prebuilt games. They are Australian-based with numerous previous deployments of their hardware in Australia, Europe, Asia and America.


VR theme parks in Japan


VR theme parks in Japan


Other Character Based Contents


VR’s future prospects


VR/AR/MR Future Road Map

Phase I

Phase II

Phase III


Market PredictionsMarket SIZE US $14.6-126B by 2020 US $4B investing the last 2

years US $12B committed by

VRVCA $500M content funding by

Oculus $50M content funding by

IMAX


VR Devices Sales in 2016PlayStationVR

2.6M

Oculus Lift

355K

HTC Vive

420K

*uploadvr.com


Prediction of HMD Sales

Year 2017 2018 2019 2020 2021 2022 2023

HighendVR 8M 16M 32M 48M 96M 196M 392M

MobileVR 32M 64M 128M 256M 512M 1B 2B

*Schell games Speech GDC 2016


VR off to a great startTop Apps by

RevenueRevenu

e

Row Data $2.5M

Audioshield $1.9M

Hover Junkers $1.7M

Virtual Desktop $1.5M

Space Pirate Trainer $1.5M

Top Apps by Download

Downloads

The Lab 532K

Google Earth VR 269K

Heaven Island Life 257K

Surgeon Simulator VR 243K

Tilt Brush 207K*Data from The VR Fund SteamSpy.com


360 Video is a hit!

Most Watched ViewsClash of Clans 360 52M

Caught on 360 Cam 26M

Dubai. Here you are 20M

Avicii – Waiting For Love 18M

Get Barreled in Tahiti 18M

Most Watched ViewsLAD Bible: Alaska Time Lapse 32M

Ivete Sangalo: Eu quero o farol dos teus olhos…, 18M

ABC News:Times Square During Winter Storm 18M

Game of Thrones: Game of Thrones Opening 360 14M

Deadpool: See Deadpool everywhere 11M

Desktop + Mobile + Mobile VR = Biggest Audience

1B Users 1.8B Users


2D vs 3d vs VIRTUAL REALITY


VR & AR Will Transform Our Lives Forever


ConclusionMobile Phone AR/VR Devise


Thank You Very Much!!Business /Fund raising

[email protected]

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Masaru Ohnogi
