[AOGC2007#06] On the present and future of online game international division of labor. Interview with Shiomi Sawa, CEO of High Five Editorial Department: Masashi Ohji High Five Entertainment President Shiomi Sawa At the Asia Online Game Conference 2007 Tokyo ,  which will be held on February 22nd and 23rd , the CEO of High Five Entertainment will give a lecture titled "Online Game International Division of Labor - From the Fields of Japan, China and Korea". Mr. Shiomi Sawa. Prior to the lecture, I had the opportunity to hear about the current situation, challenges, and possibilities of the international division of labor .  Hi-Five is an emerging publisher that has just entered its second year since its establishment, and is officially serving two MMORPGs, "Bright Kingdom Online" and "Tendo Online" . Furthermore, in the not-too-distant future, MMORPG "Arias Story" , "tennis game (provisional)" , and affiliate advertising revenue model "Completely free MMORPG", etc., will be developed, so the momentum is considerable. It is a thing.  The core of the publishing business is the "international division of online games" between Japan, China, and South Korea, which Mr. Sawa has advocated and promoted since the establishment of High Five. This theme has been touched on in various occasions, such as the company's founding press conference and the 8th study group of the Broadband Promotion Council Online Game Special Committee. However, for High Five, which has been established for a year, this theme is not just an ideal or vision, but a situation that is coming to fruition.  Prior to AOGC, Mr. Sawa talked about the current state of the international division of labor in online games, which can only be talked about now. If you are interested in the future trend of high-five and the overview of the international division of labor, please take a look at this article. ■ Achieving speed and volume through appropriate international division of labor 4Gamer:  Thank you for your time today. Mr. Shiomi  Sawa: Thank you very much. 4Gamer:  On February 23rd, the second day of the AOGC, Mr. Sawa will give a lecture titled "Online Game International Division of Labor: From the Fields of Japan, China and Korea". please. Shiomi Sawa:  It's common for Japanese online game publishers to buy titles from South Korea, Taiwan, China, etc., localize them and operate them. In that sense, the international division of labor is already commonplace.  However, in our case, we not only publish Korean online games in Japan, but also develop them through COSWIZ in Beijing, China. 4Gamer:  Well, you're a publisher, but you're also a developer. The other day, it announced the strengthening of its business alliance with ARAGON Networks, the developer of "Bright Kingdom Online", and COSWIZ, which is developing titles such as "Arias Story", is also a subsidiary of High Five. There aren't many start-up companies that have such a close international division of labor in online games. Mr. Shiomi Sawa:  Yes. The fusion of "Japan's planning capabilities", "Korea's technology" and "China's human resources", which we have promoted since our establishment, is finally on track.  On the second day of the AOGC (February 23rd), Akinori Nakamura, Assistant Professor of the College of Policy Science, Ritsumeikan University, gave a speech entitled "International Business Situation of Online Games: The Latest Situation of China's Online Game Market and the Global Game Development Network of the Overseas Game Industry." will be given a lecture. I think that detailed data and considerations will be presented there, but I would like to convey concrete opinions from the field of international division of labor so as not to overlap with Professor Nakamura's lecture. 4Gamer: You were with Mr. Nakamura at the BBA Online Game Special Committee  in July 2006 . At that time, I think that the international division of labor for High Five had just started, but what phase is the actual international division of labor approaching now that one year has passed since the company was established? . Shiomi Sawa: Let's take Blakin as an easy-to-understand example. As you know, Burakin is an MMORPG developed by ARAGON Networks in South Korea. So our company localizes it and operates it in Japan.  However, from around the end of 2006, through the aforementioned COSWIZ, we have been producing character modeling data. 4Gamer: Are you producing the graphics data for the MMORPG developed by Korean company ARAGON at COSWIZ in China? Mr. Shiomi Sawa:  yes. Even in publishing titles like Blakin, we are promoting international division of labor under the leadership of High Five. While strengthening our business alliance with ARAGON Networks, we support 3D graphics modeling through our resource COSWIZ. 4Gamer:  Regarding Blakin, I get the impression that there are a lot of releases related to the addition of new items, but can we consider that as an advantage of COSWIZ's model production? Mr. Shiomi Sawa:  Yes, that's right. In my lecture, I plan to express it as "speed & volume", but in terms of publishing titles as well, we will make full use of China's human resources and strive to expand in-game content. This is a concrete example of the benefits of international division of labor. 4Gamer:  So the international division of labor for High Five was no longer a futuristic story, but a real system? Mr. Shiomi Sawa:  However, it is not necessary to go out of your way to explain, "This is modeled in China." The result of frequent implementation of new items is the most important part for players. MMORPG "Bright Kingdom Online" ■ International division of labor in “Arias Story” 4Gamer:  When I first heard about the concept of international division of labor at the press conference for the establishment of High Five, I thought that the first model case would be the Arias story. In fact, you started with Brakin, but how is the international division of labor in Arias Story going now? Mr. Shiomi Sawa:  In the lecture on the 23rd, I will introduce examples of problem solving in the development work of Arias Story and examples of international division of labor. I would like to leave the details to the lecturer, but I would like to give a brief explanation here as well.  On December 22, 2006, you conducted a limited function test of Arias Story in the form of "Arias Hajime no Ippo". 4Gamer:  It was a three-day test where you could only experience the character creation of the four races that appear in the game, walk around the village that will be your hometown, and the chat function. Mr. Shiomi Sawa:  That's right. Actually, the normal closed beta test was scheduled to start on December 12th, but when I checked the degree of completion at that time, I flipped the table over. Can you give this to a customer! (laughs). 4Gamer:  Were there any circumstances behind those limited-function tests (laughs)? Mr. Shiomi Sawa:  I think that there are things like this even at other companies, even if they don't put it on the table. However, in the case of Arias, I think there are a lot of people who have kept fans waiting, and there are a lot of people who are numb.  However, if it had been released in that state, it might have been labeled as a title with little freshness that was no different from conventional MMORPGs. Limited functionality testing was a compromise that no more compromises could be made. 4Gamer:  Do you mean a desperate plan? However, despite that, I got the impression that it recorded a constant number of simultaneous connections. Shiomi Sawa:  The stay time was short because there wasn't much to do in the game, but it seems that around 200 players were always connected. Also, because there are few functions that can be experienced, we were able to absorb a lot of requests that came out of it, after having the players freely fantasize. 4Gamer:  Regarding character models, the title has been attracting a lot of attention since it was first announced, and it seems like we'll get only positive requests for limited-function tests. It can also be used as a promotion. Mr. Shiomi Sawa:  That's right. At that time, we asked the COSWIZ development staff to come to Japan and discuss various things based on the test results. A consensus was reached to remake it for the better rather than undo it. 4Gamer:  Between High Five and COSWIZ, there are differences in the position of Japanese and Chinese, publisher and developer, but by including the voices of the players directly, we were able to reach a smooth consensus. It may have been.  Come to think of it, on the teaser site "Management News" the other day, Arias Story's BGM recording scene was introduced. Mr. Shiomi Sawa:  Yes. This may be said to be part of the international division of labor, but the background music for Arias is composed by famous domestic composers. The orchestra performance is also very gorgeous. Please look forward to not only the graphics and gameplay, but also the quality of the music. 4Gamer:  When it comes to Japanese game music, it goes without saying that the Dragon Quest series and Final Fantasy series are highly regarded worldwide. Mr. Shiomi Sawa:  Yes. At first, COSWIZ was supposed to prepare the BGM for Arias. However, the basis of the international division of labor is to make the most of each strength, so in terms of game music, we have adopted Japan's strengths. 4Gamer:  What kind of work will Arias Story, which has applied international division of labor from the conception stage, be finished? As a game fan, I'm really looking forward to it. MMORPG "Arias Story" ■ Strengths of each country and differences in culture 4Gamer:  Japan is good at planning, China is good at human resources, and South Korea is good at technology. I think there are also problems such as being difficult to convey. Mr. Shiomi Sawa:  There is. Taking the example of "dragons" that appear as monsters in MMORPGs, in Japan and South Korea, they can be completely set as enemy characters. However, in China, "dragons" are recognized as sacred beings, so basically they appear as the protagonist's allies. 4Gamer:  That's when you consider publishing in China, right? Mr. Shiomi Sawa:  That's right. That's an example of cultural differences in game settings, but more than that, China has very strict regulations on imported games. 4Gamer: The delay in the release of the Chinese version  of World of Warcraft : The Burning Crusade, the first expansion pack for World of Warcraft , was also related to local regulations. Mr. Shiomi Sawa:  That's right. Luckily, the Chinese version of Blakin passed the review smoothly and was contacted by ARAGON to start the closed beta test in March.  In any case, as a national policy of China, the import of foreign games is subject to strict screening. And that trend will become stronger in the future. 4Gamer:  In that respect, COSWIZ, which is the developer of the international division of labor, is a Chinese company, and High Five has an advantage in Arias Story's Chinese publishing business. Mr. Shiomi Sawa:  Yes. Considering the wide-ranging expansion of business in Asia, it can be said that China's role in the international division of labor is extremely important. As for Arias, it's produced by COSWIZ in China, so it's not an imported game, it's made in China. Publishing in China will also be relatively smooth if COSWIZ takes the lead. 4Gamer:  I see. The international division of labor is a very useful style not only for the differences in the national character of the players, but also for the differences in national policies of each region. The other day you announced a strategic alliance with Beijing Xianke Hi-Tech Co., Ltd., a major internet cafe operator in China. Mr. Shiomi Sawa:  That's right. Regarding the development in China, I believe that it is best to cooperate with a major internet cafe operator that boasts a wide and stable number of users, rather than a major publisher that moves rapidly.  I have my own theories about more specific game design theories that consider differences in national character, but... If I talk about it in too much detail, it will expose our company's hands, so I'll leave it at this for now (laughs).  Well, it's a topic similar to the dragon story I mentioned earlier, but there are many things like the culture unique to China, or the general perception, such as "the main character's clothes are always red." It may be said that it is the basics of competing in Asia to boil down from such a basic part slowly and carefully. 4Gamer:  Somehow, it seems that there are various hidden spheres besides the Arias story... Mr. Shiomi Sawa:  I can't say in detail, but well, that's what it is. I will tell you when the time comes, so please wait a little longer.  By the way, I have been dispatching/resident Japanese employees/executives to South Korea and China in order to facilitate the international division of labor. 4Gamer:  You are what Mr. Nakamura calls a “bridge specialist.” Mr. Shiomi Sawa:  Yes. However, now that the phase of the business has changed, we are calling it back to Japan. In regards to Bulakin, we had a Japanese staff stationed at ARAGON Networks, but from August 2006, we rented a desk at a joint office in Seoul, and from there we asked them to commute to ARAGON. I was 4Gamer:  Why? Shiomi Sawa:  It's simply because if you're stationed at Brakin's ARAGON, it's hard to go to Tendou Online's LIZARD (laughs). It may be a trivial matter, but from the point of view of ARAGON, LIZARD can be said to be a competitor. I think it's a smart way to take into consideration not only local human relationships, but also such things. 4Gamer:  Does the phase change mean that both Brackin and Tendo Online have gotten on track to some extent and have already built a sufficient relationship of trust? Mr. Shiomi Sawa:  I agree. However, the close relationship continues to this day. The other day, we introduced a video conference system, and even though it's a video, it feels good to see the other person's face and talk. If it were true, I was wondering if it would be better to stay there forever, but it depends on the case. 4Gamer:  I see. The quality and type of communication will also change depending on the stage of the business and the sense of distance with the other party. Although it is a basic thing, I feel that it is unexpectedly difficult for companies to implement it appropriately. I have great expectations for the day when the results of these efforts will be realized.  Lastly, when do you think your preparations/efforts will bear fruit in terms of making a leap forward as a company, rather than the issue of revenue per unit of content? Mr. Shiomi Sawa:  Hmm, as for the timing, I think it will be around this summer when the official service of Arias Story will start in Japan and China. And when autumn comes around, we may be able to introduce the development titles that we are most focused on.  Of course, success as a business is a major premise, but personally, I'm always thinking about how popular the content will be. We will do our best to make both existing and new titles great, so please continue to support us in the future. ……In order for such an ideal not to end up as a pipe dream, we have to make it a viable business (laughs). MMORPG "Tendo Online"  At first, I expected the interview to follow the contents of the AOGC lecture, but because of Mr. Sawa's service-mindedness and skill in speaking, the topic spread to a wide range of fields. I look forward to hearing from you again when the time is right to discuss the hidden gems of high-five entertainment and the details of their revolutionary membership acquisition method/business model.  In any case, since the founding of High Five Entertainment, Mr. Sawa has placed the highest priority on the "international division of labor between Japan, China, and South Korea."  Thanks to these efforts, High Five is steadily increasing its potential as a publisher/developer. In the first year of its establishment, various contents / performances excited the online game industry, but in 2007, the second year, it seems that he will spread the topic in various ways. It seems that we can not take our eyes off the trends before and after that, as well as the "day when the efforts so far will bloom" that will come from summer to autumn. (Masashi Ohji)