Japan's DeNA Tops EA, Zynga With $1.3 Billion in Annual Revenues

DeNA, Japan's social gaming giant, is reporting that it expects to rack in $1.3 billion in revenues for the fiscal year ending March 31. Apart from the expectations, the figures that we already know for sure, show a revenue of $359 million for the Q4 2010, with earnings increasing by more than 250 percent over the same time last year.

DeNA DeNA, Japan’s social gaming giant, is reporting that it expects to rack in $1.3 billion in revenues for the fiscal year ending March 31. Apart from the expectations, the figures that we already know show a revenue of $359 million for the Q4 2010, with earnings increasing by more than 250 percent over the same time last year. DeNA’s core business revolves around Mobage social gaming platform, which has over 300 game developers, more than 750 games, with over 20 million Mobage-town registered gamers.

Commenting on the occasion, Tomoko Namba, DeNA’s CEO stated:

We are very pleased with a remarkable quarter. We are looking forward to announcing an exceptional year in sales for DeNA, thanks to our diverse catalog and market expanding strategies. We are also razor-focused on delivering the mobage smartphone platform this Spring.

To put DeNA’s revenues in perspective, with $1.3 billion in revenues, DeNA would be larger than both Zynga – with estimated revenues between $500-$800 million in 2010, and EA Digital – with revenues of around $750 million in 2010.

DeNA sent shockwaves across the social gaming world, when it announced that it will be buying Ngmoco, a game maker for iPhones, for $400 million. DeNA’s acquisition at around 13 times Ngmoco’s revenues signals how serious it is to capture the western gaming market.

DeNA claims that it generates 13 times more revenue per user than what Zynga does. One might be surprised to read such an astounding claim, but DeNA does have some independent stats to back its claim. According to research firm In-Stats, Asia-Pacific region is responsible for 70% of all virtual goods revenues in 2010, which means that for every $3 spent on virtual goods purchases across Zynga’s of the west, $7 were dolled out by Asian gamers while playing games by DeNA and others.

In other news, DeNA has announced that it will soon be launching its “Mobage Open Platform” in China through its subsidiary DeNA China Network Technology Company.