Delivered at Casual Connect Asia As we saw huge mega-trends in the mobile and social gaming boom starting in 2009, we will see big waves of new innovations and business opportunities in the entertainment sector including VR, AR, Video, e-sports, etc. This session will cover what's happening with these technologies and trends in Japan’s market.

1. New Surging Trends in Japan's
Entertainment Sector
Incubate Fund
MASAHIKO HONMA
Founder and General Partner, Incubate Fund

2. Incubate Fund
 Incubate Fund is one of the largest seed stage investment firm in the area of mobile, gaming,
and internet media industry in Japan.
 We always create the business from scratch together with founders, and support them for
their success
 US$ 200M under management
“FIRST ROUND AND LEAD POSITION”
1
Toru Akaura
(Tokyo)
Masahiko Honma
(Singapore)
Keisuke Wada
(Tokyo)
Yusuke Murata
(Tokyo)

3. Leading internet companies invest in our funds
 They are looking for new business opportunities and asking us to find out good startups
2

4. 3
Selected gaming investment
【M&A: SEGA&GREE in 2012】
 We has been leading mobile gaming investments in Japan since 2007
 Gumi and Aiming went public last Dec. and this March, respectively, and they are valued over
US$500M in Japan’s stock exchange
 We had many great M&A exits of our gaming companies to big players like SEGA, GREE,
and others
【IPO: Dec 2014】 【IPO: March 2015】
【IPO: Planned in May 2017】

5. • Mobile Video
• VR/AR
• eSports
4

6. Mobile Video
5

7. 3minute Inc.
6
• 3Minute specializes in the production and
management of next influencers,
particularly female Youtubers.
• Recruits popular models and celebrities
and assists them in making and promoting
video contents on Youtube.
• Produce original and commissioned based
videos, focussing on fashion, makeup and
health care.
• Line Corporation invested an undisclosed
amount in February 2015. After the
investment, Line publishes content from
3Minute’s YouTube artists on the
messaging app

8. Open8
7
• Started as a a women-targeted video ad
network for smartphone users called Video
Tap.
• Raised US$7M from IncubteFund, Jafco,
TBS, iStyle, and excite Japan.
• Specially focused on women aged from 25
– 34, reaching 40 million users on monthly
basis. They leverage on existing user bases
from iStyle and Excite Japan.
• Constantly exploring partnerships with other
online media sites, such as launch a native
video ad scheme on @Cosme and Women
Excite.

9. C Channel
8
• C Channel is an online video-based media
targeting women aged 20 to 34, focusing
on offering lifestyle-related information
ranging from hairstyling, food, to travel
tips.
• Content are delivered via Facebook,
Twitter, Instagram, YouTube, China’s
Tudou and other popular online video
sites.
• Video plays was reported to surpass 100
million per month due to the launch of a
‘how-to’ clip series featuring women’s
favorite topics such as how to make up,
style hair or cook.
• Recently partnered with Ookbee, a Thai
startup providing e-publication and user
generated content in Southeast Asia

10. Game changing factors on
mobile video
–New contents distribution channels
(Instagram, FB)
–SEO
–TV vs Magazine vs Mobile Media
9

11. VR/AR
10

12. • Game creation for VR/R
devices
• Location Based VR/AR
• B2B solutions
11

13. Bandai Namco
12
• In April 2016, Bandai Namco opened a virtual
reality experience area called “VR Zone:
Project i Can” in Tokyo Plaza.
• The 5,870 square-foot VR Zone will act as a
virtual reality research facility where Bandai
Namco can gain feedback from users to
pursue further possibilities in virtual reality.
• Some of the main games will challenge users
to perform simple tasks while their VR
surroundings induce fear in them.
• 'VR Zone: Project I Can' hints at the future
direction of Japanese arcades
– “Skii Rodeo” – A downhill skiing experience set
on a snowy cliff.
– “Escape Ward Omega” – A “were we really
attacked?” horror experience where you enter a
giant, ruined hospital ward together with everyone.
– “Argyle Shift” – A cinematic experience where
together with a girl, you enter the cockpit of a giant
robot and battle.
“Fear of Heights Show” – An extreme test of courage where you rescue a cat left behind
on a thin plank 200 meters above the ground.

14. Universal Studios Japan
13
• As part of “Universal Cool Japan” event in
2016, Universal Studios Japan has
transformed the Space Fantasy spinning
indoor coaster into a VR experience
starring Japanese fashion model and
singer Kyary Pamyu Pamyu.
• The ride will be the world’s first “XR” Ride
which synchronize the frantic speed and
the sense of gravity of a theme park ride
with astonishing advances in virtual reality
that transport visitors to brand new super
real world through sight and sound,
stimulating the six senses.
• Visitors will be able to take part in
incredible experiences such as
encountering giant objects or taking
sudden 200-metre drops that spread 360
degrees around them

15. Recruit Technologies
14
• Recruit Holdings Co. Ltd is a classified
advertisement, publication and human
resources company in Japan. In October
2012, Recruit Technologies was
established to develop IT and Internet
marketing technologies for the Group.
• In March 2016, Recruit Technologies
hosted a VR focussed event called “Mirai
(Future) Amusement Park” for 2 purpose.
1. To find various potential use cases of
VR; and
2. To get connected with the engineers.
• There are numerous different VR
attractions at the event, in ‘Tokyo Skyline’,
people can experience the reality of roller
coaster through VR while being suspended
on a swing. This allows visitors to
experience VR beyond visual senses
through simulation of the ‘float and fall’
feeling, as well as other sensations
associated with thrill of such activities in
real life.
“Zamami Rocket Jump” – Visitors are hoisted above ground to simulate tall
jumps using jetpacks

16. 15

17. 16

18. Game changing factors
on VR/AR
–New devise platforms
–Existing software assets and
development environments(Unity,
Unreal Engine, 3DCG)
–VR fund (Colopl, GREE, Gumi)
17

19. eSports
Surging Trends in Japan
18

20. DetonatioN Gaming
19
• DetonatioN Gaming started off as a Counter
Strike focussed team, after gaining
sponsorship from Gigabyte, they added LoL,
World of Tanks, StarCraft II, Super Smash
Brothers, Battlefield 4.
• With a shot to compete at the International
Wild Card tournament, the LoL team, also
known as DetonatioN Focusme, converted to
became full-time, salaried players in February
of 2015, and moved into a gaming house in
Chiba Prefecture, Japan.
• Gaining small successes overseas,
DetonatioN Focusme attracted Japanese
corporate attention to eSports. For example,
Kadokawa announced eSports initiatives,
ranging from massive Puzzle and Dragons
tournaments to the establishment of an
“eSports major” at the Tokyo School of Anime.
• To further promote the eSports scene in
Japan, Nobuyuki Umezaki, manager of
DetonatioN, recently established eSports
consulting company Sun-Gence where he
assists organizations in their approach to the
industry and introduces them to talent.