Big Yao is really big for Sorrent

0 Comments | Oakland Tribune, Jan 29, 2004 | by Tim Simmers, BUSINESS WRITER

GIANT Houston Rockets center Yao Ming has been very good to tiny cell-phone video-gamemaker Sorrent Technologies.The 7-foot-5 NBA star from China signed his first U.S. endorsement deal last year with San Mateo-based Sorrent, and the stunning branding coup has put the company on the map.

Sorrent launched its Yao Ming Basketball'04 game in the U.S. last fall, and robust sales in China are helping drive the company's revenue.

"In the world of marketing games on mobile phones, there's a ton of titles out there," said Greg Ballard, president and chief executive officer of Sorrent. "But if you have an exciting brand like Yao Ming attached to you, it shows you're a serious player."

Founded in 2001, Sorrent made its mark quickly in the fast- growing cell-phone game industry by landing such a marquee endorsement. The company targets impressionable game players between 18 and 34. It hopes to snag a growing chunk of a worldwide sales market that could generate between $2 billion and $6 billion by 2005, according to market research group IDC.

Sorrent also created the popular Fox Sports Football and Fox Sports Boxing franchises, but it's the Yao Ming endorsement that put it over the top.

Yao loved the idea. He's a lifelong video game player, and helped Sorrent develop a game geared to what Chinese players want.

He met with Sorrent executives in a Chinese restaurant in Oakland before the Rockets played the Golden State Warriors last season. Yao helped the company understand his signature moves and instincts for the game, which have grabbed the attention of Chinese fans. The Yao game was introduced in May in China, where there are more than 200 million mobile-phone users.

"We plan on meeting again with Yao after this NBA season is over to discuss the design for Yao'05 shipping this fall," said Scott Orr, Sorrent's founder. Orr would not disclose what Yao was paid by the startup company.

Orr was skeptical last year about pursuing Yao when then company president Isaac Babbs insisted on contacting the China legend. A 10- year veteran video-game executive at Redwood City-based Electronics Arts, Orr knew it was difficult for a small startup to compete with established video-game giants in chasing down a hot sports celebrity.

"I wished him luck," said Orr, who helped produce and create Madden Football, NCAA Football, NASCAR Racing and other top sports games at EA.

But Babbs persevered and Sorrent board member Ronnie Lott, a former San Francisco 49ers great, connected the company with Yao's management group.

"Yao's a national hero, and the Chinese are watching NBA games

now," said Orr. "We're using the Yao deal as an entre into the China market." The Shanghai Sharks basketball team retired Yao's jersey last year.

Sorrent, which makes video games for Web-enabled cell phones such as those sold by Verizon, Sprint and others, is among the leading mobile-phone gamemakers with the likes of Jamdat, THQ Wireless and Sega Mobile. Sorrent has 17 titles on the market, including games on fishing, track and field and other sports. The Yao game ranks a close second to Sorrent's top game, Fox Sports Football.

Sorrent allows players to download its games on the phone for $5 to $6. In China, they cost upwards of $3.

"Sorrent's been getting a lot of notoriety lately," said Schelley Olhava, analyst with IDC in Mountain View. "We think the key to success in the field will be having branded content, using top sports, movie and TV stars."

Olhava also embraced Sorrent's focus on designing games specifically for mobile devices.

"We're not trying to shove video-game console titles on the phone," said Matt Liszt, marketing manager for Sorrent.

"We design the games from the ground up for cell phones."

With founder Orr's experience at sports dynasty EA, it's natural for him to aim for another sports juggernaut with Sorrent. The private company does not discuss sales, but said it expects to be profitable in the first half of this year.

The Yao connection hasn't hurt company growth. Sorrent had eight employees two years ago, and now has 43.