Archive for September, 2008

THQ to bring ‘Dragonica’ to North American market

Sunday, September 21st, 2008

It looks like THQ is wasting no time in getting the new Shanghai office into the game.  They’ve recently announced a joint venture in cooperation with ICE Entertainment to bring Dragonica to the North American market in 2009.

Dragonica will be a cartoony, sticky sweet, side scrolling game that is free-to-play and supported by pay-for-content micro-transactions.  The game was developed by Korean design house Barunson Interactive Co.  Dragonica has spent sever years in the development shop, and is finally ready for it’s coming out party.  With 3D rendering, new cartoon characters and scenery modeling, Dragonica promised to raise the bar on traditional side scrolling games.  The game mixes elements of action and arcade, and creates various skills to enhance play.  ICE realized the potential of Dragonica, and has the exclusive rights to operate Dragonica in China.

ICE’s CEO Sun Tai is the former CTO of Chinese major player, The9, a leading operator of Chinese online games including World of Warcraft.  This joint venture will combine ICE’s online operating expertise and THQ’s product development and retail experience to create a new platform for the North American market.

“We are extremely excited to be working with ICE Entertainment to bring this free-to-play, micro-transaction-based online game to the robust yet largely untapped market for online casual gaming in North America,” said Doug Clemmer, president of THQ’s casual gaming subsidiary. “We are even more pleased to be building a strong and mutually beneficial relationship, which we hope will lead to additional opportunities to deliver online gaming content globally.”

“We are looking forward to combining THQ’s extensive marketing and retail expertise with our advanced technology and proven online game operating know-how to deliver a great new casual gaming experience for North American consumers,” said Sun Tao, chief executive officer, ICE Entertainment. “We also look forward to working with THQ more closely to develop new games and explore future publishing opportunities in both markets.”

Current estimates of the North American casual game market peg it at approximately $2.2 billion by 2013 (DFC Intelligence).  In 2007, China’s online games market clocked in at a whopping $1.7 billion, and reached 42 million gamers.  According to Niko Partners, this market is expected to balloon to $4.2 billion by 2010.

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Popular free-to-play browser game The Witcher:Versus adds premium content via microtransactions

Saturday, September 20th, 2008

Formerly known as The Witcher:DuelMail, CD Projekt and one2tribe have recently added premium content to the free-to-play title in the form of microtransactions.  While the premium content update is monetization model for one2tribe, there are a number of additional updates as well.  Players can expect to see leagues, tournaments, challenges, a full-featured RPG world, and other new features later this year.  One2tribe also plans on brining special events, competitions and more into play later this year.

Premium content features are scheduled to be released into game play on a staggered timeline.  In order to maintain balance and fairness (and presumably avoid the hate emails) in the now microtransaction infused game, one2tribe says,

“Premium content will be added gradually; the first premium access package will contain new features intended to ease account and character management; they include a rucksack for items that are not currently equipped, a history of fights against a certain player (for ultimate bragging rights), as well as a private duels archive. The designers will reveal additional details over the next few months.”

With it’s browser based accessibility, The Witcher:Versus is a perfect gaming fix for those of us that might be otherwise ‘occupied’ during the day (pesky day jobs that interrupt my gaming lifestyle).  It’s addictive “I’ve got another 3 minutes left on my lunch break, lemme just see if I can beat this guy this time” play style lends itself perfectly to working out a bit of mid day pwnage.  As a witcher, sorcerer or frightener, players lay down the gauntlet for other players in head-to-head battles using swords, magic, and claws.  Beating another player into submission awards experience and money which can then be used to upgrade the character’s abilities, via attribute upgrades, new skills, and better weapons.  The ultimate goal is to achive über status on the games online leader board.

With over 60,000 active members now battling it out, there’s always someone to either zap back to the stone-age, or teach you a thing or two about what game mastery is.  Head on over the The Witcher: Versus to sign up and play.

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Challenge Games raises $10 Million in Series B funding

Friday, September 19th, 2008

Love is in the air in Austin.  Or at least lots of investment cash.  Challenge Online Games of Austin, Texas has recently raised $10M in series B funding.  Globespan Capital Partners spearheaded the investment, with Sequoia Capital also contributing.

Challenge Online Games, Inc. currently has two free-to-play titles; Duels and Baseball Boss.  These titles combine the collectability and trading associated with collectible card games and sports cards with the popular MMORPG format.  Both games also feature an ease of access of community applications.  Challenge Games’ Duels facebook application was the first MMORPG to be fully integreated directly with facebook.  Duels and Baseball Boss differ from traditional MMORPGs in their play style: Instead of hours and hours of marathon play sessions, both titles are designed to be played in asynchronous, short-form turns.  Meaning, each round can be played in 5-15 minute intervals, without a player feeling that they are missing out on any ongoing action.  This play format also facilitates long distance and ‘when I have time’  play vs. players from across the street or around the world.

“Challenge Games is addressing a real need in the market,” said Eugene Yoo, Vice President at Globespan Capital Partners. “Short form, free-to-play, web-based games have the potential to pull new consumers into the category. And the engaging gameplay of their titles appeals to the active casual and hardcore gamer as well.”

“We believe this funding further demonstrates that we are bringing innovation and value to the gaming industry,” said Andrew Busey, founder and CEO of Challenge Online Games. “This funding will help us accelerate the growth of our business through the development of new games, explore partnership opportunities and potentially acquisitions.”

Again, both titles are free-to-play.  Challenge Games also offers VIP memberships via subscription fees, which provide players additional benefits including the ability to purchase special and unique items and cards to enhance the overall experience.

Challenge games was founded by veteran entrepreneur and gamer, Andrew Busey.  Busey is the author of Secrets of the MUD Wizards, was instrumental in the development of Mosaic; creating iChat, and building WebCenter.  Prior to Challenge Games, Busey co-founded Pluck which enables social media on top tier media outlets including TheStreet.com, USA Today, and Reuters.

For more on Challenge Games, visit them at: www.challengegames.com

For more on Globespan Capital Partners visit them at: www.globespancapital.com

For more on Sequoia Capital visit them at: www.sequoiacap.com

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Nexon’s Min Kim on the North American free-to-play market

Thursday, September 18th, 2008

When Nexon’s Min Kim took to the podium at the AGDC this week, he first asked the audience a rather logical question: “How many of you here are interested in developing a free-to-play title”?  Approximately 70 percent of the willing and able audience raised their hand.  Fair enough, when you want to get into the game, who better to turn to than one of the experts?  Kim took the question a bit further, by asking, “And how many of you have played Maple Story”, a few hands amongst that 70 percent sank.  Kim ventured one further and asked about Kart Rider, and only about 20 percent of the hands stayed in the air.

Kim jovially scolded his audience with, “The first step to developing free to play MMOs is to play the games. People think they know how to make these games, and yet they’ve never played a FTP MMO before. I think it’s really irresponsible.  If you can’t do it, get an intern to do it and tell you what it’s like.”
Talk about a swift kick in the pants as a wakeup call for developers.  And rightly so.  Basic business sense dictates that you’ve got to know a bit about the industry you’re looking to enter, and a thing or two about what your competitors are doing.

Kim continued on into his talk, speaking to the misconception that free-to-plays are sub quality titles in the North American market.  Pulling some fantastic data from his Nexon magic bag, Kim provided audience members with 2005-2007 North American numbers.  The results speak for themselves:

Nexon America Revenues

  • 2005 – Approx. $650,000
  • 2006 – $8.457M – with the addition of paypal as a payment method
  • 2007 – $29.334M – with the addition of Nexon cash cards in major retail stores

While Nexon and many other developers and publishers hail from Korea, Kim sees the future of free-to-play in Western titles.  We’ve seen this happen in other places like China.  The big games now are from Chinese developers. I think the same thing will happen in the West, with Western-developed titles.”
And while most Westerners view free-to-play titles as casual or n00b gamers only, Kim is quick to point out the gross misconception, “We don’t make games for non-gamers. We make games for gamers that are accessible to non-gamers, and that’s a big difference.”

Developers looking to produce a quality free-to-play should be visiting and playing a wide variety of in play free-to-plays.  And not just play, but head to the milk house as well.  “…try out and study all the shops. There are tens of games out there that are free to play. I think if you visit those shops, see those games, I think you’ll take one piece of learning from each one.”

Warning producers of common pitfalls, Kim also points out, “Don’t have all your items and categories pegged out. Make sure you have a fun game, first.” 9 times out of 10 the ideas you’ll have at the beginning will be wrong. The players will tell you what they want to buy.”  Another warning comes via the gaming lifecycle and time-limited play, “It’s not about shareware. Expansions and content are generally free; it’s all about extending the lifecycle so you can continue to sell items, or subscriptions. Do not lock players out of real content.”

Towards the end of his talk, Kim also spoke to the new and incoming gamers, and how to treat them.  He admits that Koreans have not been the best at this procedure, and how he envisions the western markets doing it a bit better.  “This is something Korea hasn’t done well and I think something that North American developers could do a lot better. And that’s carefully building the initial experience of free to play. It’s incredibly important is to protect those new players. Veteran players will spank a new player who just happens to wander in, so make sure they start in a safe place where they won’t just get headshot 15 times.”

While this is certainly not Min Kim’s first public address regarding free-to-plays, and probably won’t be his last, the AGDC audience was a bit warmer to the topic than previously seen.  The question of does free-to-play have a place in the market is dead.  Obviously it does.  With Nexon’s Combat Arms receiving (dare I say it?) recognition and a nod from ‘core gamers’, EA jumping into the pool and id Software bringing a free-to-play offering to market, it’s no longer a question of “should we?”, but rather “how good, and how fast can we make one?”  The day and age of each top tier developer/publisher with a quality free-to-play is rapidly approaching.  How many of these developers have the necessary experience to monetize this title via micro-transactions?  Who better to speak to than fatfoogoo, because There’s Money in Your Game.

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Rocketon releases new features to alpha testers

Wednesday, September 17th, 2008

Private alpha phase virtual world Rocketon has announced a number of new features via an email dispatched to alpha testers.  The new developments can be split into two distinct areas.  First up, more activity please.  ‘Quests’ have now been introduced whereby players must stumble across quests in order to solve puzzles to receive in-game rewards.  Players can now also grow their own monster pet and fight in ‘Monster Fights’ against other players.  And now for a dash of goo – Players are now able to cover other avatars in slime, goo, and various non-niceties.

Rocketon goes social

Rocketon’s second upgrade comes via a variety of social features.  First and formost, users may now create their own personal rooms and invite other players over to take advantage of the virtual worlds main focus at the moment.  Within these rooms, players can aggregate content from all over the web including pictures and images from Flickr and videos from YouTube for example.  Rocketon has also included profile pages for it’s users, making it easier for others to find other players with similar likes and interests.
Rocketon is a virtual world that exists on top of a 2D web.  Third party websites make up the ‘landscape’.  Users can watch online videos together in a ‘screening room’ format, play Rocketon’s games, or simply visit other pages together.

The site currently features cartoonish avatars that are fully customizable via a microtransaciton mechanism.  No updates as of yet as to how and where the microtransaciton customizations will come into play, but hey…they’re still in alpha.  Let’s just keep our eye on these guys for a bit.

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Free-to-play publisher Fishlabs makes a Smaato move

Tuesday, September 16th, 2008

Leading developer and publisher of premium mobile games Fishlabs has closed the deal with Smaato to utilize in game advertising to support it’s top mobile titles.

Bigfish will be utilizing Smaato’s SOMA ad server technology in upcoming mobile games.  The Hamburg, Germany based company will launch the new program in combination with it’s highly anticipated sequel Galaxy on Fire 2.  The original Galaxy on Fire has received multiple awards.

The project should get underway in late autumn, as users will be able to download an unlockable trial version of the game via fishlabs.net, and a wide variety of viral channels.  Gamers can then play the game for free for a limited number of hours, at which point they can decide if they want to buy the title or not.  By downloading directly from the web, users can access and play the game on their mobile devices without any download or traffic fees from carriers.  Depending on the country and carriers, the game will be completely free to play.  Both trial and completely free to play will feature the Smaato in game ads.

FISHLABS CEO & Co-Founder Michael Schade explains: ”Thanks to the outstanding quality of FISHLABS mobile games portfolio and the success of popular shareware sites in the internet and on mobile we have a huge fan base of several million mobile gamers worldwide. Fully integrated ads are the best way to monetize from free trial versions without bothering users with complicated billing methods or copy protection. The SOMA™ ad server technology delivers us the perfect tool to integrate ads seamlessly into our games and Smaato brings the service to sell our ad inventory through their ad sales network partners on top of that.”

”Major consumer brands are keen to market their products on mobile phones, especially in a premium environment,“ stated Harald Neidhardt, CMO & Co-Founder of Smaato. “However, the challenge is to find the right content that makes it onto the consumers’ phones. This why we are very excited about FISHLABS joining the Smaato network with their premium mobile games. The popularity and the extraordinary longevity of FISHLABS mobile games make them the perfect vehicle to bring mobile ads to a vast number of users globally and generate several million ad impressions per month.”

For more on Fishlabs visit them at www.fishlabs.net

For more on Smaato and Soma visit them at www.smaato.com

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Six Degrees Games on track to become Virtual World powerhouse

Monday, September 15th, 2008

Six Degrees Games Inc. is gearing up for the launch of their sports based virtual world for kids called ActionAllStars.com.  In addition to winning virtual trophies in baseball, basketball, and action sports, users can create fully customizable avatars and char with buddies.

In an impressive run, Six Degrees has been able to sure up licensing deals with traditionally hard-to-get plays such as the National Basketball Association, Major League Baseball, and ESPN.  Last March big gun David Ortiz, most noted for his success with the multibillion-dollar Madden franchise came aboard.  If this wasn’t enough to get your interest, how about a $7 million venture financing deal?

According to Virtual Worlds, in the first two quarters alone, $345 million clams have been invested in the virtual world market.  They also report that as of August 2008, there were 163 youth-oriented virtual worlds live or in development.

While the dominant players in the youth oriented virtual worlds include Gaia, Habbo, and Walt Disney’s Club Penguin, Six Degrees is confident they can stand not on the shoulders of giants, but firmly along side.
“The market is becoming crowded,” said Minard Hamilton, chief executive of Six Degrees Games. “My sense is that it’s becoming more important to differentiate yourself.”

Hamilton is no stranger to a continually crowded marketplace, having spent five years in the position of executive vice president with Jamdat mobile, a company that sold games for mobile phones.  In this highly competitive field, Hamilton justified top billing fees by securing licensing deals with major league sports brands.  Clearly Hamilton and company were doing something right; EA stepped in in 2006 and purchased Jamdat for $684 million in cash.

“And there were a lot of similarities between mobile and online,” Hamilton said.

Together with Jamdat’s Senior Vice President of Sales, Ben Jones, Hamilton co-founded Six Degrees Games in 2007.  The duo took one look at the virtual worlds space and decided the playing field was ripe for development.

Reaching back into the Rolodex, Hamilton and team capitalized on their connections with sports brands, and began securing licenses from the NBA and MLB to use logos and jerseys in the virtual world.  Sex Degrees Games and the NFL are currently ironing out a deal as well.  Wanting to cover all the bases, Six Degrees Games isn’t limiting itself to ‘mainstream’ sports, but has also secured deals with ESPN to include real time sports news and scores along with X Games video.

“Sports sites have a built-in audience of passionate fans,” said Paul Verna, an analyst with EMarketer who estimated that revenue from ads and paid content on sports sites would hit nearly $3 billion in 2012 from $1.5 billion in 2007. “These fans have an insatiable thirst for facts, figures, statistics and trivia. And they like to share their knowledge and opinion with others.”

While Hamilton and Jones have decided on a subscription based model for inclusion into their virtual world, given the immense potential of virtual item sales, development and evolution of the Six Degrees Games virtual world is certainly one to watch.

ActionAllStars.com is currently in closed beta, but you can get an quick view of what the virtual world will look like at: beta.actionallstars.com.

via L.A. Times

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Five top trends immerge from LA Virtual Worlds Expo 2008

Sunday, September 14th, 2008

Last week’s Virtual Worlds Expo 2008 in Los Angeles has come to a wrap with bits and pieces of news floating around here and there.  When you pack a few hundred industry insiders all in once place at the same time, opinions and trends are bound to blossom.  CEO and Co-Founder of Frenzoo, Simon Newstead gives us his view the Virtual Worlds Expo 2008, and what we should be watching via freetoplay.biz.

Covering the top five immerging trends, Newstead covers everything from ‘The War on Geekiness’ to ‘Taking Virtual Responsibility Seriously’.  Kotaku’s interested in the reverse transition starting to happen from Virtual Worlds going retail, but WeeWorld’s position on Branded Items: Not Free For Long reveals a growing trend in Marketing and diversified revenue streams:

WeeWorlds head of marketing, Lauren Bigelow, explained the plans of the 25 Million strong WeeMee community: to date, all branded items had been free, but some items will soon cost money, such as premium branded items like an upcoming Paris Hilton.

Why? Charging money for branded items increases exclusivity – and therefore buzz – driving the marketing campaign’s objectives. Obviously a revenue stream is a happy side effect as well.

Used well, it sounds like a win-win. Expect experimentation on branded item pricing to happen in coming months.

As Newstead states, driving a marketing campaign and generating buzz via exclusivity is a great way promote in game sales, AND the happy side effect of a revenue is an added plus.

While WeeWorlds was featured here by Newstead, if it works for WeeWorld, we will certainly see an increase in similar revenue models in the future, as publishers and developers still wrestle with the Sweet Spot question, and aim to please all.

To read more about Newstead’s top five trends coming out of the Virtual Worlds Expo 2008 in Los Angeles, visit freetoplay.biz.

 

Gala-Net Inc. bringing new free-to-play content to Rappelz

Saturday, September 13th, 2008

Gala-Net Inc. recently announced that it will be releasing “Rappelz Epic V: The Dragonic Age, Part II” later this autumn on it’s premier free-to-play portal; gPotato.com in the North American market.

The new content will feature a wide variety of new updates to the second chapter of this ongoing saga.  Part II comes ready made with two new dungeons and a theme dungeon for players to explore.  The theme dungeon will offer players a chance to forms teams with other daredevils and march bravely into battle against bears and a new boss.  Not only does The Dragonic Age, Part II feature bear and boss battles, but also includes a new Character Skill Renewal feature.  This new system, players skills will be improved depending upon the characters specific job.  Players will noticed increased performance in this specialized area.  And as will any good update/new content, The Dragonic Age, Part II, doesn’t disappoint, with two new pets, weapons, new Rank VI armor and weapons, and new Rank V and Rank VI accessories that aid players in the new challenges that Part II will pose.

“We have an amazing community of dedicated players, and Part II is sure to bring players from all over the world together,” said Senior Producer Michael Powers. “The epic continues with Part II and we hope to see you there when it launches.”

For more on Rappelz, give ‘em a visit at: http://rappelz.gpotato.com/

 

A little about Project Darkstar

Friday, September 12th, 2008

fatfoogoo’s been making waves again with the official announcement of our joint venture with Sun Microsystem’s Project Darkstar.  While this news alone is excitement enough, I’d like to take a step back and talk about who and what Project Darkstar is, and why fatfoogoo’s contributions are groundbreaking.

In a simple phrase, Project Darkstar is relatively simple: Harness the power of an open source community and avoid/tackle common problems facing all gaming developers and operators.  The goal of the infrastructure is to simplify the development and operation of massively scalable online games, virtual worlds, and social networking applications.

Some of the typical challenges that developers and operators face include zone overloading, data corruption, and server under-utilization.  While tackling these challenges, another goal for the Project Darkstar gameserver is to support new dimensions in game play such as evolving virtual worlds and massive scale battlefields.

Ok, so you’ve probably got the basic idea here, Project Darkstar is an open source development tool for gaming, virtual worlds, and social networking applications.  Check.  So what’s the big deal about fatfoogoo being involved?

Glad you asked friend, glad you asked.  Ok, let’s have a look at the Project Darkstar Online Game Value Chain:

Got all that?  Right.  Let’s break it down into a more understandable language.  In the gaming/virtual world space, we’ve got three major players; the Developers, the Publishers, and the growing space of Operators.  Each has their own unique and special function in bringing your favorite pixilated love to your LCD.  Let’s think of Operators as facilitators to markets that either the publisher or developer could not, or had no interest in reaching at the time of launch of said game.  Operators are often the ones that take on little to no risks that the publishers and developers have already taken, but seek to capitalize on the title via distribution and montetization methods.  Up until now, Operators have been piecing together microtransaction monetization models via a hodge podge method.  A bit of this, a bit of that…let’s hope it all works nicely together.

Enter stage left, fatfoogoo.  By providing a standardized monetization software package, any developer, publisher, and/or operator can now all work from the same set of ‘rules’ to ensure 100% compatibility across the entire gaming/virtual world experience.   The fatfoogoo software package allows operators to monetize their game, while giving them unparalleled flexibility in how they’d like to do it:  including but not limited to, Subscriptions, gWallet, Primary Marketplay, or Player-to-Player trading.

The real benefit here is obviously to the gaming/virtual world community.  With the addition of the fatfoogoo software to the overall Project Darkstar gameserver development process, designers, developers, and publishers have one less thing to worry about, and can focus on what they do best: make great games.