Archive for January, 2009

Play Hard Sports rebrands as Quick Hit Inc., ads Bill Cowher to roster

Friday, January 30th, 2009

Only nine days after our initial report about Play Hard Sports, it looks like they’re staying true to their commitment to make premium, free-to-play titles.  As of yesterday, Play Hard Sports have officially rebranded themselves as Quick Hit Inc. and added legendary Pittsburgh Steelers Coach Bill Cower to serve as the public voice of the upcoming online football game.  It looks like that extra $8M they recently picked up is already being put to use.

“I find most video games too complicated to play,” said Cowher. “Then I heard about Quick Hit Football and realized that they were building something unique and interesting.”

You might already know Cowher from his insight and commentary on “The NFL Today” on CBS, making him the ideal personality for Quick Hit Football 2009.  The game, which places players in the role of ‘Coach’, challenging them to build and lead a fully customizable football team through a full season, play offs, and the ultimate glory: Superbowl Champions.  Cowher has made this very path in the real world, putting him in a unique position to provide critical insight and advice to players of all levels.  If a play call is in question, players will also have the option to consult Coach Cowher and get his opinion.  Capitalizing on his current position, Cowher will also serve as the game calling voice in the game.

“Whether it’s deciding which play to call or whether to go for it on 4th down, we wanted a coach for our game that embodied genuine football,” said Jeff Anderson, CEO, Quick Hit. “Bill Cowher’s 10 post-season berths, 8 division titles, 6 AFC championship games, 2 Super Bowl appearances and a Super Bowl Championship clearly demonstrate the level of experience and strategic insight he can bring to our game.”

Quick Hit Football is still on track to launch concurrently with the 2009 NFL season, but plans on launching an open beta in a few months.  Given the recent addition and rebrand, the timing seems just about right.  Cowher’s certainly got a boatload of voiceover work to keep him busy in the post Superbowl season, and a multiple month timeline should be sufficient for brand recognition to kick in.  Again, Quick Hit Inc. is move to position itself as the premier free-to-play sports games destination.  No word yet on monetization, but my prediction is heavy reliance on in-game advertising/product placement, with a bevy of character customization and perhaps ‘power-up’ microtransactions (i.e. Drink this Gatorade for +1 run speed for 5 minutes, etc.).

Ed. Not: Doing a bit of background research, I couldn’t come up with another major level endorsement/integration of Cowher’s caliber in a free-to-play title.  Know of one?  Leave a comment below.

 

Online gaming titles saw 27 percent increase in visitors in 2008

Thursday, January 29th, 2009

According to a new comScore report, 2008 saw a massive surge in online games.  The US market for online gaming grew to a healthy 86 million visitors in December ’08, compared to 67 just a year earlier.  Due to this jump in activity, the total time spent playing online games has risen 42 percent, with Americans’ time spent playing online games grew from 3.7 percent in December ’07 to 4.9 percent in December ’08.

The big winner in ’08 was Yahoo! Games taking the number 1 spot with 19.5 million visitors, a notable 20 percent rise from ’07 figures.  Powerhouse EA took the silver medal with 15.4 million visitors, up 21 percent.  Walt Disney’s legacy continues with Disney Games ranking 3rd with 13.4 million, a 13 percent gain.  Fourth place belongs to Wild Tangent with 13.3 million visitors, rising 74 percent yoy, and Addictinggames.com rounding out the top 5, with 11.3 million visitors, a 17 percent increase.  Most notable is the number 10 position, Spill Games which say only 6.7 million visitors, but a massive 269 percent increase over ‘07’s numbers.

“It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn,” said Edward Hunter, comScore director of gaming solutions. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives.”

More eyeballs means more display ads

While most ‘traditional’ forms of online advertising are seeing some pretty slim pickins at the moment, the online gaming category is bucking the trend, and has seen some remarkably positive numbers.  From November 2007 to November 2008, the total number of display ads in the online gaming sector rose to 8.6 billion, a 29 percent increase.  Given the increase in more eyeballs, more and more display ads are being served, but players’ frequency of exposure remained relatively the same at 127 ad views/person.  Another positive for the end consumer is that the number of ads per page, a measure of “ad clutter” actually declined 17 percent.

“The growth in display ads in the online gaming category not only underscores the assertion that gamers are increasingly accepting of ad-supported games, but also that the advertising community is recognizing the value of this highly engaged audience,” added Hunter. “It is also likely that the advertising agency community will begin to demand more evaluations of campaign effectiveness in this space as spend and impressions continue to rise.”

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Hellgate: London rises from the ashes again: now free to play

Tuesday, January 27th, 2009

Hellgate: London has already seen a roller coaster of activity over its lifespan.  From a mediocre release, to a buggy at best game experience this title has had it rough.  Fast forward to a sinking Flagship Studios with employees leaving “in droves”, and leaving Hellgate: London up in the air.  Move a bit further along the timeline, and you arrive at Hellgate: London’s newest lease on life: free-to-play.

Back in October, we covered Namco Bandai stepping in keeping the Hellgate: London servers up and running until January 31st (this coming Saturday).  Although that date still remains solid for some parts of the globe, according to a press release by Korean publisher HanbitSoft Hellgate: London shall remain open and up and running; in a free-to-play format.

And now for a game of ‘he said/she said’.  Namco-Bandai, who co-published the game alongside EA, is sticking to their guns about Hellgate: London going dark as of the 31st.  Fine and dandy.  Enter stage left Hanbitsoft, which claims they now own the IP, engines and source code, acquired during the demise of Flagship Studios, and therefore have the rights to the game globally.  Previously, HanbitSoft was responsible for Korean operations of the game.

Following this saga hasn’t exactly been easy, but personally, I’ve been rooting for Hellgate: London to go free-to-play for a while now.  It simply makes sense, as there’s clearly an audience out there still involved with the game, and given it’s tumultuous history, chances are that a subscription model just isn’t going to cut it.  So why not make everyone happy all at the same time?  Open Hellgate: London as a free-to-play, monetize it via microtransactions, and continue development.

It looks like Hellgate: London is taking this very path.  HanbitSoft’s official press release indicates that further development and updates are in the works with core gameplay staying the same, but improvements on “strengthening community features”.  To accomplish this, the next large-scale patch, scheduled for “soon” will “combine the two game play modes, unifying the split two communities into one.”

What is unclear is exactly where Hellgate: London will be available.  The press release is written in English, clearly targeting North American players, but due to the Flagship Studios situation, it’s still up in the air as to who can and can not operate the game, and where.

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PlayMesh introduces virtual goods monetization to the iPhone via iMafia

Monday, January 26th, 2009

Over the past year, we’ve seen a dramatic increase in social games, those that are played over social networks like facebook, myspace, Friendster, etc., but if San Francisco based PlayMesh have their way, 2009 could be the year of social games making the leap to mobile platforms. What’s more, PlayMesh’s iMafia has found an innovative solution to offering virtual goods on mobile platforms, traditionally a challenge for most iPhone applications.

If you’re on Facebook, there’s a pretty good chance that one of your friends has at one point or another tried to recruit you to join their ‘Mob’ via Mob Wars.  Building on the popularity of this game play format, PlayMesh co-founder Charles Ju says that the time is ripe to bring the concept from social networks to the iPhone.  iMafia, which was released on Friday, has been on a juggernaut course over the weekend and already ranks at number 55 (as of Monday morning, 26 January 09) on the Apple iPhone AppStore.

Capitalizing on the iPhone’s unique UI, iMafia players use screen gestures to navigate through the game world map.  Actions such as entering a building are accomplished via a simple tap function.  Similar to Mob Wars and other ‘domination’ type games, iMafia’s concept is simple, yet highly addictive: climb the ranks of a crime family, each ‘job’ requiring more and more skills/abilities.  Billed as (technically) an MMORPG, players can play against each other (and as it’s turn based, players do not need to be online at the same time), and may purchase virtual goods along the way to help them with quests.

So far, so good.  Not really much we’ve not already heard.  But here’s where things become interesting.  Ju says that iMafia is a mold breaker, as it successfully relies on virtual goods sales to monetize a social network in a free-to-play game context.

But hold on a second…Apple doesn’t allow developers to present free-to-play’s that rely solely on virtual goods sales to monetize, right?  I mean, call me crazy, but if this is the case, wouldn’t developers be giving away their apps as free-to-plays and seeking alternative payment options for monetizing their virtual goods?  Remember, the BigMac keeps a healthy 30 percent of all revenue generated from paid game sales, while others’ fees can be dramatically lower.  What gives?

What gives is that PlayMesh has put itself in a win-win situation, by circumventing Apple’s rules in so much as purchases of the companies’ other titles, Chess Puzzles, iType and Speed Shapes for example, count as ‘payments’ for virtual goods within iMafia.  Purchasing ‘Chess Puzzles ‘for example would grant the player premium points that can be used to increase your health, purchase bigger and better guns, or recruit more mafia members to your clan within the game.  However, what’s interesting to note is that the free versions of these applications have been removed, and are being replaced by paid versions, pending Apple’s approval.  This should be an interesting one to watch development, as it seems as though there’s more than just an App approval process going on here.  If Apple approves these paid applications, and PlayMesh uses them to fund virtual goods within another of it’s applications, the precedent is set, and I wouldn’t be surprised to see a deluge of other developers falling in line ASAP.

http://www.vimeo.com/2913153
 
 

mEgo lands another cool $2.5M in second round of funding

Thursday, January 22nd, 2009

Based on the simple premise of making managing and sharing your online personality a more coherent and fun user experience, Los Angeles based mEgo has just closed another round of funding, bringing home a cool $2.5M to fund further development.

Launched at the 2007 TechCrunch40 conference, mEgo has quite a bit to celebrate as of late.  Not only have they just refueled the dev. machine, but also recently reached the 1 millionth registered user milestone, with a twenty percent growth rate month over month.  Not too shabby.

mEgo’s concept is centered around a portable you that ties all your social connectivity together in one simple flash based widget.  Popular social sites like Flickr, Facebook, Twitter, and YouTube are easily and painlessly integrated into your mEgo just by using your username.  No fancy RSS feeds or API keys to hunt down.  Just plug your basic info in and mEgo takes it from there.  Each info pull can then be assigned to a user-selected button, which can then be placed on the avatar anywhere the user so chooses.  For example, in the my mEgo below, hover over the ears and you’ll see updates from my last.fm account.  Likewise, hovering over my chest reveals my vital statistics.  If you’re feeling generous, shake my hand and have a view of my amazon.com wishlist.  A hover over the eyes should reveal thumbnails of my most recent YouTube favorites.  Personally, I’d like to see this default to my uploaded videos, but this feature is no further than a drop down menu away.

mEgo can be embedded on a wide variety of social networks and blogs, and reports that they’re seeing around 30M impressions per month.

A pretty neat concept, tying all your social activities into one avatar that not only looks cool, but is incredibly easy to set up and publish.

 

Virtual Worlds receive over half a billion dollars in investment in 2008

Wednesday, January 21st, 2009

New market research provided by Virtual Worlds Management reveals that 2008 saw approximately $594M invested in the virtual worlds space.  This capital was invested in 63 companies across the virtual landscape, with $101M going to 13 virtual worlds companies in Q4 alone.  While this in itself is a decent number, it does indicate a decline, with Q1 showing $184M invested, Q2 $161M, and Q3 $148M.

Although figures may be sliding, the youth-oriented virtual worlds sector managed to take home more than 10 percent of the total capital invested: $70.47M, spread across 19 companies.  The majority of this funding occurred in Q1 and Q3.  Possible reasoning behind the variances point to this particular sector gaining massive traction, with some investors speculating that the space is already over crowded, while others seeing the market ripe with potential.

Developers active in the non-youth, i.e. adult virtual world space saw a bit slower growth in their sector.  11 companies saw $47.721M, which, proportionally does better than youth oriented virtual worlds, but is spread out amongst a smaller developer base.  Nurien Software was the biggest winner, bringing home $15M for it’s social network/virtual world/casual games products, FooMojo (no affiliation) saw $9.9M flow through the coffers for it’s virtual pets project (see facebook), and EveryScape landed $7M for it’s mirror world that also introduces an advertising play.  Appealing to a wide audience in platform format, Metaplace added $6.7M to the bank account in 2008.  And while not everyone received funding directly, it’s noteworthy to point out that YoVille, a social networking world virtual world was acquired my Zynga, and Metaversum received an undisclosed multi-million Euro investment for it’s virtual world: Twinity.

Given the current global economic slowdown, these figures shouldn’t really come as a surprise, and I don’t see them as any sign to worry, anytime soon.  Investors are simply responding to current market conditions.  What is interesting to note is that virtual worlds investors have made it quite clear: the value of the marketplace is becoming diluted with more and more players involved.  Instead of a massive influx of investment capital over the course of 2009, I believe we’re more likely to see existing cash being leveraged by virtual worlds leaders to merge or acquire lesser players, and induct their users into these newly forged virtual worlds.  And what’s more, these virtual worlds will aggressively start seeking methods to help them monetize.  fatfoogoo anyone?  Let’s talk.

View the full Virtual Worlds Management report here.

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Play Hard moves one closer to the endzone with $8M

Tuesday, January 20th, 2009

Play Hard Sports Inc. has recently completed series B funding, landing a cool $8M to further their efforts.  The free-to-play, microtransaction based sports games developer has raised $13M in funding in less than nine months.  Play Hard’s funding was led by Valhalla Parners and joined by TriplePoint Capital, as well as their existing investor, New Enterprise Associates.  As a result of Valhalla’s heavy investment, General Partner Scott Frederick will now join the Play Hard board.

Play Hard is based in Foxboro, Massachusetts (yes, home of the New England Patriots), and is committed to developing premium, free-to-play titles for sports fans.  They focus on delivering head-to-head competitions that incorporate stunning graphics, the ease of accessibility of Flash, and the draw of fantasy sports.

“We were presented with a number of opportunities that would accelerate our growth and market position and were thrilled to secure funding from well respected firms like Valhalla, TriplePoint and NEA,” said Play Hard founder and CEO, Jeffrey Anderson. “The new financing will allow us to capitalize on current opportunities, expand our portfolio and secure additional marketing, licensing and sponsorship prospects.”

Anderson (previously of LoTRO creators Turbine) and company are hard at work on their first tite, Play Hard Football (PHF) which is scheduled to launch concurrent with the 2009 football season (take THAT madden!). but is slated to open it’s beta doors in just a few months.  PHF will be a browser/flash based game that allows users to try their hand at coaching or general managing their own team, with the ultimate goal of rising up in the ranks and becoming the ultimate global football coach/GM.

“There is a lot of innovation coming from online entertainment and games companies right now,” said Scott Frederick, General Partner, Valhalla. “We are confident that Play Hard Sports’ pioneering ‘freemium’ model will be successful. Add the team of industry veterans, who are responsible for the market’s biggest MMORPGs and sports games, including Madden 05, 06, 2KNFL, 2KNBA and The Lord of the Rings, and you have an unbeatable combination of strategy and execution.”

Sports MMO’s are something we’ve seen a rising in lately, with Football Superstars recently breaking the 250k registrations landmark, and Six Degrees Games on track to become a virtual world powerhouse.  However, it looks like Play Hard is working the fantasy football sports angle, and as Fredrick points out, having a team of industry veterans working on the same project puts them in a unique position.  Clearly, Play Hard is one to watch in 2009.

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Perfect World to bring free-to-play Pocketpet Journey West to North America as Ether Saga Online

Monday, January 19th, 2009

Having successfully launched ‘Pocketpet Journey West’ in the Chinese market in October 2008, popular free-to-play, microtransaction based game developer and operator, Perfect World is now bringing the new title to North American shores.

Perfect World has officially announced that closed beta testing for the North American version of ‘Pocketpet Journety West’ will begin on Febraury 10, 2009.  Repackaged as ‘Ether Saga Online’, ‘Pocketpet Journey West’ will be owned and operated by Perfect World’s U.S subsidiary, Perfect World Entertainment Inc.  The title has been modified to cater specifically to North American audiences.

‘Ether Saga Onlne’ is centered around ‘Journey to the West’; one of the four classical novels of Chinese literature.  The game features and incorporates unique and unmistakable references to the novel, and play involves an innovative pet raising system.  Perfect World says that ‘Ether Sage Online’ contains a number of unique features that help it stand out from other online pet raising games.  Perfect World will offer ‘Ether Saga Online’ as a free-to-play title, and monetize the game with microtransactions via their zen in-game currency form.

“I am pleased with our progress on the introduction of ‘Ether Saga Online’ to the North American market. I believe the closed beta launch will generate broad interest in our online game given its appealing design and unique in-game experience. Our further expansion into the North American market will accelerate our evolution into a comprehensive international online game developer and operator,” says Perfect World CEO Michael Chi.

‘Ether Saga Online’ is Perfect World’s sixth MMORPG, with other titles including ‘Perfect World,’ ‘Legend of Martial Arts,’ ‘Perfect World II,’ ‘Zhu Xian,’ ‘Chi Bi’ and ‘Pocketpet Journey West;” and a 3D online casual game: ‘Hot Dance Party.’

Visit ‘Ether Saga Online’ at http://eso.perfectworld.com/

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Turkey bans K2 Network’s Knight Online – levies tax

Friday, January 16th, 2009

It looks like our neighbors to the east in Turkey aren’t exactly happy about the cash that K2’s Knight Online is rolling in, and want a piece of the action.

The Turkish Telecommunications Directorate (TIB) has recommended to the Ministry of Finance to place a tax on Internet gaming after an investigation allegedly found some discrepancies in the industry.  One of Turkey’s largest media outlets, Zaman Instanbul reports that TIB head Fethi Simsek stated that the TIB had been closely monitoring the online gaming sector and decided to warn the Ministry of Finance about a need for a tax.

This investigation also prompted the TIB and the Ministry of the Interior to recommend to the Ministry of Finance a ban on K2’s popular free-to-play, microtransaction based title Knight Online from being played in Internet cafes.  K2’s response was to immediately appeal this decision in a Turkish court of law.

Simsek’s investigation revealed that K2 Network’s operations in Turkey have amounted to profits in the $1M per month range in 2008.  He also stated that K2’s revenues have steadily increased over the past three years, with 2006 seeing around $4M, and 2007 around the $9M range.

“There are thousands of people becoming addicted to games and companies are earning profits without being taxed,” Simsek told the Anadolu Ajansi news service.  Simsek said the game has been popular in Turkey but even though it is now banned at Internet cafes, it is still being played and no taxes apply.

On the other side of the coin, Yusuf Andic from the All Internet Houses Association (TIEV) says that taxing such games is a ‘good move’ he sees that ban on Knight Online as ‘questionable’ as 60 percent of Turkey’s internet gaming takes place in private homes.

So umm.  What?  There are a coupla things going on here that really raise the wtf flag.

  1. Assuming that K2 Networks/Gamers First is a legitimate business organization, wouldn’t they be registered with the Turkish Ministry of Finance, and already pay taxes on revenues generated?
  2. Is Turkey taking a page from the Chinese government’s book, or is there something deeper going on here?
  3. Mr. Simsek’s statement about the addictive attributes of online games comes out of left field, as if almost snuck in there in a ‘I was instructed to mention addiction’ fashion.
  4. If Mr. Andic’s numbers are correct (60% of all online gaming being done in a private home), isn’t this ban just a tad discriminatory?  How was Knight Online/K2 Networks singled out?

Any way you look at this situation, there seems to be a bit more going on here than just taxes.  If Turkey is worried about an addictive culture being formed around online gaming, fair enough, but there are plenty of alternatives to dealing with this issue.  Rather than slapping a tax on it, banning a game, and calling it a day, why not take a look at what Korea is doing and position current Turkish players as the developers of tomorrow?