Archive for September, 2009

Lucky number 7 for GDC Austin

Wednesday, September 16th, 2009

It’s time again for the annual Games Developers Conference in the great state of Texas. Officially kicking off yesterday, the 7th annual GDC features a number of perennial standbys, but also adds a few new panels this year including sessions centered around Independent Game Development and iPhone Gaming. Featuring over 130 talks, panels, keynotes, and roundtable discussions, presented by over 200 leading industry figures, and 80+ exhibitors, this year’s Austin GDC is shaping up to be a showdown in the Lone Star state.

GDC Austin 09 LogoThree main keynotes are expected, with SOE President John Smedley kicking things off with his talk today. Titled, “From Dragons and Daggers to Kart Racing, Cooking and Concerts…It’s a Whole New MMO World,” Smedley is expected to not only address that rapidly changing landscape of today’s modern MMO, but also make official registered users numbers from SOE’s white-hot kid/tween hit Free Realms. The under 13 MMO has recently surpassed the ‘unofficial, industry certified, you’ve got a hit’ benchmark of 5 million registered users. While a number of industry analysts projected the 5 million milestone to find a home at Sony sometime in July, Smedley says that the actual time was sometime in August. However, no matter how you look at it, Smedley and the entire SOE team dedicated to Free Realms are doing an outstanding job marketing and delivering a free-to-play product to one of the toughest market segments on the planet.

Thursday will see J. Allen Brack and Frank Pearce, Production Director and Co-Founder & EVP of Product Development, respectively, of Blizzard Entertainment. The two will deliver their keynote, “The Universe of World of Warcraft.” In this talk, the duo are expected to address the challenges not only in design and implementation, but how maintaining a player based and achieving sustain success requires a collective effort from all departments outside the development team. The two will share important lessons learned by one of the world’s largest MMO producers, and how other developers can learn from their miscues.

Rounding out this year’s Austin GDC will be Sebastien de Halleux, COO and co-founder of Playfish. Delivering his keynote, “A New Social Era for Games: How Your Friends Are Chaging the Way the World Plays Games,” Mr. de Halleux will share his insights into how and why Playfish’s innovative social games were created and how they’re attracting millions of players every month. The talk in particular should be of high interest to those in the free-to-play market, as de Halleux will address the current shift in the gaming industry and how it effects monetization and distribution. If these juicy bits of insider information into one of the most successful free-to-play gaming companies around wasn’t enough for you, de Halleux will also discuss how social emotions can be tapped to drive catalog-free distribution, how to make free-to-play titles profitable, and why your friends hold the keys to success in this new social era.

“GDC Austin 2009 is a must attend event for aspiring game developers to learn the craft from seasoned experts in the field, and a place for veteran developers to engage in the future of connected game development” says Izora de Lillard, Event Director at Think Services. “Beyond that, GDC Austin is a great opportunity for the game development community to come together and learn more about the developers and the titles that will define the future of connected games.”

Naturally, fatfoogoo will be in attendance, if you’d like to talk to Martin Herdina, our CEO, drop him a line at martin [at] fatfoogoo [dot] com

 

Outspark appoints (another) EA veteran to Chief of Game Operations

Tuesday, September 15th, 2009

With the influx of EA talent now floating around free-to-play games publisher and producer Outspark, it’s easy to wonder why EA didn’t just purchase the company outright. One week prior, Outspark announced that former EA senior exec Owen Mahoney would be taking over the reins as CEO, and only one week prior to that, they’d announced an exclusive publishing deal with EA’s new dance based title Dance Groove Online.

New up at Outspark is Niranjan Nagar. Mr. Nagar brings over 15 years of experience to the table, particularly via his role as VP of The Sims Internet Group at EA. In this role, he was the man responsible for growing online revenue and player community worldwide for both The Sims 2, and perhaps more importantly, in respect to Outspark’s business model (microtransactions as revenue generators), The Sims 3. Prior to EA Nagar was co-founder of SingShot Media, a song sharing platform acquired by EA in 2007.

In his new position, Mr. Nagar will head up the development of Outspark’s product lineup, as well as building infrastructure programs for massively-connected game play. He’s also planning on expanding Outspark’s market share by building on their growing reputation as an industry innovator in freemium games publishing. As noted in the Owen Mahoney report, Outspark counts 1.8 million unique users, and since their launch date in 2007, have seen traffic spike to 6.8 million unique visitors a month.

“The game market continues to see tremendous growth, especially as players around the world transition to online and free-to-play models,” said Mr. Nagar. “Outspark is a key player in pioneering this exciting area and the combination of great products and great execution are what enables us to deliver hits in the North American and European markets and capitalize on future market opportunities.”

When he took the reigns just only one week ago (officially), CEO Owen Mahoney stated that one of his primary objectives was to expand Outspark’s presence in North America, Europe, and the Pacific Rim. With the quick addition of a proven mover and shaker, he looks to be getting off on the right foot.

“Niranjan’s deep technology and management expertise as well as his track record with high-growth companies make him an excellent fit for Outspark as we focus on quickly expanding our global footprint,” said Owen Mahoney, CEO of Outspark. “His proven ability to build fast-moving teams is invaluable and accelerates our efforts to further establish Outspark as the premium publisher of free-to-play online games in North America and Europe.”

 

Confirmed: Apple getting serious about games

Monday, September 14th, 2009

It’s that time of the year again: Apple starts off the holiday shopping season with announcements of their new (or significant upgrades to) products. True to fashion, late last week, Man-at-the-helm Steve Jobs and other Apple execs rolled out a number of new features and additions to existing lines, but interestingly, Jobs himself confirmed that Apple is now seriously committed to getting into the games field.

applegamingIf computer hardware/software making companies getting into gaming sounds familiar, the most obvious example is Microsoft’s Xbox console, but one can’t count out Dell and or Alienware’s commitment to addressing what gamers are after. For decades Apple has been doing things a differently (remember the Think Different advertising campaign?), and their committed entry to the gaming market is no different.

Following the event announcements, the blogosphere was awash with speculation about why the iPod Nano got a video camera, and the more expensive iPod Touch was passed over. In a NYTimes interview with David Pogue, Jobs explains that it came down to a question of cost. By not adding video capability to the iPod touch, Apple has clearly signaled that the costlier brother is headed in a different direction than it’s slimed down siblings.

“Originally, we weren’t exactly sure how to market the Touch. Was it an iPhone without the phone? Was it a pocket computer? What happened was, what customers told us was, they started to see it as a game machine,” he said. “We started to market it that way, and it just took off. And now what we really see is it’s the lowest-cost way to the App Store, and that’s the big draw. So what we were focused on is just reducing the price to $199. We don’t need to add new stuff. We need to get the price down where everyone can afford it.”

And therein lies the reasoning, plain and simple: The App Store. Apple senior VP Phil Schiller spoke to the App Store at last Thursday’s San Francisco event, stating that currently the App store has 21, 178 game available for the iPhone and iPod Touch, and growing everyday. To put that in comparison, Nintendo’s DS has approximately 3,700 titles available, and Sony’s PSP comes in with a paltry 607. “They don’t really stack up anymore,” Schiller said. Adding another nail to the aging handheld’s coffin, Schiller pointed out that neither of these platforms have multitouch screens, anything even close to the scope of the App Store, and titles remain relatively expensive (on average $25 – $40) when compared to the Apple cost – ranging from free to $9.99.

Although not specifically addressed, it’s also important to remember that with the iPhone (and iPod Touch) OS 3.0 introduced microtransaction capability. Obviously, this option remains incredibly attractive to developers, who are looking for not only a hit, but a hit that they can monetize. Apple is also clearly taking steps to make making a hit more of a reality for games developers. The latest iPhone 3g S is more than capable of handling complex graphics, and supports the OpenGL ES 2.0 graphics standard. In other words, this hand held device is (technically) capable of reproducing graphics we’ve come to expect from ‘desktop only’ graphics processors of just a few years ago. While the 3g S still lacks bonafide OpenGL ES 2.0 compliant games in the App Store, Apple said that they’re slowly but surely making their way there, and will be available later this year.

All of this is fine and dandy, but until there’s developer backing, it’s all just words, no? If that be the case, Apple has received their first official handheld gaming device vote of confidence from Ubisoft. The sequel to their hit Assassin’s Creed is slated for a Nov. 11th release on consoles. Bucking the traditional trend of ‘wait a bit for the handheld version’, Ubisoft has stated that they’ll launch the iPhone/iPod Touch version of the game the very same day.

Many industry vets have long wondered what Apple’s stance on gaming was, and if and when an answer to the Xbox might even make an appearance. As with many of Cupertino’s greatest triumphs, Apple let consumers tell them what they wanted, and appropriately responded. I feel it’s fair to say that Apple revolutionized the portable music industry with the iPod, and arguably introduced the North American market to the microtransaction method. If they plan on attacking the gaming industry with the same fervor, mobile gaming might just be on the verge of another major leap.

 

Kinglsle’s free-to-play Wizard 101 celebrates one-year anniversary, five million registered users

Friday, September 11th, 2009

Plano, Texas based KingsIsle, developers of family friendly MMO Wizard 101 recently celebrated their one-year anniversary, and announced that they’ve have five million registered users pass through their doors in this very short amount of time. Players have registered from around the globe, and as a result the company has planned a number of in-game goodies including several decorations, and a yet-to-be-announced special surprise for all players.

wizardgraphicalclient-2008-08-27-00-41-05-50Originally launched with a subscription model, KingsIsle switched to a “free-to-play, subscribe if your want, buy things in the store via microtransactions” business model late last year. Based on a family-friendly premise, Wizard 101 is a spell-casting adventure card-based style game. The game contains no blood, and characters do not die if defeated in a duel of spells – they are simply returned to a safe area to regain health. The game combines the social interaction of online multi-player games with a parental control system that allows adults to restrict communications options for younger players, while allowing more freedom to older players. These safeguards, combined with the no-cost, downloadable distribution model have resonated with consumers looking for new ways to have fun on a budget.

“Quality family entertainment doesn’t have to be expensive,” said J. Todd Coleman, creative director of Wizard101. “The success of Wizard101 clearly shows that it is possible to produce a fun and challenging game that is both wallet-friendly and appropriate for all ages – and that it’s something people are looking for in these tough economic times.”

Perhaps adding to Wizard 101’s accelerating growth, is the easy of access to in-game currency. Available via pre-paid cards (i.e. non-credit card holders method of choice), users can purchase “Crowns”, Wizard 101’s in-game currency, at a number of national retailers including 7-Eleven, Blockbuster Video, Best Buy, Rite Air, Wal-Mart, and Toys R Us.

While KingsIsle seems to have struck a chord in the highly sought after (and lucrative) kid/tweens market, it’s important to remember that they face stiff competition. SOE’s Free Realms is in the same genre as Wizard 101, and has seen skyrocketing growth, as well as (debatably) the one that started it all: Nexon’s worldwide hit Maplestory. However, KingsIsle is the only developer on the market that is pitching their title as family entertainment, perhaps adding the needed draw to the parental units.

As with any decent MMO, Wizard 101 is a constantly evolving game with new content being introduced on a regular basis. If the 2008/2009 year brought in five million players, it’ll be a challenge to see if KingsIsle can maintain this growth rate.

 

Riot Games secures an additional $8 million in funding

Thursday, September 10th, 2009

Los Angeles based Riot Games has recently secured an additional $8 million in funding. The funding comes from Chinese online services company Tencent, most known for their QQ instant messenger client, Benchmark Capital and FirstMark Capital. Tencent will also be publishing Riot’s upcoming League of Legends game in China.

Riot Games, a fatfoogoo client, is now in the closed beta stage with their League of Legends fighter. Currently, 50,000 players are engaged in the testing phase, and Riot plans on an October official launch date. The free-to-play title is loosely based on a popular Warcraft III mod, Defense of the Ancients, and builds upon the popular peer-vs.-peer form of play. Up to six players can battle on one side, where they play as “summoners” that conjure up a wide variety of champions that fight in a myriad of varied battlegrounds. Riot states that the title is not an MMORPG, but contains a number of persistent game elements that are in the spirit of an MMORPG. “That is to say, while a large aspect of the game will be session-based battles, there will also be persistent elements, such as the Summoner, abilities, and levels that exist continuously throughout the game.”

Again, League of Legends is a free-to-play title, however if players want to customize their characters, or purchase time-saving features, a full featured in-game, microtransaction based in-game item shop is available. Riot has provided two types of available currency: one that can me earned through experience, or, one that can be purchased through real money transactions. Through this monetization option, Riot is preventing the pay-to-pwn stigma, and in the eyes of most gamers, provides a better balanced/fair play form of in-game spending.

In an interview with Dean Takahashi of VentureBeat, Benchmark partner Mitch Lasky said, “that the investment was attractive because the company had created an addictive game that players could revisit again and again with endless variety. The risk is that players might get bored with this kind of repetitive game play.” He also added, “They [Riot Games] nailed a model where you combined the game play of a hardcore game with the monetization of casual online games. When you go after serious gamers who pay $60 for a game, you have to realize that they have a certain expectation for game quality. The deal with Tencent validates the progress the company has made toward this goal.”

With Riot’s staff of core members hailing from a number of former hits including, Ulitma Online, Dungeon Siege, Jak & Dakter, Heroes of Might & Magic, Neverwinter Nights 2, Sly Cooper and Total Annihilation, it’s a fair bet to say that Riot can and will deliver on a console quality experience at a free-to-play price. Naturally, we’re a little biased, but from what we’ve seen thus far, let’s just put it this way: prepare for all your preconceptions about what a free-to-play is and what the quality standards are, to be shattered.

League of Legends has a projected October release date. More information and beta signups are available at leagueoflegends.com.

 

Turbine sees massive virtual currency sales – ahead of public launch date

Wednesday, September 9th, 2009

Despite the he said/she said spat that took place with Atari surrounding Turbine’s relaunch (in a free to play fashion) of Dungeons and Dragons online, it looks like the Westwood, Massachusetts firm might have a true winner on their hands.

ddoTurbine’s Director of Communications Adam Meresky recently stated that the microtransactions business inside the relaunched Dungeons and Dragons Online: Eberron Unlimited is thriving. What’s important to keep in mind about this statement, is that the public version, slated to go live today, September 9th, hasn’t even welcomed the outside world yet. Currently, VIP subscribers and open beta participants have been playing what the rest of the world will see today for only about a week. Again, some of these folks are paying subscribers. Many of the available in-game customizations are achievable via in-game actions. The microtransactions are only there to provide the option of spending a buck or two to bypass the X amount of hours that it would take to unlock these items.

Speaking to Kotaku, Meresky states, “They all got a ton of points for being loyal subscribers, for being in the beta. We weren’t really expecting a ton of sales…they had no incentive to. They already had access to all of the content as VIP subscribers, and we just gave them a buttload of points. They’ve gone through their points, and we’ve already sold millions more Turbine points, and we’ve not even opened up the world to the public yet.”

Can you say cha-ching?

And what pray-tell are these users dropping the coinage on? According to Mereksy one of the most popular purchases is the Favored Soul Class. Again, an unlockable class, but apparently subscriptions players don’t want to and/or can’t be bothered to unlock it, and are spending points like madmen.

So while there’s been lots of speculation stemming all the way back to January of this year, it looks like Turbine is poised to have a free-to-play hit amongst their midst. With Turbine raising an additional $6.6 million in series D funding, one has to wonder if a large majority of this funding will be put to use in promoting/upgrading/updating the DDO product. And as Mike Fahey from Kotaku puts it, “It sounds as if DDO, a game that had all but dropped off of our radar, could be coming back in a big way.”

Dungeons and Dragons Online: Eberron Unlimited opens the doors to the public today at ddo.com.

 

Outspark appoints EA vet Owen Mahoney to Chief Executive Officer

Tuesday, September 8th, 2009

Outspark, who recently signed a deal to operate a free-to-play/microtransactions supported dance based title in conjunction with Electronic Arts, just announced that they’ve appointed long time EA veteran Owen Mahoney to the position of Chief Executive Officer. Needless to say, it looks like there was more than just the operating of the game going on behind the scenes, and yet another indication that EA isn’t taking the casual/free-to-play/microtransactions market lightly.

outsparkCurrent (or should we say, now former) CEO and founder Susan Choe will continue her involvement with Outspark, serving as the Chairman of the Board, and will work with game developers on partnering deals with Outspark, i.e. unofficially, Business Development.

“Since founding Outspark in early 2007, the Freemium MMOG market has evolved dramatically. Outspark`s team has built a leading game publishing company, executing solid growth while bringing together a unique MMOG publishing platform with social community elements,” said Susan Choe. “With Owen`s leadership and business experience in the global gaming industry, Outspark will evolve as a leading global game industry player.”

Mahoney comes to Outspark from Electronic Arts Inc., where he’s filled a number of senior executive management roles, as well as his previous experience in online media. Most recently, he served as EA’s Senior VP of corporate and business development. With EA since 2000, Mahoney has led a number of the company’s global corporate development activities including acquisitions, equity investments and strategic partnerships. Prior to joining the EA team, Mahoney held executive positions with PointCast, Claris Japan, and Radius.

The plan is for Mahoney to add his expertise to the Outspark team and accelerate the company’s continued expansion into the North American market. While North America constitutes Outspark’s largest market, they are also developing traction in Europe and the Pacific Rim. Globally, Outspark counts 4.7 million users, and since their launch in 2007, have attracted around 5.4 million unique visitors per month.

“Having the opportunity to build on Susan`s success is a great privilege and I’m honored by the board’s endorsement,” said Owen Mahoney. “Outspark appeals to a vast global user base and to everyone who wants to establish a connection with gamers around the world in real time. Outspark`s game publishing platform and portal also offer fantastic opportunities to both content developers and game publishers, and I look forward to providing value for Outspark, our loyal user base, investors and our great staff.”

 

Shanda Interactive Entertainment spins off Shanda Games – seeks IPO

Monday, September 7th, 2009

Late last week, Chinese online gaming giant Shanda Interactive Entertainment announced that they will be spinning off their gaming division, now to be known as Shanda Games Ltd., and will be seeking a new NASDAQ IPO. The parent company is currently trading under the symbol SNDA, and Shanda Games is expected to trade under the symbol GAME.

ShandaLike many of their Chinese competition, Shanda operates a number of freemium/item sales (microtransaction based) titles, along with pay-to-play time based games. Amongst the Shanda stables of games, they operate NCSoft’s Aion: The Tower of Eternity, the company’s top money maker. This pay-to-play, time based title is singularly responsible for Shanda’s record breaking revenue highs in 2009. With 8.6 million paying accounts, Shanda operates eighteen MMORPG’s and eleven casual games, with another sixteen MMO’s and eight casual’s in development, the firm shows no signs of slowing their rapid growth.

95 percent of Shanda’s revenues are generated by their gaming unit, thereby making Shanda Games, technically the subsidiary, a much larger organization than the (technically) parent company. Outside of games, the company is also working in the e-book publishing and distribution service, as well as a digital music service. This move harkens to Shanda’s competitor Sohu’s spin off of their gaming unit Changyou, which garnered a $146 million NASDAQ IPO earlier this year.

Now in the hands of the SEC (Securities and Exchange Commission), with underwriting provided by Goldman Sachs Asia and JP Morgan Securities. Shanda Games is looking to raise as much as $800 million in this IPO. The IPO follows a record quarter of growth, with Q2 revenues up 48 percent year-over-year to $181 million.

 

Casual Games maker Zynga trumps 100 million users on Facebook

Friday, September 4th, 2009

With more than 250 million users, there’s no doubt that Facebook is truly a powerhouse to be reckoned with. With this massive amount of users flowing through the site, cornering the lucrative casual gaming market would be a triumph. While I’m not sure we’re ready to proclaim a flag raising winner, Zynga is clearly leading the charge, and recently announced that they’ve surpassed the 100 million user mark. Doing a quick look at the numbers, that means that almost half of all Facebook members are, or have at one point, used a Zynga built application.

Released on June 19th, Zynga’s current runaway hit FarmVille is primarily responsible for this boost in usership. Just last month, Zynga proclaimed that FarmVille was the “largest and fastest growing social game.” Two points to Zynga for being dead on with this statement. In a new chart published by Inside Social Games, Zynga claimed 4 out of the 10 top spots in most active games on Facebook.

facebook25sept1

With over 12 million active daily users, or roughly 5 percent of the entire Facebook population, FarmVille has almost doubled the previous ‘farming’ based app record help by Slashkey’s Farm Town. To this end, one thing is becoming increasingly clear: Farming is big business. As with iPhone apps, previously the hot spot to be was the ‘Mafia’ wars type games. We’ve seen a number of derivations (or, less politely; copies) of this form of play, right through to market saturation. Whether it was consumer complacency, or this market saturation, over the past few months, there’s been a shift away from bullets and bombs to water and seeds.

We could now be on the verge of another ‘derivation’-fest, as Zynga borrowed more than just the name from Slashkey, and likewise, casual games maker Playfish has launched their own farming app titled Country Story. In just under two weeks, Country Story has gone from 1.4 million active monthly users to 4 million. With 9 farming based titles now in the Facebook application store (within the top 109), in total there are 72 million active monthly users on Facebook, or approximately 29 percent.

Zynga is already the current app developer for Facebook, and these new numbers are just another award on the shelf for the firm. If measured by the typical benchmarks used for startups: audience, page views, growth, etc., it’s a fair statement to make that Zynga is an overwhelming success. What’s even more impressive is that the casual/social games maker is managing to do inside Facebook what the company has yet to do itself: be profitable. Remember, Zynga leverages the power of microtransactions to generate revenue, while at the same time allowing users to purchase any number of character customizations. Estimates place Zynga’s annual revenue around $100 million for this year alone, while Facebook’s estimated value is around $500 million. However, as stated above, Facebook isn’t making any money. So when viewed through these glasses, who’s really getting the better deal here?

 

Combat Arms Europe counts 800k, RuneScape 105 million!

Thursday, September 3rd, 2009

Both Nexon and Jagex have recently released some impressive registered users numbers. Both free-to-play titles, Nexon’s Combat Arms is now counting approximately 800,000 registered users, while Jagex’s RuneScape has been recognized by Guinness World Records as the world’s most popular free-to-play title, with over 105 million registered users over the title’s lifespan.

Combat Arms saw a December ’08 open beta and February ’09 official Europe release date, and has recently surpassed the 800,000 registered user mark. Nexon Europe reports that their average CCU (concurrent users) number hovers around 12,000 player mark, clearly indicating that Combat Arms is one of the fastest growing and most successful free-to-play first person shooter games in Europe.

“We are thrilled by the figures and results that we see with Combat Arms Europe” said Sung Jin Kim, Director of NEXON Europe. “We receive great feedbacks from our players who love the great mix of fast-paced FPS and socialization features within the game. We are dedicated to providing an interactive and exciting gaming experience to all players at every level, and look forward to bringing far more new action through the updates we have in queue, and, consequently, to continuing with Combat Arms Europe’s great success.”

As with all Nexon offerings, Combat Arms is free-to-play, and is supported via in-game microtransaction based purchases. Titled the “Black Market” users can exchange real-world money for Nexon credits to purchase additional gear, items, clothing, etc. in order to customize their gaming experience.

And while 800,000 users for a title that’s not yet one year out on the marketplace is quite impressive, on the other end of the scale, information surfaced yesterday regarding Jagex’s RuneScape registered users numbers. According to the Guinness World Records, RuneScape is the world’s largest free game with 105 million registered users.

runescape-no-5In fairness, these numbers account for Runescape’s entire product runtime, some 9+ years. However, even if we’re looking at 9 years, that’s still on average 11.6 million users per year signing up. If that ‘somewhere around 12 million’ number is jumping out at you, yes, that’s the current estimate of active WoW players globally. And again, while this number is cumulative, according to Jagex’s CEO Mark Gerhard, approximately 10 million of those registered users are regularly logging in.

When pressed on the numbers, and asked if RuneScape is making more money than the industry yardstick, World of Warcraft, Gerhard comments that Jagex isn’t really measuring success based on financial returns. “The company is very strong financially, and it is thanks to RuneScape, but for us it’s all about active players. It doesn’t matter to us really if they’re free or paying for the expansion – as long as it’s going North we really don’t care.”
Looking to capitalize on RuneScape’s success, Jagex isn’t resting on their laurels. Currently in development at the Cambridge, England studio is MechScape, and sci-fi browser based MMO.