Archive for September, 2009

Free-to-play home Outspark inks deal with Electronic Arts

Wednesday, September 2nd, 2009

The free-to-play/microtransactions supported industry added another major feather to it’s cap yesterday when the deal between publisher Outspark and gaming Goliath EA was announced. San Francisco based Outspark already has a number of successful free-to-play casual/MMO hybrid games that regularly attract 5 million plus unique monthly visitors, and has steadily been gathering steam. One of Outspark’s hallmarks is that their games tend to be highly social and easily customized by the end user.

dg_bi_whiteDubbed Dance Groove Online, this new title will be the first fruits of EA’s purchase last December of Seoul, Korea based J2M. This will be J2M/EA’s first western market introduction of the firms several casual online games. Instantly familiar to fans of Dance Dance Revolution and EA’s own Boogie, with the exception of the dance pad and/or wii Remote will be replaced with an 8 key keyboard layout. Not quite the physical workout, but still the same in rhythm fun. And EA isn’t joking around about making this title a success. According to the official website, in-game tracks aren’t simply studio produced pieces, but rather fully licensed tracks from real-world, bid deal house and club artists including one of my personal all-time favorites, Colette. Still in closed beta, Dance Groove Online should see it’s public appearance later this autumn.

Outspark CEO Susan Choe comments, “EA’s scale and strong heritage combined with Outspark’s online platform and unparalleled capability to provide real-time feedback and enhanced customization will bring unrivaled fun to millions of gamers as they play and connect in real time. Our players and EA fans will be eager to get their hands on this game.”

Outspark will be responsible for localizing the game, something they’ve already been successful at, and staying true to their own philosophy, they’ll be adding a host of design, social networking, and customization features. As operators of the title, Outspark will also be responsible for additional back office operations including support, marketing, community and customer service. And naturally, as it will be an Outspark operated online gaming destination, Outspark’s in-game currency system, Sparkcash will be utilized to customize the game experience.

An interesting proposition for sure, and yet more evidence that EA is clearly investing in the casual/free-to-play market. If the Battlefield Heroes numbers are on the money (pun intended), EA is clearly leading the pack of major ‘old-school’ gaming companies in these new monetization markets.

2009 hasn’t seen much in the way of new music and/or dance based titles, so the question begs to be asked, why this format, and why now? Granted EA is teeing up The Beatles Rock Band, and Activision Blizzard and readying Guitar Hero 5, Band Hero, and DJ Hero, so perhaps this is a pre-fire to launch interest again? Either way, it’s a great vote of confidence for Outspark, and yet another free-to-play title to count in the EA arsenal.

 

Uncle Walt merges with Marvel – what does it mean for video games?

Tuesday, September 1st, 2009

Announced just prior to the trading floor bell yesterday morning, the announcement went out that two of the largest entertainment players in the industry are merging. The Walt Disney Company is offering $4 billion in stock and cash for the ownership rights of Marvel. As boards of both firms have signed off on the deal, this was clearly a non-hostile take over, and the deal is now in the hands of shareholders and federal regulators.

dismarvTo this end, Mickey, Minnie, Pluto, and Goofy just inherited over 5,000+ iconic Marvel characters as siblings. Marvel continues to crank out comic books, and license these IP’s out for multimedia usage. Some of these licensees include THQ, Sega and Activision, and perhaps most importantly, Gazillion’s upcoming Marvel Universe MMO, a 10-year licensing deal.

So what does this merger mean for the heavily licensing dependant video game industry? While Disney has been ramping up in-house game development, according to an investors call, Disney’s CEO Bob Iger doesn’t see the need to take over all future Marvel based game development. “On the video game front, (Marvel) have some smart licensing agreements with some of the best video game manufacturers in the business. While we have been steadily moving in the direction of video game integration, we don’t rule out the blend of licensing and self-produced and distributed video games.”

This statement in itself demonstrates that Disney has just added another notch in their “we’re sitting pretty in the video game industry” belt, but it’s Iger’s caveat to this statement that closes the deal, “As these licensing deals expire we have the luxury of considering what’s best for the company and the products.” In other words, once the agreements are up, Disney can do whatever they want/makes the most financial sense. These deals, however, are quite a ways off. Marvel’s deal with Activision, which includes the Wolverine and Marvel Ultimate Alliance games expires in 2017. As mentioned above, 2019 will see the end of Gazillion Entertainment’s deal with Marvel. Marvel’s signed papers with Sega includes a games deal based on the Marvel movies, and was described only as “multi-year”. Likewise, THQ’s Marvel deal includes video games based on the Super Hero Squad franchise.

If Disney’s Club Penguin is to be used as any sort of yardstick, it’s fair to say that a Marvel based virtual world must certainly be on the big Mouse’s mind. Officially, and obviously too soon to start making any type of announcements, Disney hasn’t pointed to any original creations involving their new character acquisitions. However, according to the New York Times, the company does see immediate leveraging opportunities through the Marvel name; Characters such as Spider Man, X-men, Iron Man, and Captain America will be added to Disney theme parks as soon as feasible. Likewise, consumer products, i.e. toys, merchandising, etc., will be significantly factored into Disney’s international business plans.