Archive for January, 2010

iPad arrives – Devs spring into action

Friday, January 29th, 2010

What would this week be without at least a mention of Apple’s latest creation (and announcement) the iPad. While there’s plenty of material out there ranging from why to Colbert’s bold proclamation “Give me an iPad”, the iPad has at least gotten a reaction, good or bad, out of pretty much everyone even remotely connected to the handheld electronics device field. Considering the proliferation of mobile phones, the iPhone in particular, this would encompass a wide majority of folks.

213722-3But what does the iPad mean for games developers? An entirely new playing field. A number of games houses reacted almost immediately to the announcement, with the overwhelming consensus positive and indicating that they’re already hard at work on iPad ready apps.

iPhone dev studios OpenFeint and Scoreloop were two of the first on the scene, clearly having someone waiting, literally, on Mr. Jobs’ every word, just waiting for the cue to click and release the info to the world. Scoreloop says that they’ll have an iPad specific upgrade from their popular Astro Ranch iPhone game that will take advantage of the iPad’s increased screen real estate, appropriately titled Astro Ranch HD. While not pointing to specific examples, OpenFeint Chairman Peter Relan states, “We have plans for some really special features for the iPad that will make social gaming even more immersive.”

Ok, so far so good. New platform, new, tailored games for this platform….now, show me the money. Ngmoco, who took full advantage of Apple’s decision to allow microtransactions within iPhone games, said that their freemium first person shooter, Eliminate would port well from iPhone to iPad, and that their currently-in-development co-op version of Eliminate would do the same. Likewise, EA demoed their Need for Speed Shift title at the Apple announcement and confirmed that they already have a number of titles in the works for the forthcoming iPad. EA did not confirm that these titles will contain microtransaction elements, but given their proven commitment to the business model and gaming associations, it’s very likely.

I mention above that the iPad announcement creates an entirely new playing field for devs. And while the opinions have been wildly circulating, the one that keeps showing up on my radar is “But…it’s just a big iPod.” Certainly from an esthetic point of view this comment has merit. However, once the device is in hand, as Kotaku had access to, it’s quite clear that this is no iPod. While Kotaku editors has trouble controlling the majority of games they tested on the iPad, they did report that menu driven games, such as EA’s The Sims 3 played very well. What this indicates is that an entirely new sub-genre of social, casual, and all around ‘games’ may develop as studios rush to push out iPad read/compatible games. Apple currently does not allow the sale of virtual currencies within the games operating on their platforms (there are however a number of ways around this), they have confirmed that the iPad will support in-app transactions through the iPhone OS 3.2.

Apple’s iPad is expected to begin shipping in late March of this year. Should be a VERY exciting summer.

 

Syfy.com and Atari partner to promote upcoming Star Trek Online

Thursday, January 28th, 2010

Atari and television network Syfy.com have recently announced a partnership aimed at promoting the new upcoming MMO, Star Trek Online, scheduled for a February 2 2010 release. The promotion will feature a two day Star Trek Marathon to be broadcast on syfy, which will feature an elusive “Syfy Bundle”, available at Syfy.com’s Game Center.

startrek-logoAlmost a year has past since Syfy (then Sci Fi) announced their commitment to the gaming industry with their partnerships with Acclaim Games and Zookazoo, and this Atari partnership falls nicely inline with the network’s initiatives. This new partnership allows Syfy.com to build and promote a one-stop hub for Star Trek Online, where fans and gamers can view new content, participate in special contests and sweepstakes, and…..”Even purchase an exclusive bundle via digital download.”

The limited time “Syfy Bundle” will be available for purchase from Syfy.com/StarTrek, and will contain:

  • “Neodymium Deflector Dish” — An in-game item grants a bonus to Auxiliary power, boosts maneuverability, and increases the effectiveness of a ship’s Science abilities.
  • “500 Cryptic Points” — These micro-transaction credits can be used to purchase in-game items and unlock unique bonuses.
  • “Syfy Store Discount” — Purchasers of the Syfy bundle will receive 15% off their next purchase at the Syfy.com store.

To aid in the promotion of not only the online game, but obviously, Syfy’s own gaming efforts. The network will prime the pump with a two-day Star Trek marathon starting on Monday February 1st from 8am to 5pm featuring “Star Trek Enterprise” episodes, and conclude on Tuesday Febrary 2nd (8am – 9pm) with episodes of “Star Trek Next Generation”.

“Syfy is the perfect home for Star Trek Online,” said Jim Wilson, President and CEO of Atari, Inc. “By offering broadcast support, exclusive content and in-game bonuses, fans of Star Trek and the science fiction genre will be able to take part in this title’s much anticipated release.”

Alan Seiffert, Senior Vice President Syfy Ventures, added, “The Syfy audience has immense passion for video games. With that said, we are making a significant commitment to growing our presence in gaming and establishing Syfy.com’s Game Center as a leading destination for cutting edge interactive entertainment from a news, entertainment and even sales perspective. This joint venture with Atari helps showcase the types of unique partnerships we will look to develop to provide our audience with exclusive experiences tied to today’s hottest interactive entertainment.”

 

Russian social game dev Drimmi raises “several million” in VC funding

Wednesday, January 27th, 2010

While the Eastern European social networking scene is alive and well, it’s often easy to forget about, simply too small to be heard in the Facebook end of the pool. Partically owning to the simple language (and in some cases alphabet) barriers, eastern Europeans have turned to their own native platforms (i.e. others made a splash on the scene before Facebook was up and running with translations and/or the appropriate market buzz).

manki_3That’s not to say that Eastern European developers haven’t been acutely aware of what’s been happening in the Western European, North American, and Asian markets, and they now want in on a piece of the action on these more popular Eastern European platforms. The Russian social games market alone has taken off at a juggernaut’s pace, growing from $0 in 2008 to a valuation of over $30 million in 2009. Most social gaming in Russian takes place on the countries’ leading social network VKontakte, and currently has a runaway star – Vesely Fermer (Cheerful Farmer) developed by Yekaterinburg based i-Jet, which currently garners half the market. Reports are varied, but revenue numbers indicate that Vesely Fermer currently generates around $1 million per month. If this figure rings a bell, remember, Tapulous reports making the same figure, and Playdom would be in the same ballpark with an annual take of around $50 million.

To this end, the Russian stealth operator Drimmi has recently been awarded “several million” in venture capital funding from Luxembourg’s Mangrove Capital Partners and Russian ABRT Venture Fund. David Waroquier of Mangrove Capital Partners points to the Russian social gaming markets, “high levels of users engagement and strong monetization history,” as a leading factor behind the firms’ decision to commit. In addition to the “several million”, Mangrove Capital, also invested in online trivia games maker Amuso, will take a 20 percent stake in the now only 5 month old company. Drimmi is headed up by CEO Nikita Sherman, former CEO of Russian dating site Mambe, where he’s already introduced and developed micro-payments as revenue streams.

 

Bad for Apple, good for Devs: Pirates make microtransaction purchases

Tuesday, January 26th, 2010

While Apple reports that it’s lost an estimated $450 million from mobile application pirates, it looks like these same pirates, while skirting the actual app purchase, are willing to make in-game purchases.

Tapulous_iphonePresented at this past weekend’s Midem Music Conference in Cannes, Tapulous (makers of Tap Tap Revenge) head of business development Tim O’Brien, revealed that while Tap Tap Revenge has seen approximately 2.5 million downloads within its first two months, about 1 million of those downloads were from pirates. Certainly, a situation that would presumably make any developer justifiably nervous. Tapulous, however, is looking at the situation differently.

“We know who they are,” comments O’Brien. “We’ve started running ads to the pirate users more aggressively. Some of those users, because we sell virtual goods, have become high-volume users.” O’Brien fully admits that while the application itself may be pirated, the sales of virtual goods (i.e tracks and avatar customizations) within the application can still remain profitable. For the developer at least (remember Tapulous has reported revenues of over $1 million per month)…in this case, Apple is the one left holding the bag.

Tapulous currently has around 25 million users through it’s various iPhone games. Given that Tap Tap Revenge saw 2.5 million downloads within the first month, of which 1 million were pirated downloads, if we apply this example to Tapulous’ overall figures, that would put them more in the ballpark of 35 million users. Their current iteration of money maker Tap Tap Revenge (3) launched only last fall for $0.99. Tapulous primarily monetizes through sales of in-game tracks and avatar customizations ranging from $0.99 to $2.99, and states that they’ve been profitable since June 2009.

 

Crispy Gamer raises $8.25m, buys GamerDNA, fries itself

Monday, January 25th, 2010

Late last week, Joystiq first broke news that gaming news and community hub Crispy Gamer had imploded. This, just months after raising $8.25 million from J.P Morgan’s Constellation Ventures, and only one month after purchasing community, stats-based platform GamerDNA. The company’s board of directors unilaterally decided to dismiss the entire editorial staff of Crispy Gamer. As a result, Crispy Gamer’s CEO, former head of media entertainment at Google, and Crispy Gamer co-founder Chris Heldman resigned in protest.

Heldman’s departure now signals a complete loss of both the original Crispy Gamer co-founders, as John Keefer left for influential blog Game Politics back in September of last year. Editors now finding themselves on the funemployment list include Kyle Orland, Scott Jones, John Teti, Evan Narcisse, James Fudge, Ryan Kuo. Management layoffs include Managing Editor Elise Vogel, and Chief Marketing Officer Anne Mischler. Staff members report that they received notice that they’d be paid for the month, but that at the moment of receiving said notice, their jobs were no longer.

Just last month, GamerDNA CEO Jon Radoff commented about Crispy Gamer, “…has ambitions plans to build a media company around the gaming market.” Fast forward a month, and regarding the Crispy Gamer implosion, and Radoff comments, “I’m afraid I don’t know anything about the situation – if true, it’s surprising and unfortunate.”

Former co-founder Keefer adds, “It’s hard to see a dream die, especially one you put your heart and soul into. The site was created for the readers and to give them an alternative voice, to dig deeper than many of the sites out there and to make readers think about what they play and why they play. Personally, I had a lot of fun in the process. Thanks to all the people that read the site and became part of the growing community.”

Crispy Gamer may very well be the first casualty of their own existence. Looking at traffic stats from compete.com, Since the announcement of receiving a massive $8.25 million from investors, the sites’ traffic has been on the steady decline. While these kind of stats are generally regarded as the standard lifecycle of any web destinations, it seems as though the board of directors are looking for a bit faster return on their investments than the standard investor. Or…are looking to capitalize on the property itself and have a much larger plan in mind. Be that as it may, the loss of Crispy Gamer means a loss of an edgy, independent, voice in the gaming community. As a prime example, one of Crispy Gamers’ more popular articles: The 10 People We Hope Will Shut the F*** Up at This Year’s E3.

 

$23.74 million invested in virtual goods this week

Friday, January 22nd, 2010

Over the course of 2009 we saw the world on the verge of an economic collapse. While the current economic situation has hit some industries harder than others, and as we learned, even the video games industry isn’t recession proof. However, if venture capitalists remain bullish on virtual worlds and goods as they did this past week, 2010 could be a banner year for the industry as a whole. This past week alone, three individual companies saw injections of cash totaling $23.74 million. Let’s take a look at who got a part of the take this week.

Crowdflower

Crowdflower is an outsourced labor startup that rewards work with both real world money and/or virtual currency. Led by Trinity Ventures and Bessemer Venture Partners, Crowdflower also received funding from it’s original angel investors including the Founders Fund, Travis Kalanick, Marcus Ogawa, Manu Kumar, Gary Kremen, and Lorenzo Thione. This round of funding saw a healthy $5 million aid Crowdflower’s startup efforts.

The concept is simple enough: outsourcing mundane task that can’t be automated to a crowd sourced pool of workers that sign on to perform a small part of each task. For their efforts, workers man then choose between monetary or virtual currency payment. Currently partnered with Gambit, Crowdflower has completed over eight million tasks, grown revenue over 750 percent, and increased their labor output by 760 percent.

6 Waves

Hong Kong based 6 Waves made out with the bandits share of this week’s booty, garnering $17.5 million. Funding arrives from Insight Venture Partners. 6 Waves has filled various roles within the virtual worlds community, one of developer, and the other as publisher, specifically through promotion and monetization support for other social game developers.

“We started publishing for Chinese developers, but we have since diversified to work with developers from all over the world. “ comments co-founder Rex Ng. “To date, we have partnered with many developers from US, Canada, France, China, Hong Kong, and Singapore, with more in the pipeline. Since our audience spans across North America, Europe and Asia, 6 waves provide a one-stop shop for developers to reach a global audience.”

If you’ve never heard of 6 Waves, now would be the time to sit up and notice. Currently, they’re one of the largest developers on Facebook, operating 141 apps and serving approximately 44 million monthly users. To put their growth rate into perspective, only one year prior, 6 Waves was serving 22 million monthly users from a pool of around 60 apps. And now for the kicker – the 6 Waves team is made up of only 18 people, proving that lean-and-mean can get the job done.

Rixty

Rixty, a payment services provider recently announced a $1.24 million seed from Javelin Venture Partners, Accelerator Ventures, First Round Capital, Freestyle Capital, Nueva Ventures, and Soft Tech VC. Additionally, “several” undisclosed angel investors took part. As part of the deal, Javelin Venture Partners Managing Director Noah Doyle will not be sitting on Rixty’s board of directors, as will DIgg’s current VP of Product, Kevin Desai. Both men have experience in online payment platforms, Doyle formerly of MyPoints.com and Desai from Achex, which went on to be acquired by First Data.

Rixty’s main tenant is facilitating virtual goods purchases for those that might not always have access to said content (read: no credit card). Working in cooperation with CoinStar, Rixty users are issued an exclusive PIN that they can enter into a CoinStar machine to receive their payout not in the form of cold, hard cash, but rather in virtual currency points. The currency points are then tabulated at Rixty, and through partnerships, gamers may then use this Rixty cash in their (hopefully partnered) game of choice. By keeping users’ virtual currencies in house, Rixty leverages this power and is certain to keep users coming back for more through various promotions, contests, and giveaways.

Again, $23.74 million in Venture Capital funding was announced just this week alone, and we’re only three weeks into a new year. Let’s hope that these funding sprees continue, and that 2010 will see a continued increase in not only the number of options available, but as the industry grows, so will the quality and innovation levels increase.

 

Double Fusion to deliver in-game ads on 2K Sports’ NHL and NBA 2K10 titles

Thursday, January 21st, 2010

Double Fusion and 2K Sports have recently announced a deal that will see in-game ads placed in both NBA and NHL 2K10 titles. This deal now sees Double Fusion as the exclusive in-game ad provider for the games on Sony’s PlayStation3.

Double-Fusion-logo2_qjpreviewthRepresentatives from Double Fusion say that they’ve been working closely alongside 2K Sports developers to integrate the ads in the least obtrusive manner. Double Fusion says that they’re committed to delivering in-game advertising while still maintaining the contextual relevance and realism of ad placements at real world sporting venues.

Double Fusion reps point to its “dynamic advertising engine” as the secret to success.  Through this delivery, Double Fusion owns the various placements throughout a virtual setting, and its clients can the serve advertising into it’s partnered games. With backend reporting tools provided by Double Fusion, advertising clients may then track, modify, and measure the effectiveness of their in-game advertising campaigns.

Double Fusion CEO Jonathan Epstein comments, “Extending our dynamic advertising relationship with 2K Sports is a testament to the growing importance of in-game advertising and the value Double Fusion delivers for its publishing partners.”

“The franchises included in this agreement provide a tremendous opportunity for brands to reach an enthusiastic audience of sports fans,” he continues, “much like they would try to do during actual sporting events, with the added bonus of being able to implement targeted campaigns quickly and effectively.”

And while it might simply be a coincidence, this announcement of the 2KSports and Double Fusion deal arrives only days after former EA executive Mitch Lasky lambasted his former employer on where they’re headed, and how they plan on getting there. 2KSports is EA Sports most direct competitor.

 

Jagex releases first third party developed free-to-play title: War of Legends.

Wednesday, January 20th, 2010

The UK’s largest independent games company, Jagex, has recently released it’s first third-party developed game, War of Legends. The new title finds a home right alongside Jagex’s 40+ free-to-play titles.

wol1A real time strategy game based on Chinese myth, War of Legends presents players with a choice either to support their current less than scrupulous King, or shift their alliances to a righteous upstart vying for the throne. The game offers players the opportunity to rule empires, manage resources, and command massive armies which will inevitably be used to overtake opposing forces. All the while, players must also keep on eye on the homefront, and defend their cities against other players.

War of Legends (not to be confused with League of Legends) features an evolving storyline that will see a rollout of planned game updates, including new tasks and in-game items that are aimed at keeping players engaged. Notably, War of Legends features a persistent game play world, thereby allowing players’ armies to gain in strength and resources even while the player is not playing, resulting in a formidable army (after extended game play, and time away). Jagex is also encouraging player alliances (another method of engagement) which may then collaborate to tackle the legendary quest for eternal glory.

While this is Jagex’s first third party developed title, it’s also their first flash based title. As with all Jagex titles, the game requires no downloads, and is playable in-browser from just about any PC/Browser combination.  The title will also feature Jagex’s first take on microtransactions via Jcredits.  This move is not without precedent, as they displayed interest in the method a while back, but noted that implementing Jcredits into Runescape would not have been beneficial to the games’ economy.  However, no official word has arrived from Jagex quite yet on the implementation.

“When we started to develop games in 2001 we were forced to self-publish as none of the ‘traditional publishers’ seemed interested in or even understood online game publishing. Nearly a decade and a great deal of success later, we want to leverage our experience and global reach to help other talented young developers bring their games to life” said Mark Gerhard, CEO at Jagex. “We were approached by the War of Legends development team last year, we played it and loved it, we believe our players would probably feel the same way so it’s only natural to add it to our growing catalogue of games on Jagex.com. We are actively recruiting to help scale up our publishing division throughout 2010 and we are confident that WarofLegends.com will be the first of many great third-party games to be published by Jagex.”

 

One year later: Hellgate resurfaces

Tuesday, January 19th, 2010

Oh Hellgate, the saga continues. It seems as though Korean publisher HanbitSoft and Namco have come to an agreement over the contested rights to Hellgate. Hanbitsoft now plans on relaunching the MMORPG in both North America and Europe.

logo-hanbitHellgate: London has certainly seen better days, and you’ll remember the financial demise of creator Flagship Studios saw Hellgate’s days come to a very rapid end. Post Flagship Studios, Korean HanbitSoft, the exclusive publisher of Hellgate: London, stepped in and claimed that it intended to take over not only Hellgate, but Flagship’s other project, Mythos. After this, that, and the other, it turned out that HanbitSoft owned only the rights to Mythos, and not Hellgate.

It seems as though that scuffle has been settled, as HanbitSoft is clearly taking point on this new initiative, and plans on re-rolling out the title this year. The plan is to release Hellgate: Ressurrection (an appropriate title if I’ve ever heard one) in the Korean market as well as parts of South East Asia. Presumably, based on the success in these markets, HanbitSoft will then roll the title out to North American, European, and Japanese markets in 2011.

“We would like to thank Namco Bandai Games America for allowing us to acquire the Hellgate publishing rights and are thrilled to have eager gamers worldwide return and enjoy the franchise,” said HanbitSoft chief executive Kee-Young Kim. “Hellgate: Resurrection is heading towards success in Korea such that we decided to push ahead with launching the game overseas next year. We will do our best to get the game to the fans as soon as possible.”

Hellgate: Ressurrection also promises to be just that – a complete re-do. The new version is slated to have a completely revamped content section. Gone as well is the level cap, and HanbitSoft is already working on an expansion pack titled Hellgate: Tokyo which will be released in Korea in March. The looming question is, how much? Will HanbitSoft offer Hellgate is a subscription based title, similar to industry behemoth World of Warcraft, or, will they stay more in line with their current climate, and offer the MMORPG as a free-to-play title with microtransaction monetization methods? My bet is leaning a whole lot towards the latter.

Namco Bandai Games America senior director of business development Zack Karlsson comments, “We are pleased to participate in the revitalization of Hellgate through this agreement and are deeply gratified to allow HanbitSoft to take the lead on this franchise and bring this game to the people who seek it.”

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Former EA exec calls company’s strategy “All wrong”. EA fires back.

Monday, January 18th, 2010

Late last week, former senior EA executive Mitch Lasky, who sold his Jamdat Mobile service to the company in 2005 for $680 million called EA’s current business model “wrong”. Lasky thinks that the EA’s move away from boxed titles to monetization via virtual goods and currency isn’t the wisest move for the games giant.

mitch-laskyOn his blog, titled Bizpunk, Lasky writes, “EA is in the wrong business, with the wrong cost structure and the wrong team, but somehow they seem to think that it is going to be a smooth, two-year transition from packaged goods to digital. Think again.”

Lasky’s comments aren’t just coming out of thin air. His article is a response to EA’s CFO Eric Brown announcement that 2010 will see revenues and earnings down (again for EA) from previous years (and quarters). This news comes just on the heels of EA laying off 1500 employees, a move that company CEO John Riccitiello expects to save costs. Riccitiello also points to the layoff as a way for EA to, “cut cost in targeted areas and invest[ing] more in our biggest games and digitial businesses.”

It’s fair to say that any large corporation has it’s fans and detractors. Those that are not happy with the way things are being run have every right to express their opinion, but it’s not to often that a major corporation will address such complaints, at least not publically. It seems as though Mr. Lasky’s opinion is one that EA will publically address. Lasky published his article at 8:41 PM (presumably PST) on Monday, January 11th. It took EA three days to decide to address the issue or not, and on Friday, they made a public statement.

Before we get to this statement, it’s important to consider where things are coming from. While Lasky was at EA, he had a very valid shot at becoming the next CEO after then man-in-charge Larry Probst stepped down. Instead of Lasky, Riccitiello got the job.

EA’s response to Lasky: “Mitch needs to try de-caf. It’s never easy being turned down for a job, but most people don’t spend three years obsessing about it. Since Mitch left EA, Apple invested the iPhone, Facebook evolved to include a gaming platform and EAMobile became a world leader.” Lasky, incidentally, points out in his article that it’s exactly thee years to date since Riccitiello assumed the reigns at EA.

Lasky continues his titrate on EA by pointing out that over the course of Riccitiello’s three year reign, the company has lost over $11 billion in market value, and now has a valuation below $4 billion. He argues that this value, combined with a myriad of what he sees as internal problems at EA makes them a target for potential acquisition. Specifically Lasky sites Disney as a potential buyer, as well as Chinese online service Tencent having the ability to “swallow EA whole.”

Mitch Lasky is a partner at Benchmark Capital. Investors include online properties such as Friendster, Gaia Interactive, and Riot Games. If only by association, Lasky isn’t opposed to the model, just the way EA is going about it.