Archive for May, 2010

Zynga inks deal with Yahoo!

Monday, May 31st, 2010

Mafia Wars, Farmville, Zynga Poker and Treasure Isle are headed to a Yahoo! account near you soon. Announced last week, Yahoo!, in an effort to increase their appeal and audience (yes, Yahoo! is still around), has signed a deal with popular social games maker Zynga to bring the popular titles to the Y!’s network.

Yahoo!Initial details of the agreement will see Zynga games available to Yahoo! users across a number of Yahoo! properties including the homepage, Yahoo! Games, Yahoo! Mail, and Yahoo! Messenger. Players will be able to share updates across not only their Yahoo! profile, but external sites as well. In other words…all the Facebook features, just without Facebook. Furthermore, the Zynga/Yahoo! agreement will open the doors for Zynga title integration in the Yahoo! Application Platform, which contains Yahoo!’s OpenSocial third party development platform, as well as the Yahoo! Query Language and connect program. Again, Facebook, without Facebook.

“Zynga will bring top notch social game experiences to Yahoo, including through our open platforms such as Yahoo Application Platform and Yahoo Updates. Yahoo! will also continue to work with other partners, developers and publishers to bring compelling innovations and experiences from across the web to our users,” said Hilary Schneider, executive vice president, Yahoo Americas.

Obviously, a deal like this has been long in the works. However, it does cut mighty close to the bone, especially when viewed from the Facebook table. I won’t get into the (almost) shouting match that went down between Facebook and Zynga over the past month, ultimately culminating in a “strategic relationship” that should last for the next five years, but this Yahoo! deal shows that Zynga is clearly looking well beyond Facebook.

With more than 35 million users playing Zynga games every day, according to Zynga CEO Mark Pincus, they’re clearly in a solid position to carve out deals such as this one. However, what’s Yahoo! got to offer? Currently, Yahoo! reports around 600 million users globally. Not a bad start, but nowhere even close to where they once used to be, and where the “other” search engine that dethroned them is on a daily basis. However, that’s not to say that there aren’t bright things happening at Yahoo! (and I predict that 2011 will see a strong return of Yahoo!).

Perhaps as a display of feathers, perhaps not, Yahoo! has been quietly making moves since the beginning of this year, with a January 8th announcement of Yahoo!’s “first” under the distribution for production house Electus, a May 19th acquisition of Associated Content, and a May 24th deal cut with Nokia. Adding Zynga to this list, the Yahoo! portfolio is starting to look better and better, and hey…let’s face it, Hi5 had one foot in the grave, and they’re now well in the running for the “comeback of the year” award. Can Yahoo! do the same?

 

Nexon brings GameHi Inc. into the fold

Friday, May 28th, 2010

And the acquisitions keep on rollin’ along. Arguably the company that started the free-to-play/microtransactions revolution, Korea based Nexon Inc. has recently announced their successful acquisition of GameHi Inc.

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While a number of acquisitions tend to be talent and/or technology advantage based, the Nexon acquisition is of the gobbling up of competition nature. Nexon purchased 29.3 percent of outstanding Game Hi Inc. shares, which include management rights, for $59.8 million. These rights were purchased from Gun-Il Kim, previously Game Hi Inc.’s largest shareholder. The ultimate goal for Nexon in this acquisition is to merge its online game publishing knowledge and experience with the game development capabilities of Game Hi Inc.. Ultimately, this acquisition serves to enhance Nexon’s growing influence in the freemium gaming space.

Chief executive of Nexon, Min Seo says that the two companies have a number of things in common. He believes that GameHi has proved it’s ability to create top quality titles, including Sudden Attack and Dekaron, and compares them to Nexon’s success with MapleStory, Wiznet, Dungeon Fighter Online, and Neople.

With this acquisition, it’s obvious that Nexon is committed to investing in their future. They recently reported 2009 revenues that grew from $359.7 million in 2008, to $561.5 million, a 56 percent increase. From GameHi’s side, 2009 revenues were $33.9 million, with an operating profit of $9.7 million.

As more and more gamers start and begin to invest in free-to-play titles, the ‘players’ in this field are quickly becoming ‘major players’ through acquisitions such as this one. Don’t forget, Nexon just recently acquired Korean MMO developer NDoors, and something tells me they aren’t done on their spending spree quite yet. Over the coming year, I wouldn’t be surprised to see a number of similar announcements made from those that have been around since free-to-play’s inception.

 

Researchers find smarter people in casual games players

Thursday, May 27th, 2010

Researchers at East Carolina University Psychophysiology Department have revealed their preliminary findings in an ongoing study, that indicate significant increases in short-term cognitive acuity in casual games players. In other words … those that play casual games show improved short term memory functionality.

brainpowerEast Carolina University’s study found that test subjects that were exposed to playing casual games, specifically PopCap’s Bejeweled and Peggle, exhibited improved cognitive functions. The study commenced around the beginning of this year, and will conclude later this year, studies a wide variety of U.S. consumers aged 50 or older. The focus of the study is centered around the effects of games on subjects’ short-term brain power. Initial results indicate that sizeable improvements were made by the experimental group, when compared to the control group.

“The initial results of the study are very intriguing, in that they suggest that the ‘active participation’ required while playing a casual video game like Bejeweled provides an opportunity for mental exercise that more passive activities, like watching television, do not,” said ECU’s Director of Psychophysiology and Biofeedback Clinic, Dr. Carmen Russoniello. “Future applications could include prescriptive applications using casual video games to potentially stave off Alzheimer’s disease and other dementia-type disorders.”

Over 40 participants have already been studied, with more to come in the coming months. Participants had their brain waves monitored through an Electroencephalography (say that 3x fast), or EEG as it’s better known. The EEG measures participants’ brain waves as they complete a number of cognitive tests. Both speed and accuracy of tests are measured. The study finds that those who played Bejeweled or Peggle for 30 minute periods showed an 87 percent improvement in cognitive response time, and a whopping 215 percent increase in executive functioning over the control group. According to ECU, these changes are on par with similar cognitive interventions such as mindfulness-based cognitive therapy and cognitive remediation therapy. In other words … playing short amounts of casual games may find their way into medical treatment and therapy in the coming years.

“Video games with more complex rules and controls, and more sophisticated or detailed imagery — so-called ‘hardcore’ video games — might provide similar cognitive benefits for many people,” said Russoniello. “But those games take significantly longer to learn to play and appeal to a considerably narrower subset of the overall population, especially older consumers. In our experience, ‘casual’ video games are ideal both in terms of their accessibility and ease of understanding and because they appeal to nearly everyone.”

Download ECU’s full PopCap games study results here.

Note: although PopCap games were used as test examples in this study, they did not underwrite the study, and remain completely independent of its results.

 

Sony launches Salt, crossing video game and film

Wednesday, May 26th, 2010

As a CIA operative, Evelyn Salt has sworn an oath to duty, honor, and country. When a defector accuses her of being a Russian spy, Salt goes on the run, using her skills and years of experience as a covert operative to elude capture. As Salt tries to prove her innocence, she manages to only raise further questions about her motives. “Who is Salt?”

saltSounds like the next blockbuster spy/action hit to come out of ABC/XYZ major gaming studio, no? Alas, this is just the setup for the new Angelina Jolie film that debuts on July 23rd. And while this certainly isn’t the first Fan Immersion Game (FIG) that we’ve seen hit the streets (Jolie’s second, in fact), it is one of the best-yet-developed games of this genre that I’ve seen yet.

Launched on Tuesday, the nine-week adveture seeks to take future film audiences along for the ride on a series of espionage-themed missions that tie into the film’s narrative. The mission of the game (should you choose to accept it) is to ultimately determine, “Who is Salt?” Players will be about to bug suspects, track enemy operatives, and decrypt secret messages.

Dwight Caines, President of Worldwide Digital Marketing for Sony Pictures comments, “This game is built on a series of cliffhanger moments that enhance the moviegoing experience by allowing audiences a unique and truly fun glimpse into the movie. While the missions are serialized, it was also important to create an environment that allows players to join midstream or follow at their convenience. We believe the mystery and action that surrounds the Day X plot, which is central to the film, will keep web fans coming back to the central question – Who is Salt?”

The game is produced by Hoodlum, the same folks that took on the epic project of making alternate reality games based on the hit TV show Lost. “Hoodlum is one of the companies that has set the bar for what an immersive game can be,” said Caines. “They brought high production value to the videos and a creative genius to the missions that will keep this nine-week adventure fresh and fun.”

And if pushing the film wasn’t enough, Sony has even made a clever tie-in to a number of their current electronic gadgets out on the street. The game features a number of Sony products that would certainly find a spot in today’s spy’s toolkit including the Sony Dash personal internet viewer, the Sony Reader touch edition, and the Sony (alpha) DSLR-A850.

Again, this isn’t the first FIG we’ve seen tied to a major studio that is aimed at pumping up interest in an upcoming title, but it is the first that I’ve seen that takes advantage of Facebook, as “Who is Salt?” also features a Facebook Connect feature that not only shares your progress with your friends, but obviously, uses the virality of Facebook to encourage others to join in your missions.

If a little Angelina Jolie clad in tight spywear makes your day go buy a bit faster (and let’s be honest…there are worse things to be looking at all day) head on over to www.dayxexsists.com, where new missions are released every Tuesday until July 13th, 10 days prior to the box office release.

 

HBO now available on PS3 and PSP, Gaikai receives $10M+ in series B

Tuesday, May 25th, 2010

Clearly something is afoot in the land of connected, online gaming platforms. Perhaps adding fuel to the ‘PSN Premium’ network features that SOE is rumored to officially announce at this year’s E3, Sony has announced that HBO titles are now available to PS3 and PSP customers in the United States.

SFM066LOGOThis Sony/HBO deal marks the first time that HBO content is available for purchase (Menu>TV Shows>Networks>HBO) on any gaming system within the U.S. And while a great step forward, it appears as though Sony is still playing catch-up with Microsoft’s Xbox, which while not offering HBO, has a massive amount of consumable entertainment available to it’s users, and of course, the massive content beast that is iTunes. No, iTunes itself is not a gaming system, but chances are, you can play games on the device that you run iTunes from.

Sony and HBO have kicked things off with some of their biggest titles including the popular “True Blood” series, “Big Love”, and “Entourage”, as well as perennial favorites, “Sex and the City”, “The Sopranos”, etc..

“The HBO library of premium original content is a perfect example of how PS3 has become the most content rich entertainment platform in the living room,” said Peter Dille, senior vice president, marketing and PlayStation Network, SCEA. “When you combine the iconic programming from HBO with the existing TV, film, live sports and original programming available on PlayStation Network, our customers have access to the content they want, when they want it, at home or on the go with the PSP.”

Gaikai sees $10M+ investment in Round B

6912….and in other ‘content in the cloud’ news, cloud based video game streaming service Gaikai has recently announced an influx of $10M+ from a series B investment round. TriplePoint Capital, Rustic Canyon Partners, and series A leaders, Benchmark Capital have all contributed. Gaikai has also received investment funds from an un-named partner.

The new round of funding will most probably be put to use in ramping up what’s destined to be a showdown with OnLive. OnLive and Gaikai offer premium gaming services that are ‘cloud’ based, giving users the ultimate flexibility in their gaming choices.

“Gaikai is poised to take advantage of sweeping changes in how games are bought, sold, and ultimately even played brought about by the industry-wide shift to digital distribution. Benchmark is delighted to join in this round and increase our commitment to Gaikai, David Perry and the team,” says Mitch Lasky, Benchmark Capital.

 

Proof Positive: Massive’s IGA works for Microsoft

Friday, May 21st, 2010

In-game advertising provider, and wholly owned subsidiary of Microsoft, Massive Inc., together in concert with leading metrics provider comScore, has recently released a case study that spotlights IGA campaign results for Bing, Microsofts’s “decision engine”. Utilizing their AdEffx Action Lift for Gaming, comScore has generated a digital advertising measurement methodology specifically targeted at console in-game advertising,

224x168_Small_NBA2010The results of this case study clearly indicate that IGA works … and worked quite well for Microsoft. Massive ran an in-game advertising campaign centered around Microsoft’s “other” Google, aka – Bing. The comScore/Massive results accurately measured what impact these ads had on consumer behavior, including site traffic and searches. The study results also verify Massive’s (and presumably most other IGA providers) ability to generate a strong ROI just as effectively as other ‘traditional’ forms of advertising, including digital marketing, i.e. banners, and/or video advertising. Interpret LLC was also utilized in the study, indicating that users that were exposed to the advertising campaign showed higher ad recall, as well as an increased brand engagement.

Selected highlights:

  • After exposure to the Bing ads in-game, the percentage of gamers visiting and searching on Bing.com increased up to 108 percent — two-thirds of whom were new Bing users.
  • 71 percent of gamers recalled seeing the Bing ads.
  • 60 percent of gamers had a more positive opinion of Bing after seeing the brand advertised in their games.

The Massive campaign under review was run in several top Xbox 360 titles including DJ Hero and NBA 2K10, from November 2009 to December 2009. comScore’s AdEffx technology effectively matches as serving data from Massive with comScore’s own data to track and measure IGA effectiveness via online activity before and after ad exposure. This tracking method falls in line with other established online media tracking and analytics measures. And like these other forms of measurement, consumers’ anonymity was protected.

“The gaming community embraced the in-game ads and interacted with the brand,” said Kirsten Ward, director of digital advertising for Bing and MSN at Microsoft. “The campaign exceeded our expectations across the board. The fact that we’re able to measure that kind of ad effectiveness is truly compelling for brand marketers.”

The full Massive/comScore report is available directly from Microsoft.

 

Torchlight moves 500k copies – Runic Games acquired by Perfect World

Thursday, May 20th, 2010

An alternate title might be, “All’s well that ends well,” as it seems as though the (sunk) Flagship games mass exodus has finally seen a silver lining. Runic Games, which was founded by ex-Flagship devs, announced this week that their premier title: Torchlight has officially sold over 500,000 copies worldwide, both digitally and on the PC. This announcement comes immediately following their announcement of Torchlight available to Mac players via Steam.

torchlight_01Torchlight is a single-player, Diablo-esque RPG , (current devs are former Diablo, Diablo II, and Hellgate: London team members) but Runic Games has been touting the fact that they’re about two years out from a Torchlight MMO. To this end, it shouldn’t come as a surprise that Perfect World, a Chinese developer and publisher of several MMO’s revealed in their Q1 2010 financial results that they’ve acquired a majority stake in Runic Games for approximately $8.4 million. Not a bad exit/payout for a firm that was born from the ashes of an epic debacle.

Again, this acquisition shouldn’t come as a surprise, as since April 2009, Perfect World inked a deal with Runic Games to be the exclusive worldwide publisher of Torchlight. In other words, Perfect World already had a vested interest in the success of Torchlight, and now with the magic 500K copies sold benchmark being achieved, presumably, Perfect World decided to go “all in” at the table.

According to Perfect Word, the Runic Games buy in is centered around strengthening R&D capabilities. Long term, the goal is to fuse Runic Games’ experience in developing sophisticated gameplay and graphics engines with their own expertise in publishing and administering free-to-play MMO’s.

 

Acclaim no longer Acclaim (again), acquired by Playdom

Wednesday, May 19th, 2010

Please file this under “WHOA!” as Playdom has announced that they’ve successfully acquired Acclaim Games.

The newest iteration of Acclaim (Games) was founded in 2006, building upon the former Acclaim Games’ name, and has focused on both casual and MMORPG games by developing a number of titles, including some free-to-plays (RockFree) that have obviously been on Playdom’s radar for a while. Acclaim states that they have 15 million+ registered users regularly playing their games, with RockFree garnering “tens of thousands of daily active users.” Acclaim is already hard at work on their next Facebook offering, slated for release this summer.

“Joining forces with Playdom is a natural fit,” said Howard Marks, CEO of Acclaim. “Both companies share the vision of connecting people globally through quality social games. Our deep expertise in building multi player online games and Playdom’s vast player community will help us bring out the next generation of social games.”

The Acclaim acquisition just adds another plume in Playdom’s hat, as the company has already acquired Offbeat Creations, Green Patch, and Merscom Games, to name a few. Acclaim CEO Howard Marks, former Activision 2.0 co-founder and Chairman of the Activision Studios will retain his position (of sorts), and will run Acclaim just as before, only now under the Playdom banner. With the acquisition comes new responsibilities, as Marks will now also serve in a senior strategic role in Playdom’s business activities. Likewise, Acclaim’s CTO, Neil Malhorta, will serve as the studio’s senior technical officer.

“Bringing Howard and Neil into Playdom strengthens our leadership and bolsters our position as an innovative games developer for the future,” said John Pleasants, CEO of Playdom. “Howard and Neil have worked together building and operating games for many years, and their pipeline of new games is strong. We are also excited about opening our first Los Angeles based social game development studio which gives us access to all of the game development talent in Southern California. We look forward to big things from this team.”

With Acclaim’s established track record of producing a number of successful titles, this addition to the Playdom family is most probably a very welcome one. However, with Acclaim’s focus also lying in the MMORPG world, this could signal an entirely new line of offerings, not only in the social gaming world, for Playdom. With the Acclaim acquisition, Playdom now officially has some legs to stand on when it comes to gaming outside of Facebook. Could Playdom be making a play for the ‘bigger’ market at hand here? And if so, can they capitalize on their current success in time to reap the rewards?

 

Sony to bring forth PSN premium service at E3?

Tuesday, May 18th, 2010

The gaming rumor mill is all in a tizzy, as popular gaming site VG247 reported some rather interesting news surrounding Sony’s PlayStation Network. The rumor centers around Sony possibly announcing their plans for a ‘Premium’ PSN network upgrade at the upcoming E3 event in Los Angeles.

psn-title2According to VG247, they’ve been in contact with a “highly-placed” source at Sony, and that the company will announce a large-scale monetization project at E3, most probably an Xbox Live-esque premium PSN membership. The source comments that the subscription will cost “less than £50 (~$70) per year,” and will not disrupt any of the PSN’s current features available to users for free.

So what’s in it for PS users? Again, we can only go on what the folks at VG247 have garnered, but it looks like PSN Premium users will have their pick of one free (not really, but let’s go with it, for now) PSN game of their choice per month (NOT major titles, but smaller games that usually cost, on average, between $10-$15). Additionally, premium subscriber’s may/will have access to a streaming music service, something similar to Spotify, that may run in the background while playing games. Addressing the already circulating rumors that a cross-game chat feature would be reserved for those that cough up the cash, VG247’s Sony insider comments, “I can tell you now, 100 percent, that that’s not the case.”

So…other than the “free” game, which at the end of the day, isn’t really free at all, just massively discounted, and some streaming music, what’s the upside here? While it has surprised me for quite some time that Sony hasn’t/didn’t jump right into bed with Microsoft along the “Premium Membership” lines, there’s nothing yet in this ‘rumor’ that’s got me jumping up and down saying “woo hoo!” Granted, it is yet still a rumor, and we’ll have to wait until Sony makes the official announcement, if in fact they do, to know more detail.

 

Free-to-play paying off big for Turbine

Monday, May 17th, 2010

This year’s annual survey of online gamers, as conducted by research firm the NPD Group, highlights some very interesting shifts in overall online gamer behavior. Recently acquired Turbine’s Dungeons and Dragons Online had overtaken long seated Guild Wars in the third place spot. As expected, Blizzard Entertainment’s World of Warcraft took the number one position, with Jagex’s RuneScape holding down second.

This past January, the NPD Group surveyed 19,000 online gamers and found that around 30 percent are regular WoW players, thus crowning the title king of online games (again). Around 10 percent of those surveyed indicated that they’re regular RuneScape players. According to Massively, both of these titles have held the top slots in this annual survey for quite some time now, with Guild Wars usually nabbing the number 3 spot.

Guild Wars’ percentage played has not changed this year (7 percent), and one would expect the results to remain the same. However, there’s been another player introduced to this highly competitive swimming pool, and it looks like this one’s a shark. Turbine’s Dungeons and Dragons Online: Eberron Unlimited has obviously struck a chord with online gamers, as the title’s popularity has doubled over the past year, enough so that it’s officially overtaken NCsoft’s Guild Wars. Even though DDO’s percentage was not given, it must be above 7 percent, but less than 10 percent, so for arguments’ sake, let’s say 8.5 percent.

If this isn’t the turn around/comeback/holy smokes story of the year, than I’m not quite sure what is. If you’ll remember, Dungeons and Dragons, while moderately popular, was at the phase in a product’s lifecycle where it either a) receives a major renovation, in one form or another, and is quasi-re-released, or…b) the title quietly subsides into the darkness where video games go to sleep. In DDO’s case, for many months it was looking like the later. Until … one (probably more, but let’s heighten the drama), brave individual at Turbine had the idea of converting the game to a free-to-play, and monetizing it through in-game sales, as well as offering a subscription plan to those that are interested (a hybrid, if you will).

Fast forward a few months, and it looks like the decision to take DOO to the free-to-play model has/is paying off handsomely. Not only has Turbine been acquired by Warner Bros., but they’ve now got a bona-fide hit on their hands, and on that was slated for the dustbin at that. The NPD report backs this supposition, as their data indicates that subscriptions are starting to lose their attractiveness to online gamers, down from 130 percent in 2009 to now a paltry 18 percent.