Archive for May, 2010

OnLive making roads into Europe via BT

Friday, May 14th, 2010

While OnLive is enjoying a healthy amount of success in the U.S. market, it’s been looking to, as well as being requested to, share the love with the EU. Yesterday marked the first step in this process, as formerly titled British Telecommunications firm, BT announced that they’d purchased a 2.6 percent stake in OnLive, and plan on rolling the service out to UK residents.

BT-logo-001OnLive, which was rolled out in March of 2009, spend seven years in development, and the official launch of the service in the U.S. will commence this summer, following an ongoing successful beta trial. That’s not to say that the OnLive folks have been focused solely on American shores, as CEO Steve Perlman confirms that OnLive has been testing the service in the EU since 2009, with a data center already up and running in Wales. OnLive has been tested all over Europe, ranging from the U.K. to Italy, Scandinavia to Spain.

“The good news is it works very very well,” he said. “In some cases, it works better than in the U.S.”

If you’re not already familiar with OnLive’s services, these aren’t some vanilla, rehashed titles that are available. Current partners include EA, Ubisoft, 2K Games, THQ, and Warner Bros. IE. Games on tap to be served up by OnLive include blockbusters Assassin’s Creed II, Borderlands, and Mass Effect 2, just to name a few.

This new partnership marks the first entry into cloud gaming by BT, and they see it as a logical extension to their BT Vision on demand digital television service.

“Entertainment is going to be at the heart of what we offer customers in the future,” comments BE Retail CEO Gavin Patterson. “The partnership with OnLive complements our existing BT Vision service. It’s great for our customers – they’ll have access to a huge catalogue of games, available instantly on their TV or PC without expensive hardware. And it’s great for BT – it will enhance our premium broadband position and we’ll be entering into a market that’s worth more than £2billion.”

Steve Perlman, CEO of OnLive, remarks, “The UK market is extremely important to OnLive and our videogame publishing partners as we expand into Europe. We view BT as the ideal UK partner. As gamers are moving increasingly to online game distribution, OnLive delivers video games as a pure form of online media, playable instantly on almost any video-capable device attached to the internet. The implications are nothing short of transformative to video games and in time, all interactive media. OnLive is delighted to be pioneering this revolutionary technology in the UK together with BT”.

 

Capcom heading to Facebook, Zynga making a quiet exit?

Wednesday, May 12th, 2010

Hot on the heels of last week’s announcement of SOE’s entry to Facebook gaming, as well as EA’s growing catalogue of Facebook titles (with an obvious nod to Plyfish), Capcom is now following suit, with Bloomberg Businessweek reporting that the Osaka, Japan publisher is now setting their sites on Facebook as well.

“Gaming on social networks is poised to impact the traditional video game industry and is a presence that cannot be ignored,” Capcom President Haruhiro Tsujimoto said in an interview in Tokyo yesterday. “We have to make our move.”

JP Morgan Chase & Co. analyst Eiji Maeda comments, “Once seen as a realm of low-profit, cheap games, this market is maturing into an attractive proposition for major publishers.” Currently, Capcom generates more than half of its revenue from traditional ‘boxed’ titles. Maeda’s comments ring true, when looking forward. You’ll remember, earlier this week the Newzoo report indicated that the majority of revenues in both the U.S. and Europe are still derived from boxed game sales. However, as technology, especially delivery and payment methods improve, all this could change. “Companies that forgo games playable online, including on social networks, will be left behind as the market for packaged software shrinks long term,” says Maeda.

And while this seems to fall right in line with what other major players are doing/realizing, i.e. SOE, EA, etc.., it does however fly in the face of what current Facebook gaming king of the hill Zynga is doing. With the recent change in notification mechanisms at Facebook, Zynga has seen a significant loss of users over the past few weeks, and they’re taking action to combat it.

Zynga’s most popular title, FarmVille has been hit hardest, and the San Francisco based game development firm has been quietly pulling users off Facebook and directing them to play their favorite farming game on Zynga’s own platform(s). Having this independence and freedom has had some notable advantages for Zynga, most notably, their own currency form, and ability to cross promote their own titles, all the while, not being at the mercy of an outside party.

And therein lies the catch-22 for games developers. While Facebook gives them massive exposure, more or less for free, Facebook now wants a slice of the action (a 30 percent tax on sales made with Facebook’s own impending network wide virtual currency), and as owners of the platform, can make any changes they see fit. With more and more ‘traditional’ gaming companies now setting their sites on Facebook, the Palo Alto firm is now in a position to flex their muscle, reap the financial rewards of welcoming major players, with major budgets, into the fold. But at what cost? Is it enough to simply thank the Zynga’s of Facebook for making the social network also a social gaming platform, and push them aside in the name of more revenue?

 

Mother’s Day brings home the bacon for Social Games

Tuesday, May 11th, 2010

If the question of “Do virtual gifts hold real world value?” was still on the table, this past Sunday’s Mother’s Day landslide of virtual goods sales should effectively put this question to bed. For good.

b5180034-3f87-4b47-ba81-77f7f338ab7eTrialPay conducted a study over the past weekend to measure Mother’s Day campaigns launched by a number of social games on Facebook.

According to TrialPay’s research, the week leading up to Mother’s Day (May 2 – 9), saw about $1 million per day generated by “gifts for mom” promotions that saw offers from online flower merchants reward in-game virtual goods and/or currency. This represents a 5x increase in normal social gaming revenues, with the added bonus 40 percent of purchasers were first-time buyers. If this wasn’t enough good news for publishers, TrialPay also found that visitor conversion rates were doubled. It’s a fair statement to make that virtual goods and gifting have reached the tipping point.

Mother’s Day saw attention from more than 40 percent of the top 50 social games on Facebook, garnering in total, approximately 80 million daily users’ eyeballs in the week preceding the holiday event.

“Seasonal campaigns around holidays can present a significant source of revenue for game publishers. Mother’s Day is the 2nd-largest gifting holiday in the U.S. – our study shows that social gaming companies took advantage of this opportunity to convert more of their users to paying customers,” said Alex Rampell, CEO of TrialPay. “Social games companies have been primarily focused on engagement and viral sharing, and they’re just starting to experiment with monetization, so this is an early indicator of big things to come.”

 

US Gamers spend $25.3 billion per year

Monday, May 10th, 2010

A recent report issued by industry analysts Newzoo indicates that the U.S. gaming consumers spend approximately $25.3 billion per year.

Culled from data pulled from the 2009 Today’s Gamers Survey, operated in conjunction with global search firm TNS, the Newzoo Games Market Report brings to light not only some staggering monetary figures, but also reveals where, exactly, this money is being spent. A total of 13,000 gamers were surveyed, and Newzoo speculates that there are approximately 183.5 million gamers in the U.S.

Almost half of all sales made in the video game industry in the United States (46 percent) can be attributed to the trading (buying/selling) of used titles, as well as online forms of payment(s) – subscriptions, virtual currencies, microtransactions, and digital distribution or downloadable content.

What this means is that the remaining 54 percent of sales are still coming from “traditional” (read:boxed) forms of games revenue generation. When viewed from Europe, these numbers are even higher with Belgium having a 59 percent “traditional” revenue making model, with up to 78 percent in France.

U.S. gamers clearly prefer consoles, as the largest percentage of the spending is on console based games – $15 billion. This includes both home and handheld gaming software. PC spending scores a paltry 2nd, with only $4.5 billion headed in it’s direction. Mobile device (i.e. smartphones) take home around $1.1 billion, MMOs, $2.12 billion, and Game Portals $2.78 billion.

Below are highlights from the Newzoo Games Market Report available for only 299 EU

GamesMarketReport_SpendingOverview

newzooshare

 

Battle.net + Facebook = Blizzard luv

Friday, May 7th, 2010

Facebook means a lot of different things to a lot of different people. To some, it’s a pure social network. To others it’s a multimedia sharing space, while others see it as a “quick-play” casual gaming platform. And up until now, social/casual games were/are all the rage on Facebook. Well all of that is about to change; at least from one angle.

starcraft2fb505x-largeAnnounced yesterday, Blizzard Entertainment revealed a bit more of their strategy surrounding the revival of Battle.net, and perhaps why they’ve forced all users of Blizzard products to be registered here. Beginning with the (projected) July 27th launch date of the long awaited StarCraft II: Wings of Liberty, players will have a Facebook opt-in option. What this means is that players on Blizzard products (e.g. WoW, StarCraft, Diablo) will have the option of connecting to their friends who also have Battle.net accounts.

“Step one in our relationship is to have this Friends Importation,” says Battle.net project director Greg Canessa. “Really what you are going to do once you buy StarCraft II and you take it home and install it and log onto Battle.net for the first time, you’ll be able to essentially hit a button and bring all your Facebook friends that are also on Battle.net into Battle.net and create (Real ID) relationships.”

As with all forms of progress, there are obvious up and down sides to this move. On the up side, I’m quite certain there’s bound to be the “Oh no way, you play WoW too?”, as I discovered a few summers’ back when chatting with an old college buddy (on Facebook chat, none the less). On the other side of the coin, this move essentially eliminates gaming anonymity. Certainly, one of the draws, especially of MMORPG’s and RTS’s on the scale that Blizzard is creating IS that fantasy of being something pixilated that you are not in real life. For example, yes Humans (Alliance) are the most populated of all World of Warcraft races, but if players wanted to be something they already are, then why the other racial options? Why the Horde for that matter?

Either way you look at it, this is a huge nod from one of the largest and most influential gaming companies in the world towards to convergence of social networking and social gaming.

“We’re pleased to be working with Facebook to integrate their platform with Battle.net to enhance the social-entertainment experience for our players,” said Paul Sams, chief operating officer of Blizzard Entertainment. “This new functionality will make it easier than ever to connect with friends on Battle.net and play StarCraft II and future Blizzard Entertainment games together.”

Looking down the road, let’s just put it out there right now: Blizzard may just have found a way to appease the “hardcore” gaming fans who will never lay down a cent for a microtransaction, and are very happy with their monthly subscription, while at the same time, opening up a number of inroads to those that enjoy the social gaming/microtransaction model. Remember, Blizzard’s mystical pony raked in a boatload of cash, clearly indicating that players are willing to fork over even more than their monthly subscription fee. My prediction is that Blizz will launch the service, build it up, and then begin releasing social ‘missions’ based on current titles. A WoW fishing championship for example, or a StarCraft Assault on XYZ…share with your friends, etc…

 

SOE infiltrates Facebook with The Agency: Covert Ops

Thursday, May 6th, 2010

Marking Sony Online Entertainment’s first entry in the social action game via Facebook, The Agency: Covert Ops launched yesterday. Not just another ‘Mafia Wars’ type shoot’em up, The Agency: Covert Ops promises to bring the world of an elite agent in the world of jet-setting super spies and shady operatives to your Facebook account.

covertops_logo1If The Agency rings a bell, you’ll remember that we first covered development efforts and the free-to-play tie-in back in November of 2008. Utilizing an established, successful trend, SOE has gone the route of Facebook social game teaser for the much bigger product: The Agency for PS3 and PC platforms.

Developed by SOE’s Tucson studio, The Agency: Covert Ops pits players in pulse pounding missions, mini-games, and naturally avatar customizations, all the while unraveling the deep storyline surrounding The Agency franchise. SOE is also taking cues from current social games, offering the option to recruit friends to join you in group missions, ultimately aiding not only your progress in the game, but the spread of the title as well.

The Agency: Covert Ops highlights:

  • Pulse-Pounding Missions: Travel the globe as a jet-setting agent taking down rivals and building your network of operatives. Encounter a new breed of super villains and their murderous henchmen in various missions giving you access to new gadgets, weapons and the most desirable intel.
  • Killer Mini-games: Agents need to master safe-cracking, bomb defusing, code breaking, evidence gathering and even rooftop parkour. Covert Ops has action and puzzle mini-games that put your spy skills to the test and push you to the limits of your intellect.
  • You Are What You Wear: Will you be a sexy super spy or a rugged mercenary? The choice is yours in Covert Ops. Pick from five class-based abilities, each with its own special advantage when battling enemy forces in combat. Customize your avatar with the latest in designer fashion, or deck yourself out in cutting edge industrial battle gear. Choose from hundreds of items and collect attire and aliases to access numerous locales and gain influence over the people within them.
  • Pimp Your HQ: Build an Agency headquarters that your friends will envy! Make a statement by personalizing your HQ with a wide array of designer furniture, sleek electronics, and the latest security devices. Show off your trophies from deadly assignments in distant lands and visit your friend’s headquarters for ideas—you’ll get bonus items just for dropping in, too.
  • The Black Market: Elite agents are only as good as their gadgets and weapons. Whatever the mission, the Black Market has what you need to get the job done. Browse collections of high-tech weapons, surveillance equipment, and home decor. Whether you’re paying with wealth won from missions or purchased with cold, hard Station Cash™, we have what you need to care of business like a pro. Some of the things in here aren’t exactly legal… but when you’re above the law, it doesn’t matter!
  • Your Network of Agents: Work alone or engage in group missions with your Facebook friends. Agents can also recruit the world’s most dangerous and eccentric operatives, creating a top notch Agency of world renown. Covert Ops even makes it easy to share your feats of stealth and style by posting your accomplishments or snapshots of your avatar on your Facebook wall.

“The Agency: Covert Ops is unlike other Facebook games out there right now due to its stylized look and feel along with its deep story line,” said John Smedley, president of Sony Online Entertainment. “It’s a great way for Facebook users to play a casual game with exciting missions, great mini-games and even the ability to share achievements with your Facebook friends. It’s the ultimate in spy-genre Facebook gaming.”

 

Digital River Acquires fatfoogoo

Wednesday, May 5th, 2010

MINNEAPOLIS – May 5, 2010 – Digital River, Inc. (NASDAQ: DRIV ), a leading provider of global e-commerce solutions, announced that it has acquired fatfoogoo, a Europe-based, in-game and online commerce service provider. The combined forces of Digital River’s e-commerce solutions with fatfoogoo’s technology will offer game publishers and developers an unparalleled, single e-commerce connection to manage their online product sales both in-store and in-game.

logo_dr“The sale of virtual goods through micro transactions continues to grow in popularity with consumers and is establishing new revenue models for the games industry,” said Joel Ronning, CEO of Digital River. “With the addition of fatfoogoo, we’ve strengthened our commitment to the gaming marketplace. We believe the combination of our in-game and in-store commerce solution along with our subscription management capabilities will be unmatched in the industry. This partnership continues our promise to provide existing and future clients with the leading e-commerce technology and expertise they expect from Digital River.”

The e-commerce solutions from Digital River and fatfoogoo are easily integrated to offer game publishers all the scalability and reliability of a proven in-store platform along with turn-key technology designed to operate a successful in-game marketplace. In addition to providing in-game store functions, such as global payments and inventory management, the solution supports the use of virtual goods and currencies, electronic wallets, peer-to-peer marketplaces and auction capabilities.

Digital River’s fatfoogoo business unit will continue to operate out of its current location in Vienna, Austria. fatfoogoo will deliver its technology as an integrated part of Digital River’s e-commerce offering for games as well as a stand-alone solution.

“We are excited to join Digital River’s family of companies. This acquisition provides fatfoogoo with the backing of a proven e-commerce leader and enhances our leadership in the European market,” said Martin Herdina, fatfoogoo’s CEO. “Together we’re positioned to lead the future of in-game commerce with a solution that will uniquely stand out in a competitive marketplace.”

Under the terms of the agreement, Digital River acquired fatfoogoo as part of a cash transaction for approximately $10 million. The agreement also provides fatfoogoo shareholders with an earn-out opportunity based on the fatfoogoo business unit achieving certain performance targets. Other terms of the transaction were not disclosed.

 

Nexon acquires NDoors

Wednesday, May 5th, 2010

NDoors, most noted for their development work in hit titles Atlantica and GoonZu has recently been acquired by Seoul, Korea based Nexon Corporation.

ndoorsMapleStory, and arguably microtransactions founder, Nexon Corporation announced it’s successful majority stake purchase of fellow Korean MMO firm NDoors Corp. The deal saw 67 percent of NDoors’ stake sold to Nexon. This percentage also includes shares from the former NDoors chairman, Seong-Mun Kwon. This majority stake buy in will now give Nexon management rights as the largest shareholder. At the end of the day, NDoors will be incorporated as a subsidiary of Nexon.

The logic behind the buy in is that NDoors’ talent will increase the enterprise value and strengthen Nexon’s core capabilities.

“Nexon has been carrying out ongoing investment in the companies with outstanding development efforts” said Su-Min, CEO of NEXON. “NDOORS, as well as an excellent development capability with domestic and international publishing capabilities would be a big help to expand NEXON’s portfolio and to carry out a global expansion policy” he added.

First established in 1999, originally under the name Intizen Co., NDoors is based in Seoul, Korea, and has licensed a number of MMORPGs in Europe and Asia. In the North American market, NDoors Interactive has made strides in the free-to-play department with Atlantica Online, WonderKing Online, and Luminary: Rise of the Goonzu.

NDoors’ pulled down around $36.3 million in 2009, with an operating profit of $14 million, with 72 percent of total sales coming from overseas distributors.

 

IBM to tackle real world problems via CityOne sim

Tuesday, May 4th, 2010

IBM has recently announced a new project, “CityOne” that they dub a “serious game” that takes aim at addressing real world urban problems through MMO-esque simulations. Targeted at consumers, business partners, and students, the sim presents players with real-world problems including business, environmental, and logistic issues.

cityoneSubtopics of issues to solve include a series of missions that present players with energy, water, banking, and retail industry problems. One game ‘mission’ revolves around a city where water consumption has expanded at twice the rate of population growth, supplies are becoming strained (and possibly polluted); the city is losing up to 40 percent of it’s water supply due to leaky infrastructure; and energy costs are on the rise.

Sounds like a very real world situation to me – but how is a player meant to solve this difficult issue? The player is then challenged with the difficult task of spinning multiple plates, without letting a single one crash and burn. In this case, players are tasked with developing a Water Management System that includes accurate, real-time data to not only influence, but presumably help, players make the best informed decision possible, thus delivering the highest quality water in the most economical way.

The intended offshoot of these challenges is that users will learn how the components of service reuse, process management, cloud and collaborative technologies make business models more agile. Obviously this has tremendous potential for today’s current business world, but it’s also an indication that IBM is looking down the road. No indication was given as to data inclusion or exclusion, so it’s entirely possible that IBM could be using this tool as a way to spot top problem solvers before they even start thinking about colleges and universities. In other words, IBM could be poised to adopt the McDonald’s theory: Get ‘em while they’re young, and you’ve got ‘em for life.

“Enterprises are increasingly adopting Web 2.0 collaboration tools to appeal to a new generation entering the workforce that grew up immersed in social media technologies,” said Lisa Rowan, director HR, Learning, and Talent Strategies research IDC. “Training will need to follow suit by incorporating interactivity and gaming to be relevant to this new workforce.”

If any of this ‘gaming for real-world problem solutions’ sounds a bit familiar, you’ll remember that Jane McGonigal is currently running the URGENT: EVOKE project (which concludes next week), which while not exactly similar, does address a number of similar issues. Given McGonigal’s experience and knowledge, I certainly hope the IBM folks have been in touch.

IBM unveiled CityOne in the Agility Work Zone at IBM’s IMPACT Conference in Las Vegas yesterday, and will continue the demo today. Backing up the new project, a special session titled ‘Using Games to develop strategies and skills to thrive in a real-time world’ showcased the use of CityOne. More info on the project can be found here.

 

InstantAction builds the bridge out of Facebook, allows social gaming embeds

Monday, May 3rd, 2010

Browser based, social gaming is all the rage as of late, and for good reason. With no special hardware, or even software for that matter, required, and generally easy-to-understand mechanics, it’s easy to see their popularity. And when one thinks of social games, the defacto platform is normally Facebook. Well, hold on to your hats, because InstantAction has successfully built the bridge out of Facebook, and will allow anyone to embed premium video games anywhere on the web.

Announced late last week, InstantAction launched its direct-to-consumer online video game distribution service that allows publishers to embed these games on any blog or social media site (naturally, they’re also available on Facebook). Kicking things off, InstantAction has made LucasArts’ The Secret of Monkey Island: Special Edition available (see below).

In terms of technicality involved, if you’ve embedded a YouTube video practically anywhere on the web, you’re already familiar with the InstantAction process. The service uses a combination of in-browser, thin-client, and progressive download technologies. The end result is a distribution method that allows publishers to dramatically expand distribution by embedding titles just about anywhere.

“It was only a matter of time before the Internet disrupted the extremely limited distribution channels available to game creators, enabling direct-to-consumer access and more control over sales performance and profits,” said Evan S. Wilson, senior research analyst of Pacific Crest Securities. “The InstantAction platform virtually obliterates the obstacles to game distribution by making it possible for anyone to embed any video game anywhere on the web, just like embedding a video. For game creators, this opens up distribution channels that haven’t previously been an option – especially for console-quality games. For consumers, it creates endless possibilities for game discovery, risk-free trial, and faster downloads.”

The Secret of Monkey Island:SE powered by InstantAction

“The InstantAction platform provides a brand new way to get games from their creators to customers, thus avoiding obstacles to publishing and discovering new games that are inherent in the traditional brick and mortar model,” said Louis Castle, CEO of InstantAction.

“We give game creators a secure way to offer free trials, item purchases and pay-as-you play options, with a broad range of monetization formats and platform compatibility,” continued Castle. “Gamers not only get the try-before-you buy and rent-to-own benefits; they can easily embed full games into their social networks, accessing their friends’ lists and adding social features to games where they may not have existed. InstantAction not only changes how games are distributed and discovered, but how they are enjoyed.”