Archive for June, 2010

Sony and Microsoft ramp up the entertainment factor with Hulu

Wednesday, June 30th, 2010

For quite some time now, Xbox users have been a bit ahead of the curve when it comes to services non-gaming. The current state of (non) play for Xbox users include Netflix, Last.fm, and Zune video, and as of November, ESPN3.com (which promises to deliver over 3,500 live sporting events).

hulu

However, it seems that Sony has clearly heard what users are after: non-gaming content on their consoles. With the launch of the PS3 3.40 firmware update yesterday, it looks like a lot of those “Man, I wish I had…” are starting to become, “Wow, check this out!” moments. On Tuesday, Hulu confirmed on their website that coming this July, their video on-demand service will find a new home on the PS3 OS. This addition compliments the newly launched PlayStation Plus $10/month subscription package.

The “Hulu Plus” package will allow paying subscribers to access even more shows and platform support than the browser-based Hulu.com. In addition to all the standard Hulu features, Hulu plus will give viewers a 720p (HD) experience, as opposed to the maximum 480p service the free service delivers.

The Hulu Plus service arrives for PS3 in July, and will arrive on Xbox consoles in “early 2011,” according to Hulu. The Hulu rollout is not, however specifically targeted at gaming consoles, as the company reports Hulu plus will be available via iPhone, iPod Touch, and iPad, as well as the standard package of viewability via a Mac or PC browser. Looking even further down the line, Hulu is also targeting internet enabled TV’s and blu-ray players from Sony, Vizio, and Samsung.

On standout on the Xbox side of the Hulu deal is the integration with Kinetic, as the motion controlling sensor will also function as a remote for your Hulu viewing. Swipe a hand in the air to the right to fast forward, left to rewind. Neat.

The odd thing about not only this Hulu integration, but positioning consoles as the nucleus of a home based entertainment center, is that upon their launch in 2006, this is exactly what Sony set off to achieve. The hardcore gaming audience tended to drift to Xbox, one big draw being Halo, and Sony seemed to shift their position, and obviously address what the market wants/wanted. Now, 4 years later, it appears as though Sony has come full circle with the PS3, which btw, as of this week actually started making Sony a profit. And now that the PS3 is no longer hemorrhaging cash left, right, and center, it should be very interesting to see where Sony goes next. They may have been a bit behind the Xbox ball, but with new features, a new controller, and new money coming in the door…clearly the stage has been set.

 

iPhone 4 just shy of 2 million sales in 3 days

Tuesday, June 29th, 2010

In it’s first three days alone, Apple’s new ‘must have’ iPhone 4 sold 1.7 million units. Doing the math, that’s 394 iPhones sold per minute, or 6.5 iPhone sold per second, if you like. This can only be seen as yet another ‘WIN!’ for Apple, and the armies of iPhone app developers that stand behind the new device.

iphone_4.0“This is the most successful product launch in Apple’s history,” said Steve Jobs, Apple’s CEO.

Looking at Apple’s previous iPhone history, in 2008 the first iPhone 3G moved approximately 1 million units in it’s first weekend of sales. Not too shabby. One year later, with their iPhone 3GS, Apple did it again, repeating the previous years’ sales numbers. Apple’s much larger sibling that doesn’t make phone calls, aka the iPad, which launched in April of this year sold 3 million units in it’s first three months.

Featuring a number of “Ooo! Do Want!” features including the new Retina display, a 5 megapixel camers with LED flash, the A4 processor, a 3 axis gyro, 40 percent longer talk time, oh – and just for good measure, a 720p HD video recorder built in, the iPhone 4 is the hot ticket this summer. All of these features, and lest we forget the FaceTime video phone calling feature is packaged inside a revolutionary glass and steel case (that according to Steve Jobs, we’re all holding incorrectly).

And while all these new features are great, what do they mean to the games development industry? Surely, someone’s got to be working on some fanciness in regards to the FaceTime uses, but for now, popular iPhone games maker ngmoco is focusing on the 3 axis gyro. They recently released Eliminate: GunRange specifically designed for the iPhone 4 and taking advantage of pitch, roll, and yaw. Let’s be clear, the new 3 axis gyro is in addition to the accelerometer and previous left right axis previous generations of iPhone have had, thus making the new handheld gaming phone, a 6 axis controller.

With over 40,000 games available in the Apple Store, making it the largest category, just slightly ahead of books, developers of said titles will probably be resting just a little bit better at night now.

Not available in Europe until a projected end of July date, the iPhone 4 retails in the US for $199 for the 16GB model and $299 for the 32 GB.

 

Social gaming attracts frequent players – few whales

Monday, June 28th, 2010

In a recent survey conduct by the Inside Network, 90 percent of the 1800 social gamers polled indicated that they play their favorite title at least once a day.

28 percent said that they played at least once a day, with the majority, 62 percent, of social gamers coming back several times a day. Not surprisingly, the Facebook king of social gaming of the moment, Zynga’s FarmVille received the most amount of attention, with more than half of respondents saying that they play it everyday. Other strong contenders in the play-now, play-often category are Playdom’s Social City, Playfish’s Pet Society, and Zynga’s Café World.

When it comes to with whom they’re playing, the majority, 55.5 percent, of social gamers play with their friends. 15.4 percent play with classmates, and 9.6 percent play with co-workers. Interestingly, around a quarter, 19.5 percent, of all social gamers play with strangers. Ultimately, this 19.5 percent figure indicates a trust and confidence in the social networking platform.

And while this deep and frequent interaction can be measured as a sign of a hit title, at the end of the day, a hit is only a hit for developers and publishers if there’s some revenue rolling in to foot the bill. Enter stage left – the “Whales”.

ahab

The whales are a topic that’s been surfacing a bit as of late, and they serve an interesting purpose and place in today’s social gaming world. A whale is defined as a free-to-play/social gaming player that spends $25 or more per month on a product that is otherwise free to play, should they so choose. It’s these folks that the social gaming industry is building upon. While only 2 percent of the survey respondents admitted to spending upwards of $25/month on social games, the majority of those respondents indicated that their spending was focused on only one game, suggesting that these whales are not so much in love with social gaming in general, but rather, are developing a deep and (financially) meaningful relationship with one game. On the other side of that coin, 0.1 percent said that they spend $25 or more a month on eight separate social games – so there are at least a few players out there that like to spread the money around.

“If 2009 is remembered as the year that casual gaming stormed social platforms, 2010 is quickly becoming the year that the industry started to mature,” comments survey co-author Justin Smith

 

Playdom acquires Hive7

Friday, June 25th, 2010

Playdom’s train of acquisitions rolled into the Hive7 station yesterday afternoon as the Mountain View, CA based firm announced the purchase.

Hive 7 was founded in 2005, and is mainly focused on building Facebook and other social network apps. They’re best known for their popular Knighthood title, a medieval based battle and diplomacy game. Hive7 isn’t strictly tied to Facebook however, as they’ve also developed for MySpace, Bebo, Youtopia, Kick-off, and Sindicate.

“Our entire team is excited about joining forces with Playdom,” said Max Skibinsky, CEO of Hive7. “Gaining access to Playdom’s industry knowledge and resources represents a unique opportunity for our studio to operate on an entirely new scale.”

“We have moved our development studio into Playdom’s Mountain View office and are hard at work on our next title. We will continue to deliver enjoyable and engaging games to Playdom’s much larger player base,” added Dave Holt, COO and Executive Producer of Hive7.

This is Playdom’s 5th acquisition in the last four months alone, and the company is showing no signs of slowing. They might not be achieving Zynga’s rep, but if these acquisition figures are any indication, they’re clearly in the same revenue ballpark. Remember, in 2009, Playdom brought home about $50m in revenues. And this is at a time when freemium was just on the upswing. Now that the trend has arrived, with even major studios such as Turbine converting their flagship title LotRO into a free-to-play, it’s plausible to say that Playdom might be on track to double this number this or next year.

We welcome Hive7′s employees and contractors to our family,” said John Pleasants, CEO of Playdom. “Our studio structure enables us to add stand-alone development start-ups like Hive7 to our portfolio without disrupting the cohesion and collegiality that made it such a special place to work. By integrating with our innovative central services and business intelligence functions, Hive7 will be positioned to develop deeper and more compelling games.”

The terms, conditions, and amount of the acquisition were not disclosed.

 

China bans underage microtransactions

Thursday, June 24th, 2010

Oh China. You have one of the largest gaming economies in the world. Why cut off your nose to spite your face? Ironically, that seems exactly what the Chinese government is doing in their latest round of policies in regards to online gaming.

In a statement issued by the Xinhua News Agency, as of August 1st, there’s a whole new set of rules online Chinese gamers are going to have to comply with. First up – restricting content that would lead to “imitation of behavior that violates social morals and the law.” The bulletin further clarifies that content that is unwholesome is forbidden and that games played in China must have measures in place that prevent minors from accessing “inappropriate games.” Right. Check every first person shooter off the list. Oddly enough, the soon-to-be-implemented regulations do not offer any guidance as to what is “unwholesome,” but porn, cults, superstitions, gambling and violence are mentioned.

Time spent playing. The Chinese have been rather touchy about this one since what seems like the dawn of the Internet. You’ll remember that little incident with a series of Chinese youths dying in these so-called “Internet addiction boot camps?” The new Chinese regulations call for gaming companies to limited the time spent played in order to ward off any addiction to teh internetz. Again, the rules and regulations did not specifically cite a “permissible” gaming time. Black is grey, and red is white?

And last, but certainly not least, the new laws going into effect August 1 will prevent those under the age of 18 from buying or selling items with virtual currencies. Ouch. However, the regulation states that the virtual currencies must be exclusively used to purchase the products or services of online games. All of this has been made possible by a new Chinese law that requires online gamers to register with their real names. Big Brother IS watching.

These new laws arrive on the heals of a major Chinese crackdown on internet café owners in April. Those under the age of 18 are barred from said establishments, and café owners that are caught violating this policy are subject to having their business shuttered for 30 days. Getting caught twice in one year results in a permanent closure of the café.

In what has to be one of the biggest strikes of irony to date, the Chinese online gaming market has an approximate value of 3.8 billion dollars, and grew almost 40 percent in 2009. Niko Partners has placed a 10 billion dollar estimate on the Chinese online gaming market by 2014.

 

Chevrolet partners with Microsoft for virtual Volt test drive via Kinect

Wednesday, June 23rd, 2010

Announced at the 2010 Cannes Lions International Advertising Festival, Microsoft and Chevrolet have partnered to bring the worlds first mutliscreen advertising campaign that takes advantage of the upcoming Kinetic’s controllerless gaming interface. The project will promote Chevy’s Volt electric car launch later this year. From a gamers view, Kinect offers an entirely new way of interacting with video game titles, whereas from an Advertisers view Kinect offers a unique way of connecting with consumers by allowing them to virtually physically interact with a product.

chevy_voltThe Volt IGA will take place within “Kinetic Joy Ride,” Microsoft’s first sans controller racing title. After gamers view the video ad in-dash on Xbox LIVE or the Web, the Volt will be unlocked and available for a test drive.

“The Volt applies advanced environmental technology to give Chevrolet drivers freedom from the gas pump, making it one of the most exciting developments the automotive industry has seen in years,” said Jim Campbell, U.S. vice president, Chevrolet Marketing. “Our marketing campaign needs to reflect this. Kinect allows us to bring the excitement of the showroom to the living rooms of our customers. It’s a way for us to replicate the experience of physically engaging with a product that is essential to the customer’s purchasing decision.”

And while Kinect has been touted for it’s innovation and “never seen that before” technology and interaction capabilities, this campaign illustrates a number of revenue generating possibilities for Microsoft and advertisers. Not only can consumers take a product for a virtual test drive, but advertisers can extend a campaigns reach via Microsoft’s various resources. For example, an extension of the Volt campaign under consideration involves a mobile brand experience. Consumers can add a local Chevrolet promotion to their calendar to take the Volt for a real-world test drive, or use Bing’s voice search to locate a dealer near them.

“Chevrolet Volt is not only offering a new way for car buyers to interact with and learn about a vehicle before heading to the dealership,” said Darren Huston, corporate vice president of the Global Consumer & Online group at Microsoft. “It’s enabling people to virtually test drive the Volt from the comfort of their own living room. This campaign showcases the kind of breakthrough digital campaigns we can deliver for marketers when we combine great partnerships with leading-edge software innovation.”

Given what the Chevrolet Volt is and what it stands for, I couldn’t think of a more fitting partner to test the multimedia crossover advertising waters. Technology of what type meets technology of another. The ultimate question is, after the novelty of Kinect wears off, will we be back to the same old argument about IGA, or has Microsoft established a compelling enough experience to make it last the duration?

 

Best Buy puts final nail in GameStop’s coffin?

Tuesday, June 22nd, 2010

GameStop. If you’ve played a game in the past 10 years, particularly a previously owned title, chances are you’ve past through GameStop’s doors. One of GameStop’s major money makers is buying used games and gear at super low prices and reselling said games and gear. The standard buy it cheap at the garage sale, sell it for a bundle on eBay method that millions are utilizing. However, it looks like that buy low/sell high/reap the profits method got some steep competition last week when electronics retailer Best Buy announced that they’d be offering gamers the option to trade in used titles for store gift cards this summer.

gamestop-storeThis isn’t the first time that we’ve heard rumblings from Best Buy regarding cutting in on GameStop’s action. In fact, Amazon.com and Toys-r-us have hinted at similar programs, but until last week, neither of the three had put a solid plan into action.

As a result of Best Buy’s announcement, GameStop stock took an 11% nosedive last week. Currently, GameStop is trading at only 7.3 times the year’s projected profitability figures, and is seeing competition on both fronts: Physical and Virtual.

While GameStop created the position of General Manager of Digital Media last summer, Chris Petrovic has some Goliaths to battle. Not only has Best Buy just undercut GameStop’s major money maker, but digital delivery (never one of GameStop’s specialties) just got a major shot in the arm last week with OnLive going live. And lest we forget, both Sony and Microsoft are carving a slice out of GameStop’s once healthy slice of retail games sales.

That’s not to say that GameStop isn’t going down without a fight. In addition to the aforementioned Digital Media position, they’ve also focused on in-store exclusives. Earlier this year they teamed with Activision Blizzard to promote a free-to-play, web based browser title, Legends of Zork. Am I really the only one seeing the irony in the brick-and-mortar store promoting a browser based free-to-play?

The writing is, and has been for quite some time, on the wall. With new ‘download it now, have it now, play it now’ platforms springing up every few months, some more successful than others, I’m flabbergasted to explain why GameStop hasn’t closed some of it’s underperforming retail stores and reinvest that cash into a robust online delivery platform. Steam, OnLive, Xbox marketplace, PlayStation Store– they’re all the future. When, why, and how GameStop steps up to the plate with these contenders remains to be seen. If at all.

 

OnLive goes Live – Gaikai signs EA

Monday, June 21st, 2010

Like any good party, some of us woke up after three days of pixel-fueled bliss and had to re-enter the ‘real’ world. It’s often easy to get distracted by the flashiest gadgets and titles on hand, but there where a bunch of other things going on at E3. Case in point: OnLive went live.

OnLive_Logo_white_backgroundCloud computing has seen a steady increase over the past few years. As SaaS platforms and downloadable content are becoming the norm rather than the exception, there are a number of gaming industry related firms trying to bridge this gap as well. Thus far, there are two main players, Palo Alto based OnLive and Los Angeles based Gaikai.

In the “First!” category, OnLive took the prize, as they announced last Thursday that the subscription-based cloud gaming service is now live and open for business. Thanks to a sponsorship from AT&T, the first year of the subscription (normally a $50 annual fee) has been waved. That’s not the price of a game purchase and/or rental, only access to the community features, including the ability to try every game in the OnLive catalogue for 30 or 60 minutes. OnLive’s games pricing structure seems in line with Steam’s, anywhere from $10 – $60 depending on the publisher. Speaking of publishers, OnLive’s managed to pack a number of hot titles into it’s debut including Splinter Cell: Conviction, Borderlands, and Just Cause 2.

On the other side of the coin is David Perry’s Gaikai. In contrast to OnLive’s glitz and glamor booth at E3, David Perry held a small get together in a cubicle, stressing that Gaikai is “the ultimate lead ever for a publisher.” Perry is positioning Gaikai as a ‘try before you buy’ service. If this sounds remotely like InstantAction, you’d be correct, however with Gaikai, all the heavy lifting is done in the cloud, ultimately giving gamers instant access to PC games. Perry says that the ultimate goal is to let publishers and eventually gaming sites to embed games directly into a browser, circumventing the norm of trailers and/or screenshots.

gaikaiLogo_blackOnTransparentBGPerry has previously said that Gaikai’s servers will “end up in rings” around OnLive’s servers. That may be the case, but OnLive’s director of media and games development Joe Bentley says that he has yet to see Gaikai working in a real world environment. Yes, Perry had a number of streaming games on display (we’ve already seen WoW on an iPad courtesy of Gaikai), but with one small hitch. Perry was demoing the technology with a server in the same room. OnLive’s servers are 400 miles to the north, and currently serving more than just one user.

With that said, Gaikai does have some pretty strong players on-board, as EA recently signed on the dotted line to go with Gaikai. Slated for availability via Gaikai are EA’s The Sims, The Battlefield: Bad Company Series, Dragon Age, Mass Effect, Medal of Honor, and Need for Speed.

“Gaikai’s innovations open whole new experiences for both current players and new customers looking for the best of interactive entertainment. It also brings new opportunities and capabilities that will improve both our craft and products, including secure beta-testing and the ability to instantaneously bring the latest games into the hands of our waiting audience”, said Richard Hilleman, Chief Creative Director for Electronic Arts.

It should now be interesting to see where these two head. Originally based on the same idea, it’s now clear that they’re both heading in two different directions. And the bigger question is – is the market big enough for both of them, considering that their services are, at the end of the day, complimentary. Who’s going to buy who first?

 

Bebo. AOL’s $850 million mistake.

Friday, June 18th, 2010

Well, it looks like it took slightly longer than initial estimates, but AOL has finally unloaded sold social networking, ummm, platform for a massive (just under) $10 million. That’s $840 million less than they paid for it. No, that’s not a typo. Eight hundred and forty million dollars. Gone. Down the drain. Ouch.

bebonoes!But let’s take a stop back a few years, when AOL was trumpeting it’s own horns on the successful acquisition of Bebo, a one-time Facebook competitor. The idea was to use Bebo as a springboard for all future AOL social networking activities. Admittedly, a sound strategy and solid business idea.

Founded in 2002 by Michael Birch and is wife Xochi, Bebo (which is a moniker for Blog Early, Blog Often) started to see the light in early 2005. It soon started taking off, and at one point was garnering more traffic than Amazon; If you’re looking solely at British analytics. At the time of purchase, AOL had some serious expansionism in mind, and figured that under their banner, Bebo could duplicate the same success on American shores (same language, right?). In 2008, AOL took the plunge and signed on the dotted line to take over control of Bebo. Arguably, Mr. and Mrs. Birch made the deal of the decade.

And while the initial response was positive, Bebo, just like many other competitors to Facebook began the slow decent into the abyss. Between the time of purchase (February 2008) and this past March, over 10 million users have abandoned their Bebo accounts.

Noteworthy; because AOL sold Bebo for such a minuscule amount in comparison to what they paid for it, they weren’t legally required to report it – and at first, they didn’t. Bebo’s new owners Criterion Capital Partners, issued a press release, and it wasn’t until persistent media inquiries finally broke down the wall of AOL shame silence.

AOL CEO Tim Armstrong comments, “Criterion Capital Partners are specialists in facilitating growth plans and turnarounds, and well placed to drive Bebo’s effort to strengthen its foothold within the highly competitive social networking arena.”

Un huh.

And now for one of the best parts of the entire fiasco: Due to the complexities of US corporate tax laws, because AOL sold Bebo for less than $10 million, they’ll be able to use the sale as a write off. Judging by standard corporate tax rates, AOL stands to gain in the neighborhood of $300 million in tax credits, plus the $10 million it picked up from Criterian. Not quite the price they paid for it, but a heckuva lot better than whipping a dead horse.

Now don’t get me wrong, I have no feelings either way towards Bebo. I think I opened an account there sometime back in the oughts, but never really did anything with it. Criterion Capital may have just made the purchase of the millennium, because if there’s anything to learn from social networks that aren’t Facebook, is that they can come back in many different forms. Hi5 is a prime example of this mechanism at work.

Adam Levin, a managing partner at Criterion Capital Partners agrees, “The young, highly active user base, revenue history, presence in countries throughout the world and solid technical infrastructure make it [Bebo] an attractive media platform both as a standalone entity and in the context of our broader investment objectives.”

 

GamersFirst to release first Mac free-to-play

Thursday, June 17th, 2010

As an owner of an OSX based system, I’ve gotten pretty used to boot camp and playing PC based titles in this fashion. And while everything works (more or less) just the way that it should, there’s always that nagging feeling of – I bought a mac because I don’t like windows, why oh why can’t I play this title on my beloved OS? Well it seems as though games publishers are starting to come around to the ‘other’ side of the table. Mac gamers undoubtedly are tapping into Steam’s offerings, and others are beginning to follow suit.

taikodomGamersFirst announced that they’re making their first Mac title available: Taikodom: Living Universe. Developed by Brazilian studio Hoplon Infotainment, Taikodom is a real time space action MMO set in the 23rd century. A free-to-play EVE perhaps? GamersFirst promises to serve up jaw dropping graphics as players determine the fate of humanity in an RPG style progression space fighter.

Taikodom was originally developed for the PC platform (boo), and GamersFirst will provide the beta client sometime this year.

“The Mac platform has been in Hoplon’s plans for a while now, so we are very excited continue working with GamersFirst and offer Taikodom on Mac,” states Tarquinio Teles, CEO, Hoplon. “We want to offer options to GamersFirst’s diverse Free2Play community and presenting Taikodom across multiple platforms will expand beyond GamersFirst’s existing player base and further expand our relationship.”

While GamersFirst isn’t the very first free-to-play title available for Mac, it does look to be one of the most promising thus far. If it’s anywhere close to what EVE delivers, and at a fraction of the cost (before a shopping spree in the in-game store), I’m all for it. The more titles that OSX users have in hand now, only means that the industry as a whole will have to start taking the mac platform seriously. That is, if Apple themselves don’t beat the others to the punch.