Archive for August, 2010

Social Games reach 1 in 5 Americans

Tuesday, August 24th, 2010

Social Gaming is big, there’s no doubt about it, but until recently, one might be hard pressed to guestimate just how big. According to a new report released by The NPD Group, 1 in 5 Americans has actively engaged in social gaming, in one form or another.

Breaking this down into numbers, the NPD report issued that 56.8 million Americans have played a social game on a social network. The included group was sampled from aged 6 and upwards. The “Social Network Gaming” report indicates that 35 percent of these social gamers are new to the scene, and had no previous experience with traditional gaming: PC, console, handheld, or other forms of video game play. That’s a huge percentage, one that developers must be excited about, as this 35 percent is the target audience that could further expand the entire gaming industry. I.e. get them in the door with something light and social, and then move them up the gaming chain. Sure, there’s going to be falloff, but some new percentage is better than no new percentage.

Adding to this excitement, 10 percent of those surveyed indicated that they’d spent real money on microtransactions in free-to-play titles. This would be the aforementioned new percentage. 11 percent said that they were likely to purchase something virtual in the future. The percentage grows!

Conversely however, more seasoned, traditional gamers say that social games are effecting the way their view their play time. These gamers indicated that they spend on average 20 percent less on gaming overall since delving into the social network based gaming world.

This new 10-11 percent of incoming gamers are more likely to be either female or older according to the report. When viewing the current state of social gamers, the report was fairly evenly split, with 47 male and 53 percent female.

“Although 35 percent of social network gamers are new to gaming, it’s clear that a lot of existing gamers have been drawn into the social network gaming arena as well. This impacts both the time they spend with other types of gaming, as well as the amount of money they’re spending on gaming. As more players are drawn into these games, the entire games industry is going to feel, and have to adjust to, the impact.”" says NPD Group analyst Anita Frazier.

[source: Gamasutra]

 

SOE watch: EverQuest II and Star Wars: Clone Wars Adventures

Monday, August 23rd, 2010

Let it not be said that Sony Online Entertainment is resting on it’s laurels. This past Friday saw the release of not one, but two free-to-play games from Sony, one old, and re-engineered for a free to play market, while the other is completely new, and targeted at a much different audience.

EverQuest II Extended!

Sony’s EverQuest II, in the gaming world, is older than the hills, and has been through various phases of development and franchise highs and lows. To this end, Sony has taken a page from Turbine’s playbook, and flipped the subscription model to a free-to-play, as well as revamped the entire look and feel of the game, further compelling those on the fence to give this classic another look.

EverQuest II Extended, as it’s officially dubbed, offers players an interesting take on free-to-play in so much as the free version is actually part of a much larger EverQuest world, on that does include subscriptions. The thinking here is that gamers will have the choice to play free-to-play OR subscription based, with both services running in parallel.

Of note: SOE keeps referring to the opening of EverQuest II Extended! as a part of “SOE’s new free adventure service.” And while they’ve not specifically pointed this out, one can not see this reoccurring theme without wondering…what’s going on behind the curtain? Is this method/model a testing ground for something much larger?

Star Wars: Clone Wars Adventures

And in the same breath, on the other side of the time space continuum, SOE announced the official opening of Beta testing on the highly anticipated upcoming Star Wars: Clone Wars Adventures.

The free-to-play Star Wars title is scheduled for a September 15th debut, and eager Jedi’s can help Sony fine tune the final details. The free-to-play is poised to led gamers battle to the death with custom lightsabers, as well as blast across the galaxy in Starfighters, as well as take down starships.

Again, as with EverQuest II, the newest Star Wars offering is free-to-play, OR gamers can plunk down $5.99/month for a subscription. In lieu of said subscription, SOE is offering up a host of microtransaction goodies that can be purchased via Station Cash, Sony’s in-house currency.

At or around the official launch, Sony is also offering “The Clone Wars Adventures Galactic Passport” bundle which will include a 90 day membership, 500 Station Cash, as well as the ability to unlock an exclusive Togruta, or Yoda monitor trooper.

And while there’s not express mention of the “free adventure service” here in the Star Wars announcement, I wouldn’t be surprised to see it make it’s way into the marketing materials sooner than later.

Either way you look at it, two great offerings from Sony, and both free-to-play! It’s fair to say that going free-to-play is no longer groundbreaking, but it’s important to remember, with EverQuest II running parallel options of playing, they are setting an industry first, as no other game or gaming firm offers this option. It should prove interesting to see what Sony does with this, and how the associated communities will take to the business model.

 

The Google Chrome Web Store’s focus on gaming

Friday, August 20th, 2010

While there’s been a plethora of interesting tidbits coming out of this week’s GDC Europe in Cologne, there really hasn’t been anything that’s truly been “out of the ordinary.” Well, that all changed yesterday with some juicy details about Google’s upcoming Chrome webstore.

Google’s Game Developer chief Mark DeLoura and Chrome dev Michael Mahemoff presented Google’s first major stab at the browser gaming space, highlighting the upcoming Chrome app Store. Google’s goal with gaming in the Chrome app store is simple; simplify the confusion of browser games on the internet today, including discovery, and more importantly: monetization.

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If you’re thinking that the Google Chrome App Store looks remarkably like the iTunes App Store, well, you’re not alone. However, the familiar format is surely part of Google’s MO, and I’d expect a gradual shift towards a more “Google Created” design and layout. The store is expected to be powered by Google Checkout, a service the company has been trying for ages to figure out how best to utilize.

And while the Chrome App Store might look a whole lot like iTunes, there are a number of significant differences when it comes to feel. The double edged sword in the games creation process comes via the approval process. In so much as, there is none. Google’s philosophy is to make creating a web app as simple as possible. They say that a developer only need create said web app, put a wrapper on it (icons and metadata), and upload to the store. Once uploaded the app is automatically approved and published. Let’s read that again. I can create anything I want, wrap it up, and publish it to the official Google Chrome Web Store. Google definitely scores points for taking the hassle out of the approval process, but on the other hand, isn’t that approval process a quality control check? Ok, yes, Google will charge a 5 percent processing fee (in start contrast to Apple’s 30 percent cut of every sale), but even at that rate….I’m imagining a vast wasteland of buggy, poor quality, and overall crap applications flooding the Web Store. Yes, quality will float to the top, but if Google wants to simplify the process of discovery, is flooding the delta really the way to do it?

But I digress. While this is a major move for Google, let’s not forget that the Chrome Web Store is playing into a much larger Google initiative, the forthcoming Chrome OS that Google is developing, targeted at netbooks and tablets. And we all know what the best selling aps on these devices are.

And then there’s that thing about net neutrality…

source: 1up.com

 

Return of The Greek – Microsoft announces F2P Age of Empires Online

Thursday, August 19th, 2010

Announced at this year’s Gamescon in Cologne, Germany, Microsoft is dusting off the once popular Age of Empires series and bringing it into the free-to-play light. Taking full advantage of the Xbox Live service, as well as tapping into social networking elements, this newest iteration of AoE looks to be taking cues from Sid Meyer’s Civilization, in so much as there’s less real, and more cartoon packed into this RTS.

capitalcity

The timing could be better, as with Blizzard’s StarCraft 2 burning up the charts and re-igniting the Real Time Strategy game genre, one would think that Blizz has pretty much got the market cornered. I’m even willing to overlook the 12 year wait for a sequel. But clearly Microsoft isn’t having any of it, and is firing back with it’s own “command your armies into battle, all the while running a developing civilization,” thinker.

The original creators of the Age of Empire series, Ensemble Studios unfortunately had to close down shop, leaving many fans of the title wondering if this was truly the end of the road. Looking at the franchise’s 25+ million copies sold surely had something to do with Microsoft’s decision to revive and update the (now almost classic) title. Appropriately enough, the new development work is being done by Robot Entertainment, one of the many dev companies that sprang from Ensembles ashes.

battle

Age of Empires Online is platformed on Microsoft’s Xbox Live service, so don’t expect to pay a cent to play the game online, although that model remains unclear when speaking of the actual game client, which is slated to be available as a download, as well as the countless amount of DLC that’s likely to follow. Who doesn’t love new maps?

The first civilization on tap will be the Greeks, and Microsoft says there are plans to expand this lineup (based on game success). AoE Online, as the name suggests, will only be available online (no offline versions will be offered), and it seems as though there’s a big focus on collaborative questing (nice viral driver). One thing that stood out from the crowd was Microsoft’s inclusion of a persistent capital city that continues it’s development even when players are offline (nice stickiness). This persistent capital city also opens the doors for, what I could imagine, would be a host of microtransaction opportunities. I.e. Auto-farm/seed/collect potions, accelerated blacksmithing, etc.

shoretown

The Greeks are slated to storm the beaches of Live enabled PCs running XP, Vista, or 7 in 2011. Closed beta invites are already up and available for submission at ageofempiresonline.com, as well as an impressive selection of fan materials to get your pre-game Greek on.

 

Zynga snaps up Boston’s Conduit Labs

Wednesday, August 18th, 2010

Continuing their global buying tour, social games giant Zynga has recently snapped up Cambridge, MA based Conduit Labs. Announced yesterday, Conduit Labs is no longer Conduit Labs, but rather Zynga Boston, shutting down their current games operations and focusing on Zynga product development. According to Boston.com’s Scott Kirsner, the acquisition was a pure stock transaction. Conduit Labs was founded in 2007 and funded by VentureWorks and Charles River Ventures to the tune of approximately $8.5 million.

conduitCEO Nabeel Hyatt will now become the head of Zynga Boston, while the Conduit Labs team will immediately see Zynga on their next paycheck. Conduit is yet another social games maker acquired by Zynga, most noted for Loudcrowd, a social music game that focused social networking on music fans.

“Boston is an epicenter for technology and has a strong talent market, making it an ideal location for us to expand operations,” said Mike Verdu, senior vice president of games at Zynga. “As one of the most prominent social game companies in Boston, the Conduit team shares a similar culture and drive with Zynga, and together we anticipate great successes from our new studio.”

As noted above, this is only one of Zynga’s most recent purchases, with Beijing, Tokyo, and Austin already onboard. These are in addition to Zynga’s past purchases in Baltimore, Bangalore, Los Angeles, and Los Gatos. Given these acquisitions and explosive growth the company has recently seen (thanks Facebook), Zynga is rapidly positioning itself as a player amongst old-school giants including Disney, who recently purchased Playdom to compliment it’s social gaming offerings, as well as EA, who snapped up Playfish to get their feet in the game. Disney’s been around forever, and EA’s certainly no newcomer to gaming. What sets Zynga apart from the crowd is exactly that, it’s relative newness to the gaming world.

However, as Zynga’s main bread and butter is still reliant on Facebook’s whim, recent development such as these acquisitions are clearly pointing the way towards Zynga independence, or at the very least, diversification. And don’t forget, Google’s rumblings of a social networking competitor to Facebook, as well as the “secret” investments from in Zynga could only be positive for the Palo Alto based firm that surely must be looking to set themselves apart from, or … perhaps purchased by…Facebook.

 

IGA Worldwide: back in the game, guns a-blazin’

Tuesday, August 17th, 2010

The venture arm of Deutsche Telecom, T-Venture (as also in T-Mobile) has recently been added to IGA Worldwide’s list of existing investors including Kreos Capital and Easton Capital. This new influx of capital directly combats IGA’s financial position, as only a short 18 months ago, IGA put out the call that they either need more capital, or a buyer. Add to these woes, EA’s decision to move the majority of its in-game ad biz in house, and the writing was, pretty much, on the wall. Enter, zee Germans.

IGA Worldwide has undergone a major restructuring, so much so that the firm caught the eye of T-Ventures. The terms of the investment were not disclosed by IGA, however industry rumors place the sum somewhere in the seven-figure range.

“We are extremely pleased to have added T-Venture as a partner with such a high level of sophistication in the digital media space. IGA has streamlined its business model and is now poised for growth. We are aggressively focusing on expanding our advertising product lineup, game portfolio and global reach for 2010 and 2011,” said Christian Vry, CEO of IGA.

IGA chairman Justin Townsend and his team have not only done a major shift in house, but have also been out hustling, and reassuring agencies and clients that the firms’ business was in good shape, despite the financial woes. Consequently, Townsend reports that IGA has seen a renewed uptake from major brand soft drink makers, packaged goods, and lifestyle advertisers.

Fresh capital combined with renewed advertising spend behind it, IGA says that they’ve got a few fresh tricks up their sleeves, ones that are sure to make an impact.

“IGA has a host of innovative new products to bring online for the “in-game” environment over the coming months, including interactive rich media advertising formats and full screen hi-def video, giving us confidence that the in-game advertising industry will continue to make its mark as a prime offering for advertisers targeting the gaming demographic, be this via core games on platforms such as the PLAYSTATION®3 or Social Media Gaming on the PC platform, a rapidly growing sector that IGA has added to the mix due to the increased demand from our advertisers,” said Vry.

 

Digital River to deliver e-commerce solutions for En Masse Entertainment

Monday, August 16th, 2010

The global leader in e-commerce solutions, Digital River, recently announced their multi-year deal with Seattle based En Masse Entertainment. Digital River will deliver its powerful e-commerce solutions to En Masse Entertainment’s upcoming title The Exiled Realm of Aborea, or TERA for short.

logo_drDigital River and En Masse Entertainment struck a deal that will see in-game commerce and an online store launch in 2011, and will run through to 2014. Services provided by Digital River, parent company of fatfoogoo, will include global payments, subscriptions, fraud protection, and virtual currencies.

“We looked at a variety of e-commerce scenarios and quickly determined that Digital River had the most scalable solution,” said Patrick Wyatt, En Masse Entertainment’s chief operating officer. “Digital River has the global e-commerce experience, and powerful online and in-game features that we demand for our flagship product.”

teraSeoul based developer Bluehole Studio created TERA, and is now preparing for not only a North American launch, but also bringing the title to Europe. And while produced in Asia, TERA has been targeted at Western Audiences since it’s inception. En Masse Entertainment has spent hours and hours of research studying Western gamers’ preferences and adjusting their development accordingly. Appropriately, the MMO is the same, and yet different from a number of RPGMMO’s on the market today, in so much as combat involves moving and dodging attacks, similar to console style action titles.

“We are excited to be working with En Masse and their experienced leadership team. There is a lot of anticipation in the industry as they prepare for the official launch of TERA,” said Jeff Hemenway, Digital River’s group vice president of games. “We have been investing heavily in our game technology, which we believe is unmatched in the industry when it comes to global scalability, and the power and flexibility of our merchandising, marketing and fraud protection tools. Signing En Masse is a testament to the breadth and depth of our global e-commerce capabilities.”

 

The Google Gaming puzzle is coming together nicely

Friday, August 13th, 2010

As reported by TechCrunch, Google Ventures has invested an undisclosed sum of money in iOS developer ngmoco. It’s believed that this cash was a part of a new round of funding ngmoco took on, although the company is already profitable. Speculation puts the figure somewhere in the $3 – $5 million range.

google-pacman-630

It’s worth noting that the investment was made by Google Ventures, and not Google, the search engine, etc. giant. This completely self regulating and governing body that is completely separate from Google.

Now that we’ve gotten that out of the way, let me add the grain of salt. Google’s made no secret about their interest in gaming. Last week they quietly help a gaming conference, ThinkGaming, with many in attendance having to sign an NDA before even entering the door. In addition to the backdoor investment in ngmoco, don’t forget that around the middle of July, news started circulating that Google’s been pushing cash in Zynga’s direction, albeit a bit ‘under the table’.

Right, pieces 1 and 2 of the gaming trifecta in place. What’s next? Well, we’ll need a dash of social knowhow, enter the Slide acquisition. Ok, and now we need to monetize it all….Jambool, anyone?

Again, as stated by Google Ventures, they do not make strategic investments. This flies directly in the face of comments made by Google CEO Eric Schmidt, stating that any company receiving funding from Google Ventures, “would have 20,000 Googlers there to help them.”

And then there’s the Android. Recent figures have put the Android on top in the U.S. mobile market, however, there is a massive hole in the high quality gaming department on Android. Something tells me that although ngmoco has primarily been focused on iOS apps, we could start seeing Android ready titles from the company soon. Ngmoco’s chief Neil Young has even previously complimented Android, but chose to stick with iPhone at the time (February 2010).

Oh, and did I mention that ngmoco competitor SGN, another hit maker for iOS, has already jumped on the Android market. SGN closed a bridge round led by Tomorrow Ventures. A primary investor in Tomorrow Ventures? Well, none other than one Google CEO, Eric Schmidt.

I’ll let you connect the dots. I rest my case.

 

Social Gaming advertising spend to reach $220M this year

Thursday, August 12th, 2010

According to eMarketer, advertising budgets for social gaming will increase 20 percent this year, up to a massive $220 million. The advertisements include in-game as well as banners in social gaming titles, mobile apps not included – meaning the spend could be well over $300 million. eMarketer places the 2011 spend even higher at $293 million, with again, mobile apps spend not included.

118045eMarketer states that advertisers spent around $144 million in 2009, and the 20 percent 2010 increase is based on conservative estimates, as eMarketer themselves point out that the social games business continues it’s juggernaut growth pattern.

eMarketer reports that the U.S. market accounted for $142 of 2010’s $220 million spend, down from $144 one year prior. Non-U.S. properties will see the majority of game advertising dollars increase, up to $78 million from $39 million one year prior.

The 2011 forecast will see $192 million spent on U.S. social gaming advertising, with the rest of the world $101 million, bringing the total spend to $293 million.

The report points to major social gaming companies such as Zynga and the new Disney/Playdom venture deriving the majority of their revenues from virtual goods (80%), but notes that this drive in popularity has certainly increased the viability of said properties on advertisers’ radars.

At the Fortune Brainstorm Tech conference this past July, Zynga head Mark Pincus said, “Advertising will be an important part of the business model,” but he believes that future social game advertising will need to be “invented” rather than being the same things advertisers have already seen

 

Gaming industry doing it’s bit for U.S. economy – $5billion worth

Wednesday, August 11th, 2010

According to a new report issued by the Entertainment Software Association (ESA), the video game industry is clearly doing it’s part to stimulate the American economy. In 2009, the U.S. gross domestic product (GDP) from the video and computer gaming industry amounted to a healthy $5 billion.

ESA Report

What’s more, between 2005 and 2009, the industry as a whole saw a 10 percent increase, a figure that’s 7 times the overall growth rate of the entire U.S. economy. However, this figure flies directly in the face of reports that the industry isn’t faring as well in 2010, with March being the only month thus far this year that’s seen month-over-month growth.

“Despite a challenging economic environment, the entertainment software industry continues to grow and create new jobs at a rapid pace,” said ESA president and CEO Michael Gallagher.

This news arrives as part of ESA’s recently published study: Video Games in the 21st Century: The 2010 Report. In addition to the GDP figures, the ESA study also carries on to break down individual numbers, as well as salaries.

32,000 Americans are directly employed by the video game industry, an annual gain of 9 percent since 2005. Another 88,000 people are indirectly employed by the video game industry, bringing the total to 120,000 individuals.

Of those directly employed by the video game industry, the average annual salary was $89,781 (I can haz raiz pls?), with an overall industry compensation of $2.9 billion in 2009.

And where’s the work to be found? Well, no surprise here, as The Golden State still remains on top when it comes to pixilated employment. The gaming industry reportedly pumped $2.6 billion in employee compensation (direct and indirect) in California. Add to that the 2.1 billion gaming companies paid directly to the State of California, and you’re looking at a healthy 11.4 percent annual rate of growth between 2005 and 2009.

Other top players in the U.S. gaming market by geography include:

  • Texas – ranked #2 with 13,613 direct and indirect video game industry employees
  • Washington – in the #3 slot employs 11,225 gaming industry personnel

Rounding out the top 6 are New York, Massachusetts, and Illinois. Also noteworthy, The State of Virgina’s video game presence expanded 77 percent from 2005 – 2009.

To view the full report, download the PDF directly from ESA.