Archive for March, 2011

Bigpoint and Universal announce partnership

Wednesday, March 23rd, 2011

Universal Monsters coming soon Hot on the heels of the EA partnership announcement, Bigpoint has now revealed that they’ve struck a deal with Universal. The partnership and licensing agreement also includes plans to develop Universal Monsters, a browser based title.

If you’re thinking, “Hey wait a second, didn’t they already have this deal via The Mummy?” you’d be correct, however, this new agreement will incorporate a vast array of classic Universal characters, and include The Mummy within this new title. Score two for The Mummy. The deal was announced by Bigpoint Inc., the U.S. based, fully independent subsidiary of Bigpoint GmbH (the German holding company). Bigpoint Inc. will take on the development of the new MMOG. As previously mentioned, both The Mummy and the new Universal Monsters are under license from Universal, and will remain their own independent properties.

Bigpoint Inc. will build both titles from the ground up and be built upon the growing Unity 3D platform in their San Francisco studios. “With full 3D, increasingly sophisticated design, and easy access for the end user, browser-based MMOG’s continue to emerge as an exciting gaming segment,” said Bill Kispert, Vice President and General Manager, Digital Platforms, Universal Partnerships & Licensing. “We look forward to partnering again with Bigpoint to bring some of our most iconic characters and universes to life in this space.” The Universal Monsters title will feature a number of Universal’s legendary cast of ghouls. On tap for digitalization are Frankenstein’s Monster and Dracula, both of who are slated to duel to the death, or … life as it were. Likewise, The Mummy will make an appearance. On The Mummy solo side, the title is slated to appear in conjunction with the third installment of one of the highest grossing film franchises of all time; The Mummy Returns. Not satisfied with a simple digitalization, Bigpoint’s SFO based team will leverage Unity’s technology to include a number of original techniques used in the films they draw from. Conversely, The Mummy Online seeks to create and incorporate the same style and intricate detail found within the previous The Mummy films. Bigpoint’s goal is to differentiate the titles, and make them both their own unique artistic presentation.

Production for both titles began in February. “We see tremendous opportunity in translating Hollywood titles into browser-based games. Battlestar Galactica Online was our first attempt in working with such significant properties, the games recent launch has already surpassed our expectations,” saidHeiko Hubertz, CEO and Founder of Bigpoint. “We’re excited to begin these new projects in San Francisco inspired by great films that bring a built-in appeal from legions of fans around the world.”

 

Zynga takes aim at Latin America – Partners with Mentez

Wednesday, March 23rd, 2011

It’s GDC time again, and it looks as though this year is on track to be yet another media and release-fest. With all the great information coming out of San Francisco, it’s often difficult to decide on just what to focus on. Already in full swing, leading Latin American social games publisher Mentez has recently announced a partnership with the world’s largest social games developer, Zynga. The partnership seeks to make it easier for Latin American players to take full advantage, and enjoyment of, Zynga’s top titles. The deal will see Mentez distributing Zynga Game Cards and PINS to more than 1 million retail locations and Internet Café’s across the region. The production of this deal has obviously been in the works for quite some time, as Mentez began distribution on February 18th in Brazil, with Mexico and various other Latin American countries getting the goods soon.

“Latin Americans really love Zynga’s games,” said Mentez CEO Juan Franco. “These players are very interested in purchasing goods in their favorite Zynga games and the partnership with Mentez will give them an alternative payment method to credit cards, which are not widely used by consumers in this region.”

So it seems as though we might now have a clearer picture as to what end Zynga’s been raising more cash for. This partnership with Mentez is clearly only the tip of the iceberg, as Zynga will be providing new options for Latin American players – and what better way to connect with them via a localized operation that simply distributes the goods, takes a cut, and watches the loot roll in. Zynga’s also issuing Game Cards available at smaller currency values, giving more players more choices for the amounts they want to spend on Zynga’s catalogue of virtual goods. I wonder if they’d consider the same in U.S./European markets?

The additional sweetener of this deal is Mentez’s own alternative payment network; Paymentez. Publically launched in November 2009, the platform currently has around 4 million active users, and handles approximately 650 transactions per second. Through this new partnership, Zynga will tap into this existing payment platform, allowing players to pay for goods via local credit cards, bank transfers, and in person for cash at pharmacies, newsstands, and Internet Cafés.

And while the International Trade Administrations March 2008 report indicates that per capita credit card usage in Latin America is much lower than North American usage, there’s still a massive market waiting to be tapped. The report indicates that countries including Chile, Mexico, Venezuela, Colombia, Argentina, and Brazil have less than 1 credit card in circulation per person. The average U.S. figure is closer to 2.5 credit cards per person. On the other side of the coin, ComScore indicates that there are 73M and 32M Facebook and Orkut monthly users in Latin American, respectively. Given current and past social gaming data, and then backing it off a bit to compensate for the market, Zynga and Mentez are looking at a 42M – 52M unique user market. And even if all of these uniques aren’t credit card holders, they’re now free to pay up at every pharmacy, newsstand, or Internet Café.

 

OpenFeint launches Pay-per-Install distribution features via OFX 2.0

Wednesday, March 23rd, 2011

Announced late last week, social gaming ecosystem provider OpenFeint has officially announced their new OFX 2.0 freemium platform for iOS developers in a partnership with Adknowledge.

In a nutshell, this new freemium platform offers developers a pay-per-installation distribution service, thus allowing for more downloads, as well as monetization tools for both paying and non-paying customers. The method works like so: Game developers can increase their own applications downloads via purchasing inventory in said developers’ other various titles. These virtual purchases are designed to then in turn generate and increase installations of other titles. Players may earn virtual currency in these free-to-play games through “regular” channels, but with the addition of OFX 2.0 enabled titles, make take an alternative route, and earn currency through downloading (and presumably installing) the developers’ new app. Additionally, OFX 2.0 is targeted at non-paying players with the ultimate goal of converting them to a paying customer. Players may earn free virtual currency through the completion of simple actions – such as downloading an app. Once a users completes this action, game publishers cash in on a revenue share from OpenFeint. One of the beauties of this new platform is bypassing of any server work needed to be done by game developers.

Using the OFX 2.0 virtual goods economy, devs can manage an entire inventory of virtual goods over the air with no updates needed to the core game itself. Essentially, OpenFeint is bypassing the tedious structure of building a scalable server infrastructure to power virtual goods sales. OpenFeint is also providing a host of analytics tools to provide developers with actionable insights into what consumers are purchasing, what they’re not, and can adjust pricing levels accordingly, on the fly. “Mobile is an increasingly important part of our strategy and we’re excited to establish a footprint there using OpenFeint’s vast reach and Adknowledge’s proven games monetization solution,” said Suren Markosian, founder of CrowdStar, in a statement. Adknowledge general manager Chris Smutny adds, “The free-to-play phenomenon that became popular on Facebook is about to explode on mobile. OpenFeint is the perfect partner because they’re the leader in social game engagement technology on mobile platforms, and they have the critical mass of 4,800 games and 66 million players which creates an unparalleled opportunity to transform how mobile games are developed and monetized.” Editors Note: If any of this has vague overtones of Offerpal … well, you heard it here first. Let’s see how this one develops.

 

Riot Games taps Pando Networks for League of Legends distribution

Wednesday, March 23rd, 2011

Clearly Riot Games’ has one hot title on their hands. League of Legends has received accolade after accolade, and Riot has struck some strategic partnerships that have placed the free-to-play title at the forefront of gamers’ interest lists. Apparently, they’ve done such a good job, that they’ve been struggling to get the title out the door. Announced in conjunction with this years’ upcoming GDC event in San Francisco, Riot Games has officially partnered with Pando Networks to handle the growing demand for League of Legends.

Pando Networks’ main premise is that they optimize (read: speed up) the delivery of downloadable content. Likewise, the firm provides detailed analytics and performance data to their clients. At the present time, Pando Networks counts more than 5 million game downloads per month amongst their services provided. Riot has chosen Pando Networks’ Game Delivery Services in order to support the growth and popularity of their flagship title, League of Legends. And while Pando’s “off the rack” solutions are powerful in their own right, Riot decided to go with a fully customized solution, enabling the 1 GB title to be downloaded in a matter of minutes, and not days. Pando Networks/Riot Games is fully accessible via PC and Mac, in the US, Europe, and Asia.

“The combination of faster download speeds with an intuitive user experience and a reliable download solution regardless of network constraints has proven successful for Riot,” said Scott Gelb, vice president of technology for Riot Games. “We now convert more website visitors to gamers which has had a big impact on the number of people playing our game.”

Since implementing the Pando Networks solution, Riot Games is reporting an increased delivery speed and download completion rate, with an average download speed of over 1,200KBps, and download completion rate of 90%. This may not seem like a magical number of paper, but when you consider the wide variety of internet connections used, quality of line service, and platform, these speeds and completion rate are very healthy. And remember, as a free-to-play title, obviously the faster (and complete) a download arrives at a potential customers’ doorstep, the higher the potential of converting them to a paying customer.

“Riot Games is one of the hottest online game companies today,” said Robert Levitan, CEO of Pando Networks. “While Pando works with many of the leading free2play game companies around the globe, we have rarely seen such an enthusiastic response to a game as we have seen for League of Legends. We are proud to be providing our scalable solution that successfully meets the demand for such a popular game.”

 

Hi5 launches SocioPay monetization platform

Wednesday, March 23rd, 2011

Social networking platform turned social games platform hi5 has recently announced the addition of their own “Advanced Monetization Platform for Maximizing Social Gaming Revenue.” Dubbed SocioPay, the platform seeks to maximize revenue for social games by determining the optimal monetization solution for every commerce opportunity. More specifically, hi5’s SocioPay targets specific players that are less likely to purchase, and instead serves up advertisements as an alternative to a lost sale. Hi5 is expected to demo the SocioPay system at the upcoming Game Developers Conference this March 1st, in San Francisco; specifically at 11:15am in the Moscone Center’s North Hall, Room 122.

In addition to being an in-house solution for hi5, Vice President Monty Kerr notes that early testing of the system has resulted in a 200%-300% increase in revenues when compared to traditional commerce and lead-generation services. “The key innovation is that SocioPay extends beyond the hi5 platform; allowing developers to see dramatically increased revenue wherever their social games are distributed — even on other social networks,” comments Kerr in a statement.

Hi5’s thinking here is not only to increase the revenues of developers, but to obviously use the tool as an attractive draw to said developers. President and CTO Alex St. John adds, “We’ve received a lot of requests from developers to help them mitigate the commerce losses they are experiencing with currency and payment solutions on other social networks, and this is certainly an area where we can provide significant support.”

If the Socio naming sounds familiar, you’ll remember that hi5 is on the verge of launching SocioPath, what they call the “next generation social gaming platform,” with an expected release date to coincide with the upcoming GDC. Hi5 is touting the new service as a way to liberate social games from their dependence on social networks via viral acquisition, a feat that social games leader Zynga has been hard at work at for a while now. If hi5 is able to pull it off, the one-two punch of new hot ticket, and powerful monetization tool might just make them the go-to choice for developers looking to cash in on their creations.

“By utilizing the SocioPath platform for our title, Bush Whacker, we’ve been able to take down the barriers to entry and acquire more new users directly into our game. hi5 is driving a new model for virally acquiring audience into social games that is effective and will be instrumental in helping us achieve our growth goals for 2011,” said David Whittaker, Co-founder of DJArts Games in a statement.

 

Digital Chocolate fuels the fire with an additional $12 Million

Wednesday, March 23rd, 2011

Social games producer Digital Chocolate is reporting that they’ve recently closed a series D round of funding, amounting to a healthy $12 million. Round leader Intel Capital joined previous investors Sutter Hill Ventures and Bridgescale Partners.

This new round of capital arrives as Digital Chocolate closes out a successful 2010, a year that saw their rise to one of the top five global games publishers on Facebook. Not only a success on Facebook, Digital Chocolate made 2010 the year it jumped to smartphone and tablet platforms, totaling more than 100 million mobile downloads – a healthy figure by any measurement. Moving forward, Digital Chocolate executives intend on using this new investment capital to further expand the firm’s scale and cross-platform capabilities, as well as global reach.

Digital Chocolate founder and CEO Trip Hawkins comments, “The investment from Intel Capital supports our vision of publishing leading social games across different devices and platforms. The strength of our team, combined with the strategic insight and support from Intel Capital and existing investors, will help extend our leadership in the evolving social gaming market.”

It would appear that Intel Capital is equally happy with the opportunity to be involved with Digital Chocolate as well. Managing Director Mike Buckley adds, “We’ve chosen to invest in Digital Chocolate because of its success across the fastest growing digital platforms and consumer electronics device categories. As a leading social game developer, Digital Chocolate continues to drive new features and functionality across multiple computing platforms.”

You’ll remember that it was Digital Chocolate’s cross platform strategy that put them on the fast track to becoming one of the top publishers across a variety of devices. Their early integration with Open Feint most probably helped to propel this cross platform success as well. This cross platform strategy also puts Digital Chocolate in a unique position, as their success on a variety of platforms gives them a bit of latitude when it comes to title success dependent upon the platform. A prime example of this dependency would be Zynga. Although the social games giant has, and still is, trying to diversify the platforms their players play on, the main outlet still seems to be Facebook, thus running the “all the eggs in one basket” risk. So while Digital Chocolate might not quite have the number count and expansion figures that Zynga has, in the long run, they just might have the wiser strategy driving them home.

 

Image Metric acquires avatar creation platform Big Stage

Wednesday, March 23rd, 2011

It’s been a while since we’ve heard anything from Los Angeles based avatar creation platform Big Stage, with their last appearance here in April of 2009 when they received an additional $2.7 million in funding. Apparently they’ve been plugging away at the system, and late last week the news arrived that 3D facial animation firm Image Metrics has acquired Big Stage.

Honored in 2009 by Forbes magazine as one of American’s top 20 Most Promising Companies, Big Stage allows users to seamlessly convert a variety of photographs into 3D realistic animated avatars of themselves. If you’ve played a round or two of Tiger Woods’ golf with the “Create your own avatar” option, you’re familiar with the technology.

Big Stage’s primary service, the “Portable You” avatar, will be used by Image Metrics in combination with the firms’ already existing real-time, video-driven animation technology, culminating in a new product suite available (projected) in Q3 of 2011. The thinking here is that this new suite of tools will allow online and mobile content creators, social network and communication companies an easy solution whereby they can then in turn offer their customers a simple, easy-to-use method of creating photorealistic avatars. Staying true to Big Stages’ original mission, Image Metrics will also offer a direct-to-consumer Portable You package that will allow them to customize their digital self and use it across a myriad of digital properties across the internet.

“We are extremely pleased with the talent and technology coming from Big Stage,” said Image Metrics CEO Robert Gehorsam. “Their advanced yet easy-to-use avatar creation technology is the perfect platform to package with our facial animation technology for a complete life-like digital solution for both consumers and developers alike.”
With the addition of the Big Stage team and technology to Image Metrics’ current offerings, this also marks the first consumer market entry for Image Metrics. Previously, they’ve applied their technology to a number of offerings from Activision-Blizzard, Double Negative, Microsoft, Moving Picture Company, Rockstar, and many others.
While the technology seems sound in concept, the question that remains is, will the consumer market jump on the uptake? As we’ve seen over the past few years, virtual worlds have been on the decline, and with a product that’s aimed at this market, is there anyone there to utilize it? Perhaps this move is targeted directly to combat this, as again, the technology is ground breaking, but to what end? If Image Metrics can shift the primary usage to a true “take my avatar with me wherever I go,” they’ve still got the steep hill of adoption to climb.

 

New Study Reveals Casual Gaming Reduces Depression and Anxiety

Monday, March 21st, 2011

East Carolina University has recently released the findings of their year long study of casual video games, finding that the genre is likely to reduce depression and anxiety in randomized, controlled clinical study patients. East Carolina University’s Psychology Lab and Biofeedback Clinic studied nearly 60 subjects, all meeting the criteria of clinical depression, and recorded their actions, reactions, and conditions while playing three non-violent PopCap games: Bejeweled 2, Peggle, and Bookworm Adventures. In a move to further test the effectiveness of the study, nearly half those monitored served as control subjects.

Those not singled out as control subjects were exposed to the aforementioned games, and were monitored with psycho-physiological, biochemical, and psychological techniques. On average, those that were playing the PopCap games saw a 57% drop in depression symptoms. Additionally, the study found that these same subjects had a drop in anxiety, as well as improvements in their overall mood (a 65% improvement on average). Digging deeper, the test results found that after being exposed to the casual games, all 7 subjects classified as “severely depressed,” could be downgraded to “minor or minimal depression.” Likewise, those previously classified as “minor depression” dropped from 9 subjects to 4.

“The results of this study clearly demonstrate the intrinsic value of certain casual games in terms of significant, positive effects on the moods and anxiety levels of people suffering from any level of depression,” stated Dr. Carmen Russoniello, Director of the Psychophysiology Lab and Biofeedback Clinic at ECU and the professor who oversaw the study (as well as previous studies involving the same games’ effects on stress levels). “In my opinion the findings support the possibility of using prescribed casual video games for treating depression and anxiety as an adjunct to, or perhaps even a replacement for, standard therapies including medication.”

Adding to this statement, Dr. Russoniello comments that subjects had both short term (30 minutes after gameplay) and long term (one month or more) improvements when compared to their control group counterparts. “Equally important, the data supports the hypothesis that casual video games contain intrinsic qualities that, when played, provoke physiological and biochemical changes consistent with positive changes in mood and anxiety.”

Further details of the study indicate a marked difference between male and female subjects, as well as >25 and <25 years of age. Complete study results can be downloaded directly from East Carolina University at http://www.ecu.edu/biofeedback/

 

EA “Passes Go” with free-to-play Monopoly on Facebook

Monday, March 21st, 2011

EA has recently announced the launch of the timeless classic, Monopoly, now in a free-to-play format on Facebook. Titled Monopoly Millionaires, this version of Monopoly is the first free-to-play appearance in the franchises’ history. As with many, if not all, free-to-play social games, Monopoly Millionaires offers participants the opportunity to face off against their friends and family wherever they may be. Naturally, Monopoly is offered under a license from Hasbro.

“EA has enjoyed a very successful relationship with Hasbro over the last three years and we’re excited to introduce the beloved MONOPOLY brand to the Facebook community,” says Chip Lange, senior vice president and general manager of the Hasbro Division at Electronic Arts. “We strive to continually re-imagine Hasbro brands digitally in creative ways and MONOPOLY Millionaires is no exception. We’re bringing the world’s favorite game brand into the new era of social gaming, offering an accessible and enjoyable experience for Facebook users worldwide.”

According to EA, Monopoly Millionaires is an entirely new way of looking at Monopoly, particularly in the digital realm. A long time Monopoly digital developer, EA builds on this expertise to present a unique integration of social gameplay features. Their goal is nothing short of revolutionizing the way social games are played on Facebook.

“MONOPOLY has always been a social game that’s made better by the friends you play with,” said Katie Mitic, director of platform and mobile marketing at Facebook. “With MONOPOLY Millionaires, EA and Hasbro are bringing this global game brand to a growing online audience of people who play games with their friends on Facebook. MONOPOLY is a great example of the legacy that can be created when games are built to be social from day one.”

And while EA is out to, literally, change the game, fans of the classic will find themselves immediately within familiar surroundings. The classic Monopoly board is present, as are the traditional methods of building house and hotels, and die rolling to move game pieces. However, this is where the traditional gameplay ends, as EA has specifically designed the game to encourage players to interact with, and play against their friends. The mechanic is based on a familiar theme, the more players you play against, the more boards you have to visit, the greater your chances of success. If this sounds familiar, think about the way(s) Zynga encourages players to interact with each other…ultimately contributing to the “stickiness” factor. Even though players are encouraged to accumulate mass numbers, EA is still incorporating speed and quick-in-quick-out play, as players may roll the dice consecutively, and not have to wait for friends to finish their turns.

Monetization of this free-to-play classic arrives via game board customizations, allowing players to decorate their play surface. Presumably, EA will roll out additional customizations, i.e. for purchase game pieces, etc.
“MONOPOLY has entertained millions of families around the globe for decades,” said Mark Blecher, senior vice president and general manager of digital gaming and media at Hasbro. “With this first time addition of a social gaming version for Facebook, it’s great to know there will always be a friend or family member who’ll be ready to roll the dice any time of the day or night to experience the fun of MONOPOLY Millionaires.”

 

Zynga: Now valued at $7 – $9 billion- IPO likely within 1-2 years

Monday, March 21st, 2011

According to new reports from the Wall Street Journal, social games juggernaut Zynga, is currently seeking $250 million in a new investment round that would place the valuation of the firm at $7 – $9 billion. You’ll remember that in April the company filed for an issuance of stock that placed the company at a staggering $4 billion. In other words, in less than a year, Zynga has effectively managed to double their value. However, according to the WSJ’s sources, or “those familiar with the matter,” the new round of funding could arrive within a few weeks – or not at all. To further put the importance of this valuation into perspective; Twitter (which has received accolades from everyone from revolutionaries to Oprah) has a current valuation of between $8 – $10 billion. Zynga, on the other hand still (more or less) relies solely on Facebook as it’s primary outlet.

While not specifically mentioned in the WSJ article, it’s quite clear that Zynga has managed this doubling of their valuation thanks to their most recent hit; CityVille. CityVille, is a crossbreed of the best of FarmVille, the companies’ first “real” hit, and the timeless Sims mechanics. According to AppData stats, not only is Zynga clearly the top publisher on Facebook, but three of the top six Facebook apps arrive via Zynga. CityVille currently hold the top slot with 96.2 million users, followed closely by FarmVille with 51.4 million users. Including their Texas HoldEm Poker (#4 – 38.1M) and FrontierVille (#6 – 20.7M), a quick bit of cocktail napkin math brings Zynga’s userbase to a staggering 215.4 million users. Certainly, there’s a more than a bit of overlap between the titles, but it’s important to keep in mind that items purchased within one title can not be moved to another title. In other words, regardless of the overlap, Zynga is still making money hand-over-fist with each title – a significant part of this massive valuation.

And speaking of money – according to sources close to Zynga’s finances, in 2010 the company generated $400 million in profit on approximately $850 million in revenue. The WSJ article further outlines Zynga’s finances, noting that the company doesn’t really need the additional funding, as they’ve already raised $360 million from a number of venture capital firms, a number that does not include the undisclosed sum from Google. Given these healthy numbers, their sizable war chest of reserve cash, seemingly endless expansion(s), and rumors that they’re already in talks with at lease one major bank regarding financing, mutual funds, and “others,” it’s a no brainer that the company has received a number of requests from potential private investors. According to the WSJ’s sources, Zynga is looking at an IPO within the next 1 – 2 years.