Microsoft officially pulls the plug on in-game advertising unit Massive

October 21st, 2010

Officially announced in New York yesterday, Microsoft has decided to shutter it’s in-game advertising unit, Massive. According to Microsoft, the technologies developed for/at Massive will be redeployed to their first party ad business, with an initial focus targeted at gaming. Redmond will wind down Massive’s operations, with the brand disappearing by years’ end.

massive_incThe future of the now closed company will eventually expand it’s offerings and technology to other Microsoft opportunities, but the decision comes in the wake of Microsoft’s decision to work closely with the Interactive Entertainment Business (IEB) and continue developing and expanding the technology employed under the Massive banner. This development will seek to meet the needs of first-party gaming advertisers on Microsoft properties such as Xbox LIVE and MSN Games.

The news of Massive’s impending sunset arrived at the beginning of this month, with Adweek breaking an exclusive reporting the news, with sources coming from inside the company. According to author Mike Shields, Massive general manager J.J. Richards had already started looking for a new job, and that the reassignment of Massive employees had already begun.

According to Shelds’ sources, it’s rumored that Microsoft had been shopping Massive around to potential buyers, least of which included competing in-game advertising firm Double Fusion. Microsoft had been seeking a high six, low seven figure deal – a deal Double Fusion obviously passed on. To put this figure into perspective, when Microsoft acquired the ad agency in 2006, they paid anywhere between $200 – $400 million according to estimates.

Noted above, Microsoft already has an Interactive Entertainment Business unit, and while Massive held it’s own niche specialty, at the end of the day, it appears as though Microsoft was unnecessarily duplicating it’s efforts. Meaning, in 2006 when they purchased Massive, the topic and industry were red hot, with then Massive CEO Mitch Davis prediction that the in-game advertising industry would be a $2 billion market by 2010, a figure that’s never been realized. The rise in popularity with both gamers and advertisers of central “Hubs” such as Xbox LIVE for Microsoft and Home for Sony have contributed to Massive’s demise. Add to this the fact that via Xbox LIVE, Microsoft can keep the entire advertising dollars pie, while via Massive, they’re contractually obligated to share some of this pie with advertisers, the decision to close down shop at Massive was only a matter of time.

While it’s sad to see any firm close it’s doors, it should be interesting to see what the now re-deployed Massive team can do for Microsoft’s Interactive Entertainment Business. Surely, years worth of know-how and experience are sure to trickle their way into new Microsoft offerings.

The Google Chrome Web Store’s focus on gaming

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

Rumor: Sony to cut half of Liverpool staff

February 2nd, 2010

Late last week rumors started circulating that Sony may be cutting it’s Liverpool UK studio staff by half. Exact numbers are not official, but Sony has confirmed that the Liverpool studio will be ‘restructured’ as part of a ‘project prioritization’. Over the weekend inside information started to leak that the ‘restructuring’ could compromise up to half of the studio’s numbers. A staff member, speaking under condition of anonymity, said that the layoff restructuring process was “looking heavy,” estimating that “around half us may be gone.”

sce_logo_140905As of today, Sony has declined to comment on the Liverpool studio status, and the numbers remain an estimate/rumor. However, on Friday Sony did say that a number of active projects at the firm’s second largest development studio in Europe, will “cease immediately”.

“Our North West Studio Group has been, and will continue to be, a vital cog in the WWS family, with a history of producing genre defining games such as MotorStorm, WipEout, Formula 1 and WRC,” read a Sony statement released on Friday.

As you’ll remember, WipEout HD recently suffered a setback when Double Fusion’s in-game advertising (served at 1080p resolution) caused massive load times, thereby upsetting more than a few gamers. While this fiasco certainly didn’t help things, there’s no apparent direct connection to Sony’s decision to slash jobs at the Liverpool studios.

The restructuring rumors started surfacing just on the heels of a recent media report that indicated that Sony’s third fiscal quarter (October – December) could run as high as $1 Billion. If accurate, this projection could outdo even the most optimistic of all analysts’ predictions. Japanese news source Nikkei reports that the skyrocketing profits could have to do with “strong sales of LCD TVs and payroll cuts and consolidation of facilities.”

Double Fusion to deliver in-game ads on 2K Sports’ NHL and NBA 2K10 titles

January 21st, 2010

Double Fusion and 2K Sports have recently announced a deal that will see in-game ads placed in both NBA and NHL 2K10 titles. This deal now sees Double Fusion as the exclusive in-game ad provider for the games on Sony’s PlayStation3.

Double-Fusion-logo2_qjpreviewthRepresentatives from Double Fusion say that they’ve been working closely alongside 2K Sports developers to integrate the ads in the least obtrusive manner. Double Fusion says that they’re committed to delivering in-game advertising while still maintaining the contextual relevance and realism of ad placements at real world sporting venues.

Double Fusion reps point to its “dynamic advertising engine” as the secret to success.  Through this delivery, Double Fusion owns the various placements throughout a virtual setting, and its clients can the serve advertising into it’s partnered games. With backend reporting tools provided by Double Fusion, advertising clients may then track, modify, and measure the effectiveness of their in-game advertising campaigns.

Double Fusion CEO Jonathan Epstein comments, “Extending our dynamic advertising relationship with 2K Sports is a testament to the growing importance of in-game advertising and the value Double Fusion delivers for its publishing partners.”

“The franchises included in this agreement provide a tremendous opportunity for brands to reach an enthusiastic audience of sports fans,” he continues, “much like they would try to do during actual sporting events, with the added bonus of being able to implement targeted campaigns quickly and effectively.”

And while it might simply be a coincidence, this announcement of the 2KSports and Double Fusion deal arrives only days after former EA executive Mitch Lasky lambasted his former employer on where they’re headed, and how they plan on getting there. 2KSports is EA Sports most direct competitor.

Nielsen reports record gaming for June 2009

August 11th, 2009

According to a new report published by Nielsen Co., this past June was a banner month in video game play. While sales of consoles might have been flat, it appears that those that already own a console (or two) spent record amounts of time (measured in minutes) gaming. According to a recent NPD Group survey June ’09 hardware sales took a beating, dropping 31 percent when compared to June ’08.

Compared to June 2008, Nielsen’s year-over-year numbers indicate a 21 percent increase in time spent with games. On average, gamers spent 12.8 hours playing during the month of June.

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Of particular interest, the Nielsen survey clearly indicates that consumers have reached the crucial critical mass numbers with ‘new generation’ consoles, the Xbox 360, PS3, and Wii, as half the minutes played during the month of June were dedicated solely to these consoles. Nielsen’s director of video game services, Geraldo Guzman comments, “The transition has happened. Now that there is critical mass on the new generation of consoles, it gives marketers a chance to reach gamers on the platforms which offer in-game advertising.” An interesting point, as currently only the Xbox 360 and PS3 support dynamically served in-game advertising. However, let’s not forget about the recent WipEoutHD iga fiasco.

The Nielsen study also indicates that more than 50 percent of all gamers are over the age of 18 (insert marketing opportunity here), with teens 12 – 17 making up the largest segment of minutes played players, a massive 25 percent.

Sony/Double Fusion ad HD IGA’s to WipEoutHD – gamers cry foul

August 4th, 2009

In principle, this concept sounds awesome, groundbreaking, stupendous even in the boardroom. However, it looks like someone overlooked that one important step of ‘unobtrusive’ when programming the 1080p quality in-game advertising.

WipEout HDBundled into the new Fury DLC pack, Sony’s tapped IGA provider Double Fusion to retroactively fit the title with some revenue generating ads. No problems thus far, as it’s a pretty fair statement to make that 99.44% of gamers are used to seeing a billboard ad or two, and of course the blatant Coca-Cola vending machine, etc. For the most part, these in-game ads aren’t getting in anyone’s way of game enjoyment, and arguably ad a further touch of realism to the experience.

Again, Double Fusion gets credit for being the first IGA firm to implement true 1080p quality advertisements into a video game. And fittingly, the firm chose a futuristic title to kick off the HD ads campaigns in. “By introducing high-resolution dynamic video ads into WipEout HD, Double Fusion is responding to advertiser demand and offering an engaging ad format while pushing in-game ad innovation to a new level,” said Jonathan Epstein, CEO of Double Fusion. “The title is one of the most popular and visually stunning available on the PlayStation Network and a perfect vehicle to connect advertisers to a captivated audience. It comes as no surprise that advertisers have already signed up for WipEout HD even before the launch of the new video ad units in the game.”

Ok, again, so far so good. So as the classic Wendy’s advertising campaign questioned, “Where’s the Beef?” The beef comes our way via seconds. Let’s be honest: load times are a bummer. Every game under the sun has them, and it’s just the way things work. However, keeping players engaged in what they’ve paid for, mainly the game, is something that every developer shoots for. Most players would like to be spending their time shucking and jiving, rather than watching a scrolling progress bar. To that end, it looks like Double Fusion and Sony are placing advertising dollars over gamer satisfaction. As demonstrated by Ryaldeco, the standard load time for WipEout HD is around 8 seconds. Compare this load time to what now takes around 19 seconds if an ad plays.  Ouch.

Fair enough, 19 seconds isn’t go to kill anyone, but when one is used to a load time of half the current state (if an ad plays – reports range from 3 to 5 times per hour), you could see why this has caused somewhat of an uproar from a dedicated community. To add insult to injury, WipEout HD is a paid title. Perhaps if the game were free-to-play, and either microtransaction or IGA supported – well, in that case, players get the title free of charge, so a bit of monetization somewhere is to be expected. However, for players that have already laid $20 (or so) down….

Again, in principle, Double Fusion is to be commended for pushing the envelope, and utilizing previously untapped resources to push the format forward. On the other side of the coin, it’s a shame that progress comes at the cost of time, which ultimately leads to engagement.

Update: Eurogamer is reporting that Sony has pulled the offending ad.  “The ad has been removed from WipEout HD and we are investigating the situation to ensure that any in-game advertising does not affect gameplay,” said a Sony spokesperson.

Double Fusion shifts into top gear with Nissan cubeparty iPhone app

July 14th, 2009

Leading in-game advertising firm Double Fusion has made its first foray into the rapidly expanding iPhone gaming segment with the launch of Party Roundup, a Nissan Cube branded game. Taking cues from the Cube’s advertising campaign, developers Coresoft set out to emphasize the car as a “mobile device”. The game primarily focuses on mobility and customizations, not unlike it’s real world 2400 lbs. glass and steel counterpart, and allows players the opportunity to customize their vehicles according to their own personal tastes and preferences.

img_0005“The iPhone is an extremely powerful gaming platform and we are excited to have worked with Nissan to provide auto enthusiasts with an innovative mobile gaming experience,” said Jonathan Epstein, president and CEO, Double Fusion. “Just as the cube fits into the mobile lifestyle of car owners, cubeparty typifies Double Fusion’s commitment to connecting brands and gamers across all platforms and, as our first involvement with a game exclusively for the iPhone, reinforces our dedication to providing unparalleled reach and the ability to target any and all desired gaming audiences.”

Taking advantage of the new OS 3.0 update, Coresoft’s creation allows for both single and cooperative multiplayer (up to 8!) action. Not unlike a host of other driving based games available for the iPhone the built in accelerometer is used to steer the cube while navigating through 3D city environments. Again, while the controls are nothing new, Nissan and Double Fusion weren’t about to launch just another ‘driver’ as the cube party app features a never before seen play action. In multiplayer mode, each of the up to eight simultaneous players have a chance to drive the cube themselves, as the car will drive off on screen and onto another, thereby putting the new user in full control. And naturally, just like it’s real world counterpart, players can customize their cube in a seemingly endless number of configurations, both interior and exterior.

img_0006“cubeparty is a great way to engage the gaming audience with the Nissan brand through one of the most popular and widespread mobile devices,” said Kerry Feuerman, Group Creative Director at TBWA/Chiat/Day. “Double Fusion’s extensive experience across all interactive platforms allows Nissan to deliver premium gaming content free of charge to a passionate and trendsetting audience.”

Weighing in at only 86MB, this entertaining little app is probably smaller than most video podcasts you regularly update, and should keep you not only entertained, but will plant the seed of just how fun and entertaining a Nissan Cube can be. Double Fusion – I’d say mission accomplished!

The cubeparty app is available for free courtesy of Nissan, Double Fusion, and Coresoft via the iTunes Store.

Gameforge CEO Klaas Kersting to deliver “Free-to-play vs. Payment Models” keynote at GDC Europe

June 30th, 2009

Founded in 2003 by Klaas Kersting and Alexander Rösner, German based Gameforge quickly became the de-facto destination for European free-to-play gamers.  With award winning games, both client and browser based, including OGame, Ikariam, and Metin2, Gameforge has attracted over 75 million gamers from around the globe.

Klaas KerstingMr. Kersting is expected to share his knowledge and experience with GDC Europe attendees, and will deliver a track keynote titled, “Changes in the Games Industry – Free-to-play vs. Payment Models.”  Kersting will share his thoughts and advice on the success of the free-to-play business model.  He’ll also cover the differences between gaming attitudes and cultural backgrounds when it comes to various payment models.

“Gameforge develops pioneering and groundbreaking technologies in the browser-based game sector, which is driving the whole industry,” said Frank Sliwka, Vice President European Business Development of Think Services Game Group. “GDC Europe is focused on delivering content that appeals to a global audience, while presenting content that represents and showcases the European development community. Gameforge is one of those companies that exemplifies the European spirit of innovation, and as a market leader, we anticipate a keynote that is powerful, informative and inspiring.”

Kersting’s keynote speech should dovetail nicely into Double Fusion’s Direct of Developer Relation’s Brian Blau is expected to talk about in-game advertising.  Blau’s talk will review the design and implementation aspects of dynamic in-game advertising placements.  He’ll also be presenting examples of the Good, the Bad, and the Ugly in respect to which ads have worked, not worked so well, and outright failed.

Both Kersting’s keynote and Blau’s session will deal with the rapidly changing state of the gaming industry.  One discussing the microtransaction position, the other the in-game advertising stance.  As we’ve seen over the past year, a number of free-to-play titles are being introduced to the market in hybrid form.  Meaning, these titles are choosing wisely, and not relying on simply one form of monetization, but diversifying and offering players subscriptions for premium content, microtransaction options, and perhaps a pre or post game advertising roll.  Both of these sessions should be of high value and interest to any gaming developers looking into the future, and realizing that the state of play is no longer what it once was.

Taking place between the 17th and 19th of August at the Cologne Congress East Center in Cologne, Germany, the GDC Europe expects over 1,500 attendees from 48 countries around the globe.  The GDC Europe is regarded as the preeminent European games developer conference.

New data suggests In-Game Advertising spend will reach $1 bn by 2014

May 27th, 2009

A new report released by Screen Digest suggests that the growing gaming market is “impossible for brands to ignore.” The study, titled “In-Game Advertising: Market Assessment and Forecasts to 2014,” makes the claim that the relevance of gaming as a medium will make it an attractive commodity to ad buyers.

“Dynamic in-game advertising offers brands the same accountability as other digital platforms but in a more controlled environment than social display media and through a more standardized value chain than mobile advertising,” says Vincent Letang, Screen Digest Senior Analyst for Advertising. “Like online video pre-rolls, in-game advertising fills a gap in online branding, bringing familiar formats such as virtual billboards and TV ads into the gaming experience.”

To be fair, the report does acknowledge a recent “softness” in the in game advertising spend, but goes on to list a number of advantages the medium has over other delivery systems, concentrating on the increased opportunity to communicate with varied demographic groups that are increasingly hard to reach via other media (I’m looking at you TV).  The Screen Digest report points to key examples from eBay, Nike, and naturally includes the Barack Obama campaign.

The data for this report was mined from a number of clients from a leading global media investment management firm GroupM.

“Games are proven recession-beaters,” opened Adam Smith, Futures Director at GroupM. “There are many ways in which advertising can help evolve business models for video games and we have only just begun to explore that potential. Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media.”

And the icing on this ‘ooo…good news cake?’ – the Screen Digest Report concludes, “a combination of audience media habits and the unique advantages of dynamic in-game advertising” will drive this spending spree. It is estimated that by 2014 dynamic in-game ads will represent about 1.5 per cent of all global spending on digital advertising.”

So the question begs to be asked, who’s got it right here?  With predictions like this, one would think that In-game advertising is THE spot to be right now, but let’s not forget about Microsoft’s recent slash and burn of their own Massive Inc. (ok, it wasn’t quite as bad as initial reports….but still), and IGA’s plea for either an injection of cash, or a buyer.  We haven’t heard much from Double Fusion lately, the other, other white meat, but remember, back around the beginning of the year they added Media and Advertising vet Jana Friedman to the staff, and moved Monika Madrid up to the VP of Biz Dev chair.  If Screen Digest has got it right, has Microsoft made a terrible mistake?  Will we see a ramp up of smaller independent in-game advertising firms that specifically target helping similar independent game firms increase their monetization via the medium?  Only time will tell, but obviously, there are two very differing opinions here.

LA Games Conference features stellar lineup, April 28-29

April 27th, 2009

Kicking off tomorrow, the LA Games Conference features an outstanding collection of speakers and panelists from across today’s gaming landscape.  The conference is slated to have over 250 senior decision makers from games, media, entertainment and tech companies all under one roof.

lagc_logo_2009Held at the historic Roosevelt Hotel, in Los Angeles, California, this year’s conference features a number of presentations and talks by a number of industry leaders.  Featured keynote speakers include:

Nolan Bushnell – founder of Atari and Chuck E. Cheese, CEO of uWink and Chairman, NeoEdge.

We’ve previously highlighted Bushnell’s innovative concept and use of microtransactions in the traditional ‘diner’ setting.  Bushnell is expected to talk about his thoughts on game consoles like the Nintendo wii and the new and emerging landscape of gaming (presumably with a heavy focus on microtransactions).

“Distribution of Games and Digital Media – A Glimpse of the Future”

Mike Yuen – Senior Director, Game Services, Qualcomm

Yuen is expected to give his thoughts on what drives the move towards digitally distributed content.  He’ll also be discussing Qualcomm’s investment in the new wireless 3G game console in developing countries, called Zeebo.  This new console targets middle class gamers in emerging markets including Brazil, Russia, India and China.  This console plays only downloadable games, combating the piracy of disc based games.

“Casual is the New Black – If You Want to Avoid the Red”

David Roberts, CEO, PopCap Games

Quickly becoming one of my personal favorite gaming destinations, PopCap Games’ CEO David Roberts plans on discussing the future where innovations in casual games help create the environment for tomorrow’s hardcore game experiences.  Roberts will lay out the PopCap vision of bringing games to the other 80% of the market that even the broadest appealing casual games have yet to reach.

“Finding Money in Games”

Mitch Lasky, General Partner, Benchmark Capital

Given the current economic situation, Lasky’s talk on the latest investment trends and opportunities in games and digital media, might just be the one not to miss.  A 20+ mobile gaming, new media, and interactive entertainment business veteran, Lasky has served as EVP of Mobile and Online at EA before joining Benchmark Capital.

Other top panelists and Moderators include:

John Kavanagh, SVP, Interactive / Head of Games, Paramount Pictures

Gareth Davis, Platform Manager, Facebook

Spencer Hunt, VP, Game Production & Digital Development, Sony Pictures TV Int’l

Kuk Yi, Managing Director, Best Buy Capital

Bill Young, Western Region Sales Director, Electronic Arts

Jason Oberfest, SVP of Business Development, MySpace

Robert Norton, Managing Director, North America, King.com

Jana Friedman, SVP of Worldwide Advertising Sales, Double Fusion

David Reitman, VP, Content & Ent. Practice, Switch and Data

Kate Connally, Vice President, AddictingGames/MTV Networks

Bill Kispert, VP, Interactive, NBC Interactive

Jesse Redniss, Vice President, USA Network Digital

Ned Sherman, CEO and Publisher, Digital Media Wire

Eric Goldberg, Managing Director, Crossover Technologies

Nick Williams, Director, Media &, Entertainment Insights, OTX Research

Jay Baage, VP of Content, Digital Media Wire

Anu Shukla, Founder and CEO, Offerpal Media

Scott Scherer, VP of Product Management, Hands-on Mobile

Michael Rubinelli, SVP of Game Development, Genius Products

George Kurtyka, 3P Account Manager, Nokia

Nash Parker, Director, Emerging Technology & Media, Alcatel-Lucent

Braden Moulton, Senior Manager, Partner Development, Massive (Microsoft)

Nichole Goodyear, CEO & Co-Founder, Brickfish

Michael Chang, CEO & Co-Founder, Greystripe

Vijay Rao, VP, Director of Open Planning, Optimedia US

Ted Cohen, Managing Partner, TAG Strategic

Kyle Laughlin, Senior Director, Yahoo! Games

Bob Ferrari, VP, Publishing & Bus. Dev., Sanrio Digital

Michael Cai, Vice President, Video Games, Interpret

Kyu Lee, President, Gamevil

Mike Vorhaus, President, Magid Advisors

Dave Long, CEO/Co-Founder, Exponential Entertainment, Inc.

Matt Palmer, EVP & GM, Stardoll Network

Jim Drewry, Executive Director of Marketing, Turbine

Michael Rosenberg, COO, Future Ads (Owner and Operator, Gamevance.com)

Teemu Huuhtanen, President, N.A., Sulake Inc. (Habbo)

Matthew Bellows, VP, Consumer Strategy, Vivox

Ryan Barkan, Senior Director, Advertising & Video Games, Primary Wave Music

Mark Friedler, Partner, Worlds and Games LLC

Greg Short, Executive Chairman, EEDAR

Tim Chang, Principal, Norwest Venture Partners

Bjorn Book-Larsson, COO & CTO, K2 Network

John Canning, Principal, MediaSherpa

Dennis Fong, CEO & Founder, Raptr

Alex Hackford, Head of A&R, Sony Computer Entertainment America

John Hayase, Exec. Director of Development, Sony Online Entertainment

Steve Hoffman, CEO, RocketOn, Inc.

James Hursthouse, Bus. Development Director, Japan/Korea, BigWorld PTY

Dave Laux, Global Executive, InterActive Media

Nicole Lazzaro, President, XEODesign, Inc.

Calvin Ng, CEO & CSO, iLemon

Ken Rutkowski, President/Host, KenRadio

Tommy Tallarico, President, Tommy Tallarico Studios, Inc.

Dan Yue, Co-Founder & CEO, Playdom

David Zemke, Director of Marketing, Glu Mobile

Ethan Titelman, VP Media & Ent. Group, Penn, Schoen & Berland (PSB)

Jon Snoddy, Co-Founder, Chief Technology Officer, Big Stage Entertainment

Ron Williams, CEO, The Zeev Exchange (Zeevex)

Stay on top of the LA Games Confernece at www.lagamesconference.com