Posts Tagged ‘advertising rates’

Microtransactions take the cake in anticipated development survey

Tuesday, March 24th, 2009

According to a survey of approximately 160 members of the games industry, as conducted by VentureBeat, microtransactions took the number one spot in the ‘most impactful’ areas of the games industry.  Smartphones took the number two spot.

Sixty six percent of respondents voted for microtransactions as THE area to watch, while sixty one percent clocked smartphones.  The VentureBeat survey broke user generated content out into it’s own category, but this area has obvious microtransaction implications, and forty three percent gave UGC top ratings.  Without surprise, the current advertising rates freefall also factors into the survey, with only twenty one percent calling IGA the hot spot, and voice recognition rounds out the top four with an eighteen percent vote.
VentureBeat lead writer Dean Takahashi comments, “The trends match closely to what is currently being funded by the venture capital community”

When speaking of platforms with the most potential, naturally, Apple’s iPhone received kudos, receiving a massive seventy four percent vote of confidence from survey responders.  Never left out of a good party, Social Networking nabbed sixty five percent of the vote, casual, web-based platforms, sixty two percent,  and home consoles rounding out the top four in this category at fifty seven percent.

This survey was conducted as part of VentureBeat’s GamesBeat event, which kicks off today in San Francisco, literally just down the street from the GDC.

“The content of GamesBeat was designed to stimulate discussion and understanding of the current and future market trends and attendees will find each of the top trends on the agenda and under discussion both on stage and in the hallways,” says Takahashi.

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Stevie Case (aka Kill Creek) featured on Avault.com podcast

Friday, February 20th, 2009

fatfoogoo’s own Stevie Case has recently been interviewed by the Avault.com podcast team.  Speaking with Chris Micieli, Bill Bolton, and Mark Turcotte, Stevie joins the crew to talk about everything ranging from Stevie’s career as a pro gamer to micro-transaction powered games are how they are the future of gaming.

Speaking first to her role as Vice President of Business Development and Sales with fatfoogoo, Stevie lays out our technologies and how and why game development studios should be talking to fatfoogoo when they are ready to monetize their product.  Noting that microtransactions are a relatively new way to monetize gaming, Stevie goes on to explain that with the current state of the economy, combined with falling advertising rates, microtransactions are a great place to be.

“It’s a good way to get users to not only spend small amounts of money, which isn’t as intimidating, but it also makes games sticker and doesn’t really break game play,” explains Stevie.

Stevie also highlights a quintessential point of microtransactions: user generated content, “I think it’s really cool to see users be able to create their own content and then actually sell that; have it become a part of the game, and become a part of the world.”

When asked about how microtransactions and user generated content could effect the overall balance of a game (i.e. the ‘pay to pwn’ theory) Stevie comments, “It’s a valid concern; I think that the key is you’ve got to have great game design upfront, and you’ve got to take all that stuff into account.  A lot of people have tacked on this notion of a virtual economy later because it sounds like a good way to make money, but if you don’t design it in upfront, it can be challenging for those reasons.”

Coincidentally almost mirroring David Perry’s remarks at DICE 2009, Stevie says that when you create a virtual economy based game, you’re putting a large amount of power in the hands of your users, thus game design should be held to even higher standards.

Speaking briefly to microtransactions in the mobile space, specifically the iPhone, Stevie points out, “Microtransactions are prohibited within iPhone applications.”  She continues on to discuss what iMafia is doing with their unique “if you go buy our other app we will give you points in this app” approach, but “as of today microtransactions are not officially supported.”

When asked about fatfoogoo’s list of clients, Stevie talks about our European clients, our involvement with Sun Microsystems via project darkstar, and hints at our upcoming release with a major US partner, and our involvement with a European based FPS/MMO.  But more on that later….

Give the podcast a listen in it’s entirety at Avault.com (episode #20).

 

MySpace to release microtransaction platform – perhaps beating facebook to the punch

Sunday, November 9th, 2008

MySpace COO Amit Kapur revealed at last week’s Web 2.0 Summit that MySpace is indeed working on it’s own microtransaction monetization platform.  Given the current state of advertising rates and associated revenue generation, both developers and social networking platforms are looking for a new way to monetize.  A casual glance at the gaming industry makes this a no brainer for Kapur and Zuckerberg.

While Facebook has it’s own virtual gifts system in place, they’ve yet to open it to developers (although 3rd party developers currently power a massive slice of facebook’s virtual gift economy).

We’ve already seen proof that the second a social network begins charging for an application or virtual gift, usage drops.  However, the overall value of the app is in direct correlation to the number of people using it (and their friends, and their friends of friends using the app).  Obviously, a high profile, well-developed application or virtual gift with a large number of users, will fair well in a microtransaction economy, and hopefully lead to elevating the entire industry.

Whether Facebook and/or MySpace users are already used to, or have already used some form of microtransaction is up for debate, but given the overall general demographics of both platforms, I’d be willing to make the bet that 75-80 percent of these users have made an iTunes song or iPhone application purchase within the last 12 months.

If either MySpace or Facebook manage to get their microtransaction payment systems houses in order, they could be set to revolutionize not only the social networking platform, but also the microtransaction industry as a whole.  This development has a number of positives for the free-to-play; microtransaction based gaming economy as well, thereby predisposing a much larger audience to the concept.  Exposure leads to understanding.  Understanding leads to acceptance.  Acceptance leads to interest.  Interest ultimately leads to development and creation of better and better products.

Oh and MySpace and/or Facebook…if you’re listening…fatfoogoo has already been down this road, and we’re here to help.  Zuckerberg and Kapur…call me.

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