Posts Tagged ‘disney games’

Disney’s free-to-play Pixie Hollow drives online growth

Tuesday, February 17th, 2009

Along with launching DisneyXD last week, the big mouse also announced that recent ComScore data reveals that Disney Games takes third place among all online gaming destinations with 13.4M visitors in December 2008, a 13% increase yoy.  Reaching one further, ComScore’s January 2009 data sees Disney leapfrogging EA Games and grabbing the number 2 spot.

Disney’s not-so-secret ingredient?  Their free-to-play, virtual world Pixie Hollow.  According to Virtualworldsnews.com, a Disney representative explains the surge in traffic as, “largely driven by our virtual worlds, and specifically by the popularity of the new Disney Fairies Pixie hollow virtual world.”

And while Disney’s corporate policy dictates that no concrete numbers could be released, the rep also adds that Club Penguin has been a consistent driver for Disney, “but that the recent spike in Fairies traffic helped boost Disney last month.”

These numbers might seem large and impressive, but keep in mind that back in October Senior Vice President of Disney Online Steve Parkis stated, “More than 7 and a half million Fairies have already been created and, until now, have been all dressed up with no place to go. Now, in Pixie Hollow, Fairies can join their friends, take flight and live their very own Fairy adventures.”

To this end, it’s fair to say that Disney did they due diligence in ‘pre-loading’ the site with over 7.5M players that were ready and waiting for the magical world of Pixie Hollow to roll out the welcome mat.

The game itself is free-to-play, but similar to Disney’s Club Penguin, players may buy into a $5.99/month membership fee that gives them exclusive access to a number of game features.  Also noteworthy is Disney’s ‘real-world’ tie-ins to the online virtual world.  When played in the real-world, the companies’ Clickables Fairy collection rewards players with a number of special content unlocks that allow them to add unique clothing, accessories, and décor to their virtual world collection.

Disney may have taken the number two spot in online gaming destinations, but not all is well at Disney’s Interactive Studios.  Earlier this month in an earnings call, DIS made it quite clear that they’re in a similar bind as a number of other games publishers: falling prices.  Disney CFO Tom Staggs says that DIS sold more units last quarter, but ended up with less coinage in the bank due to, “a competitive and difficult market put pressure on pricing.”

Despite recent DIS layoffs, Staggs says that Disney expects to “continue to invest in… videogames, websites and virtual worlds.”

Given the problem facing the folks at DIS, combined with the massive growth in their free-to-play Pixie Hollow, I’d be interested in the revenue numbers Disney’s virtual world product sales are generating.  Is it time for Disney to seriously rethink how they’re monetizing the online and/or gaming space?

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Online gaming titles saw 27 percent increase in visitors in 2008

Thursday, January 29th, 2009

According to a new comScore report, 2008 saw a massive surge in online games.  The US market for online gaming grew to a healthy 86 million visitors in December ’08, compared to 67 just a year earlier.  Due to this jump in activity, the total time spent playing online games has risen 42 percent, with Americans’ time spent playing online games grew from 3.7 percent in December ’07 to 4.9 percent in December ’08.

The big winner in ’08 was Yahoo! Games taking the number 1 spot with 19.5 million visitors, a notable 20 percent rise from ’07 figures.  Powerhouse EA took the silver medal with 15.4 million visitors, up 21 percent.  Walt Disney’s legacy continues with Disney Games ranking 3rd with 13.4 million, a 13 percent gain.  Fourth place belongs to Wild Tangent with 13.3 million visitors, rising 74 percent yoy, and Addictinggames.com rounding out the top 5, with 11.3 million visitors, a 17 percent increase.  Most notable is the number 10 position, Spill Games which say only 6.7 million visitors, but a massive 269 percent increase over ‘07’s numbers.

“It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn,” said Edward Hunter, comScore director of gaming solutions. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives.”

More eyeballs means more display ads

While most ‘traditional’ forms of online advertising are seeing some pretty slim pickins at the moment, the online gaming category is bucking the trend, and has seen some remarkably positive numbers.  From November 2007 to November 2008, the total number of display ads in the online gaming sector rose to 8.6 billion, a 29 percent increase.  Given the increase in more eyeballs, more and more display ads are being served, but players’ frequency of exposure remained relatively the same at 127 ad views/person.  Another positive for the end consumer is that the number of ads per page, a measure of “ad clutter” actually declined 17 percent.

“The growth in display ads in the online gaming category not only underscores the assertion that gamers are increasingly accepting of ad-supported games, but also that the advertising community is recognizing the value of this highly engaged audience,” added Hunter. “It is also likely that the advertising agency community will begin to demand more evaluations of campaign effectiveness in this space as spend and impressions continue to rise.”

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