Posts Tagged ‘game publishers’

Outspark appoints EA vet Owen Mahoney to Chief Executive Officer

Tuesday, September 8th, 2009

Outspark, who recently signed a deal to operate a free-to-play/microtransactions supported dance based title in conjunction with Electronic Arts, just announced that they’ve appointed long time EA veteran Owen Mahoney to the position of Chief Executive Officer. Needless to say, it looks like there was more than just the operating of the game going on behind the scenes, and yet another indication that EA isn’t taking the casual/free-to-play/microtransactions market lightly.

outsparkCurrent (or should we say, now former) CEO and founder Susan Choe will continue her involvement with Outspark, serving as the Chairman of the Board, and will work with game developers on partnering deals with Outspark, i.e. unofficially, Business Development.

“Since founding Outspark in early 2007, the Freemium MMOG market has evolved dramatically. Outspark`s team has built a leading game publishing company, executing solid growth while bringing together a unique MMOG publishing platform with social community elements,” said Susan Choe. “With Owen`s leadership and business experience in the global gaming industry, Outspark will evolve as a leading global game industry player.”

Mahoney comes to Outspark from Electronic Arts Inc., where he’s filled a number of senior executive management roles, as well as his previous experience in online media. Most recently, he served as EA’s Senior VP of corporate and business development. With EA since 2000, Mahoney has led a number of the company’s global corporate development activities including acquisitions, equity investments and strategic partnerships. Prior to joining the EA team, Mahoney held executive positions with PointCast, Claris Japan, and Radius.

The plan is for Mahoney to add his expertise to the Outspark team and accelerate the company’s continued expansion into the North American market. While North America constitutes Outspark’s largest market, they are also developing traction in Europe and the Pacific Rim. Globally, Outspark counts 4.7 million users, and since their launch in 2007, have attracted around 5.4 million unique visitors per month.

“Having the opportunity to build on Susan`s success is a great privilege and I’m honored by the board’s endorsement,” said Owen Mahoney. “Outspark appeals to a vast global user base and to everyone who wants to establish a connection with gamers around the world in real time. Outspark`s game publishing platform and portal also offer fantastic opportunities to both content developers and game publishers, and I look forward to providing value for Outspark, our loyal user base, investors and our great staff.”

 

IGA Worldwide: We need more funding, or a buyer

Monday, March 16th, 2009

It looks like Tim Chang’s predictions on what’s hot and what’s not in the gaming industry are already proving to be right on the money.  Or lack there of in this case.

iga_worldwide_logoLate last week, Dean Takahashi reported on a response the VentureBeat team received from IGA Worldwide chairman Justin Townsend, confirming that the Gordian Group has been hired to keep the company afloat, either via a new injection of capital, or a possible sale.  Townsend says that the company’s preference would be to finish closing a third round of funding, but that IGA Worldwide also has a financial responsibility to it’s shareholders to consider selling the firm.

The Gordian Group has set a deadline of March 27th for interested parties to submit their bids, and Townsend remains adamant that no “low ball” offers will be accepted.

IGA Worldwide and Townsend find themselves in a rather sticky situation.  While the gaming industry has been one of the few areas to remain (relatively) untouched by the global financial crisis, IGA Worldwide specializes in advertising, an area that has taken quite a beating since September.  Townsend admits that times are tough, and that IGA Worldwide laid off 25 percent of their staff in November, staffing the firm with approximately 45 employees.

While the privately held company does not release it’s financial data, according to a VentureBeat source, IGA Worldwide lost close to $11 million on revenues of $3 million in 2007.  IGA Worldwide then projected to lose $26 million on revenues of $3.4 million in 2008.  Townsend was quick to comment that the firm did not, in fact, lose all of that projected cash, as is renegotiated deals with game publishers and platforms.  Townsend also admits that IGA Worldwide had previously guaranteed payments to publishers in exchange for the rights to insert ads into their games.  These agreements simply no longer made sense after the economic collapse made revenue projections unrealistic, says Townsend.

“We had to sit at the table and come up with a new business model that worked for all parties,” Townsend said.

Since being founded in 2004, and launching their first series of ads in 2006, IGA Worldwide has worked with top brands including IBM and McDonalds.  They have raised more that $46 million in two rounds of funding from investors including Morgenthaler Ventures, Itochu Technologies, Translink Capital, Sumitomo/Presidio STX, Easton Capital, DN Capital, Intel Capital, GE/NBCU’s Peacock Equity fund, and KTB Ventures.

Now this is an interesting story to watch.  IGA Worldwide, one of the biggest players on the in-game advertising circuit, is on the rocks.  Will they in fact land more capital and continue forging on through rough waters?  Or, will Microsoft’s Massive, recent news makers Double Fusion, or the big G (Google) step in and snatch IGA Worldwide up and include it in their growing Adsense for Games project?

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Three Melons launches LEGO Agents advergame

Tuesday, January 13th, 2009

South American game studio Three Melons has recently announced the launch of their newest project: LEGO Agents.  This new endeavor is slated to both entertain and involve players in the exciting world of the LEGO Agents toy series.  It also marks a significant milestone for Three Melons, as the project is based on their new Daiquiri technology.

Three Melons specializes in well developed and produced short session online video games with an emphasis on free-to-play, advertising and microtransaction based business models, and has worked on projects for MTV Networks, LEGO, Discovery Networks, and a host of other media companies, game publishers, advertisers and agencies.  They are responsible for three other LEGO projects: LEGO Indiana Jones, LEGO ExoForce, and LEGO City Coast Guards.

‘’The link between the game and the LEGO Agents product line is very strong, which indicates a good understanding of our products and communication guidelines making it a very good advergame not only for us but more importantly for the kids”, commented Sten Lysdahl, Internet Content Manager at LEGO.

Their newest venture requires players to chase a villain across multiple levels, interacting with and utilizing a variety of high tech vehicles, naturally focused on the LEGO Agents Universe of products.

“We wanted the kids to be immersed in the Agents world using a deep 3Dish experience”, explained Pablo Mayer, Game Producer. “This is our fourth game with LEGO and we are looking forward to continue the relationship given that we are learning a lot about what the kids want.”

Speaking to the Daiquiri Technology, Three Melons Development Manager Nicolas Cueno commented, “Daiquiri is the baseline technology that allows us to create these types of games. We want to push the bar on what can be achieved inside Flash and Silverlight”

Having spent more time than I expected with LEGO Agents (kudos Three Melons!), I found the game to more than meet the needs of a fun to play, browser based game.  It’s probably not something I’m going to play again, but for the 45 minutes or so I spent with it, I was entertained (great soundtrack) and could very easily see this game leading to a ‘Mom, can we go to the toy store’ request from the little ones.  All in all, another great production from Three Melons, and a win for LEGO.

Have a go at http://agents.lego.com/en-US/games/default.aspx

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Gameloft rocks the top spot in Mobile Gaming

Friday, June 13th, 2008

Pocket Gamer, considered by most to be the industries leading figure in mobile gaming recently published it’s findings of a comparison study reviewing all game publishers. The study was based on 313 international game reviews made public between January and March 2008. Rankings and ratings were compiled from heavy hitters Pocket Gamer, IGN Wireless, Mobile Game FAQs, Airgamer, and midget review.

Gameloft came out on top, receiving the award for “Best-Ranked Mobile Game Publisher”. Editor in chief of pocket gamer said, “Gameloft’s tally was based only on 34 available reviews out of the 313 that we studied. This makes the outcome all the more impressive because they managed to secure very high scores based on a small number of published reviews.”

“Receiving this honor from Pocket Gamer is a true privilege,” said Michel Guillemot, President and CEO, Gameloft. “We will strive to live up to this distinction by continuing to deliver the best titles worldwide.” Gameloft surpassed the competition with an average score of 7.94 out of 10, ahead of the second place publisher that earned a median score of 7.61.

Gameloft is a leading international publisher and developer of video games for mobile phones and consoles. Creating games since 1999, they have options available for handsets equipped with Java, Brew, or Symbian technology. Gameloft also publishes titles for WiiWare and DS, Xbox LIVE arcade, iPods, and PCs. Gameloft’s top titles include Block Breaker Deluxe, Asphalt: Urban GT, and New York Nights. Gameloft enjoys network distribution in over 80 countries globally.

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Fatfoogoo goes b2b with bbq flava

Wednesday, June 4th, 2008

Focusing not only on the needs of the player alone, after careful research and consideration, your favorite foogoos are now opening the doors to partnerships with individual game publishers. No worries, the current state of fatfoogoo isn’t going anywhere, and we’ve still got your back for all things trading. We’ve simply added another dish to the menu.

We took a long hard look at not only the technologies that we’ve developed in house, the experience and knowledge that we’ve gained, but also at what players and publishers across the world are looking for in a gaming experience. Combine that with the current state of the industry and the tremendous interest and revenue streams in the micro transaction field, adding the fatfoogoo partnership program was a no brainer.

In a recent interview fatfoogoo CEO Martin Herdina sites, “The trading and selling of virtual assets is truly the future of online gaming. It is an important alternative business model to the classical subscription fee-based programs that are currently dominating the industry. Fatfoogoo looks to fulfill a demand for this market. Our new Partnership program enables us to provide the best of both worlds: Primary Market trading, i.e. Publisher to Player and Secondary Market Trading, i.e. Player to Player trading. With the incredible growth of both primary and secondary trading markets, most major publishers understand that there is a need for an independently operated, fair and secure marketplace for virtual goods and services.”

And what a demand it is. The secondary trading market for virtual assets alone is currently growing at astonishing rates, going from revenues of approximately $1 billion in 2006 to an expected $7 billion in 2009, according to Nielsen.

This model has already been proven in Asia with Maple Story and Kartrider, both published by Nexon games. Research has shown that 8%-30% of all players purchase items via micro transactions. This in turn results in a higher revenue stream for publishers as opposed to the traditional subscription fee model. According to industry experts, on average, ‘Free to Play’ games generate anywhere between $15-$20/month. In the April edition of Fortune Magazine, senior writer Devin Leonard weighed in on the future of gaming:

(Game Publisher) Nexon pioneered this business – hooking players with a seductive free game while urging them at every turn to purchase extras using prepaid debit cards sold at retail outlets like Target. Nexon collects ad revenue in overseas markets, but in the United States the big money so far is in these microtransactions: $1.6 million a month. John Chi, CEO of Nexon America, says that the Nexon card is the second-best-selling prepaid card at Target – after the iTunes card. (Target will say only that Nexon cards are “doing really well.”)

Our experience in the virtual world micro transaction field is unparalleled. Not only have we created a multilingual platform, currency, taxation, and support system, but also gained real life experience and have weeded out a lot of headaches. As with anything in life, nothing is 100% certain, but here at the foogoo, we’ve already dealt with a whole number of things that could go wrong, have fixed them, and have learned from them. No other system in the world can match our level of multi national experience.

Back at the top-secret underground foogoo labs, our partnership engineers are already hard at work developing solutions for clients. Stay tuned, as we’ll be announcing some of our exciting partnerships soon!

 

ION Game Conference in Seattle: redefining online

Tuesday, May 27th, 2008

ION Game Conference in Seattle: redefining online

Under the motto “Redefining Online”, the Annual ION Game Conference took place in Seattle, WA ion between the 13th and 15th of May. The global gaming industry converged at ION to discuss the future of Online Gaming, exchange news, and set new goals for the coming years. Besides industry titans from both the US and Asia such as EA Games, Bigpoint, Crytek, and Epik; fatfoogoo was one of the few European companies present. We were here not only to represent Fatfoogoo, but also to get a view of the newest developments in online gaming. How these developments look, and where they will be taking the next generation of Online Gaming, we proudly present to you here:

Free Games with downloadable content and additional services

The first Trend that’s abuzz in the industry is the increasing alternatives to drive revenue generation. Publishers will sooner or later move further and further away from costly subscription fees and expensive stand alone games, and more in the direction of a “Free to play” platform, i.e. the game is free to download and play, but it’s also self financing by additional downloadable content, services, and micro-transactions between player to player or publisher to player. An excellent example of this concept would be South Korean publishers Nexon, who with Court Rider and Maple Story have banked over $230M in turnover, or German publisher Bigpoint whom already have over 10 million users. On average 8%-30% of these users have already, or will in the future pay for additional functionality and levels.

Outsourcing

The second trend amongst game publishers deals with competition in the global market and the often negative feelings/opinions associated with outsourcing. In order to spend more time in developing games, publishers are increasingly relying on third technologies; game engines, sound creation tools, and/or micro transactions (the selling and/or trading of objects, items and services within a game), between players or between publishers and players. The time and money saved with outsourcing should be reinvested in the core components of manufacturer; game development. There’s already a prime example of a masterful use of outsourcing in Epik’s Unreal 3. Unreal 3′s engines are pretty much the same as any 3D shooter, but they employ various sound engines from the Dolby Engineering labs, or micro-transactions from operators like fatfoogoo. The already existing cooperation with second and third line suppliers of engines and services should be worked out in the future. At it’s essence this will free up game publishers to do what they do best: Develop and publish games.

The merging of (suppossed) opposites

The third trend focuses on the fusion of the various different pieces of Social Networking and Gaming. The border between PC and Console, virtual worlds, games and personal net applications, mobile and casual games is becoming more and more blurred each day and should interoperate with each other – technically, functionally and economically. The platforms will be open to each other, and offer the end users several different levels of interaction. Nevertheless, the challenge for this kind of openness in technology lies not only in the tech sector, but the judicial as well. Copyright and tax laws vary from state to state, country to country. The challenge of a functional multinational system is a priority not only for software and hardware manufacturers, but for politicians as well.

Final Thoughts

Final thoughts and personal observations from Martin Herdina, our foogoo on the ground at ION:

A letter from America

Martin HerdinaBeing back in Europe the jetlag still doesn’t allow me much sleep at night but – and what’s a lot more relevant – I am looking back to a super exciting week at fatfoogoo.

Listening to the industry legends from EA, THQ and NCSoft talk about micro-transactions as the future revenue model for online gaming and to the success stories around Nexon’s “Cartrider” in Korea ($ 250M p.a.) has been extremely interesting and demonstrated once again that fatfoogoo is serving exactly the right market segment at exactly the right time.

Apart from these business aspects I met a full crowd of great people from the US gaming industry, enjoyed some super cool US Ska music at night (check out http://www.myspace.com/dealsgonebad) and was successful at avoiding all business-development meetings taking place in one of Seattle’s strip clubs.

Best,
Martin