Posts Tagged ‘Gmail’

Battlefield Heroes ‘Already Out’

Wednesday, August 27th, 2008

We got our first look at EA’s free-to-play ‘Battlefield Heroes’ last week at the Games Convention in Leipzig.  While I’ll admit, I didn’t spend as much time with the game as I’d like, I did return the next day to sit down with BH again the next day – a clear signal that EA is doing something right, as I was/am already addicted to this seemingly simple game.

There’s been a whole lot of noise over the past few days regarding BH, with everyone from gamespy to arstechnica to wired has written about the ‘already out’ Battlefield Heroes.  While this comes to a surprise to some, if you think about it, it really shouldn’t.  Since Battlefield Heroes is a free to play title, what exactly is EA selling?  In essence, for now at least, EA is selling only advertising space.  So in theory, they could release the product at any point in time with as little or as great fanfare as they so choose.  Producer Ben Cousins says that the game is essential “already out”, but has been a steady ramp up and release in bits and pieces.  The ‘official’ pomp and circumstance release is slated for the end of 2008 when all the facebook style social networking features will be implemented.

What does this mean for EA’s first foray into the free to play space?  By slowly releasing bits and pieces and letting more and more players in without calling the product ‘officially’ released, EA is playing it safe.  Not a bad move when you’re testing the waters of an unknown/unaccepted business model.  Let’s think of the BH ‘beta’ along the lines of Gmail and Flickr.  Google’s Gmail is still technically in beta, but grew virally by allowing one user to invite a number of other users.  Battlefield Heroes is following more or less the same path as Gmail (sans the ‘a friend can invite you in’ factor), Facebook, and Wikipedia.  That is to say – viral marketing.

While more and more reviews and thoughts and opinions are released surrounding Battlefield Heroes, there are a few key phrases that stick out: Fun, Addictive, Back for more.  In the untested Western waters of free-to-play, microtransaction, and in-game advertising world, this is music to our ears.

 

IMVU earning $1m per month with micro transactions

Tuesday, July 22nd, 2008

IMVU has been flying under the radar for the past few years, while quietly amassing a small fortune with micro transaction and embedded banner ads.

Since April 2004 IMVU has gathered 20 Million accounts with 600,000 of those functioning as active monthly users.  To compare this, Second Life managed to acquire 550,000 active monthly users over 5 years.

IMVU generates 90% of it’s revenue via micro transactions that focus on spending in game currency, and 10% from banner ads.  CEO Cary Rosenzweig commented that this averages out to around $1.66 a month per active user.  VC Jeremy Liew estimates that market hotspots Habbo Hotel and Club Penguin average around $1.33 – $1.66.

What’s for sale in IMVU?

With a demographic of 60% female/60% US based users, most of the top selling micro transaction based articles focus around avatar clothing, accessories and other character objects.  Participants make the items themselves with tools like Maya and Blender, and then make them available via the IMVU online shop.  .  IMVU then takes a small percentage cut of these sales and the rest goes to the seller.  IMVU is also a bit more relaxed about users selling items on third party sites, as it ultimately drives traffic and usage back to the MMO itself.

A block of 1000 in game credits cost the end user $1.

With user created items, IMVU is never short on a fresh supply of unique and new content.  “It’s my personal belief there’s maybe in the order of dozens who are doing this for a living,” Rosenzweig said. “Perhaps hundreds who are doing it for spending money.”

While IMVU is clocking these impressive numbers, they still remain in ‘beta’ since 2004.  Perhaps they’re just taking queues from Gmail?