Posts Tagged ‘money’

If you build it they will come

Thursday, September 25th, 2008

New European gaming portal, Key To Play believes that an active conversation with customers and meeting their needs, rather than turning a profit is the key to success.

Key to Play creative director Toni Garcia recently spoke with Rob Purchese of gamesindustry.biz regarding this simple, yet effective strategy.  Garcia believes that high quality portals are the future of online gaming, and that Key to Play can deliver high quality games to set themselves apart from other portals.

“We are gamers, all of us. The point is: we don’t want to make money. We want to make a big, quality portal. Money’s not our priority at the moment,” Garcia explained. “We want to make things that people, if they like our service, will pay for – because we need to live! At the end of the day this is a business, but it’s not our priority. That’s the difference.”

“Maybe other portals are gamers but they don’t care as much for their gamers because they only want them to pay. That’s why we decided to go ahead with Key To Play, because in the future people will only play portals offering good service,” he added.

First up on Key to Play’s offerings list will be Pristontale 2, the successor to the South Korean 2003 Best Game of the Year, Prisontale.  With 4 years of development work, support provided by Epic Games and powered by the Unreal Engine, Prisontale 2; not a shabby choice.  If high quality free-to-play’s are really going to set Key to Play apart from its competitors, Prisontale 2 is a rock solid choice.

Key to Play is planning on monetization through microtransactions via in game items and equipment.  Garcia sees free-to-play/microtransactions as a much more valid model than yesterday’s subscription basis as it gives players the freedom to test run a product and decide for themselves if they want to drops a few coins here and there to upgrade their equipment.  Hopefully, Key to Play will also follow the growing trend of providing only temporary benefits and/or cosmetic upgrades and not providing an unfair game balance.
While not letting the cat out of the bag, Key to Play promises another MMO from Japan as it’s second offering.  Garcia stresses that online worlds are/will not be the sole focus for Key to Play, as the next title COULD be a first person shooter, or maybe even a casual title.

“The main thing is to look for good games, it doesn’t matter where they come from,” he said. “If you do things well then at the end of the day the money will come.”

Here’s to hoping that Key to Play’s wide eyed enthusiasm (and hopefully well stocked bank account) will carry over to meet players high expectations.

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Free Realms seeks to balance game play with membership and micro transactions

Sunday, July 20th, 2008

SOE’s upcoming title Free Realms promises to include micro transactions and memberships in addition to it’s free to play platform.

Massively.com sat down with Free Realms Lead Designer Laralyn McWilliams to discuss to new title, and came back with a massive amount of information about the game.  McWilliams confirmed SOE’s commitment to Free Realms saying that, “Free Realms is just as important to SOE as The Agency and DC Universe Online.  We have the same size team working on this as we do on those titles.”  Responding to the question of how exactly Free Realms will generate revenue, McWilliams responded, “The answer is two fold: memberships (which, for a monthly fee, will allow the user access to more content) and micro transactions (allowing you to buy items for your character for small amounts of money).”

SOE’s John Smedley also added, “In order for people to see the games, they have to be able to play them; we’re opening them up to that possibility by letting them play for free.”

SOE might be taking a slightly different route when it comes to micro transactions however.  It seems as though the micro transaction question has been given a lot of thought at the SOE labs, and they’re still ironing out the details.  Will micro transactions be solely based on decking out your character in custom threads?  Will the micro transactions allow players to ‘pay to pwn?’  McWilliams addressed this issue.  “We recognize the importance of people earning things in the game but at the same time one of our fundamental tenants is we don’t want to dictate to people how to play our game.  So if people want to buy a potion that increases the speed at which they gain experience, who are we to say that’s not acceptable?”

While still working on the details, McWilliams explains that a lot of these issues will work themselves out in the beta testing.  “There’s nothing in Free Realms initially that you have to work that hard for. It’s all about variety. So we don’t know how much you’ll need to buy that stuff [experience gain boosts, combat boosts, etc] at this point. We’re focusing on game mechanics that are inherently fun, so you don’t want to shortcut your own experience by buying stuff. There’s an amount of joy in buying something that’s going to make you beat everyone in car racing, but after a while, you want your own skills to be what lets you win in car racing, not stuff you buy.”

Players that want to make micro transaction payments will use an in game wallet that can be stuffed with real cash.  Parental controls are also built in to prevent a massive spending spree.  While the game currently features real cash (the title has been developed from scratch with PlayStation 3 compatibility in mind), the Free Realms currency may change in the future.

 

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

 

Zune: Zoon? Roon? Rune? Ruin? Ruined?

Tuesday, May 27th, 2008

While it might not be the final nail in the coffin, it certain looks like the iPod of Redmond is starting to sing its swan song.

Major US retailer GameStop announced that it’s pulling the plug on Zunes during a quarterly earnings call last Thursday. The man with the money at GameStop CFO David Carlson said that the Zune would soon be pulled from all of its 5,400 stores worldwide (they will however continue to warehouse the Zune and sell them online until inventory is cleared). He offered no further details, but a company spokesperson told TheStreet.com that the decision was made based on insufficient demand. “We have decided to exit the Zune category because it just did not have the appeal we had anticipated” and, “It did not fit with out product mix”. In other words dear readers, the Zune at GameStop was just joining it’s all brothers out there: sitting on shelves collecting dust.

Let’s look at some numbers shall we? The Microsoft Zune launched in November of 2006. Since this date, approx. 2 million Zunes have been sold. In comparison, Apple sold 10.6 million iPods in the last quarter. Ummmm… really, need I say more?

Was he inebriated? Do you even know anyone who owns a Zune? Steve Jobs in response to Robbie Bach‘s enthusiasm regarding the Zune at the 2008 ICES in Vegas.

Microsoft was quick to respond to the blow. Adam Sohn, director of marketing for Zune said, “We will continue to invest in deep retail partnership, and have seen good momentum online and at retail over the last few months including a great response to our recent spring update.”

 

Blizzard takes the battle of the bot offline and brings it to creator’s front door

Thursday, May 8th, 2008

It seems as though Michael Donnelly’s WoW bot (Glider) has ruffled some serious feathers in the City of Love. Basically, it shakes out like this; Donnelly’s bot ‘grinds, loots, heals, and even farms soul shards without you’ for a small license fee of $25. In other words, this bot will make you boatloads of money, mats, rep, etc. and pretty much anything else you want, all while you’re off at school, the gym, or sleeping.

It’s a well known fact that MMO producing companies have a high disdain for anyone caught cheating the game. Be this gold farming, buying accounts, or using bots to perform automated functions. On the other hand, there will always be those out there that are willing to push the edges of the envelope, and see just how far they can go with Blizzard or any other manufacturer.

Where the legalese comes in is that Blizzard is claiming that Blizzard’s designs expectations are frustrated, and resources are allocated unevenly, when bots are introduced into the WoW universe, because bots spend far more time in-game than an ordinary player would and consume resources the entire time. Hmm: clearly they’re unaware of how much time I spend playing the game. ;)
Blizzard is also claiming that Glider infringes on copyrights and is a violation of the EULA “because it copies the game into RAM in order to avoid detection by anti-cheat software”.

Donnelly contends that there is no copyright violation present as “no ‘copy’ of the Warcraft game client software is ever made.”

As it stands right now, Donnelly and Blizzard (along with parent company Vivendi Games) are lawyering up, and it looks to be an interesting showdown in the Ring of Blood. Now this is some serious PvP action! And please dear god: let the judge use the phrase PWND, just once: please? :)