Posts Tagged ‘social gaming’

Social Games reach 1 in 5 Americans

Tuesday, August 24th, 2010

Social Gaming is big, there’s no doubt about it, but until recently, one might be hard pressed to guestimate just how big. According to a new report released by The NPD Group, 1 in 5 Americans has actively engaged in social gaming, in one form or another.

Breaking this down into numbers, the NPD report issued that 56.8 million Americans have played a social game on a social network. The included group was sampled from aged 6 and upwards. The “Social Network Gaming” report indicates that 35 percent of these social gamers are new to the scene, and had no previous experience with traditional gaming: PC, console, handheld, or other forms of video game play. That’s a huge percentage, one that developers must be excited about, as this 35 percent is the target audience that could further expand the entire gaming industry. I.e. get them in the door with something light and social, and then move them up the gaming chain. Sure, there’s going to be falloff, but some new percentage is better than no new percentage.

Adding to this excitement, 10 percent of those surveyed indicated that they’d spent real money on microtransactions in free-to-play titles. This would be the aforementioned new percentage. 11 percent said that they were likely to purchase something virtual in the future. The percentage grows!

Conversely however, more seasoned, traditional gamers say that social games are effecting the way their view their play time. These gamers indicated that they spend on average 20 percent less on gaming overall since delving into the social network based gaming world.

This new 10-11 percent of incoming gamers are more likely to be either female or older according to the report. When viewing the current state of social gamers, the report was fairly evenly split, with 47 male and 53 percent female.

“Although 35 percent of social network gamers are new to gaming, it’s clear that a lot of existing gamers have been drawn into the social network gaming arena as well. This impacts both the time they spend with other types of gaming, as well as the amount of money they’re spending on gaming. As more players are drawn into these games, the entire games industry is going to feel, and have to adjust to, the impact.”" says NPD Group analyst Anita Frazier.

[source: Gamasutra]

 

Social Gaming advertising spend to reach $220M this year

Thursday, August 12th, 2010

According to eMarketer, advertising budgets for social gaming will increase 20 percent this year, up to a massive $220 million. The advertisements include in-game as well as banners in social gaming titles, mobile apps not included – meaning the spend could be well over $300 million. eMarketer places the 2011 spend even higher at $293 million, with again, mobile apps spend not included.

118045eMarketer states that advertisers spent around $144 million in 2009, and the 20 percent 2010 increase is based on conservative estimates, as eMarketer themselves point out that the social games business continues it’s juggernaut growth pattern.

eMarketer reports that the U.S. market accounted for $142 of 2010’s $220 million spend, down from $144 one year prior. Non-U.S. properties will see the majority of game advertising dollars increase, up to $78 million from $39 million one year prior.

The 2011 forecast will see $192 million spent on U.S. social gaming advertising, with the rest of the world $101 million, bringing the total spend to $293 million.

The report points to major social gaming companies such as Zynga and the new Disney/Playdom venture deriving the majority of their revenues from virtual goods (80%), but notes that this drive in popularity has certainly increased the viability of said properties on advertisers’ radars.

At the Fortune Brainstorm Tech conference this past July, Zynga head Mark Pincus said, “Advertising will be an important part of the business model,” but he believes that future social game advertising will need to be “invented” rather than being the same things advertisers have already seen

 

DeNA – king of Japanese social gaming pulls in $279M in Q1 10

Friday, August 6th, 2010

For all the coverage social gaming gets, we often hear about the U.S. market, the European market, and the Malaysian/Korean/Chinese markets. It might be a bit easy to overlook that rather large island nation off the coast of China, otherwise known as Japan.

DeNAAnd while Japan might be quietly chugging along, recent news from Japanese mobile games portal DeNA, particular in regards to revenues, has firmly planted Japan’s social gaming market firmly on the map. So much so that DeNA is rivaling social gaming darling Zynga’s numbers.

DeNA reported their quarterly results recently, showing that their growth is on record pace. In their first fiscal quarter ending June 30, DeNA pulled in $279 million, up an astounding 175 percent YoY. And if that impressive jump wasn’t enough to open some eyeballs, the company’s operation income was $138 million, up 282 percent from one year prior. QoQ DeNA is up 27 percent in revenues and 22 percent in operating income.

“Becoming the premier social gaming company appears extremely feasible when reviewing our impressive first quarter results,” says Tomoko Namba, chief executive of DeNA told VentureBeat. “DeNA will expand by utilizing its uniqueness as a platform operator and game developer.”

84 percent of the company’s revenue was garnered via social games. Now here’s where the figures get a bit iffy. DeNA quantifies ‘social games’ as that that have social sharing, leaderboards and related leaderboard features, including games played via mobile phones. Meaning, DeNA is blurring the lines between what we might consider a ‘traditional’ social game, i.e. one played (primarily) on Facebook or other social networking platform (I hear there are others), and mobile gaming.

Clearly Zynga is the king of social gaming on the king of social networks, Facebook, but they’ve been slow to mobile. Clearly, it looks like DeNA is taking the opposite approach, focusing on mobile gaming dominance, with seepage into the social gaming space. They already have an investment in Crowdstar, a significant social games play on Facebook. To combat this, Zynga officially announced a joint venture last week with SoftBank to build and market games to the Japanese market.

Adding to their plan of attack, DeNA is prepping the launch of their own Mobage-Town social gaming portal for smart phones later this year. 154 thrid party developers are already onboard, ready to serve up 350 games to the platform.

And so it seems that the social gaming dominance war is about to heat up on both sides of the Pacific. I can only wonder which platform Hawaiians will prefer?

 

Social gaming attracts frequent players – few whales

Monday, June 28th, 2010

In a recent survey conduct by the Inside Network, 90 percent of the 1800 social gamers polled indicated that they play their favorite title at least once a day.

28 percent said that they played at least once a day, with the majority, 62 percent, of social gamers coming back several times a day. Not surprisingly, the Facebook king of social gaming of the moment, Zynga’s FarmVille received the most amount of attention, with more than half of respondents saying that they play it everyday. Other strong contenders in the play-now, play-often category are Playdom’s Social City, Playfish’s Pet Society, and Zynga’s Café World.

When it comes to with whom they’re playing, the majority, 55.5 percent, of social gamers play with their friends. 15.4 percent play with classmates, and 9.6 percent play with co-workers. Interestingly, around a quarter, 19.5 percent, of all social gamers play with strangers. Ultimately, this 19.5 percent figure indicates a trust and confidence in the social networking platform.

And while this deep and frequent interaction can be measured as a sign of a hit title, at the end of the day, a hit is only a hit for developers and publishers if there’s some revenue rolling in to foot the bill. Enter stage left – the “Whales”.

ahab

The whales are a topic that’s been surfacing a bit as of late, and they serve an interesting purpose and place in today’s social gaming world. A whale is defined as a free-to-play/social gaming player that spends $25 or more per month on a product that is otherwise free to play, should they so choose. It’s these folks that the social gaming industry is building upon. While only 2 percent of the survey respondents admitted to spending upwards of $25/month on social games, the majority of those respondents indicated that their spending was focused on only one game, suggesting that these whales are not so much in love with social gaming in general, but rather, are developing a deep and (financially) meaningful relationship with one game. On the other side of that coin, 0.1 percent said that they spend $25 or more a month on eight separate social games – so there are at least a few players out there that like to spread the money around.

“If 2009 is remembered as the year that casual gaming stormed social platforms, 2010 is quickly becoming the year that the industry started to mature,” comments survey co-author Justin Smith

 

Battle.net + Facebook = Blizzard luv

Friday, May 7th, 2010

Facebook means a lot of different things to a lot of different people. To some, it’s a pure social network. To others it’s a multimedia sharing space, while others see it as a “quick-play” casual gaming platform. And up until now, social/casual games were/are all the rage on Facebook. Well all of that is about to change; at least from one angle.

starcraft2fb505x-largeAnnounced yesterday, Blizzard Entertainment revealed a bit more of their strategy surrounding the revival of Battle.net, and perhaps why they’ve forced all users of Blizzard products to be registered here. Beginning with the (projected) July 27th launch date of the long awaited StarCraft II: Wings of Liberty, players will have a Facebook opt-in option. What this means is that players on Blizzard products (e.g. WoW, StarCraft, Diablo) will have the option of connecting to their friends who also have Battle.net accounts.

“Step one in our relationship is to have this Friends Importation,” says Battle.net project director Greg Canessa. “Really what you are going to do once you buy StarCraft II and you take it home and install it and log onto Battle.net for the first time, you’ll be able to essentially hit a button and bring all your Facebook friends that are also on Battle.net into Battle.net and create (Real ID) relationships.”

As with all forms of progress, there are obvious up and down sides to this move. On the up side, I’m quite certain there’s bound to be the “Oh no way, you play WoW too?”, as I discovered a few summers’ back when chatting with an old college buddy (on Facebook chat, none the less). On the other side of the coin, this move essentially eliminates gaming anonymity. Certainly, one of the draws, especially of MMORPG’s and RTS’s on the scale that Blizzard is creating IS that fantasy of being something pixilated that you are not in real life. For example, yes Humans (Alliance) are the most populated of all World of Warcraft races, but if players wanted to be something they already are, then why the other racial options? Why the Horde for that matter?

Either way you look at it, this is a huge nod from one of the largest and most influential gaming companies in the world towards to convergence of social networking and social gaming.

“We’re pleased to be working with Facebook to integrate their platform with Battle.net to enhance the social-entertainment experience for our players,” said Paul Sams, chief operating officer of Blizzard Entertainment. “This new functionality will make it easier than ever to connect with friends on Battle.net and play StarCraft II and future Blizzard Entertainment games together.”

Looking down the road, let’s just put it out there right now: Blizzard may just have found a way to appease the “hardcore” gaming fans who will never lay down a cent for a microtransaction, and are very happy with their monthly subscription, while at the same time, opening up a number of inroads to those that enjoy the social gaming/microtransaction model. Remember, Blizzard’s mystical pony raked in a boatload of cash, clearly indicating that players are willing to fork over even more than their monthly subscription fee. My prediction is that Blizz will launch the service, build it up, and then begin releasing social ‘missions’ based on current titles. A WoW fishing championship for example, or a StarCraft Assault on XYZ…share with your friends, etc…

 

Apple iPhone OS 4 – Game Changer?

Monday, April 12th, 2010

Last Thursday, Apple capitalized on the buzz surrounding their newest device, the iPad, with an announcement of a “coming soon” OS 4.0 for the companies’ popular iPhone device. The iPad runs on a modified version of this operating system. While the word on the street was all about the multitasking, the lesser discussed inclusion in the 4.0 OS is Apple’s Game Center.

The Game Center is Apple’s introduction of a social gaming network that will reside within the mobile device. In other words, think about the social (and associated purchasing options) features that consoles such as the Xbox 360 and PS3 offer, but all on the go. The Game Center will allow for friend invites, a number of multiplayer game options, as well as leaderboards and matchmaking features.

While Apple has previously stated that they’re serious about games, particularly in regard to the iPhone, this is Cupertino’s first rock solid “above and beyond” feature that definitively backs this statement up. Clearly, this is Apple’s attempt not only to bring gamers together, and presumably push more product, but also to cut in on the action that Facebook has been enjoying for quite some time now.

While the details in Thursday’s announcement were vague at best (possibly contributing to the lack of buzz), the beta release of the OS is slated to include a preview of the Game Center for developers, and include a set of APIs, thus allowing devs to start taking advantage of the newest features offered.

And since the iPad is already running a very similar OS, it’s not a far leap to assume that iPad owners’ behaviors and usage patterns would be similar to iPhone users’. Low and behold, a look at some initial demographics back this theory up. Clearly Games are dominating both of Apple’s portable devices. Now throw some social matching making and friend connections in there, and the avalanche of dollars is poised and ready.
ipadstatistics_april10

And now for the bad.

In theory, Apple’s Game Center is amazing, and should open up hundreds, if not thousands of new opportunities for not only games developers, but developers of all apps. That is, however, if you’re welling to write them all in C/C++/Objective-C. This tiny little snipped, aka clause 3.3.1, has already sparked a debate, with points and counterpoints coming from Jobs himself.

The problem herein, is that a vast majority of today’s games run on a third party engine. And while Apple says that they want to get into the game of games, already limiting the ways and means of getting into the club is a bit counter productive. Yes, developers will bend to Apple’s mighty ways, as they are the keeper of the proverbial castle, but it does show a bit of their obtuseness and arrogance, especially when trying to cater to a crowd that’s traditionally been PC or none-at-all based.

 

Zynga. Worth $5 billion?

Wednesday, April 7th, 2010

If you’re a social gamer, i.e. one who regularly plays free-to-play games in short doses, most probably on Facebook, chances are you’ve come across a Zynga game or two (or 6 out of the top 7 games). And while we know that Zynga certainly has a valuation on not only their properties, but the company itself, I’m not quite sure anyone would have guessed that this valuation would be in the $5 Billion range. This figure is according to an investment report issued by investment news blog Second Shares yesterday.

zynga_MAUWhile Zynga has no short term plans to go public (at least that we know about), industry analysts Jay Gould, Lou Kerner, and Bill Auslander estimate that if Zynga were to go public tomorrow, shares would trade around the $15.75 per share mark. This estimate is determined based on a multitude of factors, one of which being the price that current Zynga employees could fetch on the secondary market by selling their stock options.

Keep in mind – these estimates are conceived through complex financial projects and mathematical computations. I’m not going to use the word, but it should have already occurred to you where you might have heard this terminology before (can you say derivatives?).

However, financial wizardry aside, the Second Shares report highlights that Zynga is clearly leading the social gaming industry. Their MAU (Monthly Active Users) clocks in a massive 237 million, with the nearest competitor, EA via their purchase of Playfish, hits the finish line with a respectable 53 million, but still dwarfed by Zynga. The only other player mentioned that is significantly larger than Zynga is Chinese firm Tencent Holdings with an MAU of 400 million. As a reminder…Tencent is testing the Facebook waters.

Naturally, with a number this big, there’s bound to be a few folks scratching their heads, and asking…Why? How? Etc…Notably, LOLapps CEO Kavin Stewart has suggested that Zynga artificially inflates it’s MAU numbers by counting the same user over multiple applications. For instance, the Second Shares report specifically points out that Zynga receives 15 MAU from the FarmVille.com, indicating that the MAU may not be a proper valuation based on a single platform.

Building on this theme, while the report considers Zynga a strong investment opportunity, it does highlight some of the risks involved. Currently, Second Shares says that 50 percent of Zynga’s revenues are generated from one title: FarmVille. As well, 35 percent of Zynga’s MAU is generated from FarmVille alone. And adding to this house of cards, Second Shares also points out that users use FarmVille 50 percent more than any other title.

As a veteran of the first dot-com boom, I can only think of one very valuable token of advice bestowed upon us from the venerable and wise writers of Battlestar Galactica, “All of this has happened before, and all of this will happen again.”

 

Digital Chocolate uses OpenFeint to produce first free-to-play iPhone title

Thursday, April 1st, 2010

OpenFeint, a leading social networking platform solution provider, recently announced a partnership with game developer Digital Chocolate to help produce the company’s first free-to-play title for iPhone and iPod Touch. Titled Fantasy Warrior Legends, Digital Chocolate’s game is now available for free at the App Store.

IMG_0040Only about a month and a half after Open Feint’s announcement of their social features for free-to-play iPhone games, Digital Chocolate is utilizing these tools, and providing players with the options to post scores on leaderboards, track their progress, access live forums and chat with other OpenFeint players to share tips and tricks about the game.

“We’re excited to launch Digital Chocolate’s first freemium game on the OpenFeint social gaming network. With an engaged community of more than 17 million players, OpenFeint is the perfect platform to launch a social, RPG game,” said Jason Citron, Founder and CEO of Aurora Feint, Inc.

Fanstasy Warrior Legends is Digital Chocolate’s fourth title using the OpenFeint technology, but the first to be offered as a free-to-play. Players engage in a heroic battle as “Rento”, and must ultimately destroy the evil Demon Lord. The title was specifically designed with iPhone and iPod Touch features in mind, players use the multi-touch feature to navigate and fight monsters by touching and tapping screen controls. Likewise, Digital Chocolate is also using the microtransactions feature of the Apps Store, with a digital market built in that will allow players to make RMT’s for virtual goods that will enhance their game experience.

“Fantasy Warrior Legends is our first free-to-play game that will contain an in-game social platform, and with OpenFeint’s collaboration, we will be able to give users a sense of community,” said Trip Hawkins, Founder and CEO of Digital Chocolate (formerly founder of EA). “This allows us to give consumers an even more engaging RPG adventure.”

OpenFeint will feature Fantasy Warrior Legends in the exclusive “Free Game of the Day” spotlight on Sunday April 11th, 2010. During the promo, users will be able to download 400 in-game gems for free to beef up their action-adventure gameplay.

 

Playdom plays on – invests $5m in MetroGames

Wednesday, March 17th, 2010

Late yesterday afternoon, social games developer Playdom announced that they’re investing $5 million in a Series A funding round for Argentinian social games startup MetroGames. To date, MetroGames has produced approximately 30 games, available to the public both via their own platform, as well as Facebook. The investment is slated to further expand MetroGames’ pipeline of games and development of it’s social gaming platform.

logo_main“We are very confident MetroGames will become one of the world leaders in social gaming during this next wave of explosive growth in the industry. We already have more than 30 games online across Facebook and our own social gaming platform and many more to be released during 2010. We are pleased Playdom has recognized our potential and chosen to invest in us,” said Damian Harburguer, CEO of MetroGames.

As part of the deal, Playdom CEO John Pleasants will join the MetroGames Board of Directors. Pleasants will now sit at the same table with existing board members, CEO & Founder Damian Harburguer and COO & Founder Julian Linsenberg.

“We are really excited to partner with such a promising company,” said Pleasants. “MetroGames has a proven track record for developing very appealing social games, so we are convinced that with Playdom’s help they will become a big player in the social gaming market.”

Playdom is often regarded as the ‘second child’ of Facebook developers. Still in the shadow of giant Zynga, Playdom still has a majority of it’s customers coming in from MySpace gaming (approximately 60 percent). This investment is Playdom’s second within one month on the Facebook side of social gaming. A few weeks back, Playdom announced the acquisition of Offbeat Creations, another strong Facebook social games developer. In fact, since Playdom acquired a massive $43 million in funding last November, they’ve made it very clear that they know they’re lacking in the Facebook department, and are making changes to address the issue.

Now let’s take a step back and look at this picture from 10,000 up. Playdom is a major player on the MySpace gaming portal. They’re working like gangbusters to match that presence on Facebook – through acquisitions and partnerships. Remember, at this year’s GDC, MySpace used the conference to announce their focus on gaming. If Playdom were to continue to expand and increase their MySpace presence, as well as ramp up their Facebook offerings, they could be miles ahead of current social gaming dominator Zynga, by having strong offerings on both platforms. My guess is that this is exactly what the plan is. Let’s stay tuned and see what’s in store for Playdom as it appears as though it’s not just Mafia Wars and Mobsters that Playdom and Zynga could be battling over.

 

Frogster joins the masses – enters Facebook gaming

Friday, March 12th, 2010

If there’s one consistent theme I’ve noticed over the course of this year’s Game Developers Conference is the heavy push on Facebook gaming.  Last year, the overwhelming theme was free-to-play/microtransactions.  This year, the gaming community seems to have found it’s darling where it can successfully implement these microtransactions: Facebook.

runes+of+magicNot to be left in the dust, San Francisco/Berlin based Frogster announced yesterday that they’re jumping in the Facebook game, and will be bringing a slimmed down version of their popular “Runes of Magic” free-to-play MMO.  The Facebook version, titled, “Runes of Magic – The Challenge” will be the companies first foray into the rapidly growing casual games on social networks.

Set in the same world as the full version, Runes of Magic – The Challenge, will features adventure, exploration, and strategy elements.  The Challenge is slated to take full advantage of networking gaming and viral communications, with the ultimate goal of igniting interest in the full version.  Runes of Magic – The Challenge will also attempt to increase the pull-and-convert method through rewarding special cards with codes that may then be redeemed in the full client based version of the game.

“Runes of Magic is the first free-to-play MMO game ever to expand into the social networks sphere with a rich, full, social gaming experience that will appeal to fantasy fans of all ages – independently of whether they play the full client game or not”, comments Lars Koschin, CEO of Frogster America, Inc. “With the success of Runes of Magic among core MMO players, it was a natural decision to build upon the franchise by taking it to a genre with mass market appeal and the powerful viral approach of the rapidly evolving social networks. The result is ‘Runes of Magic – The Challenge’ for Facebook.”

“Runes of Magic – The Challenge” is being produced by Frogster America and developed by Mothership Interactive, Inc. Frogster’s first social game is scheduled to be launched in the second quarter of 2010 in Europe and America .

As the final cherry atop the proverbial sundae, Frogster will soon implement the  Facebook Connect interface, allowing current and future Runes of Magic players to find other RoM players within Facebook, as well as invite their existing contacts to join them in the full version of the game.