Posts Tagged ‘TechCrunch’

Disney acquires Finish startup Rocket Pack – and their HTML5 based engine

Wednesday, March 23rd, 2011

Late last week, TechCrunch reported that Disney had recently acquired Helsinki, Finland based social games creator Rocket Pack. Of any other run-of-the-mill games developer, this would be astonishing, considering that the company was founded less than one year ago, with the game engine still in development as of February 1st. So what has made all the difference? HTML5.

Rocket Pack showcased their HTML5 based Rocket Engine back in September, allowing for a code-free methodology of developing games. They’ve produced their own game, Warimals: Cats vs. Dogs, and while not a runaway success, Rocket Pack can be qualified as a successful title amongst hundreds of others (approximately 4k DAU, and 48k MAU). Again…what makes this Finnish developer so attractive to Disney? It’s not necessarily the game they have already produced, but what kinds of games that are capable of producing in the future.

When games developers are done with the game mechanics and storyboarding, one of the next crucial questions to answer is, “Which platform do we want to target?” There are several different operating systems to choose from, each with their own pluses and minuses. Likewise, choose the wrong platform to launch your title on, and you’re already 1 step back. Certainly the option remains to bring in various specialists and launch a title across all platforms simultaneously, but as you can imagine, the word specialist and often translate into budget breaker. What Rocket Pack has done, by powering their (not yet complete) gaming engine with HTML5, they’ve effectively removed this question from the conversation. Browser based, stand alone PC, Facebook, iPhone, Android, etc. – no problem. With a dash of javascript here, and a pinch of CSS there – presto, instant gaming. No flash, no plugins, just fire it up, and go.

As TechCrunch daftly points out, with the growing prevalence of HTML5 (let’s not forget about Mr. Jobs’ lack-of-love for Flash), and it’s benefits of no additional plugins, Rocket Engine was the first on the scene offering a fully integrated solution. Thus, if you’re a games developer building multi-platform single player games, Facebook titles, of browser based MMOs, chances are, you’ll eventually be using some variant of Rocket Pack’s technology. Or should I now say, Disney’s technology.

While the terms of the deal were not disclosed, estimates from around the community place the deal at somewhere between $10 – $20 million. At the end of the day, Rocket Pack founders and staff members can congratulate themselves on a rocket-paced development and acquisition. However, if/when Disney begins to license out this technology to various games development studios, how many deals will it take for Disney to fully recoup it’s investment and supersede Rocket Pack’s wildest visions?

 

Friendster to be bought by month’s end

Friday, December 4th, 2009

A recent report by TechCrunch indicates that first on the scene social network Friendster will most probably be sold by month’s end. While the deal is yet concrete, inside sources have indicated that the company will be sold to an unnamed Asian buyer for at least $100 million.

new_friendsterTo say that Friendster’s had a long and winding road might be the understatement of the decade. Founded in 2002, the original social network ruled the internets for a short while, but was quickly taken over by MySpace and Facebook. At least in the U.S. market – as Friendster ended up finding a home in the most unlikely of places, Asia. Currently, while numbers are paltry in the U.S., Friendster enjoys 50 + million users in the Asian market (over half the networks total number of users).

TechCrunch put a valuation of $210 million on Friendster back in July, which doesn’t account for Friendsters refocusing of their monetization strategy which they launched at the end of this past October. Instead of relying on advertising revenues, the social network made the shift to revenues coming from microtransaction purchases. A move that’s apparently been working well for hi5, with an admission that hi5 is now more gaming focused than social networking focused. However, that’s not to say that Friendster doesn’t have the same potential. Especially when you look at where their highest market concentration is, who’s buying them, and what market they’re operating in: Asia.

In hindsight, it looks like this deal has been in the works for quite a long time. Last year, Friendster brought now CEO Richard Kimber on board. Prior to Friendster, Kimber headed up Sales and Operations in the South East Asia region for Google. This past summer, Friendster opened itself up on the ‘for sale’ block, and as stated above, this past October they initiated a major shift in monetization from advertising to microtransaction reliance.

Again, no buyer has been named, but the inside source indicated that China’s Tencent Holdings was amongst the short listed buyers. Facebook also showed interest, but was turned away due to competition and IP issues. My guess is that Facebook could really care less about the actual mechanism of Friendster itself, but would love to get their hands on the 5 U.S. patents that Friendster currently holds with the U.S. Patents and Trademarks Office.

 

Facebook and Zynga named in class action lawsuit

Friday, November 20th, 2009

Well here it is. The day that both Facebook and Zynga have been dreading. Yesterday the two were officially named as defendants in a federal class action lawsuit.

Filed by Kershaw, Cutter & Ratinoff, a Sacramento firm that specializes in class action lawsuits, in Northern California yesterday, the complaint is seeking damages upwards of $5 million. The issue in question? Well, if you’ve not been following TechCrunch’s ongoing series on the ScamVille affair, it’s best to just head on over and give it all a healthy read right now. Kershaw, Cutter & Ratinoff have been seeking out those that were subject to a number of unauthorized charges emanating from currency offers via social games including Mafia Wars and FarmVille.

Now here’s where things get interesting – neither Facebook nor Zynga actually produce(d) the offers themselves, but rather simply sold advertising space to external ad providers. At it’s most basic, we’re looking at a revenue sharing program here, and reportedly both firms have made heaps of cash from said offers. Apparently, Zynga garners almost a third of it’s revenues from these offers, something that Kershaw, Cutter & Ratinoff have exemplified in their filing.

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And to make matters worse, Zynga CEO and founder Mark Pincus has been fimed stating, “I did every horrible thing in the book just to get revenues.” Ouch. A judge certainly isn’t going to take kindly to such statements.

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Valleywag has the entire complaint here – if you’re so inclined to read legalese.

And while a number of pundits are quick to point out that this recent filing has got to have investors quaking in their boots, it flies directly in the face of Zynga’s announcement earlier this week that it had acquired another $15 million in VC funding. Bad timing? If it is – that’s gotta be one of the worst calendar mis-schedules we’re seen in the Valley in a long time.

 

mEgo lands another cool $2.5M in second round of funding

Thursday, January 22nd, 2009

Based on the simple premise of making managing and sharing your online personality a more coherent and fun user experience, Los Angeles based mEgo has just closed another round of funding, bringing home a cool $2.5M to fund further development.

Launched at the 2007 TechCrunch40 conference, mEgo has quite a bit to celebrate as of late.  Not only have they just refueled the dev. machine, but also recently reached the 1 millionth registered user milestone, with a twenty percent growth rate month over month.  Not too shabby.

mEgo’s concept is centered around a portable you that ties all your social connectivity together in one simple flash based widget.  Popular social sites like Flickr, Facebook, Twitter, and YouTube are easily and painlessly integrated into your mEgo just by using your username.  No fancy RSS feeds or API keys to hunt down.  Just plug your basic info in and mEgo takes it from there.  Each info pull can then be assigned to a user-selected button, which can then be placed on the avatar anywhere the user so chooses.  For example, in the my mEgo below, hover over the ears and you’ll see updates from my last.fm account.  Likewise, hovering over my chest reveals my vital statistics.  If you’re feeling generous, shake my hand and have a view of my amazon.com wishlist.  A hover over the eyes should reveal thumbnails of my most recent YouTube favorites.  Personally, I’d like to see this default to my uploaded videos, but this feature is no further than a drop down menu away.

mEgo can be embedded on a wide variety of social networks and blogs, and reports that they’re seeing around 30M impressions per month.

A pretty neat concept, tying all your social activities into one avatar that not only looks cool, but is incredibly easy to set up and publish.