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Zynga's paid $300 per new user in the past nine months, says analyst
Zynga has been struggling with its stock price since the IPO late last year, and Sterne Agee analyst Arvind Bhatia says there are more dark days ahead. When you compare Zynga's $120 million marketing budget to its recent rise in only 400,000 new players (about $300 a person), the numbers don't look good: "We know that, on average, these people are spending about $150 or so," says Bhatia, which suggests that Zynga is spending about $300 for every $150 in profit. "That math won't work for very long," obviously.Zynga's spending is indicative of a few trends in social gaming. First, the company has discovered it's very hard to earn new players. Many of Zynga's games are similar, and without really experimenting, it's going to be hard to generate uniques. Second, Zynga's earnings are based on "whales": A small percentage of players who spend big. You need to find a lot of unique free-to-play players to land a few whales, and Bhatia doesn't see Zynga doing that lately.So what's the solution? "Zynga will have to find their next FarmVille," says Bhatia. Until the company finds another phenomenally popular hit and the surge in new players that comes along with it (which is incredibly tough to do), Bhatia expects to see even more problems with Zynga and its stock.
EA-BioWare acquires KlickNation, rebrands it BioWare Social
All the cool kids are into social gaming these days, so it should come as no surprise when some of the bigger gaming firms start testing the waters. BioWare looks to be next on that list according to a report at GamesIndustry.biz that details Electronic Arts' acquisition of KlickNation. KlickNation operates social games including SuperHero City and Six Gun Galaxy, and while the company's monthly active user base has declined from 1.3 million to 400,000, EA and BioWare see it as a growth opportunity. KlickNation's expertise in building innovative and compelling RPGs for social platforms makes them a seamless tuck-in with the BioWare team at EA," says Ray Muzyka. The new unit has been renamed BioWare Social, and thus far the company has not announced any concrete plans relating to new or existing titles.
Richard Garriott predicts the death of consoles as a gaming medium
Considering his influence on the realm of MMOs, many gamers would argue that it's hard to dismiss Richard Garriott's thoughts on development out of hand. A recent interview with the man includes him predicting the fall of traditional console gaming in favor of portable devices, and the end of MMOs as a major market share compared to social and casual games. As Garriott puts it, the era of MMOs was chiefly between 2000 and 2010, and the explosion in social gaming is now a new part of the overall game development cycle. Naturally, since Garriott's current company, Portalarium, is targeting specifically that demographic, he might be just a little bit biased. But he's hardly the first industry insider to claim that modern games need to be easily be picked up with little to no up-front cost. Take a look at the full interview for more, including Garriott's thoughts on how present designers are lazy and his self-comparison to Tolkien.
New ArcheAge videos show off PvP, dancing gameplay
A couple of ArcheAge tidbits surfaced during the recent Tencent Games Carnival. XLGAMES' sandpark MMO was on display since it is gearing up for both its fourth Korean beta phase and a 2012 beta in Tencent's native China. Two noteworthy videos came out of the conference, and their radically different nature points to the breadth of gameplay on display in ArcheAge. First up is an over-the-shoulder clip featuring some five vs. five PvP gameplay. The action takes place on an instanced map known as the Siege Warfare Training Camp, and MMO Culture points out a couple of lingering bugs relating to character movement (as well as some interesting weapon combinations). The second video comes directly from XLGAMES, and it shifts gears in favor of ArcheAge's social features. While many MMOs feature dance animations, thus far the only title to take a serious stab at dance gameplay has been Star Wars Galaxies. ArcheAge looks to continue that tradition by allowing players to choreograph dances and coordinate with other dancers, though we are scratching our heads a little bit due to the jarring mixture of high fantasy and pop music. You'll find both videos viewable after the cut.
Will Wright reveals 'Hivemind,' his new, personal gaming venture
Will Wright has told VentureBeat that he, in conjunction with a new California-based social gaming startup named Hivemind, is working on a new genre of "personal gaming" -- the first installment of which shares the name of his new company. The "personal" aspect of Hivemind will be derived from the game's capacity for learning about "you and your routines." Wright added, "If we can learn enough about the player, we can create games about their real life." Of course, since we spend a majority of our time writing about games, we're worried about the potentially infinite feedback loop Wright's title would create. Don't get us wrong, we're just egotistical enough to enjoy such an experience, but it would pretty much be a game about writing about a game about writing about a game about writing about a game, and so on, forever and ever, ad infinitum.
Monster Galaxy Facebook game coming to the big screen
The list of films based on video games is long, if not particularly distinguished. The list is about to get a bit lengthier thanks to an upcoming collaboration between Gaia Interactive and Radar Pictures. The two firms have just released a new press blurb trumpeting the fact that they've formed an alliance to bring Monster Galaxy to the big screen. What the heck is Monster Galaxy, you say? Well, it's a Facebook title that "has reigned as a top 10 game on the platform for six consecutive months," according to the release. The film version of Monster Galaxy will feature its unique "Moga" characters as well as "rich story and charming artwork." Gaia Interactive was founded in 2003 and claims to be one of the world's most active social gaming communities. Radar Pictures is owned by Ted Field, an entertainment executive with producer credits on films including Pitch Black, The Last Samurai, and Jumanji. [Source: Gaia press release]
Zynga reports record revenue in last quarter
A recent SEC filing from Zynga, creator of the social gaming epidemic known as FarmVille, revealed that the company is reporting a record quarterly revenue of over 306 million USD, though -- bizarrely enough -- profits are almost 54 percent lower than they were this time last year. Revenue isn't the only thing that's on the rise, either. The company reports 152 million unique monthly players, compared to the 151 million the company reported in June. The average number of daily players, however, dropped from 59 million to 54 million. At any rate, the company seems to be going strong, with new titles such as the recently announced (supposed MMO) CastleVille just on the horizon.
Richard Garriott blames Blizzard for ignoring the social gaming field
Richard Garriott, who heads up social games outfit Portalarium, publicly put the screws to Blizzard and other major MMO companies for overlooking the casual gaming space. In fact, he says that World of Warcraft's biggest challenger won't be from another AAA title, but from the "Zyngas of the world." Talking to Industry Gamers, Garriott accused Blizzard and EA of dropping the ball when it came to social gaming, which Zynga has since explored and exploited. "The only reason Zynga exists is because people like EA, people like Blizzard, failed to step in," he said. Garriott sees these small start-ups as having great potential in the near future. "I think within a few years, you'll see that's not really the case," he said. "I think you'll see that the quality level that comes up through the casual games will rival the quality of traditional massively multiplayer games and then, because it's not something you have to subscribe to, because it's something that virally spreads, and especially because, as people churn out of a big MMO they've got to go somewhere." Garriott's Portalarium is currently working on an upcoming project that is "much more like Ultima Online than people might expect."
Hyperspace Beacon: Social gaming
As a roleplayer, I primarily do social things in MMOs. I take on a character, then via local chat, I communicate as if I were a smuggler attempting to swindle a gangster out of a few more credits. However, that's not the only kind of social gaming found in Star Wars: The Old Republic. Group activities of all sorts have sparked friendships that have lasted years. The people I adventure with mostly started in Star Wars Galaxies, then moved to City of Heroes, then went back to Galaxies, and now are headed to SWTOR. Because of the breadth of the internet, we have never met each other in person, but I still consider them close friends. The social dynamics have always been a byproduct of MMOs. However, few online games give direct rewards for being social. In fact, there was a time shortly after the Combat Upgrade when Star Wars Galaxies actually punished players for grouping up by giving less XP. Perhaps the reasoning was that the larger the group, the more mobs players could kill in the same amount of time, but at the time the solo XP far outweighed the loss in group XP. Thankfully, that was eventually fixed. In my recent venture into the SWTOR beta, I noticed several different social activities for which the game rewards players. Follow me past the cut and we will discuss them.
GDC Online 2011: Raph Koster speaks on the gamification of real life
Raph Koster spoke at the recently concluded GDC Online 2011, and if the summary on Gamasutra is any indication, his message was somewhat mixed. Unsurprisingly, the former sandbox maestro (and current social gaming evangelist) had a lot of positive things to say about Facebook. On the other hand, he said that going too far down the accessibility road can lead to "bad art." He also opined that "design is about constraining people," but that games still have the potential for player creativity, and that Facebook has more user-generated content than games or virtual worlds. If you're confused yet, you're not alone, as Koster also mentioned something about wizards, magic circles, and his belief that the world is becoming more game-like (and thus there's no one better to shape it than game developers). "Let's watch out not to let the pointsification and rulesification, quantification, and reductionism that we have always loved about what we do -- let's not let that change who we are," Koster said. Check out his notes and slides from the talk via his blog, linked below.
Oh god, they're probably making a Farmville movie
Never before have our hearts received news with such confusion: In a recent interview with IGN, Toy Story writers Alec Sokolow and Joel Cohen hinted at their next project: A movie adaptation of Zynga's Farmville franchise. "We're in conversations with Zynga to do something with one of their brands," they teased. "Can't really say too much on that front yet, but 'Old MacDonald' didn't have a factory, if you get our drift." We do not get your drift. Your drift makes us sad. We trust the two to craft a compelling story, but we worry there's not enough rich source material for them to base it on. All we know is we're not looking forward to receiving a hundred daily invitations to go to the movie from our distant, distant cousins and fourth grade math teachers.
Mark Jacobs elaborates on departure from EA Mythic
It's been a couple of years since Mark Jacobs abruptly left -- or perhaps was let go -- from EA Mythic, but curiosity around the split persists in the MMO industry. Yesterday, Jacobs opened up about the event that occurred after EA's acquisition of Mythic and BioWare. Long story short: The merge brought about changes, and Jacobs wasn't on board with them. "They made a decision on a direction they wanted to go and obviously, as we put out in our joint statement, that wasn't a direction that had a role for me, or at least the role that I wanted. It really is as simple as that. Or at least publicly. Whatever went on behind the scenes, whatever we talked about, I have no intention of sharing that," he said. Jacobs insists that EA has been kind to him in the subsequent years. "One thing I'll say publicly about EA, they have been very good in what they've said post-departure regarding me. Similarly I've been good about what I've said about them post departure." He has since gone on to form a new company to create social and mobile games. In an ironic twist, Jacobs says that the idea for getting into the social gaming market took root while he was at Mythic, but he left before acting on that notion.
Mark Jacobs returns to the gaming industry with City State Entertainment
If you've been around the MMO scene for a while, you'll remember Mark Jacobs as the co-founder of Mythic Entertainment and the force behind Dark Age of Camelot and Warhammer Online. He's been out of the gaming industry since his departure from EA, but according to an exclusive interview with Forbes.com, he's back with a new company. "Jacobs revealed that his new company is called City State Entertainment, and [...] the company aims to create games for the mobile, tablet and social networking space," says Forbes.com's Tracey John. Mark tells Forbes that social game development allows for a faster development cycle and lower costs, which equals more freedom to simply have fun making games. "We don't have to worry if the hardcore gamers are going to get incredibly upset because we're doing something a certain way. We don't have to worry if our game is going to sell another 20 copies. We're just looking to make fun, enjoyable games." Check out the full interview at Forbes.com
MapleStory Adventures scores 3 million players -- before it even launches
The Facebook spin-off of MapleStory has hit a big milestone today -- a very big one indeed. Nexon announced that MapleStory Adventures crossed the three million registered player threshold. This feat is more incredible when you consider that the game is still in open beta. MapleStory Adventures is Nexon's first Facebook game, and it is soon to be joined by the company's second: Wonder Cruise. Nexon's been making strategic moves into the social gaming market this year, including a recent partnership with developer 6waves Lolapps. The company saw an impressive 59% increase in revenue last quarter. MapleStory was an obvious choice for a Facebook conversion, considering that the title was already in 2-D and has a mass-market appeal. While MapleStory Adventures is similar in many ways to its predecessor, some elements have been simplified for the platform, such as the number of classes and skill trees.
Older gamers more likely to drop money in cash shops to save time
How long are you willing to wait for your next level in a given game? According to a recent study, the older you are, the less likely you'll wait and the more likely you'll be to just whip out a credit card and buy an experience booster. Flurry Analytics conducted a survey of mobile and social gamers and found that older players are far more likely to just spend some money if it'll save some painful grinding in the long run. While the study was focused on the social gaming side of the coin, the business model is not dissimilar from that employed by many free-to-play MMOs that frequently offer in-game options to earn items that can also be purchased outright. And the logical conclusion is drawn -- younger players have less disposable income but more time to buckle down and grind, while older players have more responsibilities and more free money to spend. It's an interesting look at the spending patterns, one which looks to be increasingly relevant as free-to-play options continue to multiply.
Runes of Magic partners with Overwolf for social media functionality
Overwolf is making its presence felt in the MMORPG marketplace of late, and the latest collaboration between the social media developer and a major game company takes place in Runes of Magic. The free-to-play fantasy title now features something called the Magic Hub, and if you're into Facebook as well as easily publishable screenshot and video captures, you'll want to check it out. The Overwolf software also integrates instant messaging functionality that players can use without leaving the Runes of Magic client, not to mention game database searching functionality and account settings access. "Our new partnership with Overwolf will bridge the gap between the fantasy world of online gaming and the accessibility of social platforms," says Frogster's Daniel Ulrich. [Source: Frogster Press Release]
gPotato partners with Overwolf for social media client
gPotato is partnering with Overwolf to launch a new in-game client overlay, according to a new press blurb released this morning. Who the heck is Overwolf? The company was founded in 2010 and is responsible for the Overwolf Client, a product that "adds social features and functionality to games enabling players to share, socialize and evangelize for their favorite game." The software features an integrated web browser, Facebook, Twitter, MSN, and Skype support, as well as the ability to record and share in-game videos and screenshots. gPotato's in-game client is customized and optimized for its stable of free-to-play games, and you can see the service in action via the beta that is currently attached to Aika Online.
Single-player games will be dead in three years, says industry analyst
So game development studios desperately want to move the entirety of our hobby online in order to mimic the recurring revenue model of MMORPGs. That's not exactly news, but it is news when an industry analyst makes an eyebrow-raising claim regarding the immediate future of the genre. To that effect, Eurogamer recently attended a "closed-door, Sony-organized panel discussion on the future of video games," which featured an analyst predicting the end of single-player titles by 2014. Mark Cerny, a "veteran video game consultant," used the 2009 single-player RPG Demon's Souls as an example, saying that its mixture of traditional offline gameplay and social connectivity to other gamers experiencing the same title is the wave of the future. "The funny thing here is, we don't even know what to call this. Is it single-player or is it multiplayer? We don't even have the words. It's kind of Orwellian. If you don't have any word for freedom you can't have a revolution," Cerny said. What exactly is that revolution, and will it be good for gamers? Check back in 2014 to find out.
GDC Europe 2011: Richard Garriott says mobile and social titles are 'the future of games'
Delivering the final keynote address at this year's GDC Europe, Richard Garriott said that the industry is rapidly moving away from MMOs as we know them and toward mobile and social gaming -- and that companies need to hop on board, lest they be left behind. Garriott used his iPhone as an example of this new direction: "I am now much more of a gamer than I ever been in my whole life, but the vast majority of the gaming I have played has been on this machine. I'm a devout believer that this is the current and near-term future of games." He defines this "new era" of gaming by having cheap games that are simple to use and connect you with real-world friends. While he thinks earlier social games like FarmVille were too simple and unappealing, Garriott says that they're evolving quickly. During the speech, Garriott expressed regret that his team didn't stick by the original vision for Tabula Rasa, and he urged fellow developers not to trade in their dreams in order to follow the company line. His new company Portalarium plans to "reinvent roleplaying yet again" by releasing a series of products that will capitalize on social gaming and retrain players to think beyond mere combat to a wider experience.
Zynga's Pioneer Trail is like The Oregon Trail without the typhoid
Zynga has finally released The Pioneer Trail, the long promised sequel to FrontierVille on Facebook. Those familiar with The Oregon Trail will be right at home here but there's no indication as yet that you can die of dysentery. The game abandons many of Zynga's social gaming trademarks; rather than doing anything related to farming, players must instead journey across one of three maps. The creators claim that each one of these maps is five times larger than any of the outfit's previous games. Significantly, you can only play the game with three friends, as each player is awarded specific skills necessary to reach "Fort Courage" at the finish. The company hopes that by forcing four players together it will create "intimate gaming" experiences (translation: you can't give up if you get bored, friends are relying on you). Each map is said to take three weeks of hard pioneerin' to complete and if that still leaves you cold, remember: there's always that history textbook waiting in your app queue.
