Conference season: Where I will be…

On 23/01/2012, in Uncategorized, by Volker

Yes, conference season is firmly upon us and, before I descend into the mayhem that tends to come with it, let me tell you where you can find me over the next couple of weeks.

This week sees London at the centre of a lot of things gaming: the Mobile Games Forum opens its doors on Wednesday in the Hilton Tower Bridge in SW1, which combines with the Social Games Forum. I will be speaking on a panel on “How to engage cross-promotion for social game discovery”.

There is also ICE in town but not the freezing variety but the big gaming (as in proper gaming for money and such) expo over at Earl’s Court, which rolls a variety of gaming-related tracks into this. I will be speaking on a panel on their mobile gaming track with the concise title “Incorporate Social and Mobile to create the Ultimate Modern Gaming Experience”.

Only a little later, on 7/8 February, we will be in Amsterdam for BlackBerry DevCon Europe. It is well worth coming to this to get a glimpse of the “new” BlackBerry and our plans there [disclosure: I work for BlackBerry]. Sign up here and hit me if you are a developer; I have a few discount codes left. I will lead a breakout session on Social Gaming with Scoreloop there.

Onwards to my old stomping grounds in Hamburg from there for the annual European edition of Casual Connect where I will deliver a talk on how BlackBerry will deliver on gaming (yes, you read that right!).

After that, there is a two week (conference) break before heading to Barcelona for the monster that is Mobile World Congress. I’ll be there all week!

Barely a weekend’s rest and the Game Developers Conference (or GDC) opens its doors at the Moscone Center in San Francisco. Again, it’ll be a full week for me there.

I hope I will meet you at one of those. Sorry that Asia isn’t featuring in this tour de force this time but, hey, it’s still early in the year, huh? ;-)

Image credit: http://gapingvoid.com

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Angry Birds fly ever higher…

On 04/01/2012, in Uncategorized, by Volker

A fresh new year and it is time for the latest numbers of the Angry Birds phenomenon, and they are impressive indeed!

Most mobile game developers would be quite happy if their game would clock more than 5m downloads. Hell, they would probably throw a massive office party for that! Well, Rovio made more than that in a day (OK, it was Christmas Day): 6.5m copies of the various Angry Birds games (paid and free) were downloaded on 25 December 2011 alone. Woah!

The formidable Stuart Dredge treats us to some more background on Angry Birds. To cut it short: by December 2011, Angry Birds had more than 600m downloads. That is more downloads than people living in all of North America – all the way from Alaska down to Panama! About 1/3 of those are monthly active, 1/8 daily.

Given that they also make money (seemingly nearing $100m in revenues) and not only from games but from selling 1m toys and 1m t-shirts per month, too, it is perhaps understandable that they are said to have rejected a $2.25bn acquisition offer by Nasdaq newbies Zynga. I can understand that they may not have been too thrilled to work under the hard-charging (according to some, too hard-charging) “CityVille-ains” but I still wonder if that would not have been a worthwhile cash-in (though it would arguably have been a share deal and Pincus only knows what on which valuation of Zynga that would have been based!).

Rovio has great plans, they are hiring senior entertainment talent (Dave Maisel of Marvel fame for instance), they are diversifying quickly, they execute with adorable flawlessness. But they have not yet shown that they are capable of repeating the creative spark with equal vigour and verve. On the one hand, they are a very, very talented bunch (I published games by them previously: great content and lots of polish). And they have some serious reach now, which gets them a lot of promotional punch. They have also been great in getting out on as many platforms as possible to make sure to fuel the brand as a true mass market proposition rather than contentedly sitting on iOS only and being happy with that niche (bear in mind that J2ME is still many times larger than iOS in terms of reach; for brand awareness of a consumer brand, this is a crucial factor).

However, it is a hit business, isn’t it? And I doubt there is a recipe (or that Rovio has it): Anecdotally, Chillingo, the publisher of the original Angry Birds on iOS (subsequently acquired by EA), uses its Chillingo label for the “premium” games and their Clickgamer for the rest. Angry Birds was published under the Clickgamer label. So did anyone know? I don’t think so.

I would love to see them thrive because they deserve it: they are a hard-working and lovely bunch. So go, my good folks, mighty Eagles, Albatrosses and the whole swarm!

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Conference: Games For Brands

On 13/10/2011, in Uncategorized, by Volker

A fairly wonderful conference will open its doors on 27 October in London, UK, namely Games for Brands, an event where we will do just that: investigate if and to what extent games may work for brands. Just speak to Barclaycard (their Waterslide Extreme game [done by Fishlabs] did more than 14m downloads on iOS) or Volkswagen (multiple games by Fishlabs [again]) for the Polo and others and a special VW Golf GTI edition of Real Racing by the recently acquired Firemint).

The event features a fairly cool line-up, too, including speakers from:

  • Rovio (they of Angry Birds fame)
  • Channel 4
  • Google
  • PlayGen
  • BBC
  • EMI
  • King.com
  • LoveFilm.com
  • Tate
  • Wellcome Trust (yes, they’re the Glaxo Wellcome guys)
  • Aegon
  • Matmi (they did games and apps for instance for Lily Allen, Gorillaz, United.com and Vimto – the seriously mixed-up fruit)
  • and, yes, I will be talking again, too (but when don’t I?)

I also have a goodie for the readers of this blog: four of you can get a very special discount and attend for £95.00 only. Tempted? Contact me (either via e-mail or Twitter or through the contact form here).

It’ll be a good one, so come along! :)

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In reply to @scottjenson: Web or Apps?

On 11/10/2011, in Uncategorized, by Volker

There seems to be a new round of buzz around the good old HTML5 vs native debate or, in other words of web vs apps. We had a Mobile Monday session in Manchester (@momomcr) on this, debate on ForumOxford is flaring up again, and more… So I thought let’s do this again and see – if anything – changed since I posted about this (for the record: here’s the first post from 2009 and the second one from 2010). Where has the battlefield moved to in the interim?

Mobile apps must die

There has been (as you may have sharply derived from this post’s title) a post from Scott Jenson, the Creative Director of Frog Design (they of much Apple fame – you know, they designed the Apple IIc and such), which he entitled – somewhat combattively – “mobile apps must die”. His argument is, in short, that the mobile desktop cannot cope with the plethora of native apps (or app icons?) and that it would be much better to use dynamic “use it and lose it” approaches for which the web is perfectly suited. He starts of on the value vs pain paradigm: if the balance is less than 0 (i.e. value exceeds pain), the solution wins. And he posits, that native apps don’t do that.

I  am not doing the intellectual argument Scott poses any justice here (and I will pick up on some more points further below), so please make sure to read his post!

One size does not fit all

The challenge is to find a universal solution, I suppose. Jenson focuses merely on apps that – arguably – make a user’s life better if and when he/she is out and about and is looking for utilities to help  mundane tasks/etc. There are tons of fairly one-dimensional apps for that: a retailer app for their catalogue, London tube map, some couponing app, a mobile banking app, apps using NFC, Bluetooth, camera (QR readers) and more. There will also be more complex ones: fancy AR-powered things, things like Foursquare (anyone near?), etc, etc. So, is this painful? Yes, it is. Would it be better if there was a seamless universal (cloud-based) solution that would make it “just so”? Oh, by all means.

BUT… it would not solve all use cases for smartphones (or mobile computing in general). There are tons of applications and use cases that are not the out and about equivalent of a Google search (and, yes, I am fully aware that 40% of Google mobile searches relate to locations), and I would posit that one has to judge each one on its own merits.

UX

The starting point should always be the user experience. Jenson points out correctly that this is not only about the perceived value of the product or service in isolation but it is more of a function: if the perceived value exceeds the pain to use it, it works. If pain exceeds the perceived value, it doesn’t.

But it is this very statement where things with Jenson go horribly astray. There is a reason why Apple has not yet moved Keynote to a cloud-based SaaS solution but keeps selling it as a stand-alone app: because it works better. The perceived value of using the product far exceeds the pain of having to download and install the application.

Tackling the shortfalls

When looking at the UX chain (from product to discovery, maintenance, management and use), there is more than one answer to shortfalls of some of these elements. Rather than moaning about distribution and app management, one can also improve those processes. The OS-based app store model all but replaced the carrier stores for smartphones now, and why? Because the end-to-end solution is less painful (not only for users of the apps but also for its producers!).

It is possible to draw a map of this (and I would if I possessed more artistic skill) where you could derive on what is right for you: if you need access to hardware APIs (camera, 3D acceleration, Open GL ES, etc), native might be your way (one of the reasons why you are not seeing higher-end HTML5 games in large numbers yet). If you capture light-weight information-heavy content that relies on dynamic updates, a web “app” might be good for you, in other cases, a native app with some functionality coupled with a container for web functionality might be the right way.

So there we have it: it still is the old “it depends” answer. Having said that, with webkit and HTML5 adding functionality all the time, ever (?) improving bandwidth and better compliance on the browser side, the usecases for native apps will likely get less over time. Will it happen in full swing in the next 18 months or so? I doubt that very much.

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Mobile Games Publishing in 2011

On 31/05/2011, in Uncategorized, by Volker

I have been blogging way too little recently, so here’s – finally – a bigger one again.

What is a Publisher?

I have recently been asked more and more what the role of a publisher in mobile gaming is today. I mean, heck, there are now even websites proclaiming the (traditional) publishers’ death. On the other hand, venerable old and ruthless new ones are on a spending spree acquiring – seemingly – studios and smaller publishers by the dozen: In the past year or so, EA gobbled up Playfish, Chillingo and Firemint (and probably a few more I don’t know of). Zynga, even hungrier, absorbed XPD Media, Challenge Games, Conduit Labs, Dextrose, Bonfire Studios, Newtoy, Area/Code and Floodgate Entertainment. So what is right?

According to Wikipedia, a videogame publisher is (was?) someone who

publishes video games that they have either developed internally or have had developed by a [...] developer. [...] They usually finance the development [...]. The large video game publishers also distribute the games they publish, while some smaller publishers instead hire distribution companies (or larger video game publishers) to distribute the games they publish.

Other functions usually performed by the publisher include deciding on and paying for any license that a game may utilize; paying for localization; layout, printing and possibly writing of the user manual; and the creation of graphic design elements such as the box design.

Pretty old-school stuff, you say? Erm, yes. Broken down from its beautifully naive pseudo-scientific language, we arrive at the following:

  1. Publishers pay for development (i.e. absorb the development risk). This could also be classed as project finance.
  2. Publishers pay for licenses, another case of project finance – unless of course they pretty much own (legally or, through long-term licensing relationships, factually) certain IP.
  3. Publishers provide a bit of gloss and lots of marketing around a title to help it on the way.
  4. Publishers – sometimes – distribute.

Is the Same in the Digital Realm?

Now, the Wikipedia definition pretty much focuses on traditional console and PC publishing, it seems (box art anyone?). And this is where the new world sharply departs. No box art, no Walmart or GameStop deals are required if digital distribution is in place. How difficult can it be then for the more modern, more evolved (?) world of digitally distributed and, perhaps (but only perhaps) even more specifically for mobile games?

Nos. 1 and 2 above are pretty much arbitrary parts of the puzzle: you can get money from many places (or not of course) but it is a financing game, and video games could be called a specific (because intrinsically hit-driven) asset class. That is to say, these are not unique attributes.

No. 3 is a combination of money, know-how, experience and network. The more complex the landscape the higher the value of a specialist in the field.

No. 4 is, well, arguably a much easier game when you can feed your distribution channels from your own desk – via the Internet. However, again, the more channels you need to serve, the more complex the landscape, the higher the value of someone "who knows".

Nos. 3 and 4 are – arguably – what made Chillingo (based in the same honest North-West English town as I am) what it is (or, prior to its acquisition by EA, was): Chillingo seems to have had a knack of identifying good or at least decent games and promote them effectively across digital channels. Alas, their biggest hit, Rovio’s Angry Birds had not much good to say about them in terms of support. And indeed, if one looks at what Rovio did with its hit title outside of the Chillingo relationship, one can argue about the value add it had received from its publisher. But then again, Angry Birds seems to have been one of a kind, and there are other titles Chillingo brought to reasonable success that may not have had the same success – be it for lack of a Mighty Eagle such as the fearless and tireless Peter Vesterbacka or otherwise.

Changed Metrics

Chillingo, alas, is not where it’s at, I think. The war is being fought over those (in)famous MAUs – or monthly active users. You see, if you can command those hundreds of millions and parade your own wares by them, the likelihood of your next game becoming a success rises: Digital connectivity solves the dilemma of publishing of old, and that was to attract the attention of the gamer (your customer!) for your next release.

In a box-product world, you had to shout again, and very loudly, in order to have your customer part with his hard-earnd monies for the benefit of your title rather than your competitors’. This is – arguably – why EA Sports sponsors UK football (scil. soccer) broadcasts: "please, God, let people not defect to Konami’s PES from my very own EA FIFA".

Now, Zynga laughs all the way to the bank on this: if you played FarmVille, you will not have come around of realizing that CityVille was out. And you would also get additional points if you also played Zynga Poker. The result? Well, check the top-10 games charts for Facebook games for yourself. Suffice to say that Zynga is – according to the second market – worth more than Electronic Arts… Why is that? Eyeballs, addressable users, dollars spent per acquired user. That the business model is a little different for console games than it is online, doesn’t really matter for the argument here: you can drastically reduce the user acquisition costs if you play it smartly, so no need to take in $39.99 per game in order to break even. $1 or $5 will be just fine, thank you very much.

The above is also the reason for the spending spree of the publishers, I would suggest: if you can buy eyeballs and get a studio with proven skills (just check out either of Newtoy or Firemint on the mobile end), and you can combine it with a mechanism to attract people to future releases, there is a much better chance you can recoup your investment on that future release (effectively de-risking nos. 1 and 2 from the above list).

And now for Mobile!?

Zynga, EA’s Playfish and Crowdstar have shown that you can tweak the fortunes your way if you smartly combine game releases, updates and promotions to work with each other. But how is it for mobile? Backflip Studios, which rose to fame with a simple but well-executed game ("Paper Toss"), claimed to have had racked up more than 2m daily active users and 50m total downloads, mostly driven through promotion of its own titles inside, well, its own titles. Did it have a publisher? No. Does it have a very smart CEO who solved nos. 1 and 2 above and knows how to play no. 3 itself? Yes. So what about no. 4, distribution? Well, on iOS, that is a non-issue: one distribution channel to bind them all. However, on Android, it still falls short of a copycat, "Toss It", who were there earlier, are as ingenious and still rule. And elsewhere? Not much.

But we don’t have to rely on one case alone, and one by a small – though incredibly smart – studio no less. Look at Zynga’s performance on mobile. It is mediocre at best. EA though? Not so bad. What do they do? Well, apply the good old publishing principles learned in the olden world.

And this is where the specific complexities of mobile come into play: mobile is fiendishly complex. On the OS side, there is iOS, Android (in an increasing number of iterations), Windows Phone 7 (with some added spice since the announcement of their Nokia partnership), Blackberry, Samsung’s bada, and then maybe BREW, perhaps still a little bit of Symbian and J2ME. But then there are also the still mighty gatekeepers, the mobile operators. And then you will see that users tend to want to have it their specific way, ideally localized. The plethora of channels thus created makes it tough on a developer to maneuver its way through…

There are tools that can aid progress (and, yes, our very own Scoreloop provides some of them) but it is important to recognize the complexity of it all. Reaching users and convincing them with compelling offers is key to success in any world. It is important to bear that in mind in mobile, too. And if you think you cannot walk it on your own, a publisher might just be the right partner for you.

Changed Weighting

Since 1. and 2. above might not be such a big thing anymore (mobile titles can be developed for less – and, yes, I know this does not necessarily apply to the likes of "Galaxy on Fire" or "Real Racing") and 3. might be manageable but 4. might (not: always is) still be a key reason to part with some share in order to reach the user, convince the user, be able to bill the user.

SXSWi: Mobile Social Gaming: the next frontier / slides

On 13/03/2011, in Uncategorized, by Volker

Today, I was able to deliver a talk at SXSWi in Austin on my ever favourite subject of mobile social gaming, here for good measure dramatically enhanced and labelled the new frontier . Here are the slides to this:


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Finding the User: the case for gaming operators (with slides)

On 28/01/2011, in Uncategorized, by Volker

Earlier this week, I gave a talk at the Mobile Gaming Conference at ICE, the premier i-gaming (that’s gambling to you and I) event in London. Below, you will find the slides to the talk.

Let me outline briefly though why I think that social elements to gaming is something that I find the gaming (as in gambling, real-money gaming, etc) sector should be excited about (and it was hard to tell if many people were; ’nuff said):

“Social” games work if they address or are based upon a community of sorts. This needs to be supported by the game design and its mechanic as well as through tools that actually allow those communal juices to flow (and, yes, that’s what we at Scoreloop are doing and that’s why I am preaching about the subject so regularly). Now, the gaming folks have a lot of this sitting on a big silver plate right under their noses: “proper” gamers, i.e. those who spend money on their pastime, are tied together by that particular passion (this of course equally applies to all those passionate about lost puppies, cows and golden eggs…). For the real-money folks, there is also the billing side to consider: their clientele is used and quite willing to pay, and a billing relationship is often already in place.

The addition of social elements to such “real” games can essentially do two things then:

Cement existing customer base and avoid promiscuity of users

I have been hearing this a lot: users on, say, real-money poker sites often play on multiple sites. This is painful to the gaming operators as they spend considerable amounts recruiting their folks. It is a race to the bottom (of sustainable margins) and the adjustment mechanisms are scarce and largely reduced to bounties and clever marketing. Adding social elements adds that glue that increases the likelihood that players will stay with you. Why? Because they receive value over and above the core proposition: they feel better nestled into their community, which is – albeit a little intangible – real and not only perceived value. Incidentally though, it is also value that is not that expensive to create (cf. above under “margins, low).

Attract new users

Outside the hard core of gamers, there is a whole lot of people who are quite content to play for fun (Zynga Poker still has more active users than most “real” poker sites combined). Funnily enough, Zynga also makes more money with its soft version than a lot of gaming operators do with its real one. This is because a) they tie it into the social graph and b) a lot of users just like to play for fun – but they still spend money, only in more manageable increments.

I suggest that this is a major entry gate for gaming operators to attract new users (though I do not suggest that “hooking” people is something good!). A softer approach that introduces many shades of grey rather than only offering black and white will make it so much more compelling to play, properly or only trying it out and the very folks that are in the prime spot to capture these users (because they have all the experience, background and know-how) leave a lot of money on the table there (pun indeed intended).

But now, without any further ado, here are the slides:

For those of you who like that better, I have also uploaded it to Sribd here.