Archive for the ‘ Online Games ’ Category

According to Pearl Research with its new “Online Games Market in Korea” study, the online games market in Korea is forecasted to exceed $2 Billion in 2011. Other key points from the report include:

  • 3 of the top 5 game operators in Korea grew their revenues more than 50% in 2009
  • Korean game companies have prioritized establishing international operations with the United
  • States, Europe, Japan and China as the leading target markets.
  • Nexon’s global revenue was $585 million in 2009
  • Neowiz’s overseas revenues, which consists of licensing and revenues from international, was $52 million in 2009
  • South Korea has one of the highest Internet and personal computer (PC) usage rates worldwide at 80%
Challenges to the market  include:
  • A glut of content
  • Increasing government scrutiny
  • Rising development costs

VGMarket and PlaySpan, released their 2010 Digital Goods Report on Wednesday. The report reveals consumer behavior patterns among existing customers of third-party and first-party online game marketplaces.

The median spent on digital goods in 2009 was:

  • $50 per year for Social Networks
  • $40 per year for MMOs
  • $40 per year for Casual Games
  • $40 per year for Free to Play Games
  • $37 per year for PC Games with Online Play
  • $20 per year for Console Games with Online Play

Other key points include:

  • 32% of respondents made purchases within social networks
  • Males are playing significantly more games and are the primary drivers of total digital goods sales
  • North American women 25 and older are spending disproportionately large sums of money on digital goods
  • The average female spent $55 dollars on Social Network games compared to $30 for males

Games Convention Online is interested in having speakers give lectures on Business & Legal (e.g. business models; micropayments; start-up & Investment topics; data security), Development (e.g. game design; programming & production; open source), Browser GamesClient-based GamesMobile GamesSocial Games (e.g. connection to browser games) and Internationalization (e.g. localization, international networks, community management).

GCO takes place July 8-11, 2010 in Leipzig, Germany. You can submit a speaker proposal here.

Women Are Gaming

A study from Q Interactive and Social Media World Forum of more than 2,000 women in November of 2009 found them actively engaging with brands as they partake in social media gaming. The report also states:

50% of U.S. women play online games according to Pew Internet

The online social-gaming market is expected to at least double from $720 million to over $1 billion by 2010 according to Think Equity

The study also establishes a picture of the typical woman engaged in social media games and applications:

  • 85% of those surveyed use five or less games and/or apps regularly, indicating an inclination to be loyal to a handful of favorites; approximately 15% regularly invest in six or more games/apps at a time
  • 57% are earning/spending virtual currency daily
  • 74% got involved in a game or app due to a recommendation by family or friend or because they noticed a friend or family member’s score
  • 95% utilize virtual currency primarily to gift and/or advance games
  • In interacting with games and apps, 57% feel virtual gifting – for example, giving a bag of virtual makeup from Sephora – is as meaningful as real life gifting
  • 97% of women prefer to earn virtual currency through either winning more or accepting a branded offer – versus paying for it with “real” money
  • Only one in ten women have actually used “real” money to purchase virtual currency; of that, 85% have spent under $100 in their gaming and aping activities – ever
  • Of women who have signed up for branded offers to get more virtual currency, 67% found the offer useful
  • 37% of those women chose the branded offers based on “content”; 17% went for offers with free products or services

A follow up study in February, 2010  Q Interactive and Engage! Expo  revealed insight into the psychology of women who play social media games, the largest demographic of social media users. The study of over 700 women, about 54% of which play daily and 30% weekly, investigates a range of viewpoints around salient social media gaming topics. This is the company’s third recent proprietary research study from its “Women’s Channel.”

Of those surveyed, 42% consider themselves gamers and 7% deem themselves obsessed:

  • For 67%, one to five hours per week is socially acceptable
  • 26% feel six or more hours per week is socially acceptable.
  • Nearly 45% of those surveyed have friends they consider obsessed with social media gaming.
  • Approximately 16% of those surveyed hide or sometimes hide their gaming habits.

Over two-thirds of those surveyed believe there are stigmas associated with gaming. For those women, the leading stigmas are:

  • Games are addictive (24%)
  • Play makes you neglectful of other areas of your life (21%)
  • Gaming is a waste of time (17%)
  • Play at work is basically off limits: 93% of those surveyed share they primarily play at home versus work.

More than half of women surveyed, 54%, fear more games will make gamers pay in the future:

  • If forced to pay, 77% would give up the game, while:
  • 10% would prefer a monthly subscription or fee
  • 10% would prefer a pay-as-I-go system
  • 2% would prefer a separate payment scenario for each game played

Chris Sherman Founder of the Engage! Expo said, “…  moms and kids are both wired into social media gaming… however, mom… is actively supervising the time her kids play and what they spend”

  • Overall kids (children under 18 years old) are connected: 16% of moms say their children have a smart phone.
  • According to mom, 40% of kids are allowed to play daily, 37% weekly, and 10% monthly.
  • Generally speaking, kids are banned from the wallet: 80% are not allowed to pay for social media gaming.

The February study is available here, and the November study is here.

Our friends over at VentureBeat have sent over a code that will save you $50 off of registration to the event. We were at last year’s GamesBeat and it was definitely worthwhile. I would recommend it to anyone looking at the business behind virtual worlds, online games, venture capital for game companies, or funding in general. It pulls a good mix of game industry/Silicon Valley.

GamesBeat@GDC 2010 will be held on March 10th in San Francisco and will feature the theme Disruption 2.0.  The one-day executive conference will explore the future of gaming and the effects of the iPhone, iPad, social media, digital distribution, and online gaming on the industry.  Leading speakers will include:

  • Steve Perlman, CEO of On-live
  • John Schappert, COO of EA
  • Bryan Reynolds, Chief Designer of Zynga
  • Klass Kersting, CEO of Gameforge
  • Neil Young, CEO ngmoco
  • Gareth Davis, Platform Manager of  FaceBook
  • Bart Decrem, CEO Tapulous

An others. Join 400 other gaming industry leaders for a day of panels, keynote and networking. Register here to receive $50 off your GamesBeat@GDC registration using the following code:  GBEATSP.

Alex St. John, hi5’s President & CTO, will unveil the details of hi5’s new Game Developer Program at the Game Developer Conference in San Francisco Wednesday, March 10, 2010 from 4:15 PM – 5:15 PM (PT). hi5 is the largest social media site built specifically for games. The session is targeting social game developers looking for life beyond Facebook as well as online game developers that want to socialize and monetize their games.  hi5 will tell you everything you need to know to get your game distributed to their global audience of over 50 million monthly visitors. hi5 offers game developers:

  • Free marketing and promotion across the hi5 network for new games launched exclusively on hi5
  • Revenue share on advertising and commerce using hi5 Coins payment platform supporting over 60 payment methods
  • A dedicated game portal and game promotional area to facilitate discovery of your game
  • One-click automatic game installs, so you don’t lose users at the installation step
  • Super-charged social channels which don’t artificially cap or limit the ability for your game to go viral.

hi5’s new Game Developer Program is a different model for social games.  Representatives from engineering, marketing and business development will be on-hand to answer all your questions and anyone with a GDC Expo pass can attend. RSVP here: http://hi5games.eventbrite.com/

According to a story in Reuters, China’s online game revenue has grown 30.2% over 2008 revenues to $3.97 Billion. The article also estimates that there are:

  • 50-60 Million online gamers in China
  • This represents almost 20% of the people online in China
  • Revenue is expected to double over the next three years

Our friend Dean Takahashi over at VentureBeat wrote a story today about the virtual goods market, citing the Inside Social report on the industry.

  • The U.S. virtual goods market is on target to exceed $1 billion in revenues in 2009
  • This is more than double 2008 revenues
  • In 2010, revenues are estimated to hit $1.6 billion

According to an interview with Eurogamer, Turbine’s revenue estimates for 2011 suggest that the PC MMO market will be worth $2 billion

The company expects the Console MMO market to be relatively untapped in 2011 and estimate it to be worth $2.3 billion in revenue.

According to the 2009 National Gamers Survey which TNS NIPO and Newzoo/Gamesindustry.com conducted this summer among Dutch people over the age of 8 who have internet access, there are 9.3 million people in the Netherlands that play games:

  • This is 70% of the online Dutch population
  • Young Dutch men between aged 13-19 play games for 10 hours a week
  • 83% of the online population in the United States plays games
  • 73% of the online population in the United Kingdom plays games
  • 67% of the online population of Belgium plays games
  • 65% of the online population of Germany plays games
  • 63% of the online population of France plays games
  • Dutch gamers are less inclined to pay for games than gamers in other countries.
  • Only 12% pay for mobile-telephone games compared with 48% in the United Kingdom.
  • Not surprisingly, the percentage of people who pay is highest in the case of consoles: 63%.
  • 10% of console players admit to making copies, often illegally.
  • 31% of people who play online multiplayer games and virtual worlds are paying customers
  • In the Netherlands 7% of the people who play games on social networks say this is the main destination to play games, whereas in other European countries this figure is 10% and in the US it is 24%.

The 2009 National Games Survey is one of an international series of surveys conducted by TNS and Newzoo/Gamesindustry.com in the Netherlands, France, Germany, the United Kingdom, Belgium and the United States under the name Today’s Gamers. Five firms partnered in the survey’s launch and have full access to all the data: RealGames (Zylon), Keesing Games (including Denksport), RTL Group (including RTL Nederland), Gamepoint (including Spelpunt.nl) and SPIL GAMES (including spelletjes.nl).