Video Games

Nintendo chief on gaming and the cloud

I was in Japan last week for a number of meetings related to brand development and disruptive software and found myself less intrigued by the overwhelming array of Japanese mobile phones and more interested in the handheld game consoles from Nintendo and others.

It's not that there aren't a plethora of mobile phones that have all kinds of cool features, but that since generally those phones can't be used in the U.S. (and most don't offer English interfaces) the game consoles became a lot more interesting.

One of the news items I was late to … Read more

Virtual goods revenue continues to climb

New survey data from research firm Magid and Associates and in-game commerce provider PlaySpan shows that virtual goods sales continue to grow, with games leading the way to monetization.

Virtual goods remain a promising alternative to advertising, and even to subscription revenue for many games and social networks. As mobile games continue to play an important role in gaming revenue, I would expect to see the sales of virtual goods continue to skew toward mobile devices as users seek instant gratification and bite-sized chunks of high-quality gameplay.

The follow-up to last year's survey reveals that buying habits aren't … Read more

Mobile-gaming revenue to hit $11.4 billion in 2014

Gaming on cell phones has long promised to be an important revenue generator for mobile carriers and game developers, but it took quite awhile for it to drive real revenue in the U.S. But worldwide, especially in Asia, mobile gaming has been emerging as an important revenue generator for a number of years.

Last week, research firm Gartner predicted that worldwide mobile-game revenue will grow 19 percent, reaching $5.6 billion in 2010 with an expectation to more than double to $11.4 billion in 2014.

Mobile gaming is a very broad classification which also includes new and interesting … Read more

Features, not game titles driving console adoption

New research from Nielsen Games shows that the purchase of a specific game title actually ranks lowest in a list of purchase motivators and that consumers are driven by a myriad of factors that relate more toward a longer-term usage pattern than an impulse purchase for a specific title.

In the study of God of War III--a PlayStation 3 (PS3) exclusive--Nielsen found that the new game title had some influence in the sale of the console, but far less than would have been expected. In fact, buying a specific game was at the bottom of the list of purchase motivators.… Read more

Measuring the sales of virtual goods

New data from PlaySpan, a provider of payment and monetization solutions for online games and virtual worlds, shows that digital and virtual goods purchases are going global, and that revenues can be tracked to better ascertain the size of the market.

It's estimated that virtual goods will generate $1.6 billion in the U.S. in 2010. Some predict that sales of digital goods will account for 20 percent of gaming revenue by 2011.

As part of analyzing which players and geographies drive the most revenue, PlaySpan has settled on a metric of average revenue per paying user (ARPPU), … Read more

Virtual goods expected to hit 20 percent of game revenue

A new study by virtual goods provider Viximo suggests that by 2011, sales of virtual goods will amount to 20 percent of U.S. game software revenues.

According to the report (registration required), this forecast is predicated on the expectation that virtual goods will grow faster than the overall gaming software industry. In 2009, U.S. retail sales of console, portable, and PC game software generated revenues of $10.5 billion, an 11 percent decline over the $11.7 billion generated in 2008. In the meantime, virtual goods revenues are expected to hit roughly $1.6 billion in 2010 and … Read more

Social gamers accept marketing for virtual currency

Alternative payment methods enable developers to monetize significantly larger portions of their user base, according to a study released Wednesday.

Fifty-three percent of social gamers surveyed for the study, overseen by ComScore and Offerpal Media, said they are enthusiastic about alternative, or indirect, payment methods as a way to earn virtual currency for free, rather than having to pay for it directly.

These alternative forms of payment take many forms, including filling out a survey, watching a video, shopping at online retailers, or signing up for a subscription in order to get points for the games they play on leading … Read more

Foursquare gets down to business

For as far back as we've been discussing social networks, there have been question marks around the best ways to monetize users. To date, advertising has been the primary strategy, with virtual goods starting to pull in some serious revenues.

But the challenge with advertising is that users tend to ignore ads that are not highly targeted. Even precisely targeted ads are largely ignored, which is why you see more and more of them taking up screen real estate. This has also led to more sites adopting a "freemium" content model.

And targeting is even more of a challenge when users are mobile, but mobility also introduces a whole new way to interact with and monetize users.

One of the more interesting companies in the location-based services (LBS) space is Foursquare. Surely, you've seen some message in your Twitter stream telling you that your friend is at some location or is the mayor of whatever, or has unlocked a badge.

And while Foursquare has nowhere near the user base of Facebook or Twitter, the users are very valuable as they promote the places they go and things they do simply by mentioning them in their communication stream.

According to The New York Times, Foursquare plans to distribute a new analytics tool and dashboard in the coming weeks that will give business owners access to a range of information and statistics about visitors to their establishments. This means that businesses can more effectively target users with specific offers and ads.

But what it really provides is a way for Foursquare and other location-aware services to make money.

Going back to 2001, I remember talking about location-based services while working at OmniSky, a way-too-early provider of hardware and software that turned handheld devices like the Palm V into mobile devices. We even acquired an Israeli company called NomadIQ to deliver location-based content.

Ten years later we're just starting to see location-based offers roll out in the U.S.--better late than never?

Many of the early international LBS were very basic social networks (primarily dating) and the demand for such services in the U.S. simply wasn't there, partially because of social mores and also partially because mobile devices have evolved fairly dramatically. … Read more

Valve games coming soon to a Mac near you

A few months back, I searched high and low for a few decent Mac games in preparation for a series of long flights and found myself looking at titles that were long surpassed by their PC brethren. Titles for the Mac are a dismal representation of what's going on in gaming.

But it looks as if that's about to change.

Doug Lombardi, Valve's VP of developer marketing, confirmed to MacNewsNetwork that the company is planning to port some of its most popular games to the Mac. And while details remain thin, most in the gaming community view … Read more