November 25, 2008
In This Issue
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Giving Thanks?

LOGIN Registration Opens It's easy to have a gloomy outlook about the games industry right now. The global economy is reeling from a series of financial crises that, although the actual causes of which are poorly understood by except a few, are inflicting serious damage in ominous reports of layoffs and closures. This week brings news of the ironic death of Google's Lively, as well as the impending shuttering of NCsoft's Tabula Rasa MMO (just a week after the departure of creative visionary Richard Garriott).

Escalating game development costs have far outpaced sales - the former has grown exponentially while the latter has plodded along at a near linear pace. A recent widely-quoted article in Forbes reveals that only 4% of games actually make a profit. Geoffrey Zatkin of EEDAR clarifies that "only 20 percent of games that start production will end up with a finished product. And of that percentage of finished games, 20 percent will make a profit.”

With such risky financials, it's not surprising that publishers are so risk averse, preferring to publish sequels and games with attached brands over original innovating designs, though this no doubt contributes to the dismal success rate.

Is the video games industry (or more importantly, the online games industry) insured against the slings and arrows of recession? Conventional wisdom says that it is, although, as any investment prospectus will remind you, past performance is no guarantee of future success. Even industries that have historically been recession proof experience turmoil during times of financial stress. Consumers alter their buying habits, and although they'll still spend their wages on entertainment, they might be more inclined to spend it on games that seem like a better value proposition.

In this era of doom and gloom, what reasons do we have for optimism?

As it turns out, online games might end up significant winners this holiday season. A fifteen dollar per month MMO subscription seems a lot less expensive than a one-off retail game. A purchase of a digital game download from Steam or Xbox Live Marketplace seems more economical, even if the only savings are at the gas station.

On November 13th, Blizzard's Wrath of the Lich King broke previous records with sales of 2.8 million units within 24 hours of launch. Actual dollar sales for the first day are not available, but if we average $30 (price varied by region), we get roughly $84M, far more than the highest grossing film opening of all time (The Dark Knight, $67M).

On the console side, NXE has refreshed the potential for the Xbox 360 as a platform for digital content distribution, including online games. The interface update clearly accomplishes two goals: 1) it provides a more accessible interface for non-hardcore gamers (cute and customizable avatars have replaced the toxic waste theme) and 2) it clearly acknowledge Xbox Live Marketplace as a fundamental cornerstone of the player experience.

For US citizens like myself, this week marks Thanksgiving, a traditional holiday in the form of a harvest festival. The centerpiece of the occasion is a large, sumptuous meal, accompanied by praise and remembrance of all the things for which we can give thanks. Thanksgiving is not going to represent a cornucopia of unlimited abundance on a silver platter for all game developers this time around. That doesn't mean there are not opportunities waiting to be picked for those with the intelligence and foresight to make the most of a stay-at-home vacation economy. Online game developers will have no difficulty in remembering the other tradition that Thanksgiving week heralds: Black Friday and the start of holiday shopping.

Peter Freese Peter Freese
Director
LOGIN Conference

The LOGIN 2009 Call for Speakers is Open!

Call for Speakers

This is the news many of you have waited for, the call for speakers for LOGIN 2009. To speak at the LOGIN Conference is a mark of distinction and accomplishment in the game industry — but it's not necessarily easy. Speakers and their abstracts are vetted through peer review, and are carefully matched to our attendees' needs. The Call for Speakers is open to all online game industry experts worldwide, whether for console, PC or mobile platforms. Candidates are asked to review the topics of interest and session submission tips on the LOGIN 2009 website and then submit a completed session proposal form with 1,000 word abstract and biography before the deadline of January 21, 2009.

Top 5 tips for getting your proposal accepted at LOGIN

  1. Submit a proposal on one of the many identified areas of interest. The advisory board has put a good deal of thought identifying areas that we feel are relevant to attendees. If your proposal is the only one for an area we are interested in, it will have priority over all the proposals outside our identified topic ideas.
  2. Avoid any marketing slant in your proposals, particularly if you represent a service or technology vendor. LOGIN will host no sponsored or commercial sessions, and proposals which appear to be sales pitches in disguise will be rejected.
  3. Focus on areas of your expertise. The audience of LOGIN consists of experienced industry leaders who want to hear from experts. Avoid areas where you aren't experienced or recognized as an expert. Give stories about your own experiences, rather than theoretical ideas.
  4. Spend time writing a quality abstract. A poorly written or overly terse abstract indicates that you aren't willing to prepare in advance. The abstract is the most important part of your proposal and the basis on which it will be judged.
  5. Submit your proposal well before the January 21 deadline. By the end of the call for speakers, we will have selected many of the sessions already and your proposal will be competing with every other proposal for a shrinking number of speaker slots.

> Visit the LOGIN Speaker Submissions Page.

The level of exposure we received as speakers was fantastic. The people in attendance are either serious about online game development or already significant players in the industry. We received many positive introductions and re-introductions as a direct result of speaking at the show.

Hermann Peterscheck
Producer
NetDevil


Interview with Fluid Entertainment's Jennifer Chapin

One of the fresh topics the LOGIN 2009 Conference is going to examine is the influence of “green gaming”. How can the online game development industry, through its practices or its products, contribute to a better environment? With the recent launch of Emerald Island, Fluid Entertainment offers one possible part of the answer. We spoke with Jennifer Chapin, the VP of Marketing and a Founder of Fluid Entertainment, to get her perspective how Emerald Island hopes to demonstrate that green in games can be about more than just the color of money.

Emerald IslandLOGIN BEAT: Jennifer, thank you for being the first to sit in the interview hot seat for LOGIN Beat. Please start us off by giving us a little background on yourself, Fluid Entertainment and Emerald Island.

JENNIFER CHAPIN: Fluid Entertainment is an award-winning independent children’s entertainment software developer. Founded in 1998 by industry veteran Scott Mathews, Fluid has created high-profile licensed software products based on properties, including Harry Potter™, Disney Princess Castle Party, The Powerpuff Girls, Pokémon Online and many others. Emerald Island is the brain child of this long standing development team.

What motivated Fluid Entertainment to create an environmentally-themed massively multiplayer online game for kids? How is environmentalism integrated into Emerald Island right now?

Based in Northern California, we’re definitely part of a community that is environmentally aware and concerned. In 2003, Fluid Entertainment built a serious games software title, which taught driver’s education students about environmental consciousness, as well as safe driving behaviors and patterns. So eco-friendliness has been part of our portfolio for awhile not to mention a personal concern for the whole team. It’s a tremendous privilege to now build a wildly entertaining kids game around these important themes of our time.

That said, over two years ago, we started kicking around ideas to develop our own intellectual property and had the idea to do an MMOG for kids, with gardening as the central focus. As we germinated (no pun intended) the idea and spoke to kids, we quickly learned that the kids really liked the idea, but they also liked being part of a larger story and plot within a game world. With our love, history and passion for developing meaningful children’s content combined with a ‘save the world’ eco theme, we quickly realized we had a winning concept on our hands.

Putting all of these facets together – our enthusiasm for the environment and kids games, plus feedback from children – we came up with the idea of Emerald Island – a beautiful land in need of brave champions to save its environment from the polluting Pirats.

Within the game, the story is what really drives the environmental message. Players meet the inhabitants of neighboring islands, whose native lands have been ruined by the Pirats, and join forces with these characters to put a stop to the rodent’s pillaging.

Additionally, players tend to their gardens, where they have the chance to learn about the more than 100 different plants that are featured in the game, while they help to replenish and add to Emerald Island’s ecology.

What do you hope Emerald Island’s impact will be with its audience – or families?

With its focus on interactivity, Emerald Island encourages creativity, expression, exploration and collaboration, and offers kids a fun way to engage with real-world scenarios as they learn about the environment. We’re hoping that their in-game activities will also lead to discussions at home, and promote good habits like recycling and conservation in their day to day life. Kids grasp the idea of cause and effect by participating in game activities—such as a quest to replant trees felled by the Pirats—and learn about different plants while tending their gardens.

Do you feel environmentalism, or any cause as a core game element, is interesting to developers on principle or because they’re original enough concepts to be profitable?

Hopefully both. While profitability will of course be part of the equation, I don’t think that any organization would undertake the creation of a videogame, particularly an MMOG – an ambitious project – without being very passionate about the core message, and the audience.

Fluid Entertainment, and Emerald Island, is also reaching out to several cause partners in the hopes of spreading the message in the real world too. For instance, Fluid Entertainment is working with Trees for the Future, and is donating 10 trees for everyone person who subscribes to the game during special promotional periods. These types of cause partnerships are an integral part of our corporate philosophy and will continue to evolve as the game content expands.

Where do you think green gaming – games that raise awareness about, or actually reduce negative environmental impacts – will be five years from now?

Me MakerThere is no doubt that “green” will continue to be a major topic in entertainment. Gaming is a great arena to combine important topics with fun. If developers continue to push the envelope, ideate, and create the fun meaningful entertainment that children crave, then we’ll continue to see these types of games many years into the future.

The impact of green gaming is one of the focuses of the LOGIN Conference this year. From your perspective what do you feel MMO games and virtual worlds can do to contribute to environmental awareness or improving the environment in real-world ways?

Keep making fun, engaging games, with topical real world themes weaved into the experience. Secondly, give them the opportunity to learn in the online world, and the ability to translate that online learning to having a real world impact.

We strongly believe that replenishing the virtual world of Viridis allows kids to practice the role they eventually will play as future stewards of the environment.

Sponsorship Opportunities Available at LOGIN 2009

LOGIN 2009 Sponsorship ProspectusAs an exhibitor/sponsor at LOGIN, you will be able to expose your products and services to some of the most qualified attendees in the industry. You can enjoy meeting with the hundreds of attendees, speakers, and press — all with the common goal of promoting the online game development industry. We invite you to take a look at our prospectus and explore the advantages to our sponsorships we are offering. To learn more about sponsorship opportunities at LOGIN visit the sponsorship page on our website, or contact:

Cynthia Freese
+1 425.654.4575
cynthia@loginconference.com

Industry Highlights

The Death of Google Lively

The short-lived Google Lively web world project will be closing down at the end of the year so the search giant can focus on its core projects. Lasting a brief five months following a two-year development, Google's Lively online world is the latest victim of the economic troubles coming to the pioneering internet firm. »

Story on The Escapist


The Death of Tabula Rasa

NCSoft has experienced international layoffs, a couple development studios, and lost Rich Garriott in the last few months. Now, they can have to add the closure of Garriott's  science fiction-themed Tabula Rasa MMORPG to their list of recent losses. Tabula Rasa will be open for free play January 10th, 2009 through the closure of the game's servers in February 2009. »

Story on GamesIndustry.biz


Italian Animation Studio Partners With Singapore Talent

Rainbow, an Italian animation studio giant, has committed $25 million in funds to create a new MMO game based on the popular fantasy Winx Club franchise. By 2011, Rainbow expects to hire 100 new full-time staff to drive the development of the game forward -- and perhaps create a studio in Singapore if the free-to-play Winx Club performs well. »

Story on The Straits Times


Asynchronous MMOG Arrives on the iPhone

One of the world's hottest connected devices has lacked any games remotely similar to MMOGs. That is about to change -- almost -- with Aurora Feint II, The Arena. An ingenious method used to emulate the multiplayer gaming experience within this puzzle game involves downloading a ghosted performance of a competitor, who you can compete with head-to-head. Aurora Feint II is expected to be available for download from the Apple Apps store soon. »

Story on Yahoo! Tech


More Hard Times for Funcom

Funcom has announced it has a laid off a percentage of its US employees. After a fast start for Age of Conan in June of 700,000 subscribers, the game lost a good chunk of their community by August with 415,000 subscribers remaining. Ten Ton Hammer has reported a rumor that 70% of the workforce has been cut, mainly in customer service and quality assurance (the usual first casualties when a company is scaling back operation of an MMO game). »

Article on ShackNews


Bringing Rome to an Edutainment Platform

Past4Ward licensed from Past Perfect Productions Rome Reborn, a 7,000 building and 13 square mile 3D recreation of ancient Rome, as a module in its game-based educational platform. This virtual world look at Rome will feature MMO-like interaction but will also conform to educational requirements. However, the buck doesn't stop at just education, because Past4Ward is looking to partner with commercial game developers who might like to utilize the Rome Reborn world in their creations. »

Article on Gamasutra


Microsoft Hopes to Turn up the Heat on Valve's Steam

Microsoft is about to take on in earnest the current digital distribution king, Valve's Steam, by upgrading its own Games For Windows (GFW) Live service. Within the next few weeks, the unfulfilled potential of GFW Live might be a significant step closer to reality by offering videos, demos and downloadable content through a GFW Live application. »

Article on PC Magazine


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