The Hubs and Pubs Manifesto…As one of the first people to be honored with the guest editorial slot on the LOGIN Beat newsletter, and one of the advisors who has been a part of the conference since its inception, I thought I would attempt to outline why I view LOGIN as an increasingly important part of the games industry conference calendar. One of the pleasures of working on the conference is the strength and experience of its advisory board and it’s the combined efforts of this team and Evergreen Events that ultimately shape the conference. But visits to two conferences during September (Austin GDC and Tokyo Game Show (TGS)) crystallized for me a personal manifesto about what I want from a conference, and the elements of LOGIN that I believe will continue to make it a superior conference experience. TGS 2009 did little to assuage any of the fears expressed by Yoichi Wada, president of Square Enix in his TGS 2008 keynote lamenting that Japan had lost its position as a leader in the global games market place. TGS 2009 was a much smaller show generally, characterized by a notable lack of anything very innovative with some major companies conspicuous only by their absence. One aspect of TGS that I continue to find puzzling is the lack of networking events or after show socializing, partly I suppose because the TGS show site is at least an hour away from downtown Tokyo. Back in 2008, Wada-san bemoaned the lack of what he described as ‘hubs’ in the Japanese industry – examples including any shared, standardized technology across the industry, but also forums for the pollination of ideas and communication between people within the same industry – leading to a closed, non creative environment. He said that “Western conferences are important in allowing creators to communicate with each other directly and in person but we in Japan are not very adept at making good use of these conferences."
So here are some of the key elements of LOGIN that we want to emphasize:
So I encourage you to get LOGIN 2010 onto your calendars early, stay in the conference hotel (new better rates this year) – and come along and help us assess how many ticks I get to put in the boxes on my personal conference requirement scorecard. I can assure you that the advisory board and Evergreen Events is doing everything it can to develop the industry’s most compelling event. See you in Seattle!
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Casual is the New HardcoreThe online gaming industry is obsessed with who its gamers are. Oh, and labels too. Which players are casual? Which players are hardcore? Entire tracks of conferences and numerous studies are dedicated to this topic, a logical obsession at that, since bottom lines and year-to-year business plans hinge on accurately pinning the dart as close as possible to the bull's eye. The problem is the difference between hardcore gamer and casual gamer name tags, at least, are awfully close to becoming irrelevant. Now, before I get barraged with cries of "treason! and "heretic!", take a deep breath and relax. Casual and hardcore games remain easily distinguished, at least for now. According to a Mediaweek summary of a Nielsen study, casual games are "inexpensive to produce, straightforward in concept, easy to learn and simple to play." Conversely, hardcore games are generally full-featured, complex games designed for long-session play. The one quality that both types of games share in common -- which is wreaking havoc on the taxonomy of distinguishing one gamer from another -- is addictiveness. Going back to the recent Nielsen study on casual gaming, it cites that casual gamers spend less than half the time hardcore gamers do per session. Yet the total time invested in a casual game may come close to matching what an average MMO game player may pour into their game. Over a seven month period, "about 20 percent of the 47 million unique gamers who played Microsoft Solitaire at least once ... came back to the game at least once. By comparison, about 12 percent of the 5 million World of Warcraft players who played the game in two or more months returned to it at least once every month." It's more than safe to say that casual online games are very sticky -- and as a whole are a lot easier to create and run than a goliath MMO game like World of Warcraft.
Yet little by little, like it or not, we are witnessing trends that are showing the adoption of the most successful, addictive, and viral elements of casual and social games. For one, we're already seeing the marginalization of the hard goods and hardcore gaming business model in favor of downloadable content and virtual goods. Within the last month, Turbine's Dungeons & Dragons Online relaunched as a free-to-play downloadable, microtransactions driven online game, revitalizing interest in a game that had at best lukewarm support amongst MMOG players. Also, MMOGs will not be walled gardens, with closed-off communities that limit growth. The Secret World, the modern-day MMORPG in development by Funcom, will give players some degree of interaction with social networks. This sort of engagement with their online friends will allow them to post and share their achievements, as a way of driving competition between players and extending the brand beyond the immediate community. Trip Hawkins, one of Electronic Arts' founders and CEO of game developer Digital Chocolate, might've said it best about the net effect of the rapid evolution of the gaming marketplace. "'We’re going from 100 million gamers, to a billion or more," he said. "These are not the people who are playing Grand Theft Auto or World of Warcraft.'" In other words, there's nothing casual about where the growth and development of the online game industry is headed.
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Introducing Up-BeatI'll use this space to touch on developments in the law that apply to or may impact the game industry and answer questions Login members may have about the law as it relates to operating a video game company. Over the next weeks, this will include issues related to user generated content, micro-payments, volunteers, privacy, eulas, etc. There is a lot going on and I want to be sure I cover things that interest you, so feel free to ping me or Cynthia here if you have something specific you want covered. Oh, one other thing, you don’t have to limit questions to legal issues. If you have tax, employment, immigration or related questions, I have a team of folks standing by to answer those questions too. What do a Chain Saw and Video Game Have in Common?I mean other than as a tool of mass destruction in a video game? It’s this: as of July 25, 2009, delivering a video game (or any other product that “includes sound, images, data, or facts” and is transferred electronically) online to a Washington resident (business or individual) is subject to sales and use tax just like software and other items of tangible personal property. This represents a big change in the way online games and other digital products are treated for tax purposes in Washington.
What does it mean to you? HB 2075 imposes sales and use taxes on certain streamed or remotely accessed digital services, goods, and prewritten computer software. In enacting HB 2075, Washington joined 18 other states (including Kentucky, Mississippi, North Carolina, Vermont, and Wisconsin) that treat online games as personal property. Prior to that, video games and music streamed to customers were not subject to sales tax because no sale actually took place. That is, under prior tax law the customer was not considered to have taken possession of the game meaning no sales tax was triggered. HB 2075 changed this and, in combination with SSUTA, means that sales and use tax will now be assessed on streamed games where the customer is located. This means that video game companies that stream their games to customers in Washington will now have to charge sales tax (6.5%), collect the tax and remit it to the Washington Department of Revenue in the same way they were required to do for actual downloaded content, software or CDs purchased over the internet. The upside is that the lower retailing and wholesaling business and occupation taxes will also be applied to these services. Note, not all electronic transactions are subject to the sales and use tax. HB 2075 contains a number of exemptions, including to promote server farms and data centers in Washington, and provides tax amnesty to companies that have sold online games without collecting the applicable tax. For information regarding the exemptions and to obtain a tax exemption certificate, see: http:/dor.wa.gov/... and http:/dor.wa.gov/.... If you have questions about whether the new tax applies to your company, consult your legal or tax advisor.
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Industry HighlightsCash Boost for Korean Game Makers from MicrosoftGames firms in South Korea are getting a funding boost from Microsoft. The software giant has agreed to invest more than $19m (£11.7m) to help develop online gaming in the nation. The money will be divided among more than 25 local developers who specialise in creating and running games on the internet. The cash will be spent over the next four years and is part of a larger $60m (£36.9m) investment in local software development announced in late 2009. » Shanda Games IPO Gets Tepid ReceptionShanda Games Ltd., a Chinese video game company, raised $1 billion Friday in the largest initial public offering of the year. The company offered more shares than expected, but got a lackluster reception. The shares dropped sharply on their first day of trading. The IPO price was at the top of the company's expected price range of $10.50 to $12.50 per American depositary share. After that debut at $12.50, the shares fell $1.75, or 14 percent, to close at $10.75. » PalTalk Aims At Warcraft, Other MMOs With New Patent Infringement SuitVideo-based social network and chat service PalTalk has filed a new patent infringement lawsuit that could make massively multiplayer online (MMO) games like World of Warcraft and Free Realms far less lucrative for their parent companies. Paltalk is suing Sony, Blizzard Entertainment, Turbine, Jagex and NCSoft for damages in “at least the tens of millions of dollars;” arguing that their MMOs are infringing on two patents it holds for real-time messaging during gameplay » China Seeks To Streamline Regulation of Online GamesThe Chinese government has taken steps to reorganize its approval processes for a variety of media including online games. Many observers believe that the change to China’s regulatory policy may have grown out of the excruciatingly slow path that Netease.com, Inc. has had to navigate in order to relaunch World of Warcraft. The game had already obtained approval from the Ministry of Culture but has been waiting on additional sign-off from the General Administration of Press and Publications (GAPP). » WildTangent Awarded Media and Digital Currency PatentWildTangent announced that the United States Patent and Trademark Office has awarded the company patent #7,590,601. Granted on September 15, 2009, this gives patent rights to WildTangent for the "licensing (of) media consumption using digital currency." The patent outlines the invention of users licensing access to media using digital currency, whether paid for directly by the consumer or by a third-party sponsor such as an advertiser. WildTangent released its digital currency, called WildCoins, in May 2006 to give consumers greater choice and flexibility in how they access and pay for games. » Redefining MMOs: Developers Weigh InWith the online games market expanding into new genres and incorporating new gameplay and social elements, the definition of "MMO" has changed. So is it time for a new word? Massively reached out to developers working on different MMOs and asked what they thought about the word "MMO" and if it's time to eschew the term and come up with something new. » |
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