There’s a love-hate relationship between Hollywood and gaming, and tremendous friction around licensed properties and what they mean for the gaming industry. In this panel, the experts explore where the relationship is symbiotic, where it is destructive, the underlying sources of friction, and how the relationship is now evolving. This is a continuation of our live blogging at the eighth panel from Digital Media Wire’s LA Games Conference 2008.

Bill Kispert, VP, Interactive, NBC Interactive
Sandi Isaacs, SVP, Interactive & Mobile, Paramount Digital Entertainment
Daniel Offner, Partner, Nixon Peabody LLP
Mike Breslin, VP, Global Marketing, I-play
Moderator: Andrew Wallenstein, Deputy Editor, The Hollywood Reporter

Where are we now in 2008 where things seem divisive in the Hollywood and games dynamics?

Mike – There are a few ways to look at it. You need collaboration between the production and the game developers, sets, and so forth; you can’t just hand over a style guide anymore. It also comes down to finding teams who share the creative vision. So collaboration is improving but it comes down to finding fit early in the process.

Keith – There are only three factors in the film license – time between film and game release, marketing budget, and likelihood of franchise to the film.

Sandi – I feel like everyone’s missing the point. It’s never been a more exciting time for film makers to collaborate with game makers. Now we have a great opportunity to start prototyping early in the process and explore business models, not just stay in the licensing box. At Paramount we’re putting together a team of game industry veterans to help make that happen. It’s also not just about the new release, but also the classics like The Godfather. It’s about the game, making a great experience and making it profitable for the studio.

Daniel – I’m slightly amused by the question, is Hollywood killing the game industry. We’ve worked with THQ for many years, and they make their bread and butter selling licensed games. There are some interesting changes now, though. The convergence of casual games, community and the web, and the access of content through broadband connectivity. The ability to tap the digital distribution platform opens up all kinds of interesting things. The other thing is having great content coming out of the studios and pairing that up with really great talent. I don’t think retail is going away – Wal-Mart, Amazon, etc. – but digital distribution is becoming very important.

Mike – I can speak with mobile industry perspective. One reason there has been consolidation in mobile is the cost of licenses with the peak of interest in mobile. Of course the studios are trying to maximize their license revenue, but from the side of the team investing in these licenses and putting together teams, you overextend on the licenses and can kill your business.

Sandi – Obviously we’re investing heavily in these properties which drives the mobile licensing terms. It’s a tricky fragmented business but the players know the challenge. It’s not the cost of the IP but the economics of the mobile game business overall.

What does the mobile game business look like, all license or some original IP too?

Mike – We’ve had success with some of our own IP. But on the license side, I think that Hollywood can help the game industry with the co-marketing and opportunity to leverage a brand where the studios are spending millions of dollars.

Keith – That’s a key point, you have to work with the license holder, because if you don’t, you’ll lose the value of the marketing, events, co-marketing if you don’t check in regularly and see what they are doing with the IP.

Sandi – Another factor is the broadening of the game demographic overall, expanding the scope of movies that work for games.

Keith – And now for the first time you have gamers making movies; the producer or director says from day one ‘where’s my game’, and wants to be involved on a creative level and ensure quality. They are also not demanding large up front payments as part of the deals.

Bill – You could argue that Hollywood can drive the game industry going forward – places, characters and worlds, with game play layered on top of it. Then there are millions of other promotional touch points, like theme parks, television, fast food, and more.

Keith – The other really important point is that when you talk about these $8 million marketing budgets, you can piggyback on those budgets and have credibility going into Wal-Mart for retail distribution and retail promotion. By paying for the license, you get to piggyback the buy for the sell-in level, let alone the consumer level.

Daniel – My question for the studios is, as what point will you be in my clients’ business and not need them any more.

Sandi – I think we already are and that’s the issue. There are going to be different parts of the value chain where we need the game companies, but other parts of the value chain where we don’t. We’re looking to work with partners based on value-added for both parties, not a single model.

Keith – That’s no different for any other part of the studios’ businesses.

Bill – Our ability to take things on ourselves also depends on the capacity we have available at different points of time. But it’s a very good time for independent developers to have conversations with studios. It used to be that we would go to Vivendi or another publisher and they in term would deal with the independent developers.

Sandi – It’s going to be very similar to the TV and film industry, lots of co-financing, lots of distribution deals.

With all these changing models that are happening, are there any upcoming releases that will put things to the test?

Sandi – On our side it will come from the casual gaming side. We are going to put in the time to develop really great games.

Boesky – There’s one coming up in September called Afro-Samurai from Gonzo. Gonzo committed to making a mini-series, and we invested in it from the creative side. Spike picked it up for a nominal license fee. They only got the right to run it; it was a great five episode commercial for us. We pick up revenue from the DVD, iTunes, action figures, and the action game coming out from Namco. All of the revenue from all of those ancillaries go directly to Gonzo, and Spike made so much money from the advertising without paying for content that they commissioned another run from us.

Bill – The notion is that if you’re really trying to build a franchise, you need content across platforms, and think about how you release them strategically.

Keith – The lie we told in the 90s is now true. We actually can use our game assets across media. Disney, Warner are starting to do it sometimes.

With a show of hands – is there a perception that Hollywood games are bad games? (Many hands are in the air)

… Andrew’s note: My fingers can’t keep up with the debate!

Mike – We all know there’s nothing more discerning than a gamer.

Keith – If it’s a bad deal, don’t buy the game. If you have a desperate publisher who wants something, or who messed up and can’t get it right – they won’t pull the public.

Sandi – We’re talking about hard core gaming reviews coming out and killing Sponge Bob. These mass market games are not targeted at the hard core gamer. It’s about being realistic, what game are you playing and what the audience expects for it.

Keith – If you compare these titles to other games, look at what you’re comparing them too. If I invest $30 million in BioShock, I can only invest $10-15 million in a licensed property because of the spend on the license.

Sandi – And that’s why the studios are developing games ourselves, so we can reinvest in our own IP.

Bill – We’ve introduced a hybrid model where we are co-funding games. Some developers said thank god, we’ve been waiting for the studios and networks to put skin in the game, and other showed no interest.

Daniel – A question for Ubisoft, THQ, and the others is will the studios still be giving out their best AAA properties? Will they be asking for a different economic deal, or will the studios just do it themselves and use publishers for retail distribution?

Sandi – If publishers have internal great teams, they often don’t want to put them on licensed properties.

Bill – We’ve tried to adjust our internal model to get involved early and put our publishers in a position to succeed.

Technorati Tags: LA Games Conference 2008, Hollywood, Videogames

In this panel, the experts are focusing on advertising challenges and opportunities in games. They discuss what works and what doesn’t for in game advertising. They focus on what brands really want and how game companies need to start speaking a language advertisers understand. This is a continuation of our live blogging at the seventh panel from Digital Media Wire’s LA Games Conference 2008.

Panelists
Christian Batist, SVP Marketing, Sulake Inc. (Habbo Hotel)
Barry Schaffer, President, Promotional Currency
Julie Shumaker, SVP, Sales & Marketing, Double Fusion
Keith Kane, Co-Founder, SVP, Sales & Marketing, Giant Realm
Mark Friedler, Internet Advertising, Media, Games Entrepreneur/Founder, GameDaily
Moderator: Chris Lang, SVP, Research Strategies, SmithGeiger, LLC

Chris: Any case studies to start?

Julie: Sponsorship and engagement is really where there is opportunity right now. It’s like major league sports. Sponsorship are a really important part of the marketing mix. This is one way brands can reach fans. The combination of engagement and interactive experiences is allowing brands to participate in long play experiences. TMobile spent $60 million on their NBA sponsorship and mobile was the most important part of the campaign.

Chris: Will gamers put up with advertising?

Christian: It works well if you treat the gamers with respect. Logo slapping isn’t the way to go. You need to make it part of the experience. Have them find the ad and they win something and give them ways to wear your brand in the game.

Barry: We will work with the new release to promote it through specific brands or retail outlets. If you think about it like promotional items, but done digitally. Games, music, video can all be used promotional items.

Mark: Games are compelling as media. There is very high engagement. Attention to the game is very different to information around the game. The way to market to gamers is by working marketing around content about the game. CPM models don’t work in this kind of environment. You’re buying time, not really impressions. If you think of games as media, you start thinking about it differently. Free MMO games can monetize via digital goods. You can get very good revenue per user.

Julie: It’s no different than TV. Brands expect to get product placement to go with their impression buys.

Mark: The web is going micro. Everything is splintering. Players like EA want to spend $50 million. If everyone becomes their own media company, how does EA buy advertising?

Keith: These micro environments can be really scary to brands. There’s lots of things going on that brands don’t want to be part of. The marketing needs to be very relevant to the community. He describes a HP campaign for high performance machines that they ran in Machinima communities.

Q from Andrew via Mozes: How does the need for immersive placement impact scalability of in game advertising.

Julie: Without aggregation across lots of games you can’t scale. It takes a network of games to create audiences big enough.

Keith: Brand advertisers need to start thinking differently. Brands think they need a separate budget for game advertising. They should be thinking about how to reach audiences.

Julie: The game industry creates this problem by talking about PSP, Wii, DS etc. Brands should not have to care. They want to buy advertising and engagement.

Mark: We should be talking about engagement. If people want scale, they should go to Google and buy tonnage. There is going to be downward pressure on advertising because there is unlimited supply. You need to be able to offer media buyers engaging programs that are really simple for them to understand. He describes how this one MMO was able to offer virtual currency to members for signing up for credit card applications. The credit card company called them up and told them to stop after one week. The credit card company had a 12 month backlog after one week running the campaign.

Will there be single measure of engagement

Christian: It would be nice, but I don’t think so. The thing is to agree with your advertisers.

Julie: Advertising nomenclature is reach and frequency and CPM. Engagement is measured by ROI.

Mark: It’s also up to the industry to not take stupid ideas. We should segment it into different segments. Google allows you to buy clicks and measure results. If you’re trying to get a lifestyle product marketed, the product needs to look cool.

Barry: Engagement for us product selling, getting a new customer etc. A lot of the programs we run drive trial.

Christian: If people buy Corn Flakes in Brazil, the customer gets Habbo credits. The same type of program is running in Spain and Finland. It’s too early to tell the results, but the Spanish company pulled all their other advertising to focus on the Habbo program.

Technorati Tags: LA Games Conference 2008, gaming, in game advertising

We continue our live blogging at the sixth panel from Digital Media Wire’s LA Games Conference 2008. The mobile games panel focuses on the question, what’s it going to take for mobile games to go mainstream, exploring differences between the US and international markets, and different business models that are being used to tackle the mobile phenomenon.

Mobile Games: Challenges & Opportunities to Create a Mass Market Phenomenon
Scott Scherer, VP Product Management, Hands-on Mobile
Jill Braff, SVP, Global Publishing, Glu Mobile
Stephen Jackson, CEO, Smashing Ideas
Kay Gruenwoldt, Head of Industry Marketing, Nokia
Erica Chriss, VP of Strategy & Business Development, Greystripe
Moderator: Mark Donovan, CMO & Senior Analyst, M:Metrics

Jill, what have you seen shift in the last year in terms of drivers of your business?

Jill – The increase in people playing mobile games. Back in 2002 with Sprint, we were doing focus groups and couldn’t find anyone playing. Now we can find active players a day after posting an ad in CraigsList. The core audience may be different from the typical mobile user, but that’s what you need to grow a business. Also, we’re trying to see the carriers start to measure RPU (Revenue Per User). As the networks become a commodity, these services become more important.

Scott, HandsOn involves bringing titles like Incredible Hulk to market. How is that doing?

Scott – Guitar Hero 3 has been a tremendous success, the number one title since it’s launch in December. It’s a brand that’s hard to screw up, but also hard to create a long tail and ongoing revenue stream. So we deployed an option where if you buy the game you get three additional songs each month, which drives people maintaining their subscription. People are coming back and trying out the new songs and getting more great experiences each month.

Mark – That underscores the shift to subscription models and evolving content.

Jill – It’s awesome to see this kind of stickiness to content and episodic content. Mobile really should be about this kind of close relationship with consumers.

Steven, you’re a serial entrepreneur with Smashing Ideas, a smaller company. What does this market look like to you?

Steven – The company has been a casual game maker for 12 years, generated 150 million game plays last year. We’re the largest independent Flash developer in the US. Adobe decided they’d spend $900M to address the mobile space with Flash Lite and we jumped on the Adobe bandwagon for the mobile space. We have 30 applications on Verizon and 80 screen savers. We create 60% of our games, and then for the other 40% distribute for other developers. As a small player, we play in the Adobe Flash Lite niche and that’s where we focus.

Kay, tell us what’s happening with Nokia. When nGage was first launched it was laughed at, but you’ve been tenacious and successfully relaunched. How does it fit in?

Kay – We’ve learned a lot over these last 3-4 years. It took quite a while to come up with the new nGage platform, and we’ve accomplished all the points we set out to address: fragmentation, discovery, purchase process. We’re focusing on a premium experience for higher end phones. The average price for games on the platform is from $8-14. People pay for it because they can try the content out first and perceive the value. Now, original IP is leading ahead. The content that our games publishing unit creates is selling very well. That’s great news for smaller game companies and developers, they have a chance to be successful.

Erica, your business model is what Greg just said is way too early, ad supported games. How does that work, and is it cannibalizing the market?

Erica – We see it as a great market, and we know we are not cannibalizing it because our publishers are telling us so. It’s increasing the scale of the entire market, enabling discovery, and providing content for folks who will never pay for content. Instead of having them pirate your content and pay you nothing, why not allow them to create meaningful experiences that you can monetize. We’re seeing 300K downloads per day, and a large percentage surveyed would not pay for games, and are experiencing similar conversion rates as other distribution models.

Are there top tier publishers signing on with Greystripe?

Erica – We do have a number of top tier publishers whom we work with, including Hands On and Vivendi. First, we can be thought of as part of a windowing strategy, like DVD vs. theatrical. Things that are utility based, applications, do very well. We also have content from top tier providers who are experimenting with simultaneous introduction through us and carriers. They are measuring cannibalization careful and finding none – we’re just an addition channel.

What are you seeing as the relative importance of carrier vs. handset vs. direct to consumer distribution?

Scott – For HandsOn most of the revenue comes from the carrier deck. For B2C, it’s less about creating a portal for us, and more about working with larger brands like World Poker Tour where it makes sense – we run a website that offers free play online and then upsell to mobile

Jill – Certainly today, the lion’s share of the business comes from carriers. I’m actually interested in learning more about how much money you’re seeing from advertisers, Erica. There are other channels that are more direct that we are exploring. Over time this will look more like one-to-one marketing. The great thing about mobile is that literally it is always with people.

Mobile as an industry is a real pain, with so much fragmentation and handset standards. Is that getting any better?

Jill – We really like the complicated part. Not only is it a barrier to entry but it’s something that for us is a competitive advantage. We also do localization, day and date launches, event marketing tied in with carrier marketing. It’s similar to any other entertainment business. You can’t let people have a game only on one type of phone. Consumers don’t understand the technical complexity, it has to be seamless for the consumer.

Scott – For us it’s a lot like what Jill said. License partners expect global launches across carriers. We end up doing dozens of unique builds instead of a “high” and a “low”. It ends up creating a lot of extra work that changes the economics of the business.

Kay – What this discussion shows is that if you really want to grow this business you have to look across these issues as a whole. How you distribute. Consumer experience and discovery tools. Billing mechanisms. We are trying to address these as a whole, and those who do will be successful.

What would the panel’s advice be for people making games on other platforms and are eyeing mobile?

Kay – My key advice is do not copy and paste, it will not work. You can ruin great IP and a great brand by copying and pasting. The technology is a lot different from a PC and a console. It has a lot more – cameras, motion sensors, touch screens, wifi, GPS. Don’t just slap what you have onto mobile.

Erica – What’s interesting is that might decrease your chances of getting carrier distribution. But we believe that consumer choice leads to real experimentation, original IP, and reinforce the entire system.

Jill – If I were a strong brand holder I would build a really strong license business given the risks and uncertainties. If I were a developer I’d talk to carriers and publishers. You need to understand the carrier retail environment, and then partner with a publisher as a way of getting in the channel. On the flip side if you were going to develop for nGage, iPhone, etc, you wouldn’t have to deal with the porting issues but do have to deal with the complexity of developing for these platforms. There’s room for innovation. Even the videogame business, which is dominated by large publishers, has room for this kind of innovation (look at Guitar Hero).

Erica – It’s actually a wide open market, and new developers have the opportunity to take share with hit products.

Mark – But most of the volume is through the carrier channel, and that’s a tough channel to crack if you’re two guys in a garage.

Is location a component of games you are developing or see in the market?

Kay – Location is something that needs to develop, especially location based gaming. The only reason it’s not out there bigger is that noone has yet been able to develop a valid business model for it. With GPS in so many devices, it’s something we have to look at. I can’t say more at this point. If anyone here has a great concept, hit me up after the panel!

Erica – We’ll experiment with anything and we have a very cool distributed mostly in Japan that is all location based treasure hunting etc.

Are you seeing things outside the US that foreshadow what we’ll see here?

Stephen – We’re seeing a lot of interest in off-deck distribution models outside the US.

Jill – As an industry we make the mistake of talking about mobile from a US perspective. It’s also not one size fits all outside the US. We’re very successful in China and it’s all very local content that would probably be rejected by Verizon. In Europe networking is just starting to happen in terms of game play. Or in Latin America people are experiencing entertainment the first time through mobile, they don’t have cable or Wiis because of cost.

Mark – Did you just suggest that Verizon is a stronger censor than the Chinese government…

Are mobile games being usurped by casual online games; are these competition for eyeballs, dollars and entertainment?

Kay – Everyone is competing, it’s entertainment as a whole whether movies, mobile, or others. One note is that we are now looking at cross platform gaming across mobile and PCs.

Jill – From the consumer point of view, people are used to being on many screens simultaneously. There’s a lot more gender neutral user base for mobile, so it’s more akin to and complementary with what you see in casual games. That seems to make the brands grow far more than a cannibalization effect.

Stephen – One of our customers is Cartoon Network and we’re taking their online games and immediately bringing them to mobile.

Are we seeing games start on mobile and then go to other platforms?

Jill – That’s where we are trying to go as an industry.

Kay – There are pretty good examples already of that happening, one example from Germany that went from mobile to retail distribution in supermarkets for PCs.

Stephen – The challenge for us is monetization. We are able to sell clicky sticky games for mobile, but not Flash games for online.

Erica – That’s a challenge as games go cross-platform, consumers free expectations transfer to mobile, so advertising is important.

You still haven’t told us how much money publishers can earn through advertising!

Erica – In places like India and China we are seeing advertising with higher CPMs through advertising than through purchase. We’re seeing CPM’s in the US as high as $40, and in India as high as $15.

What do you see for the mobile games market going forward?

Scott – The real innovation will be through multiplayer connected games, which is a way of having a terrific experience, to reach out and add new experiences.

Jill – All these new technologies and devices are not for technology’s sake but to create more immersive, richer experiences.

Stephen – We’ll see much better discovery, the ability to find, share and play content.

Kay – Richer, more immersive experiences. Multiplayer and connected game play going beyond what you can have on your PC because mobile is something you walk around with.

Erica – More UGC, more social viral content now that there is a revenue model that can support free things.

Technorati Tags: LA Games Conference 2008, Mobile gaming, International mobile

Johnathan “Fatal1ty” Wendel is the first gaming superstar. He talks about what it takes to succeed as a gamer – it’s not that different from succeeding as an athlete – and the “Fatal1ty” brand that he wants to build into the Nike of the videogame space. Ken Rutkowski interviews him for Digital Media Wire’s LA Games Conference 2008.

LA Games Conference Featured Interview
Johnathan “Fatal1ty” Wendel
Interviewed by Ken Rutkowski, Host, Ken Radio

Johnathan is the most accomplished professional PC gamer in history. He has joined forces with the Championship Gaming Series, which is owned by DirectTV, as a spokesperson.

Ken starts talking about travelling through Korea with Johnathan, where he is a gaming superstar mobbed by gaming groupies. He’s a spokesperson now, and is no longer playing games at a competitive level, but for the right game, moment, and TV exposure will jump back in.

Succeeding in gaming is about focus, like any professional athlete. For gamers, a lot of skill sets are required: Discipline, timing, psychology, even math (for understanding the odds).

Johnathan believes that as CGS reaches hundreds of millions of homes worldwide, there will be more and more gaming stars in different countries. They already number in the hundreds, and increasingly are getting sponsorship from brands. They will be the new professional athletes.

The “Fatal1ty” business model is to pick the up coming athletes, pay them salaries, and build the revenue behind them. Andrew’s comment — It sounds a lot like the music labels until a few years ago.

Johnathan has moved from trying to split his time between running his business and gaming to just focusing on the business – it takes a substantial investment of time.

The “Fatal1ty” brand is a lifestyle brand for gamers. The keyboard, the mouse, the headset, etc., evolving from Johnathan as a celebrity to a brand for gamers, like Nike is to most physical sports.

What do you think about the Wii Fit? Very exciting. Johnathan is looking forward to using it. He woke after a Wii session sore, realizing that his work out was throwing punches with Wii. He’s a hardcore sports guy, football, tennis, and was a top 50 tennis player in his space.

Technorati Tags: LA Games Conference 2008, Videogames, Fatal1ty, Johnathan Wendel, Ken Rutkowski, Championship Gaming Series

In this panel at the LA Games Conference, the expert panel talks about innovations in connected games. What does it mean to be connected? What are the big changes and what’s next? This is a continuation of our live blogging at the fifth panel from Digital Media Wire’s LA Games Conference 2008.

Panelists
Keive Huffman, SVP, Business Development & Sales, Championship Gaming Series
Robert Norton, VP, Business Development, King.com
Rob Uhrich, Senior Director, Digital Markets, PaymentOne
Brent Hurley, Strategic Partner Developments, YouTube
Jason Rubinstein, Senior Director, Entertainment, Mobile Devices, Motorola
Moderator: Jay Moore, Head of Special Ops, The Strategery Group

Jay asks What is connected gaming? What’s your perspective on what Connected Gaming is.

Jason: Connected gaming is a better experience. The ability to get it from your friends the ability to get it easily on your phone, and ulitimately how social networks connect with games.

Brent: Game developers can pull in relevant data to make the game better. If it’s raining outside, it could be raining in the game.

Rob: Connected relationships are what it’s all about. Usually my kids fight all the time. Seeing my kids working together on webkins shows the power of connected gaming. Strengthening current relationships and develop new relationships is an important part of connected gaming.

Robert: In all our games you are playing against other people. It’s about people vs. people. Helping them connect. The lobby system is the most important part of our site.

Kieve: We look at connected gaming as a huge part of what Championship Gaming Series is all about. We see a way for connecting a competitive gaming to main stream audience. Television is CGS’s primary distribution channel. The online element introduces a new element of interactivity. CGS just announced a YouTube channel.

Jay: What have been the big breakthroughs in the past year?

Robert: Figuring out pre-roll and post roll advertising has opened up free ad supported games. Another breakthrough is the social network sites that allow game developers to reach very large audiences.

Jason: VMK had to shut itself off due to unexpected success. Scrabulous is great. A couple of guys in India introduced something that ignited a lot of interest in casual gaming and it has a business model.

Kieve: It’s amazing how strong the communities are. Any time we run a tournament it’s a frenzy. Our traffic goes up 10x.

Robert: Scrabulous reinvented turn based games. The game had been around for a year before it went on Facebook. The social network allowed the game to become the marketing tool itself. By building in the right features, the engineering could drive the marketing of the game.

Jay: What’s been driving connectedness in the MMO space?

Kieve: We work with World of Warcraft. It’s been a lot of fun to work with them. They’ve created this immersive environment. The fun has been trying to mainstream this community by publicly broadcasting the game tournaments.

Jason: What’s not happening is MMO expansion into mobile. It doesn’t even have to be the game. There’s tremendous opportunity in mobile for applications like tools, utilities and teaser games.

Jay: Will the iPhone be disruptive?

Jason: The SDK and platform is not really open, so publishers should beware. Apple shattered some ceilings that only they may have been able to shatter. It still needs to achieve volume to be disruptive. Google’s open mobile is more likely to be disruptive.

Jay: What is the future of UGC games and mashups?

Brent: We want to encourage sharing of game video so people can share their in game experiences.

Robert: This is one of the most significant developments. Over the next 18 months, UGC around the game. The combination of community, games and flash skills set this up to grow. It opens gaming up to anyone with the right skills.

Kieve: One of the most popular things is sharing your best victory. Ode to Gamer Girl is one of the most popular videos around. It’s hard to beat this kind of marketing.

Kieve: Counterstrike is one of our most popular games. For the upcoming season, we are using a user generated map.

Jay: How will advertising play out?

Robert: Everyone is experimenting. Micro-transactions are the real revenue now. Advertising is the potential for real growth. Right now we’re experimenting with what works for users and how it impacts user’s interactions with the site and the games.

Jason: I side with the consumer. The consumers want free and they want quality. Diner Dash costs $20 for a download. On the mobile it costs $4-5. Consumers expect that games will be on the handset. Advertising could make this possible.

Rob: Advertising as a part of the business model continues to be a important part of the revenue mix. Game developers just need to be careful about how they integrate into advertising into the games.

Jay: What needs to change in the home?

Kieve: The technology in the US is getting better, but it still is not a great user experience. In Korea and China where they have the bandwidth, particularly in mobile, connected gaming is doing very well.

Rob: It needs to get much simpler.

Brent: Bandwidth into the home is the block for streaming high def into the home. So hitting the mainstream will take some time.

Jay: What categories will be disruptive in the next wave?

Jason: The companies that are positioned to do well are the big companies and the people who spin off from them and really understand the networks. Companies that are thinking about where the real numbers are and how to reach them with proven game mechanics can light up the mass markets.

Jay: What do you see happening next? What would like to see?

Kieve: True connectivity, that’s ubiquitous and that works.

Robert: The games that represent the cutting edge of content are teaching us about new things that work. Seeing these things move to other activities and applications is exciting.

Rob: The gaming market will become much more competitive.

Brent: Excitement about derivative works. It can be exciting to see and interact with the game and game play in different ways.

Jason: Open mobile networks. Fewer mobile operating systems. Super distribution - the ability for people to send media to friends get. Like to see US legalize online gambling.

Technorati Tags: LA Games Conference 2008, Connected Games, gaming

These gaming industry experts share their perspective on what makes a game great – in terms of game play and financial results – and what new technologies and capabilities will be changing the face of killer games going forward. This is a continuation of our live blogging at the fourth panel from Digital Media Wire’s LA Games Conference 2008.

Matthew Bellows, VP, Consumer Strategy, Vivox
Catherine Herdlick, Dir., Game Production, GameLab/Co-Founder, Come Out & Play
Spencer Hunt, VP, Game Production & Digital Dev., Sony Pictures Television Int’l
Ariella Lehrer, President/CEO, Legacy Interactive
Chris Petrovic, VP, Digital Media, Playboy Media Group
Moderator: Scott Steinberg, Managing Director, Embassy Multimedia Consultants

What does having a successful game mean? Financial return? Set up for follow-up game? Great reviews?

Ariella – Obviously with a small company you have to make money, so number one is generating enough revenue to pay for your marketing and development expenses. Right now we have a number one product, Lost Cases of Sherlock Holmes, so that’s a success.

Spencer – First and foremost it’s about getting deck placement, and it’s about carrier relationships and consumer uptake. We do a lot with licenses, and for us, if the original content creator is excited about the product, that’s a strong indicator for market success. With mobile, if you’re getting 50K downloads a month for a few months, that would be fantastic.

What about retail distribution?

Ariella – For our games retail is now an afterthought. Online with our prentice Los Angeles game we sold 60K online and 20K at retail.

Let’s look at a popular game, Guitar Hero, and discuss what are the common factors that lead to success.

Catherine – Aspirational qualities are important, the desire to be a rock star. The game lets a consumer immediately identify with a role that has broad appeal and gives them the power to be the star.

Matthew – So much of a game developers’ motivation is to make something amazing and exciting, that even if a game is not a success based on revenue but pushes boundaries and finds passionate fans.

Chris – Aspirational is an important element for us (Playboy), on the male side living the good life as Hef does, and on the female side it’s important as well, though we’re still looking for what that element is.

Spencer – Everyone wants to be a rock star, so Guitar Hero nails the aspirational component. Also the core game play mechanic – it’s very easy to play the easy level, but very difficult to master, and it provides encouragement along the way.

Ariella – Also for Guitar Hero, the innovative use of the controller which allows people who have never played games to interact with the content. The interface is a large part of the success.

Matthew – What’s interesting about the controller is that it was not seen as the right thing to do from a business standpoint. It was a financial risk that publishers took, it drove up the SKU price, but it was all about game play.

How important is doing the groundwork, picking a business model?

Spenser – It’s all about following through on a vision. If you are really passionate about a decision, like Nintendo’s controller emphasis rather than graphics, following through is key.

Matthew – Look at Harmonix. They tried for ten years to follow through with the vision of making music accessible, and now they’ve hit the right formula and it’s a big success.

How important is it to be able to turn on a dime when you’re approach isn’t working?

Ariella – Very important. You look at the strengths and weaknesses of your developers to decide how to transform a property into something great. Then the process of refining and developing is a very iterative process. We’ll do the extra month or two at the end of the process to beta test, refine and polish before launching so we get it right. You have to be sure you have enough time to do it right.

How many concepts do you go through and throw out before deciding what to put into production, and whether to design by committee or use one person’s input.

Catherine – We go through dozens of ideas per month, and the decision depends on many factors, what we think will resonate with the market, production capacity, etc. We discuss as a committee but don’t design by a committee, the producer is the filter through which management, developers, etc. can voice their concerns.

How about prototype development?

Catherine – It’s absolutely imperative, you have to put something together almost immediately to have a vision for what the game is. With Fashion Play we iterated for four months, scrapped the product, than started over and created the finished product in five months.

How far into left field should you go with your original concepts?

Spencer – Left field is great for original IP, but for licensed content, you will have a flop if it varies from consumers’ expectations. You can go further out in mechanics, though.

Chris – We’re an evergreen brand so there aren’t a lot of pockets for totally original things. Evergreen is good but it has it’s constraints. Used to be you could reskin existing game engines, but we’re past that now. It’s hard to innovate as an original IP holder without new and different hits to go from.

How important is international?

Chris – For us international is much bigger. Looking at mobile we’re not on deck here but have been from early days globally. Existing and new territories, Asia Pacific and Latin America are very important.

Do review scores actually matter and influence sales?

Ariella – They don’t matter for casual games, but do for hardcore. Casual gamers look at top-sellers. Brands are becoming more important for the casual game market with 20 new games a day. If you as the millennial generation, they don’t believe in experts anymore, they believe in what each other and their friends think. GameRanking.com etc. are important for us when we are looking to find developers and see how they’ve scored with their games; it’s more of a business-to-business use of expert scores versus consumer driven.

Can good marketing sell a bad game?

Matthew – Marketing can definitely get the first launch 50% or 100% above what you ‘should have been’, but good games last. Here reviews do have an influence. I love the consumer reviews of the title, not so much expert reviews but people who have played games, love them, and think of themselves as expert. They set an incredibly important tone.

Let’s learn from common mistakes by players in the game space…

Chris – I’ll use ourselves as an example, though it preceded me. We had an online game aggregator come to us, suggest we slap our brand on an existing arcade, and we had about two consumers come to that URL. The web has a long memory about bad experiences. Reskinning without advancing the brand is disastrous.

Catherine – I’ll add perspective about thinking through the use of the controller. Most of our games use the mouse. We’ve launched games that can hurt your arm if you play too forcefully. In one example, we promised a game that we couldn’t make because it was technically impossible with the control mechanism, and kept bumping against the wall and eventually had to abandon the effort.

If you haven’t played a GameLab game, audience, download one now. They are top notch.

Ariella – We produced a game for a wonderful charity, Starlight / Starbright. We were given a script with celebrity participation. The only game we could come up with that fit the script was a side-scrolling platform game, and this type of game is not very successful as a downloadable PC game. It was actually well reviewed, but it didn’t do well in terms of sales. It was the wrong game for us as a developer and for the audience. Nothing was good about the result.

Spencer – It’s very easy for the team to follow in love with pieces of the game but they can’t pull away from the closeness to see how it relates to the brand or how playable it really is. Pulling away is an emotional rather than technical problem. You always have to build in the time to make adjustments.

Matthew – We had a concept game for MoPets and bring it out for mobile phones. It was original content, we had a great partner (Sony BMG), but it’s so hard to break original IP on mobile versus on downloadable PC where you can get cat, dog, etc. lovers engaged.

Are there any trends improving chances of success across the board?

Catherine – There has been discussion about franchising, licensing, etc. One of the exciting things now is original IP starting with games and moving to other media

Ariella – There are huge opportunities thinking about innovative controllers, look at the Wii Fit and other titles. We’ve really just touched the surface of what’s possible here.

Matthew – I’m so excited right now to be in the video games industry. You can do things so many ways – Flash, browser, mobile, etc. – we’re seeing a lot more creative things being developed.

Spencer – The reality of multiple platforms is finally being realized. Everyone in media is recognizing the power of this.

Chris – Building on that, the concept of synchronous game play through multiple platforms is finally coming to fruition.

Matthew – For example look at PMOG, Justin Hall’s passively multiplayer game. It’s a browser plug-in that tracks you as you go through the web, and you acquire your points, levels, badges, and so forth just as you browse the web.

Catherine – The whole definition of what’s a game is evolving, turning every day activities like buying groceries into a game – it’s pretty amazing.

Audience Questions

There’s a lot of discussion about innovate controllers. How do we do this without having to acquire another set of plastic toys that fill our rooms?

Spencer – Are you talking about the same plastic working across multiple publishers?

Maybe getting rid of the plastic altogether.

Spencer – I’ve wondered why noone has created a Guitar Hero controller that connects to an actual guitar

Catherine – I think we’re actually streamlining it more than we were 15-20 years ago.

What new innovate technology is on your radar screen as the next big thing for gaming – haptic interfaces, 3D, etc.?

Spencer – I’m really interested in location based games, and game design that takes advantage of that information. Use of GPS, photos for scavenger hunt, community, etc.

Catherine – I definitely think that GPS will become huge and change the way we play.

Ariella – I saw a presentation from an Israeli company that has to do with how your body interacts with the PC – there’s some camera that tracks your movement and allows you to physically interact with what you see in the screen

Matthew – I’m very interested in the integration of speech into games, facilitating a much more natural interface

Scott – We also haven’t talked about UGC, such as with the SIMS, which is important.

Chris – Having a tactile interaction with a virtual experience. I’ll leave that to your imagination regarding the implications for our world (Playboy).

What is your development cycle, and how does new technology impact that?

Chris – For Playboy, because games are not a core part of our business, we are strategically opportunistic about pursuing opportunities. We’ll sit back and analyze the financial benefit to us, with the partner taking the majority of the risk. We see a lot of pitches and don’t execute on 99.9% of them because it doesn’t make sense.

With respect to Matthew’s comments about voice in games … I was reading an article that discusses the advantages of using a third party voice provider like Ventrillo is that you can still talk to your guild when the game crashes. What do you think about this?

Matthew – It’s a good point, though there’s not much for the guild to do when the game crashes. But we’re working on a project to make that capability possible, keeping the voice independent of the game.

Technorati Tags: LA Games Conference 2008, game design, videogames

Cindy Cook, Chief Strategy and Marketing Officer of Vivendi Games is being interviewed by Geoff Keighley, producer of Spike TV’s GTTV at the LA Games Conference.

Geoff asks about the explosion of the music category. How do you work with the music companies?

Cindy says that the music business is actively looking for new outlets for their content. The interest level for music companies to be involved with games has reached a high point. First it was just background, then it became jukebox material, then artists became characters in the game, and then music became the game.

It’s been good to see the growth in sales of these games. We’ve also seen lots of growth of in game music purchases which is very exciting.

Geoff asks about movie games. The view is that movie games are rushed out and hard core gamers don’t really like them. The high mark was the Chronicle of Riddick. It seems that Vivendi is going back into the old movies, for example Scarface and Ghostbusters.

Cindy says they try to coordinate with release dates where they can. These are good opportunities. The problem is that it can take longer to make a good game than make a good movie. They wanted a way around this problem, so they researched the back catalogue. Scarface emerged as one property that could do well. For Ghostbusters, it’s one of the most familiar and popular movies. They were able to unite the original cast and it has unique game play.

For Scarface, they had huge popularity of the character and they were able to weave in contemporary hip hop theme. Ghostbusters was also familiar to the audience.

Geoff asks about The Bourne Conspiracy release. Cindy says they are immersed in a large scale marketing campaign. They see this as a mass market product so they are looking creatively at how to reach people. Two things they are doing that are unique. The first is cinema based ads. The ads are based on showing the motion capture technology and action sequences from the game. They will be shown at the opening of the new Indiana Jones movie. The other thing we did was to have the music composer, Paul Oakenfold, host a music conference and produce a music video for the game.

They will also have outdoor advertising and street teams that will help promote the game.

Geoff asks about how Vivendi approaches a Facebook or Myspace. Cindy says they go where the people are. For Scarface, they had a Myspace contest to determine music for the game. They also have a Scarface page on Myspace which has 400,000 friends.

Cindy also describes How Do I Survive High School. It’s a mobile game that connects to people. It’s episodic. People are attached to the game. 7.5 million packs have been downloaded for the game. They have promoted it in Facebook focusing on how to get the game on your mobile device.

Geoff asks about iPhone games. Will it be disruptive to the mobile market? Will it blow the market wide open? Cindy says that most mobile games have been crappy games. The iPhone has the ability to support much better games. It has the potential to be disruptive when the installed based gets bigger. The key is to get enough people with the phone to make it really big.

Cindy addresses a question about new virtual currency. She says that she wants to clarify that World of Warcraft continues to grow and that Blizzard is really focused on the player experience is.

Question: Will Blizzard allow digital object exchange? Blizzard has made it clear that they have decided not to do this. They are focusing on the player experience.

Question: What about iPhone games? Will Vivendi be delivering more games through the browser? She says the ability to download or access through the web is really exciting to Vivendi. It will be a matter of consumer choice how the get the games.

Technorati Tags: LA Games Conference 2008, Cindy Cook, Videndi Games, gaming

Chris Early, General Manager, Windows Gaming, Microsoft gave the end of day keynote at the LA Games Conference 2008 talking about Connected Gaming.

Chris describes himself as the Windows guy in the Xbox division. His talk focuses on connected gaming. Connected gaming has evolved from single device to cross platform connected games. That is being able to play Xbox games vs. people on the Windows platform. He points to ShadowRun as an example of this type of game.

It’s not just multi-player, multi-platform, it’s playing with friends. He says that people want to watch their friends play, to talk with friends while they play.

Why can’t all platforms, the phone, the PSP and the other platforms all work together? Why can’t my networks work together? If I have a great reputation on a Windows network, why can’t I have a great reputation on a Sony network?

Why do we want to connect? We want to play, watch, compare, share ,communicate , differentiate, group/belong. Why don’t we have that game? Why hasn’t Microsoft made a game with all these pieces? Chris says its brain melting hard to do this. It’s hard on the order of whether you can make money on putting all this together.

It’s really hard just to make a game that works between the Xbox and the PC. Mice are much better pointing devices the console handsets though are much better at managing movement. How do we make this kind of thing work across all platforms. It’s really hard.

The game companies are islands. The net result is that we all end up with fragmented communities.

Chris says that what the world wants is connected gaming, companion gaming, asynchronous gaming, to make my play valuable and persistent of data and character.

Most of all we want fun. We want to have fun with whatever device we have or platform we use.

Technorati Tags: LA Games Conference 2008, Chris Early, Microsoft

Find out why there really is no difference between casual and hardcore gamers, and what it will take for the rest of the world to become players of casual games in the third panel from Digital Media Wire’s LA Games Conference 2008.

Casual Games: What’s Next Now that Everyone’s Involved?
Peter Blacklow, Pres., WorldWinner (Liberty Media subsidiary), EVP, Digital, GSN
Kate Connally, Vice President, AddictingGames, MTV Networks
Eric Lavanchy, Director of Gaming, Endemol USA
Matt Turetzky, VP, Non-PC Games, RealNetworks, Inc.
Dave Madden, EVP, Sales, Marketing & Bus. Development, WildTangent
Moderator: Mike Vorhaus, Managing Director, Frank N. Magid Associates

Give a profound or controversial comment with your introductions:

Dave – I think that casual games are generally going free, with monetization inside and and at the back end of the game

Matt – News Flash: Gaming division is about to spin off from RealNetworks as a publicly traded company – and that’s all I can say about it

Eric – I’m convinced that within 5 years there will be no game shows or reality shows without a significant online component that intimately involves and integrates people into the show.

Kate – This is a profound question, not a statement. What will be the successful types of games that are going to spring to life on television?

Peter – Celtics in 4 over Detroit

In such a crowded old space, how do new casual game titles break through?

Dave – It depends on how you define casual, psychographic or demographic. If casual is a game found online, no money spent, no time investment required … in that world, it’s going to be much bigger than the traditional game business is today.

What’s the next new thing in casual games?

Kate – We’re looking at platforms like Facebook and MySpace engaging a much bigger interactive audience daily than ever before who are looking for something to do. You give them an interactive experience while they’re on their web page, and you have a much better chance of engaging with them. There are also some innovative game styles emerging but they are still early stage, like the viral vampire games which are interesting at first but seem to become annoying.

Matt – Obviously there are a lot of interesting things happening on social networks, but in general I don’t think there’s much new. We’re all to blame for focusing on things that have been successful over time, but that sameness will open the door to brands, like Scrabble, Mattel and Hasbro.

Eric – It needs to be remembered that this is a very nascent area; Facebook as a platform has been opened for all of two years now. In the early days of TV they were filming radio plays. We probably haven’t seen the thing that can really get accomplished through social media yet.

Peter – This whole industry – online casual games – is still brand new. Particularly at GSN, we hear a lot from people who enjoy the game shows on TV and who have no idea that they can go online and compete in these games. Wheel of Fortune is the number one syndicated show week after week after week, and while Sony is doing a great job trying to move people online, the viewers and loyal fans are just beginning to move online.

What tools do you use to get viewers on to game sites?

Peter – Back to TV shows, none of these should happen without an online component. Example, Bingo America, GSN was getting 2000 registered users per day, not many. When we launched Bingo America with prizes and contests, that jumped to 22,000 registered users a day.

Is there really a difference between the casual gamer and the hardcore gamer?

Peter – I also work with GamerDNA, a company that I’m on the board yet, which is focused on hardcore gamers. This segmentation around casual, hardcore, etc. games doesn’t work the same way in any other industry – people listen across music genres for example. We’ve all lost sight of the gaming consumer, who don’t define themselves that way.

Kate – We’ve also defined gamers by the way games are delivered, the platform, vs. the games that are differentiated by brands and programming vs. platforms.

Matt – There’s a perception that casual games are for women 35 plus. If you look at the traffic coming to RealNetworks is much more balanced, 50/50. Casual is just about monetizing.

Dave – The credit card is the gating factor for gaming online, who has it and who has access to it in order to buy the game. I load up my iPod at 99 cents a song but I can’t do the same thing in gaming, to break the price down and sample games on a bite-sized basis. It’s dependent on microtransactions and other forms of monetization, the ways people can pay for games.

Kate – Or advertising.

Can Eric talk about mobile vs. internet entries?

Eric – We’re trying to minimize the distinction, and that’s how consumers see it.

How about voting, mobile vs. internet?

Eric – Because of the way we advertise and make money from the calls, it’s 90% mobile vs. 10% internet but that will change over time. If you look at Current.TV, over 40% of the audience is having a two screen experience while they watch.

Are people interested in learning about or improving themselves through gaming? Self-awareness?

Eric – Nintendo has a whole line of such games

Kate – We’ve done research, and the drive for personal achievement and accomplishment is a big part of the motivation. Consumers say it’s the one time they can actually finish something.

Matt – Our research indicates the same thing, that our users play games for relaxation, entertainment and also a sense of achievement. When you want to relax and feel good about yourself, you might want to pop balloons vs. do math problems, because the frustration level gets in the way of the sense of accomplishment.

Peter – When we started to benchmark people’s scores against others in tournaments, we doubled our conversion from free to money.

Are you looking at all at casual gaming as a way of affecting how people engage and connect with each other, and understanding the effect on others?

Mike – The SIMS is the closest to what you are describing.

Kate – The concept of collaborative play is creating awareness that people can accomplish more in groups than they can individually. Collaborative play is an exciting new area where we are seeing a lot of interest from gamers.

How do you determine content synergy with consumer lifestyle?

Collective hmmm… from the panel

For example, in the videogame Crimes of New York, who was creating that lifestyle and how do you create synergy with the games.

Eric – Some Endemol examples – Extreme Makeover Home Edition. We’re aggregating people based on lifestyles and interests, allowing for social interaction.

Kate – We have a whole category called News Games based on things that celebrities and politicians do. We have a whole team of creative developers who make those choices and let fly.

But the kids are playing GTA IV, etc. Who’s keeping this real world?

Kate – It’s the responsibility of the game publisher

Eric – We’re starting to see platforms for user generated gaming content. So the whole question of control won’t matter over time, you’ll control it, the consumer will. A few years ago, that wasn’t possible.

Kate – At Addicting Games, 70% of our games are coming from independent developers who might be teenagers learning Flash. Our most popular game last year was developed by a 14 year old in Sweden.

Dave – The same plumbing being used by Real Time Worlds to launch their games is being structured as a Wiki. Individuals will be able to create their own story lines, story arcs, etc., and a $50 million bet was just made against it.

Who’s the hard core gamer and who’s not?

Dave – If you are an aggregator of games, you don’t need to worry about it. But the payment models is where things get interesting. The number one game played by RuneScape, Habbo’s users, is free. There’s a whole slew coming out like this where you get in for free, and then pay for new capabilities on a microtransaction basis or through advertisers.

Eric – To answer an earlier question, what happened to the paid download model for casual games – it’s not gone yet but there consensus that it’s going away.

But the paid download model is paid and growing, it’s bigger than PC retail!

Matt – We agree with that but the mix is moving toward online and free, ad and microtransaction supported.

Peter – As you know I don’t like the hardcore / casual distinction. At Worldwinner, all of our gamers are hardcore casual gamers. On average, they spend $400 a month on contests. Our commission is 15-25%.

Dave – That’s called gambling addiction and people do it at the horse race all the time.

Peter – The gamblers don’t stick around very long. People know they are going to lose $300 a month but are doing it for the entertainment value not because they think they are going to make money.

What’s going to get the other 250 million people involved in casual games?

Matt – It’s a question of ubiquity. We’re distributing our games through as many portals and locations as possible to drive that reach.

Dave – It’s a huge addressable audience, the way you make money is multi-faceted but it’s going to be a huge market from an advertising perspective.

Kate – We need to make great efforts to diversify the types of people who are making games. To date it’s been an outgrowth of technologists but we need people from artistic and creative backgrounds.

Eric – It’s about taking gaming out of its box and immersing games in other participatory experiences.

Peter – Television. Liberty Media, by buying our small skills based gaming company and merging it with a television network, is saying that they are going to drive people from TV to the internet to play games.

Technorati Tags: Casual Games, LA Games Conference 2008

We are live blogging from the LA Games Conference. This session of the conference focuses on How to Win the Social Game - Harnessing the Power of Online Communities and Social Networks.

Panelists include:
Craig Alexander, Vice President, Product Development, Turbine
Ranah Edelin, Vice President, Electronic Arts
Mike Goslin, Vice President, Disney Online Studios
Scott VP Creative and User Experience, Gaia Online
Gabe Zichermann, CEO, rmbr.com
Moderator: Eric Goldberg, Managing Director, Crossover Technologies

Eric kicked things off by introducing the panel and asks them to describe their demographics.

Craig: We represent the oldest and most male demographic. Turbine has a number of medieval MMOGs such as Dungeons and Dragons and Lord of the Rings.

Ranah: Sims sold 100 million units last month. The Sims demographic is 60% female and predominantly under 30.

Mike: the primary focus is families and casual games. Ultimately, Disney would like to get the entire theme park audience.

Scott: Gaia demographic is teens with a skew towards girls.

Gabe: We are passionate about games and believe that every application can be made more fun using gaming techniques. The audience is everyone.

Eric: Asks about how social media relates to and promotes games.

Craig: We see social media changing the business a lot. Turbine has introduced a number of high barriers to getting started such as retail channels and big downloadables. By putting up a gaming portal with fee games people can be drawn into a relationship and ultimately up-sold to a subscription.

Ranah: The Sims 2 is the main platform for the core Sims game. There is an online community for Sims 2 which is focused on uploads and downloads of virtual items. It’s not monetized now. It’s treated as a bonus for the consumers. There is a lot of opportunity to grow that audience. EA wants to add to the experience in a controlled way and allow the audience to engage via other channels like YouTube etc.

Scott: Gaia started as a free site. It’s a platform for all these social aspects to be built. It’s designed for people to interact. Gaia has opportunities to monetize the audience by offering things that enhance the experience. Gaia is a hang out by nature with few rules, the opportunity to craft an identity and the forums with a million posts every day are the three social highlights that have made Gaia popular.

Mike: We want to cut down on the “griefers”, the guys who are obnoxious. We want to deliver a fun, friendly time in the space. It’s important that the feel comfortable in the space. As a result, there is a lot of effort to make the space safe.

Gabe: Facebook is the Napster of games. Not in the sense of piracy, but in the sense that socializing is the game. Socializing is the activity that people think is the most fun activity they can have. By stitching social game aspects on a community it’s turned Facebook into a tremendous success.

If you valued Pogo the same way you value Facebook it would be worth $4 billion. What’s going on: Other things are fun are not always games and by making socialization the game Facebook has created a lot of value.

Craig: Bringing lots of people together who have shared interest has great potential. We need more than just social, we need to give people experiences that they enjoy.

Gabe: Facebook is consuming an increasing amount of online time. Games are losing mindshare to Facebook.

Eric: What is the definition of a game to you?

Gabe: A game is whatever you think it is. As soon as you decide something is a game it can be a game. It’s the concept of funware. Game aspects can be built into any application that recognizes gaming interactions and fundamentals.

Scott: Game play is anything where we are challenged and have fun. You need some low barrier ways to participate. This needs to happen before you can get into deeper socializing.

Gabe: As soon as you put a leaderboard in place, it seems to cause a game like action. If you want to make something a game, a leaderboard is the place to start.

Gabe: Look at LinkedIn. There are people who have decided to make it a game by keeping track of how many connections they have. It’s the same dynamics of the hard core MMOG player

Eric: Is it possible that games will allow people to extract more money out of social media.

Ranah: It’s clear that Facebook monetization is low right now. The priority right now is to build an engaged audience. There are ways to monetize that audience once the audience is engaged. He describes an advertising campaign with Ford where they made downloadable virtual Fords that players could use in the game. It made Ford, Sims and the players happy.

Ranah: One word that hasn’t come up is communication. A communication platform like Facebook is really an important aspect of success. It’s needed to compliment the game techniques.

Technorati Tags: LA Games Conference 2008, social games