Amazon’s Appstore Aims to Compensate For Android Marketplace’s Weaknesses

Amazon’s entry into app store sales today promises to deliver what Google hasn’t been able to so far — real paid downloads and in-app payments for Android developers.

The company, with millions of credit cards on file and 1-click ordering, might be able to convince consumers to pay where Google Checkout has so far had a complicated user experience. Although to be fair, Google is in the process of overhauling its payments solutions and will launch in-app payments to consumers by next quarter.

Because of Android’s open nature, expect a tight race between Amazon, Verizon and others to be the next best marketplace alongside Google’s officially sanctioned one. At the very least, Amazon’s debut should pressure Google to fix up many of its marketplace’s existing problems like discovery, opaque rankings and payments.

While Amazon’s app store doesn’t come pre-installed on Android phones, the Seattle-based company is trying to compensate and attract consumers in a number of ways:

1) Amazon is allowing customers to “test drive” apps, or use them on a simulated Android phone within the web browser before they buy. This should help prevent the returns problem, where consumers install an app only to return it minutes later. It used be a more severe problem when Android Marketplace’s returns window was 24 hours; it’s now 15 minutes.

> Continue reading on Inside Mobile Apps.

Welcome AJ Glasser – Inside Social Games’ New Lead Writer

Inside Social Games is pleased to announce AJ Glasser as our new lead writer. She’s joining us from video game industry publication GamePro Media to focus on the business of social games here at ISG.

She brings years of experience to bear, having also worked at Kotaku and GamesRadar, among other publications. AJ also completed her undergrad at Mills College and earned her Masters in Journalism from Stanford University.

In case you’re wondering, yes, she’s a serious gamer as well as a social gamer. You can reach her for all editorial matters at: amanda.glasser (at) insidenetwork (dot) com or follow her Twitter account (at)Joygirl007.

Meanwhile, Chris Morrison, the previous lead writer for the site, couldn’t resist the lure of game development after having covered the industry so deeply over the past year. He recently joined Concept Art House as a game designer, and will continue to contribute articles for Inside Network.

Last Week to Pre-Order Inside Virtual Goods: Profiling the Social Gaming Middle Market 2011

Games on social networks became a billion dollar business in 2010, enabling the market’s big developers to secure significant investments and pursue sizable exits. Now that Zynga has clearly established itself as the 800 pound gorilla, EA/Playfish are bringing more IP to market, and Playdom is being integrated across Disney, what opportunities remain for other small and medium sized social game developers in 2011?

Inside Network is proud to announce a new original research report by Justin Smith and Charles Hudson profiling social gaming developers outside the largest, most established companies, entitled Inside Virtual Goods: Profiling the Social Gaming Middle Market 2011. This report presents direct interview results from today’s most influential small and mid-sized developers aside from larger players Zynga, Playfish, Playdom, CrowdStar, and Kabam.

Get the Annual Membership

Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495 $1,995 USD*

OR Buy Single Report: $995 $795 USD*

* Pre-order discount ends March 28, 2011. All pre-ordered reports will be delivered on March 29, 2011.

Inside Virtual Goods: Profiling the Social Gaming Middle Market 2011 is available for discount pre-order now, and will be released to the public on March 29.

What are top mid-sized developers’ expectations for the social gaming space in 2011? How will existing players fare as Facebook shifts the social gaming landscape through the rollout of Facebook Credits and continued changes to the platform? Inside Virtual Goods: Profiling the Social Gaming Middle Market 2011 shares insights directly from the front lines on social game monetization, development, and customer acquisition and growth.

About the Report

Inside Virtual Goods: Profiling the Social Gaming Middle Market 2011 shares insights from over two-dozen developers into key questions facing social gaming in 2011.

As with previous editions of Inside Virtual Goods, researchers Justin Smith and Charles Hudson have conducted several months of original research comprising interviews with developers and entrepreneurs in social gaming. This edition of Inside Virtual Goods will present exclusive interview results from the developers themselves, preceded by original profiles of all companies included in the survey. Social gaming is among today’s most competitive areas in technology; specific responses have been anonymized to encourage authentic, critical response.

What We Cover

  1. Overview of the competitive landscape – Over the past year, the social gaming industry has been shaped and reshaped by enormous growth, market consolidation, and changes to payments and monetization brought on by the spread of Facebook Credits. What kind of competitive landscape and new opportunities should today’s developers anticipate in the year ahead?
  2. Profiles of key players – Companies like Zynga, EA / Playfish, and Disney / Playdom are regular topics in business news, but social gaming is an industry with dozens more key players whose rivalry and innovation are determining what the industry will look like in six and nine months. This section presents detailed, original profiles of the middle market companies to watch in 2011.
  3. Developer perspectives on the key issues – The responses in this section have been curated to reflect the diversity of viewpoints in today’s vibrant social gaming industry, and cover the following areas:
    • Distribution
    • Monetization and credits
    • Game design and development
    • Fundraising

See the full table of contents below:

Table of Contents

I. Introduction

II. Company Profiles

  1. 50 Cubes
  2. 6waves
  3. A Bit Lucky
  4. Casual Collective
  5. Cie Games
  6. Digital Chocolate
  7. Five Minutes
  8. Funzio
  9. Gaia Online
  10. GameHouse
  11. GSN
  12. Happy Elements
  13. iWin/Backstage
  14. Lionside
  15. Lolapps
  16. Metrogames
  17. MindJolt
  18. Omgpop
  19. Popcap
  20. RockYou
  21. Social Point
  22. TheBroth
  23. Ubisoft
  24. Wooga
  25. ZipZapPlay

III. Developer Perspectives

  1. Distribution
    • Viral Channels
    • Paid Acquisition
    • Off-Facebook Channels
  2. Monetization
    • Credits Integration
    • Results with Credits
    • Credits Issues
  3. Game Design & Development
    • Projected Budgets and Timelines
    • Target Audience
    • Genre Innovation
  4. Financing Landscape
    • Fundraising Plans
    • Perspective on M&A

IV. Conclusion

New Insights on the Competitive Landscape

In 2010, social games began to show what kind of value can be created on top of social networks. 2011 will be an even more important year.

The social gaming market is evolving rapidly against a backdrop of shifting challenges, and still-emerging opportunities — social gaming will be this year’s industry to watch. If you’re involved, or are considering jumping in, Inside Virtual Goods will be one of your most important tools.

One year of original data and exclusive in-depth reports delivered on a quarterly basis is $2,495 and contains:

  • A detailed overview of the current state of the industry
  • Specific estimates on market size by segment
  • Diagnosis of key opportunities and issues by segment

About the Authorsjustin-smith-headshot

Justin Smith

Founder, Inside Network

Justin Smith is the founder of Inside Network, the first company dedicated to providing news and market research to the Facebook platform and social gaming ecosystem. Justin leads Inside Network’s Inside Virtual Goods and AppData research and data services, and serves as co-editor of Inside Facebook and Inside Social Games.

Prior to Inside Network, he was formerly Head of Product at Watercooler, one of the leading application and game developers on the Facebook Platform. Prior to Watercooler, Justin was an early employee at Xfire, the largest social utility for gamers, which was sold to Viacom in 2006. Justin holds a degree in Computer Systems Engineering from Stanford University.

charles-hudson-headshotCharles Hudson

Former VP Business Development, Serious Business

Charles Hudson is the former VP of Business Development for Serious Business, a leading social games developer on the Facebook platform.

Prior to Serious Business, he was formerly the Sr. Director for Business Development at Gaia Interactive, a leading online hangout for teens. Prior to Gaia, Charles worked in New Business Development at Google and focused on new partnership opportunities for early-stage products in the advertising, mobile, and e-commerce markets. Prior to joining Google, he was a Product Manager for IronPort Systems, a leading provider of anti-spam hardware appliances that was acquired by Cisco Systems for $830 million in 2007. Charles holds an MBA and BA from Stanford University.

Get The Annual Membership

Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495 $1,995 USD*

OR Buy Single Report: $995 $795 USD*

* Pre-order discount ends March 28, 2011. All pre-ordered reports will be delivered on March 29, 2011.

Although the report will not be released until Tuesday, March 29, we are offering a special pre-order discount for those who purchase now. A one year subscription is $1,995 until March 28, at which point the price will go to US $2,495. The one year subscription includes three quarterly updates on key developments in the space.

Or, you can download just this report. The pre-order price is $795 until March 28, at which point the price will go to US $995.

MinoMonsters Brings Pokemon-Style Battling to Facebook

MinoMonstersThe youngest pair of founders backed by early-stage venture firm Y Combinator is taking a shot at the social gaming market, with a Pokemon-style title called MinoMonsters. Still in the early stages of development, the game has gained around 113,000 monthly active users in its first month on Facebook.

The game at this point is quite like Pokemon, with players collecting a wide variety of monsters scattered around different types of terrain. The play is pretty basic, and a number of the mechanics are either not functional or not fleshed out (which likely contributes to the low daily active user count). That said, what does exist is of surprising quality, and suggests that the game has great potential to grow.

Before we get into the review, we should also note that founders Josh Buckley and Tyler Diaz had originally built the game as a stand-alone web site but Facebook chief executive Mark Zuckerberg convinced them to port it to the site, which they did within a week – TechCrunch has more details about the company’s background, if you’re interested.

Anyway, players start out with a single monster, with the choice to select a sort of bear, a bird, or a lizard-frog-thing, each with its own abilities. Once in the game, players are immediately greeted with the objective of battling other wild monsters, leveling up their own, and capturing others; a quality interactive tutorial guides first-timers through the back story and provides tips for fighting.

AbilitiesIn order to battle, players move about the world map and have the option to visit sections classified by their difficulty (e.g. very easy, easy, medium, etc.). Once there, they engage a random monster and take turns battling in a traditional Pokemon style, with different attacks consuming different amounts of Energy. As the opponent weakens, they can utilize an item called a “Minocard” and attempt to capture it for their own collection. This works identically to “Pokeballs” in Pokemon, meaning that if the monster is not low enough on health, it will not be caught, thus players must weaken enemies to a low enough health so that they can be captured, without actually killing them. Moreover, regardless as to whether or not the new monster is caught, the Minocard is consumed.

With each battle, users will be allowed to utilize whatever monsters they currently have at their disposal, and whichever ones are used will gain experience towards a new level. In fact, the ability to use multiple monsters is a good thing, as losing one can be very easy if the player is not careful and attempts to battle a creature that is too strong. Moreover, should one of their monsters fall, they will actually lose experience.

Regardless, as players win, and gain new levels, not only will the monsters gain more damage and health, but will unlock new abilities as well. Each one of these will take a period of time to learn, with the option to expedite the process using Facebook Credits.

As a matter of fact, one of the distinctly incomplete portions of the game shows up here. With each bout, players earn in-game currency — Gold — but there is no way to spend it yet. It is noted as “coming soon,” but as it stands all items must be purchased using Facebook Credits. This includes health potions, energy potions, and the noted Minocards. Currently, this is probably the biggest deterrent for returning users, as there isn’t quite enough to hook new users into paying with Credits yet, thus the game play is very limited for them. As it stands, the only way to acquire more of these items, is to complete various quests (e.g. defeat X amount of monsters) or get lucky enough to get them after a battle in lieu of gold.

TrainingA lot of the game is still in development, but even so, it does come with a surprisingly high level of art quality. As a matter of fact, the static visuals actually look better than many larger, more established developers’ titles, so it will be interesting to see how the title evolves over time.

On the negative side of things (and not referring to mechanics still in development), the biggest issue of notice is the premise and objective of the game. As it stands, players just move from point to point, beating opponents and capturing them where they can. The stated objective at the start of the game is to collect more monsters, but, unfortunately, there isn’t a context in doing so; meaning there is no way to know how many there even are to collect. Additionally, collection is only done individually.

Though this will likely change in the future, friends that are invited to play don’t appear to be tradable with; a shame in a collection-type of game, as trading is something that can make such titles much more fun. Currently, the only social elements consist of leaderboards and the occasional wall posting.

All in all, MinoMonsters is quite impressive, with a visual quality better than more established companies; Buckley and Diaz are 17 and 18 years old, respectively, but clearly know what they’re doing. That said, the game still has some work to do, and this refers to more than what is just left unfinished. The app needs to find a way to differentiate itself from Pokemon and really needs to give the user a more clear goal. If that goal is to collect all the monsters, then a context of what that means is needed. Either way, the game is a decent first title, so it will be curious to see how it grows and changes from here.

A Bit Lucky Puts Nexon’s $5 Million Toward New Games, on Facebook and Beyond

A Bit Lucky, the social gaming company behind train-themed Facebook simulation Lucky Train, has received $5 million in a second round of funding from South Korean online game publisher Nexon, the developer has confirmed with us.

“We are going to use our funding primarily to expand our team and develop new titles,” co-founder Frederic Descamps says. “Our main goal is to create a new generation of super high quality multiplayer online games on Facebook and other platforms.”

Descamps shared a bit more about the developer’s “trans-gaming” strategy when we spoke with him last October. At that time, he was relatively unworried by the growing need for advertising as Facebook restricted viral marketing potential via communication channels.

“Advertising is one of the only user acquisition channels you can dial up quickly and efficiently, at will… provided you have large budgets,” Descamps tells us today. “As a resource-constrained start-up, we have spent very little on advertising with Lucky Train. We actually stopped all advertising back in November. Our public numbers… dropped following that but, interestingly enough, all our internal numbers and our revenues kept growing.”

The game launched at the beginning of August last year and reached all-time highs of 336,000 daily active users and 2.05 million monthly active users in November, according to AppData, our data service tracking traffic and growth for apps and developers. It has since fallen to 154,000 DAU and 1.02 million MAU today.

Nexon’s $5 million brings A Bit Lucky’s funding up to nearly $8 million. The initial $2.6 million round of seed funding attracted investments from SV Angel, Founder Collective, Felicis Ventures, IGN CEO Mark Jung, Google head of M&A David Lawee, and others.

Mafia Wars, Slotomania on This Week’s List of Fastest-Growing Facebook Games by MAU

This week’s list of fastest growing games on Facebook based on monthly active users is dominated by Mafia Wars. Zynga’s mature mobster title grew by 3.6 million players in the last week, which was more than double the second game on the list — Monopoly Millionaires. According to AppData, our metrics tool for analyzing the top games on Facebook, Mafia Wars had a suspicious random spike in traffic over the weekend which could be due to a cross-promotion or ad spend. At its peak, Mafia Wars reached 28 million MAU, but has been slowly losing players (as is natural for an older game) and is now played by 16 million MAU.

Monopoly Millionaires is still growing strong. Its daily and monthly active players charts are still growing steadily every day, however its DAU/MAU percentage is now settling to only 14-15%, substantially lower than highly engaging games such as CityVille.

Top Gainers This Week – Games

Name MAU Gain Gain,%
1. Mafia Wars Game 16,121,602 +3,616,574 +29%
2. Monopoly Millionaires 4,198,347 +1,251,329 +42%
3. Monster Galaxy 7,541,569 +1,024,651 +16%
4. Zuma Blitz 6,350,146 +613,195 +11%
5. 開心探寶 890,286 +553,380 +164%
6. Birthday Cards 8,401,326 +531,731 +7%
7. Gourmet Ranch 2,325,500 +501,229 +27%
8. Daily Horoscope 3,139,948 +481,345 +18%
9. 德州撲克(中文版) 4,477,123 +467,937 +12%
10. Spot The Difference 962,632 +357,269 +59%
11. Games 7,831,386 +341,931 +5%
12. Zoo World 5,960,628 +326,645 +6%
13. Super Billares 1,064,721 +308,901 +41%
14. Fish World 1,138,770 +304,257 +36%
15. Mynet Çanak Okey 3,122,038 +301,343 +11%
16. NBA Legend: Official NBA Game 585,446 +298,340 +104%
17. Komşu Çiftlik 3,102,791 +252,895 +9%
18. Pirates Saga 864,625 +223,418 +35%
19. Slotomania – Slot Machines 1,020,291 +205,493 +25%
20. Galaxy Online II 790,416 +188,672 +31%

Games is a game portal released in December of 2009 by Game Show Network. It features many simple colorful Flash games with leaderboards and a single currency to tie them all together. Most of the games are reskinned versions of other popular casual games, such as Bejeweled clones and hidden object games. It also contains officially branded titles such Jeopardy and Wheel of Fortune. Games has a higher retention than many other Flash games portals, with over 20% of their monthly active players logging in each day to play.

Slotomania is a slot machine game developed by Playtika. Released in December 2010, this addicting little game has been steadily growing and has just passed the 1 million MAU mark. Slotomania is decently polished and allows players to level up and unlock prizes and new games. At the beginning players can only play Farm Fortune but as they play and earn levels they can unlock slot games like Magic Forest and Cat Chef.  There is also a game where players spin the slot reel and try to match up pictures of their friends’ faces.  Slotomania is a very engaging game with 28% to 30% DAU as a percentage of MAU, a benchmark that most casino-style games have failed to achieve.

The data in this post comes via AppData, our data service tracking growth and trends across the Facebook platform.

Fortune League: Fantasy Sports League, EverQuest2 Style

Fortune League is a purpose-made game in the same vein as fantasy sports leagues, but created for Sony Online Entertainment’s EverQuest2 players by Fastpoint Games, rewarding successful players with virtual good for use in the EverQuest2 MMO.

Much like fantasy sports leagues, players receive a fixed amount of coins to draft a team for their league. However, in place of real life statistics, players have to match the stats of their team to weekly objectives which are a mix of any 4 or 5 of the following game statistics:

  • DMG-P — Damage Physical
  • DMG-M — Damage Magical
  • DMG-AOE — Damage over an Area of Effect
  • DMG-Pet — Damage by pets
  • DMG-S — Damage by Stealth
  • BUFF — Buffs Cast
  • DEBFF — Debuffs Cast
  • DMGSTP — Damage Stopped
  • KILLS — Number of kills made
  • DTHS — Deaths Suffered
  • HATE — Hate Gain
  • HEAL — Heal Points
  • EVACS – Number of Evacuations used

A team, or party, as they are called in Fortune League consists of five slots and players fill these slots to maximize the points earned. During the week, various opportunities and disasters are hinted at and revealed. These may or may not directly impact each week’s objectives.

Unlike the online game where a balanced party will include at least a healer and fighter, players will draft only heroes that will help their party maximize the weekly objective. The cost of a race/class combo can have something to do with how they perform, but this is not always the case. Similar to Fantasy Sports Leagues, the price of a hero rises with popularity, and falls when the race/class is not needed or does not perform.

The game monetizes by selling trades. Leagues run Sunday midnight through Saturday, and numbers are also crunched every night and points awarded. Each Saturday, a player receives three trades for free, and unused trades accumulates and on Sunday, a new quest begins. The purchase of a new party member does not count as a trade and only the sale of a group member who has earned Hero Points will be deducted. This means that until the party locks each day, players can change out a newly purchased party member for another without incurring a trade.

Rewards for playing the game are only usable within EverQuest 2 itself. The weeks are grouped into sets of four and named Adventures. Active participation in any week yields an Alternate Advancement scroll. Ending any week in the top 50% yields an Experience Potion. Ending in the top 20% of any Adventure gains the player a cosmetic item – currently a set of tattered wings – that can be displayed by their character in game and the top 40 players at the end of any four week Adventure gains a trophy that can be displayed in their in-game house.

The game is currently in an Alpha stage and there is little wonder that numbers are low and headed downwards, with an all time high of over 3,700 daily active users and over 20,000 monthly active users to the current 2,100 DAU and 9,600 MAU. As a purpose built game with rewards that can only be used in an online game, the target market is small and even further smaller are the players within that subset that are attracted to the Fantasy Sports League genre. Unless SoE decides to broaden the rewards for playing the game, we can expect numbers to remain low.

Digital Chocolate’s New Game Zombie Lane: Innovating Within the Facebook Sim Genre

Zombie Lane by Digital Chocolate is a comical new take on zombie games on Facebook, complete with bouncy thematic music reminiscent of the Adams Family — and an innovative adaption of a variety of social gaming mechanics seen elsewhere, including farming and quests.

The gist of the story is that zombies have taken over the neighborhood. Players have to rebuild their houses to get their spouses back, clean up the neighborhood, help neighbors, find the dog and kill zombies. All in a day’s work or perhaps two. Zombie Lane is populated by stereotypical characters like Robert, the over-weight, slightly inept rent-a-cop who takes the player through the tutorial and later provides missions and tips and hints.

Players begin the game by customizing an avatar and killing zombies. As they move through the game, they learn to build and maintain fences to preserve a safe area, fix and upgrade their house to craft special weapons to kill quest zombies, grow crops for food and profit, clear rubble, clean up and expand and decorate their yard.

The game is about maintaining timers and visiting a network of friends that also play the game. A typical click for action game with energy required for each click, each action, be it striking a zombie, clearing rubble or harvesting crops, yields coins, experience points (xp) and drops. These are represented in large icons that spill across the screen. They will all be registered by the various stat bars, but players are encouraged to click on the items to fill up a “Combo” bar that then yields even more coins. Drops are parts of collections which can then be traded in for coin and/or xp , resources for building and crafting or specific items required to complete quests.

Energy regenerates every 1 to 5 minutes (similar to Zynga’s CityVille) and tougher zombies take more than one click to kill. For the lower level player, this could translate to two minutes of gameplay (15 to 20) clicks before they are out of energy and over an hour’s wait before they can again engage in any significant gameplay. Luckily, energy can be gifted by friends, gained through visiting neighbors at one per neighbor per day, exchanged for in-game food or of course, purchased with Facebook credits. Players running out entirely of gifted energy and friends to visit, can hire their neighbors for in-game coin to kill zombies and clear rubble for them.

Most items required to complete quests within the game may be requested from friends or purchased with Facebook credits. Digital Chocolate takes the path of micro-transactions in their monetization. Instead of having to purchase the typical $5, $10 or $20 worth of game coins, items can be purchased with as little as one Facebook credit, tempting the player who needs just that one more uncommon drop from the uncommon zombie to purchase the item in order to complete the quest. Even players who prefer not to pay for their Facebook gaming fun will be tempted by the SMG – a ranged weapon available at level one which does not require ammo, for only 10 Facebook credits.

In a single game, Digital Chocolate has managed to include a quest story line, empire building, virtual farming, collections, achievements, maintenance and of course the main fun, killing zombies with extreme prejudice — using anything from a shovel to a crafted flame thrower. They explode with a satisfying splash of greenish goo and a flying eyeball or two. Zombie Lane launched on March 15th and has climbed to 84,000 daily active users and 121,000 monthly active users since then, according to AppData.

Although the game is brand new and designated as in a beta state, it has shown to be impressively bug free. It will feel familiar to many players at it shares the same mechanics as many other games out there, such as Ravenwood Fair and CityVille, but it brings a fresh look and their own twist and take on the mechanics. This is definitely a case of innovating within the genre and with a promise of a steady wave of enhancements and content in the coming weeks, we expect Zombie Lane’s numbers to continue to climb.

This Week’s Headlines From Across Inside Network

Here are all the latest headlines from around Inside Network.

IMA LogoInside Mobile Apps

Tracking the convergence of mobile apps, social platforms, and virtual goods.

Sunday, March 13th, 2011

Monday, March 14th, 2011

Tuesday, March 15th, 2011

Wednesday, March 16th, 2011

Thursday, March 17th, 2011

Friday, March 18th, 2011

ISG LogoInside Social Games

Covering all the latest developments at the intersection of games and social platforms.

Monday, March 14th, 2011

Tuesday, March 15th, 2011

Wednesday, March 16th, 2011

Thursday, March 17th, 2011

Friday, March 18th, 2011

IF LogoInside Facebook

Tracking Facebook and the Facebook platform for developers and marketers.

Monday, March 14th, 2011

Tuesday, March 15th, 2011

Wednesday, March 16th, 2011

Thursday, March 17th, 2011

Friday, March 18th, 2011

Highlights This Week From the Inside Network Job Board: Inside Network, Hands-On Entertainment, Diversion, & More

Inside Network itself is hiring for an Operations and Sales Support Coordinator, a job that will put you in the middle of the industry as we continue to build out our business operations. It’s part-time and open to entry-level applicants in the Silicon Valley area. More details here.

Here are this week’s highlights from the Inside Network Job Board, including positions at Inside NetworkHands-On EntertainmentDiversion,Games Cafe, and Electronic Arts. The Job Board is dedicated to providing you with the best job opportunities in the Facebook Platform and social gaming ecosystem.

Listings on the Inside Network Job Board are distributed to readers of Inside Facebook and Inside Social Games through regular posts and widgets on the sites. Your open positions are being seen by the leading developers, product managers, marketers, designers, and executives in the Facebook Platform and social gaming industry today.

 

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