Older Players Generate Four-Fifths of Freemium Gaming Revenue, Flurry Finds

Younger players from ages 18 to 24 may be the most active gamers in terms of the minutes they spend in apps compared to other age groups. But older players account for the vast majority of revenue, mobile analytics company Flurry found.

The company looked at 20 million users across all of the freemium games it supports. (Flurry has about 110,000 apps in its system.)

The company found that while 18 to 24-year-olds make up 32 percent of the time all players spend in freemium games, they only bring in 16 percent of overall in-app purchase revenue. In contrast, players ages 25 to 34 bring in nearly half of in-app purchase revenue even though they make up 29 percent of the time spent in freemium games. Thirty-five to fifty-four year-olds account for 28 percent of revenue even though they only account for 14 percent of time spent in games.

> Read the rest on our sister site, Inside Mobile Apps.

Cie Games Opens Tokyo Office, Launches Car Town Japan on Mobage

Car Town developer Cie Games announced an international expansion into Asia today with the opening of a Japan office in Tokyo. Its first project, Car Town Japan, launches on DeNA’s Mobage mobile social network before the end of the week.

Speaking to Inside Social Games, Cie Games CEO Justin Choi explains that while Car Town has been and continues to be localized in other languages, the Japan expansion is significant because it creates an international infrastructure for game releases. This strategy differs from other social game developers that rely on partnerships for distribution in specific international regions.

“When we launch future titles, you’ll see us deployed internationally much more quickly on multiple platforms,” Choi says. “We are planning on opening additional offices. We are going to use Japan as a hub to expand into other markets in Asia.”

Before Cie Games begins launching new intellectual property, the developer is focusing on a mobile version of Car Town separately from Car Town Japan. This game is due out on iOS and Android “soon,” according to the press release announcing the international expansion. Car Town Japan, meanwhile, will be operated as completely independent product out of the Tokyo office.

Car Town Japan features a region-specific look and feel while retaining the core gameplay features of the Facebook version. In the game, players race cars to the point of winning virtual currency to spend on buying more cars, upgrades for cars, and decoration options. A key element of the game is the inclusion of real life automotive brands.

While the game is live on Mobage as of this week, attendees of the 2011 Tokyo Game Show will have a chance to play the game at the event next week. Car Town currently enjoys 5.8 million monthly active users and over 770,000 daily active users on Facebook, according to AppData traffic tracking service.

New This Week on the Inside Network Job Board: Lolapps, King.com, TinyCo and More

The Inside Network Job Board is dedicated to providing you with the best job opportunities across social and mobile application platforms.

Here are this week’s highlights from the Inside Network Job Board, including positions at Social PointlolappsKing.comMajesco EntertainmentTinyCo5th Planet Games,  Acquinity Interactive, Kobojo and W3i.

Listings on the Inside Network Job Board are distributed to readers of Inside Social Games, Inside Facebook and Inside Mobile Apps 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.

Ludia Wants to Know: Are You Smarter Than a 5th Grader?

Are You Smarter Than a 5th Grader? is a Facebook game based on the well-known network game show of the same name, developed by Ludia Inc.

According to our traffic tracking service AppData, Are You Smarter Than a 5th Grader? currently has 414,671 monthly active users and 92,802 daily active users.

Like the show, Are you Smarter Than a 5th Grader? pits players against other contestants (in this case, other Facebook users) to see who is the smartest (or in this case, fastest to the correct answer) when it comes to answering elementary school level questions based on topics from math to Earth sciences. Eight questions are broken up by difficulty, from grades one to four with two per grade level, and are asked in random order. Players who answer correctly win a virtual cash prize, with the fastest respondent earning a bonus for their swiftness.

The top three players remaining once the initial questions have been exhausted have the chance to answer the 5th grade level bonus question. A correct answer nets the player nearly 10 times their existing winnings. Answering incorrectly, however, costs the player most of their winnings. The player has the choice to attempt an answer or walk away with the winnings they already have. After the game, players are ranked based on their earnings and are shown how they’ve done for the day. Two free games are provided each day, with additional game tokens awarded for increasing in experience level or available to purchase.

Players can make use of social features including sharing of accomplishments via their Wall, as well as adding friends that also play the game as “cheats” — giving the player two chances per game to automatically get the correct answer to a question. Players also receive a cash bonus as the end of the game for each friend they had playing with them. There’s an in-game live chat room as well.

Ludia is monetizing Are You Smarter Than a 5th Grader? very similarly to its other game show titles, Who Wants to be a Millionaire? and The Price is Right. Like those games, players can use Facebook Credits to buy “episodes” — play tokens — beyond the two freebies provided each day. These episodes are sold in 20, 50 and 120 increments. Are You Smarter Than a 5th Grader? ups the monetization ante, however, with a “Fortune Reel” slot machine mini-game that players can try for 10 Facebook Credits a spin. A winning spin scores the player up to 100 free episodes.

Ludia has made a niche for itself in social games by focusing on licensed game show properties. It’ll be interesting to see with whom the developer partners in the next TV season as more networks look to social games as a means of extending the lives of their TV properties. Keep in mind that TV game shows present social game developers with unique challenges in adapting the core gameplay of the live show to asynchronous gameplay that suits the Facebook platform.

You can follow Are You Smarter Than a 5th Grader’s progress using AppData, our traffic tracking service for social games and developers.

Vostu Acquires MP Game Studio, Could Be Getting Into Licensed Games

Brazilian social game developer Vostu announced the acquisition of MP Game Studio today and plans to consummate the deal with a new online game due out this month.

To date, MP Game Studio specializes in developing games for licensed intellectual property. Some of its partners named in the press release announcing the acquisition include Nickelodeon, Cartoon Network, TNT, Coca-Cola, Microsoft, Unilever, National Geographic, Clarin Group, and Miniclip. Its highest-profile games include two Ben 10 titles, two SpongeBob SquarePants titles, an Avatar: The Last Airbender game, and a mash-up fighting game that combines several Nickelodeon characters.

This acquisition could put Vostu in a more favorable position for developing licensed games. Up until now, the developer has produced one soccer title and a handful of games that come close enough to cloning Zynga’s FarmVille, Cafe World, CityVille, and Texas HoldEm Poker as to provoke lawsuits. By working with licensed IP, Vostu could shield itself from legal drama while leveraging a preexisting fan base to drive growth in its games.

Vostu’s primary audience is based in Latin America where its games run on a proprietary platform in addition to Orkut, Facebook, and MSN. According to COO Matias Recchia, the company has an audience of 42 million registered users; our AppData traffic tracking service shows 2.7 million monthly active users across all Vostu games available on Facebook.

Social Empires Squeezes Past The Sims Social on This Week’s List of Fastest-Growing Facebook Games by DAU

Social Point’s Social Empires squeezes past The Sims Social to claim the top spot on this week’s list of fastest-growing growing Facebook games by daily active users. Mystery Manor rounds out the top three.

Casino, card, and slot games still make up a healthy chunk of this list this week. JackpotJoy Slots drops off as of press time, but Slotomania, DoubleDown Casino, Texas HoldEm, and SlotSpot all turn up here as the genres expand and converge.

Top Gainers This Week – Games

Name DAU Gain Gain,%
1.  Social Empires 827,038 +486,098 +143%
2.  The Sims Social 7,996,772 +465,676 +6%
3.  Mystery Manor 509,376 +173,058 +51%
4.  Diamond Dash 2,126,432 +134,673 +7%
5.  DoubleDown Casino 938,740 +110,688 +13%
6.  FantaBook 129,027 +87,408 +210%
7.  Mahjong Saga 644,520 +85,427 +15%
8.  Barn Buddy 460,873 +80,795 +21%
9.  Texas HoldEm Poker 6,821,775 +79,649 +1%
10.  Slotomania – Slot Machines 1,424,971 +75,854 +6%
11.  Bubble Island 2,007,868 +74,029 +4%
12.  Total Domination: Nuclear Strategy 199,741 +72,584 +57%
13.  Komşu Çiftlik 752,615 +70,189 +10%
14.  SlotSpot – The Premier Slots Destination 248,143 +69,945 +39%
15.  Magic Land 362,311 +68,834 +23%
16.  Games 1,900,017 +64,051 +3%
17.  The Smurfs & Co 1,422,484 +63,849 +5%
18.  Top Eleven – Be a Football Manager 924,021 +56,306 +6%
19.  BINGO Blitz 572,700 +51,839 +10%
20.  Collapse! Blast 161,826 +41,714 +35%

It’s been a while since we’ve seen Mystery Manor on our weekly rankings of games by traffic. The hidden object game typically turned up behind Playdom’s competing title, Gardens of Time, but here we see it standing alone in the top three. Earlier this week, Mystery Manor’s recent growth spike pushed it into the top 10 on our fastest-growing games by monthly active user list. Gardens of Time, meanwhile, is experiencing a shallower growth spike.

All data in this post comes from our traffic tracking service, AppData. Stay tuned for our look at the top emerging apps on Friday.

Birds of a Feather Go Together in Fluffy Birds Flash on Facebook

Fluffy Birds Flash is a fast-paced puzzle title from GameDuell. It is one of 22 games by the developer, and is currently its second-best performing in terms of monthly active users.

According to our traffic tracking service AppData, Fluffy Birds Flash currently has 713,869 monthly active users and 70,371 daily active users.

In Fluffy Birds Flash, players have 60 seconds to match three or more multi-colored birds on a 7×6 game board. This is accomplished by moving entire lines of birds either horizontally or vertically. There are also eggs in the same colors that appear on the board at random, and when matched with at least two other eggs or birds of the same color these are added to an on-screen meter. When this meter is filled, the player receives an additional five seconds of play time. Eggs are also the points players earn during games and the currency used to purchase power-ups.

Players can have three purchased power-ups and one friend power-up active in each game. The former include a time bonus, score multiplier, egg magnet (captures nearby eggs when a match is made), magic egg (collects all birds/eggs of the same color when matched) and plasma egg (collects all eggs on the board when matched). That last egg is a time extension that can be used once per day per friend.

In terms of social features, there are basic ones which include bragging about beating friends’ high scores via viral channels and inviting friends to play the game. Getting friends to play actually provides a bonus in that for each friend that’s playing, players receive an additional egg at the end of each game. Players also receive bonuses for out-scoring friends’ high scores and there’s a weekly tournament in which the cumulative scores of players and their friends are measured.

Fluffy Birds Flash is monetized through the use of Facebook Credits to purchase power-ups. Players must always use Facebook Credits to purchase the plasma egg power-up, but the rest of the game’s special items can be bought using eggs — when the player runs out of these, all of the power-ups can be purchased using Credits. Although friend power-ups can only be used for free once per day, they can be purchased as often as players want using Credits. Finally, the game rewards players with time extension power-ups up to five times per day for watching advertisements.

According to posts on the game’s Wall by the developer, GameDuell has plans to expand Fluffy Birds Flash in the future with new features, such as a slot machine style daily spin game that will reward players with bonus eggs and power-ups.

You can follow Fluffy Birds Flash’s progress using AppData, our traffic tracking service for social games and developers.

Facebook Streamlines Credits Payflow

Facebook announced a “Labor Day” edition of its platform updates that reveals a streamlined payflow option for Facebook Credits.

Developer now have the option to omit the Credits “bulk-discounted” packages from the pay flow. Facebook provides the following screenshot:

Developers are able to A/B split test the streamlined pay flow to determine what impact it may have on user spending. Facebook often tests new Credits features like these, such as the Frictionless Credits function, however it hasn’t done anything big with Credits features in recent months.

At this point, developers are looking for ways to keep players in-game at all times — even when paying for things. A big step in this direction would be a tweak to the games platform that stops users from automatically exiting full-screen mode whenever a Facebook dialogue box appears. Sean Ryan, Director of Games Partnerships, mentioned such an improvement last month during a press event detailing significant platform updates.

PopCap’s Slow and Steady Investment in Asia May Be Starting to Pay Off

PopCap Games has long adopted a “What happens in Asia, stays in Asia,” approach to its business in the region, giving the unit an unusual level of autonomy to experiment with and localize its titles.

That hands-off approach may be starting to pay off.

The Asia unit is set to contribute about 10 to 11 percent of PopCap’s overall earnings, up from about 5 percent in previous years, according to James Gwertzman, who heads the unit for Electronic Arts. Before it was acquired by EA, PopCap said it made more than $100 million in revenue last year so a back-of-the-envelope guess means we may be looking at a runrate of about $15 million for the Asia business alone.

PopCap’s recent release Plants Vs. Zombies Social also reached close to a half-million daily active users on Renren this past week, thanks to an aggressive marketing campaign by the Chinese social networking platform on behalf of the gaming company.

This traction didn’t come easily however. It’s the product of more than five years of investment and relationship building in the region.

> Read the rest on our sister site, Inside Mobile Apps.

Announcing Inside Virtual Goods: The Future of Social Gaming 2012

2011 will be remembered as the year that Zynga filed for its IPO, Google launched Google+, and Facebook executed the Credits transition. With the first potential social gaming IPO, Zynga plans to raise up to $2 billion to fund its continued global expansion. Meanwhile, Google is putting its weight behind what appears to have the potential to be the most serious competitor to Facebook as a social gaming platform in North America since the demise of MySpace. And at the same time, developers are still navigating through the Facebook Credits migration, while many are also expanding substantially onto mobile platforms to increase growth and expand reach.

Get the Annual Membership

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

OR Buy Single Report: $995 $795 USD*

* Pre-order discount ends September 19, 2011. All pre-ordered reports will be delivered on September 20, 2011.

Inside Network is proud to announce a new original research report by Justin Smith and Charles Hudson that is exclusively focused on the future of the social gaming market, entitled Inside Virtual Goods: The Future of Social Gaming 2012. This is Inside Network’s third annual edition of the Future of Social Gaming report. It will be released on September 20, but is available for discount pre-order now.

How big is the market, and where will social gaming go in 2012? How will existing players fare as Facebook Credits shifts the social gaming landscape and continued changes to the platform? Inside Virtual Goods: The Future of Social Gaming 2012 provides deeper insight into social game monetization, development, customer acquisition, and the key questions facing the space in 2012 than you’ll find anywhere else.

About the Report

Inside Virtual Goods: The Future of Social Gaming 2012 gives you an inside view of the future at this critical juncture in the intersection of social networking and online games.

We have compiled months of original research from dozens of top executives and entrepreneurs from all parts of the social gaming ecosystem to produce eye-opening source data and analysis that is not available anywhere else. Inside Virtual Goods: The Future of Social Gaming 2010 takes the closest look at the present state of social games and the future of this strong but still rapidly changing industry.

What We Cover

  1. Facebook Credits and the New Monetization Landscape: Early Results - Now that the transition to Facebook Credits was completed on July 1, what are the early results that developers are reporting? We take an in depth look at metrics and trends.
  2. Will 2012 (Finally) be the Year of Mobile Social Games? – Now that mobile games monetizing through the virtual goods model are becoming a bigger market in the US and around the world, many social game developers have expanded their efforts to tap these new platforms as well.  Will 2012 finally be the year that social games take significant root on mobile?
  3. Social Game Development and Design – How do small, medium, and large developers organize their teams? What do development cycle times for original titles and “expansion packs” look like? What is the role of testing and metrics in the development process? A few key game genres with proven mechanics and monetization have spawned dozens of fast followers. Understand how publishers are continuing to innovate as we head into 2012.
  4. Monetization Data and Payment Trends– Now that developers have proven the virtual goods model, what are ARPUs, ARPPUs, and LTVs really like for different game genres? What is the lifetime value of users, and how long do players stick around? We take an in depth look at monetization methods and rates, and shed light on where payments are headed in the coming quarters.
  5. Customer Acquisition and Marketing Trends – As the social gaming landscape has evolved over the past four years, so have the ways that developers acquire and retain new users. How have user acquisition costs changed, and what do Facebook’s changes spell for the future of the marketing funnel? We take an in depth look at data and trends.
  6. Facebook’s Platform Changes, and What’s In Store for the Future – Facebook has continued to change Platform communication channels and functionality over the last year, significantly altering the way social games reach users through Facebook. Continued change is likely – what will it be, and how will it impact the industry? Finally, will we see another platform (like Google+) emerge? Our overview covers these developments, their impact on the industry, and what else is in store.

What you get

In addition to our deep dive into key aspects of the social gaming ecosystem, the report also offers extended coverage on:

  • A brief history on the evolution and growth of this space in the US, including a description of all key players and how they rose to the top.
  • Total social gaming market size estimates for 2012.
  • Our take on the key issues facing the growth of social gaming, including our outlook and projections for 2012.

More Data, More Actionable Insights

In 2011, social games continued to show what kind of value can be created on top of social networks. 2012 will be an even more important year.

Social gaming, powered by virtual goods, continues to expand. 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 Authors

charles-hudson-headshotCharles Hudson

Venture Partner, SoftTech VC, CEO and Co-Founder, Bionic Panda Games

Charles Hudson is a Venture Partner with SoftTech VC and the CEO and Co-Founder of Bionic Panda Games, a mobile games company based in San Francisco, CA.

Until February 2010, he was the VP of Business Development for Serious Business, a leading producer of social games. Zynga acquired Serious Business in February of 2010. Prior to Serious Business, Hudson worked at Gaia Interactive, Google, IronPort Systems, and In-Q-Tel. Hudson also founded Third Power LLC, a conference and events company that was acquired by WebMediaBrands. Charles holds an MBA and BA from Stanford University.

justin-smith-headshotJustin Smith

Founder, Inside Network

Justin Smith is the founder of Inside Network, the first service dedicated to providing news and market research to the Facebook platform and social gaming ecosystem. Justin leads Inside Network’s analyst services, manages Inside Network’s AppDataservice, and serves as co-editor of Inside Facebook and Inside Social Games. Inside Network was acquired by WebMediaBrands (NASDAQ:WEBM) in May 2011.

Prior to Inside Network, he was Head of Product at Watercooler, now Kabam, a leading social game developer 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, where he was a Mayfield Fellow and a recipient of the Terman Award in Engineering.

Get The Annual Membership

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

OR Buy Single Report: $995 $795 USD*

* Pre-order discount ends September 19, 2011. All pre-ordered reports will be delivered on September 20, 2011.

Although the report will not be released until next Tuesday, September 20, we are offering a special pre-order discount for those who purchase now. A one year subscription is $1,995 until September 19, 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 September 19, at which point the price will go to US $995.

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