shutting down

Three months after it launched, social games platform is reportedly shutting down. We were originally alerted to this by an anonymous source, but founder Alex St. John confirmed the closure.

Magi grew out of the remains of Hi5, which was at one point billed as the third-biggest social network on the internet.  St. John ran Hi5 as president and CTO from 2009 until he sold its assets to Tagged in December 2011; the company then tried to reboot itself as a platform capable of competing with Facebook on the social games scene. Magi saw promising user numbers when it launched and St. John tells us traffic was doubling each month, but the company was unable to raise the funds necessary to keep stay active.

We got to spend some time with the platform when it launched in March. Magi was designed to let users play Facebook games, but hosted these titles on its own and eschewed forcing users to give the games access to their Facebook accounts. In fact, the format we were shown didn’t always players to pay for hard currency items. While the site did have its own hard currency system in place, it could monetize non-paying users by showing video ads. At the time we saw the platform in operation, St. John told us Magi would use an algorithm to play ads for users who weren’t likely to spend money. If a player didn’t want to watch the video ad, though, they could instead skip it and then pay hard currency for an item. Magi also rewarded users with “Mojo” points when they played games; Mojo could then be used to bid on real world prizes within the site’s Mojo Market.

At the time of writing, Magi’s site is still up. Our source says approximately 20 engineers from the team are out of work. St. John tells us everyone on the development team received both severance pay and PTO, while the company’s executive team is trying to find new positions for former staff members. He also says that any recruiters looking for engineers or site producers should contact him directly on LinkedIn, and that he won’t begin another venture until he’s made sure everything at Magi is packed up and his team is employed elsewhere.

Facebook Marketing

Mediabistro Event

Facebook Marketing

Starting January 13, work with the group marketing manager of social media at Microsoft/BingAds to grow your business on Facebook! In this course, you’ll learn how to set up your company page, understand Facebook best practices, and execute a monthly content strategy. Register now!


Leave a Reply

One Response to “ shutting down”

  1. Herní sociální síť končí po pouhých třech měsících | Blog počítačového nadšence 2.0 says:

    [...] Inside Social Games Hi5, ← Asus Zenbook Prime UX21A: oslavovaný ultrabook dostane dotykový [...]

Get the latest news in your inbox
interested in advertising with inside social games?

Social Media Jobs
of the Day

Assistant Editor

8 Inc.
New York, NY

Copywriter & Editor

Santa Monica, CA

Director of Marketing & Communications

Neumans' Kitchen
New York, NY

Social Community Manager

Tallahassee, FL

Editorial Director

Phoenix House
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us