43 posts categorized "New Media"

August 21, 2007

That's a lot of ramen.

Here at Conduit Labs we're announcing the closing of our $5.5m Series A round with Charles River Ventures and Prism VentureWorks. We're also using this occasion to launch the Conduit Labs blog and begin the dialog with everyone, so drop by and say hi. In the future we plan to give a pretty open and honest look at building this startup, everything from what fundraising was like to the technical hurdles we've hit dealing with Flash, and most anything else you guys are interested in chatting about.

The opening post is: How we started Conduit Labs

August 05, 2007

Virtual Goods Summit Video

Video from the recent Virtual Goods Summit is up, so if you weren't able to make it you can catch up now. I'm so glad Charles did this, since I had to miss the afternoon panels, and I can clearly see I was in need of a haircut.

Above is the panel I moderated: Why Virtual Goods Matter . Another panel chock full of great facts was the first one, Virtual Goods Success Stories, where Susan Wu of CRV does a great run down of the industry, and you get good stats from Habbo, Nexon, Neopets, and Tencent.

Rest of the videos here.

August 01, 2007

Club Pengiun to Disney for up to $700m, prepare for the casual mmo onslaught

Disneynews Club Penguin, a casual MMO start-up that was rumored to be on the blocks to Sony for $500m, has sold to Disney for $350m, with an additional $350m on the table based on performance. The deal with Sony broke off in June, and Disney makes a much more natural acquirer in any case.

If you're keeping track at home

  • Club Penguin is an amazing consumer web community, with a solid revenue model, that took zero VC money and features nobody from the Valley.
  • They are doing about $50m in revenue, have a much better retention rate than Webkinz, and zero advertising (which apparently is going to continue).
  • And, just as I thought, the press is quoting a 2005 founding date, when readers know this is no overnight success story.

This should also serve as the irresistible siren call to VCs that will likely make 2008 the year of online gaming. I'm seeing a ridiculous number of business plans built around virtual worlds, virtual goods, and online games, and I'm not even a VC. This will help push even more VCs into funding, and in 6-18 months there will be a avalanche of new ideas in this space. If you thought just making an online multiplayer world, or virtual goods play, is enough to stand out then you might as well be releasing a new user generated video site.

Ah, one more thing.. Myspace went for $700m as well, in a deal that felt big at the time but then felt underpriced a few years later. I wonder who Facebook will be?

June 24, 2007

Virtual Goods 2007 wrap-up

Vgsummit The first Virtual Goods Summit was on Friday, and congrats to Charles and Susan for getting together an amazing group on short notice. There was remarkably little filler and a ton of real concrete discussion from the leaders in this industry.

I moderated a panel on Why Virtual Goods Matter, and there is good coverage on 3PointD. Craig, Amy Jo, Byron and the inimitable Daniel James represented a great range of perspectives on why customers care, from the social worlds to mmos to academia.

For me virtual goods represent two important things: the ability to monetize online communities in a much more effective way than advertising or subscription, and the ability to actually increase engagement of that community.

Virtual goods enable a user's ability to invest in their online identity the same way they invest in their offline one.

Read:  3PointD, Raph, and Virtual Worlds News for overall coverage of the event.

June 14, 2007

Why Virtual Goods Matter: What's Driving User Adoption?

Vgsummit_badgeCharlie and Susan continue to add to the already impressive roster for the Virtual Goods Summit 2007 next Friday at Stanford. At this point it's becoming a veritable who's who, from Daniel James of Three Rings to John Vars of Dogster.

I'll be moderating a panel on why users even care about virtual goods in the first place.

Why Virtual Goods Matter: What's Driving User Adoption? (11:15 AM)
Virtual goods offerings continue to garner more momentum in the marketplace. Why do consumers want to spend their money on items that only exist in a virtual context? Is it even appropriate to make a distinction between what motivates people to invest in virtual goods as opposed to real-world goods? Join us for a conversation about what motivates people to invest their own time and money in digital goods and why virtual goods matter.
Nabeel Hyatt, Conduit Labs
Amy Jo Kim, Shufflebrain
Craig Sherman, Gaia Online
Byron Reeves, Stanford University
Daniel James, Three Rings

Much like Raph, I'm a late addition so you likely won't see my face on the website, but I will be there. (I've been added) It's a good thing I'm moderating too, since we haven't actually launched anything publicly at Conduit. This way I get to be the instigator and not have to evade questions about what we are up.

Read: Virtual Goods Summit 2007 to register, and see OKdork for a 15% discount.

PS - That means I'll miss the Boston OpenCoffee next week, but it will certainly still be happening. We've got a regular crew of 4-6 entrepreneurs and VCs coming in every week, and then another 2-15 mostly new folks that show up depending on the week.

May 13, 2007

The one-step secret to Second Life's PR success

I've noticed a pretty common topic amongst the MMO glitterati over the last couple years: Why does Second Life get so much more press than (insert pet MMO) when they aren't even in the top 10 used virtual worlds online? It came up at a recent panel discussion I spoke on about gaming, and it came up again at an OpenCoffee. The answer may be patently obvious to some, but the MMOs have no one to blame but themselves.

By almost any measurable statistic (page views, revenue, growth rate, retention, concurrent users, peak concurrent) Second Life is at best a mid-tier virtual world. So why don't all these other worlds with better statistics get more press? Are they just suckers for big brands? Have reporters never heard of World of Warcraft? Do they just have something against games?

The reason is that numbers make for boring articles. A product has, at best, three natural major story moments (product announced, product released, product a success). However, the folks at Linden Labs understand that stories about your customers are a well you can always come back to.

For instance at Ambient we got all the requisite coverage in the tech press. So we could have just called it a day when Seth Godin wrote about us and then figured we would go back out with a shiny new press release when we sold our millionth Orb or released the next product.

But instead our message became:

  • did you hear about the kid in a windowless Manhattan apartment using the Orb to track the sun? 
  • did you hear about the Children's Hospital using the Orb to track the wait time in the ER?
  • did you hear about how Microsoft is using the Orb to broadcast the health of their builds to teams?

That got us stories like this one in Business Week, or this one in The Economist, and plenty more (I am not tooting my own horn, this particular strategy was largely David's idea). Linden did one better than us and hired a reporter to write about what customers were doing in Second Life. The story of SL became what users were doing, not what the company was up to.

The shame is that MMOs already have these stories. If you've spent any time at all in the industry you've heard, or perhaps been involved in, what we call "emergent behavior."  Like the one about how the after-market value of white robes in Asheron's Call started going through the roof when people decided to marry their avatars, thus launching the desire for make-do wedding gowns. Or about how the City of Heroes players spontaneously honored Christopher Reeve in-game when he passed.

These stories are talked about constantly amongst game designers, community managers, and fans. But, with the exception of Eve Online, I can't think of many MMOs regularly touting their users behavior. You'd have to assume that the execs and PR departments of the major studios had no idea they were presiding over a social network.

Screenshot_5


This seems obvious - but reporters tell stories. If you want to get the kind of attention Second Life gets stop telling stories about your product, and start telling stories about your customers. Why don't more MMOs communicate the story to the mainstream about the compelling social spaces they have created?

May 03, 2007

New casual MMO startup in town: Thinglefin

Toby Ragaini has just secured a seed VC round for his new startup, Thingfin. The Seattle-based company's plans are to rock the casual MMO world. For those of you who don't know Toby, he was lead designer for one of the "first wave" of graphical MMOs, Asheron's Call (an awesome job IMHO) and also lead on Matrix Online (don't blame him, talk to the Hollywood types). He was working on an unannounced project for Zipper Interactive (a division of Sony Online Entertainment) until now.

I met Toby when I was building the founding team for Conduit and was immediately impressed with his vision for Thinglefin. Although we didn't end up working together, being one of those "coopetition" guys we have stayed pretty close through his fundraising. So I was happy to hear from him today that it was finally time to let the world know. I look forward to seeing what the team at Thinglefin produces.

And thanks for giving me a couple hour headstart to let the blogosphere know. :)

 

Congrats Toby.

April 22, 2007

Gaia looking to sell?

Either Gaia Online is thinking of raising a new round, looking to sell, or they've just gotten tired of not getting talked about more. First CEO Craig Sherman shows up at Web 2.0  (props to Susan for getting two normally recluse companies - Club Penguin & GAIA - to show up to a panel), and then arranges for a cushy article from GigaOm.

Readers of this blog have heard about GAIA several times in passing (1, 2, more) but perhaps a bit more detail is warranted. GAIA started out as a web forum for Anime fans, and has grown into a social network/micro-economy/flash game portal juggernaut on the Internet. It's not as immersive as Second Life, not even as "world-like" as Habbo Hotel. The best analogy is that GAIA is Neopets for anime fans. What Neopets does for virtual pet lovers as a casual semi-immersive social experience, Gaia does for anime lovers. And if anyone thinks that's a slam on GAIA, you don't know your Neopets (#18 most popular place for US users to spend time online).

I often use them as an example of "mega-niche" -- where dominating one niche category so thoroughly can be an effective strategy of reaching the mainstream (the Lord of the Rings movies, for example). And with the number of concurrent users and activity at GAIA Online, it has effectively moved into the mainstream of what Millenials (18-24) do online.

We all know how you like the stats, so here are some that have come to light recently:

Craig: Gaia is the world's fastest growing hangout for teens.  #2 forum, a billion posts, over 1M posts yesterday, 2M monthly unique visitors.  Avg simultaneous users 64k.  3x growth since May 2006.  Avg minutes per session: 48, beats myspace, facebook, habbo, runescape, puzzle pirates

and

85% US users, 55% female audience, 300k users log in daily. Were doing .5m uniques a month this time last year, now doing 2.5m/mo.

Additionally - it's practically a post-modern social network. Just look at the varied offerings and activities: virtual world (10% of users time), rate each other’s artwork and other content (7-10% total activity), play multiplayer Flash mini-games with group chat (10-15% total activity), chat on GAIA forums (30% of activity - not surprising as this was the genesis of the site).

As Hunter quoted over at Lightspeed's blog:

Bing Gordon (chief creative officer at EA) where Bing said something that has stayed with me: “virtual worlds will be a rite of passage for every teenager". The chance to interact with various types of people, to play “dress up” and experiment with different identities was (IS) just a formative part of adolescence.

GigaOM » Move over MySpace, Gaia Online is here

Update: GAIA continues their coming out party with this Ypulse interview.

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April 01, 2007

A new way to see the web, and gaming looks good.

The first annual Virtual Worlds conference last week in New York was somewhat.. uhm.. underwhelming. Basically it felt like the entire conference was people who worked for Linden Labs, Electric Sheep, or mid-level brand managers with $20k to spend so they could say "they get" virtual worlds. And don't even get me started on the improper analogies between the beginning of virtual worlds and the beginning of the Internet.

As much as VW07 was all about brands, GDC felt like just the opposite with chatter about their social power and role as a third place. That got me all primed to write about how the one analogy from '96 that will repeat itself is that big brands think they are there, but they just don't get it (anyone remember Pathfinder?).

In the midst of this, I get an email from David Cancel of Compete.com about their big launch of new tools including Attention tracking (for a background on Attention see here, or here). So I convinced him to run a couple of pre-launch images for me so I could make the same point in images instead of text.

Videovsonlinegames

Continue reading "A new way to see the web, and gaming looks good." »

March 29, 2007

Lotro reverses, OpenCoffee #2, and Raph's How to Make the Web Fun

This is a bit of a clean-up post on some on-going topics here at Brinking:

  • If you have been drinking with me lately, you've already heard my rant about how game design (particularly MMO design) should be a more applied tool in the development of ANY social network (think Flickr, Myspace, Virb, Last.fm). Well, you've likely already read this but Raph gave a typically elequent speech on this exact topic at Etech. See the preso here, or read Wonderland's notes.

    IMHO: game theory is to economics as game design should be to interaction design.

  • I posted last week about Turbine's oversight of forceably segregating their player base by nationality in Lord of the Rings Online. Well, I'm happy to report that the outporing on the blogosphere and the forums has made Turbine reverse their decision. Well done guys.

    For those that aren't in virtual worlds and don't see how this might be a big deal - remember that for a growing percentage of the populace this is becoming as important a form of regular communication as the telephone, email, IM, or SMS. Some quotes:

Continue reading "Lotro reverses, OpenCoffee #2, and Raph's How to Make the Web Fun" »

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