8. Social games are social Whenwas the last time youplayed *with* someone on a facebookgame? Social is a misnomer– the gamessit on the social networks. The majority are not social, they are viral. This ischangingthough, more recentgames are integratingfeatureswhereyou are more engagedwithyourfriends (arguably, Poker games have donethisfromday one). Check out: ParadisePaintball, Frontierville
10. Social gamers are casualgamers Whatis a casualgamer? Social gamesaretaking a hugeshare of the social gamespace – but not only. CasualGamers are not casual. Social Gamers are not casualgamers.
11. Social gamers are casualgamers More gamesemerging on social networks for thehardcore audience as well. Niche isrich. Check out: Verdonia, Warstorm
13. Social means free marketing Marketing isnever free. Earlydays, acquisition was cheap on Facebook: Viralitywasreallyhigh (as well as spam) Ad markethad few companiesinvesting in it
14. Social means free marketing The situation has changed. Typicalaverage CPA has gone from 10c to 1$ (for actorswhoalready have a verystrong brand recognition)
15. Social means free marketing Relatedmini-Myth: You need to spam yourway to success It used to be possible, but Facebookchanged the rules – isstillchangingthemactually. Reactivityis one of the new challenges…
17. Social games are easy to make In the past 2 years, the quality has reallyincreased. The quality of execution has drivendevelopment budgets up.
18. Social games are easy to make Viralityis not easy to design within a game. Business models are not easy to design within a game. New technical challenges as well: scalability, database.
20. Social games are not real games Typical social games have: Lowskillrequirement High commitmentrequirement The gameindustry has been therebefore: PS3/Xbox vs Wii Hardcore vs Casual The industryisexpanding and sois the definition of games.
22. This is an American market EvenconsideringjustFacebook, thisis a wrong perception: 30% of the Facebookuser base islocated in the US Lookingat local networks makesiteven more obvious: StudiVZ (15M users in Germany) TencentQQ
23. Thisis an Americanmarket Both the verystrong push fromSiliconValleyand the easier, unifiedmarketexplainthe US focus. However,somecompanies have been quitesuccessfulusing localisation as part of theirstrategy (6 Wavesis a good example). High quality localisation has yet to happen.
28. Improve the viralityto deathThis strategy has been verysuccessful for Zynga and isbeingused by mostdevelopersnow.
29. Designed by numbers That strategy has been verysuccessful for Zynga and isbeingused by mostdevelopersnow. A very good method to maximise acquisition and virality. Not so good for retention.
30. Designed by numbers SeemslikeZynga has reached the bottom of the bucket. Nowmovingintomanuallydesignedmechanisms to improve: retention! Check out: Frontierville
32. An indie business Certainlytrue in the earlydays. Recent acquisitions: Playfishacquired by EA Playdomacquired by Disney
33. An indie business Stillverystrongindependentstudios around. No traditionalindustryactor has managed to get real momentum in the space… yet. Many are trying: Ubisoft, Bigpoint, Gameforge, Frogster, SOE…
35. The opportunity has passed Facebook has been dominated by the same few actorslately. Very few successful new entrants. (Crowdstar) Whowillbe the next?
36. The opportunity has passed Costs of entry skyrocketing. Investments in the spaceveryhigh as well. This is the veryearly stage – a vastnumber of opportunities are still to beexplored.
BUT the segment most attacked by social games is the “casual games” segment
More a platform than an audience
Stress the importance of retention now
Social games companies have grown : Zynga has 1000 employees, Playdom 500, Playfish 200+
QQ is an msn-like service.Other local social networks : Hyves (NL), Vkontakte (Russia), Nasza-Klasa (Poland)
Also there’s space for local games (petanque, belote, etc... Cf the Oktoberfest application 2 years ago)
They are slowly but surelymovingawayfromtheirChurn & Burnmethods and movingtowards more gamedesignedmechanicsalong the metricsdesignedtheydeveloped for the past few years.
Playdom itself was acquiring a lot of smaller players, Zynga acquired Challenge Games, concentration is at every level. Is Zynga still an “indie”?