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	<title>AllThingsD &#187; Electronic Arts</title>
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		  <title>All Things Digital</title>
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		<title>King.com Appoints EA Social Games Producer to Rule New London Studio</title>
		<link>http://allthingsd.com/20120521/king-com-appoints-ea-social-games-producer-to-rule-new-london-studio/</link>
		<comments>http://allthingsd.com/20120521/king-com-appoints-ea-social-games-producer-to-rule-new-london-studio/#comments</comments>
		<pubDate>Mon, 21 May 2012 22:10:08 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[Catharina Lavers Mallet]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[game studio]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[King.com]]></category>
		<category><![CDATA[Playfish]]></category>
		<category><![CDATA[social gaming]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=210674</guid>
		<description><![CDATA[King.com, one of the fastest-growing social games companies on Facebook, has opened a new game studio in London that will be led by Electronics Arts and Playfish veteran Catharina Lavers Mallet. While an executive producer at EA, Lavers Mallet worked on major titles like The Sims Social. The London studio is expected to hire about 40 employees and to work with the company's headquarters there in addition to other offices in Hamburg, Stockholm, Milan, Romania, Malta and San Francisco.]]></description>
			<content:encoded><![CDATA[<p>King.com, <a href="http://www.insidesocialgames.com/2012/05/21/king-com-still-on-dominating-fastest-growing-facebook-games-by-mau/">one of the fastest-growing social games companies on Facebook</a>, has opened a new game studio in London that will be led by Electronics Arts and Playfish veteran Catharina Lavers Mallet. While an executive producer at EA, Lavers Mallet worked on major titles like The Sims Social. The London studio is expected to hire about 40 employees and to work with the company&#8217;s headquarters there in addition to other offices in Hamburg, Stockholm, Milan, Romania, Malta and San Francisco.</p>
]]></content:encoded>
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		<title>Videogames Using the Power of Fans to Get a Kick Start</title>
		<link>http://allthingsd.com/20120521/videogames-using-the-power-of-its-fans-to-get-a-kick-start/</link>
		<comments>http://allthingsd.com/20120521/videogames-using-the-power-of-its-fans-to-get-a-kick-start/#comments</comments>
		<pubDate>Mon, 21 May 2012 14:00:23 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[App Store]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[crowd-sourcing]]></category>
		<category><![CDATA[crowdfunding]]></category>
		<category><![CDATA[David DeMartini]]></category>
		<category><![CDATA[Double Fine]]></category>
		<category><![CDATA[E3]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[entrepreneur]]></category>
		<category><![CDATA[Eric Johnson]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[fundraising]]></category>
		<category><![CDATA[Gambitious]]></category>
		<category><![CDATA[gamers]]></category>
		<category><![CDATA[Kickstarter]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[origin]]></category>
		<category><![CDATA[PC gaming]]></category>
		<category><![CDATA[Scott Steinberg]]></category>
		<category><![CDATA[Shadowrun]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Steam]]></category>
		<category><![CDATA[Valve]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Wasteland]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=210273</guid>
		<description><![CDATA[Videogames are fast becoming one of the most popular categories that are able to attract start-up capital from everyday people.]]></description>
			<content:encoded><![CDATA[<p>Videogames are fast becoming one of the most popular categories that are able to attract start-up capital from everyday people.</p>
<div class="mceTemp">
<dl id="attachment_164318" class="wp-caption alignright" style="width: 390px;">
<dt class="wp-caption-dt"><img class="size-full wp-image-164318" title="crowd" src="http://allthingsd.com/files/2012/01/crowd.png" alt="" width="380" height="284" /><span class="media-attribution">SFC / Shutterstock</span></dt>
<dd class="wp-caption-dd"></dd>
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<p>With the rise of so-called &#8220;crowdfunding,&#8221; game makers are finding fans online who are willing to pledge a few bucks toward a game they&#8217;d like to see produced.</p>
<p>The primary site where these connections are being made is <a href="http://www.kickstarter.com">Kickstarter</a>, a three-year old company. Since Kickstarter got off the ground, the games category has garnered $29 million in pledges, <a href="http://www.nytimes.com/interactive/2012/04/30/technology/three-years-of-kickstarter-projects.html?ref=technology">according to the New York Times</a>. Other popular categories include film/video, music and design.</p>
<p>Further, it was reported that 854 game developers successfully reached their fundraising goals, raising an average of $29,409 apiece.</p>
<p>Most impressively, three game companies have raised more than $1.5 million each since the beginning of this year: Double Fine raised $3.3 million from 87,000 backers; Wasteland 2 raised $2.9 million; and Shadowrun Returns secured $1.8 million.</p>
<p>Another site, <a href="http://gambitious.com/">Gambitious</a>, which will be exclusively dedicated to helping game companies raise money, is preparing to launch on June 5 in Los Angeles as part of E3, the industry&#8217;s big annual conference.</p>
<p>The shift to nontraditional fundraising is now even catching the eye of megapublishers like Electronic Arts. Last week, EA said developers who crowdsourced funding will be able to sell their games on Origin at no cost for three months.</p>
<p>Origin is the company&#8217;s online game store, which allows users to download PC games electronically and counts up to 12 million users worldwide.</p>
<p>“The public support for crowdfunding creative game ideas coming from small developers today is nothing short of phenomenal,” said David DeMartini, EA&#8217;s SVP of Origin, in a release. “It’s also incredibly healthy for the gaming industry. Gamers around the world deserve a chance to play every great new game.”</p>
<p>EA doesn&#8217;t disclose how much it charges because it says fees can vary, but through this program, developers will now receive 100 percent of sales during the 90-day window plus any pre-sales that are generated before the title officially launches, a spokesman confirmed.</p>
<p>It&#8217;s unclear whether crowdfunding is a fad and consumers will tire of it quickly, and to be clear, <a href="http://www.edge-online.com/features/ten-kickstarter-projects-didnt-make-it">not every company that requests money is able to get it</a>.</p>
<p>But it pairs nicely with a broader trend in the industry that <strong>AllThingsD</strong>&rsquo;s <a href="http://allthingsd.com/20120517/maybe-you-should-start-paying-attention-to-indie-games-developers/">Eric Johnson wrote about last week</a>. He explained that game developers are increasingly finding it advantageous to stay small, rejecting the notion that productions need big budgets in order to create blockbusters.</p>
<p>The evolution has been aided by the rise of three new distribution platforms, Apple&#8217;s App Store, Facebook and Valve&#8217;s Steam Store (and to a lesser extent, EA&#8217;s Origin, which is catching up). With these digital platforms, developers can reach customers without having to package up their software and sell it at retail, saving thousands of dollars.</p>
<p>With the crowdfunding phenomenon completely under way, Videogame Analyst and Consultant Scott Steinberg saw the opportunity to write an e-book on the subject called <a href="http://www.crowdfundingguides.com/#steinberg">&#8220;Crowdfunding Your Business: A How-To Guide.&#8221;</a> In the recently released book, he argues that crowdfunding helps developers identify projects that consumers are willing to pay for, before they&#8217;ve wasted the money and time on developing them.</p>
<p>He writes that by &#8220;requesting feedback or recruiting help from public donors via open calls for assistance &#8212; you can gauge demand for and create bankable products from day one.&#8221;</p>
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		<title>Maybe You Should Start Paying Attention to Indie Games Developers</title>
		<link>http://allthingsd.com/20120517/maybe-you-should-start-paying-attention-to-indie-games-developers/</link>
		<comments>http://allthingsd.com/20120517/maybe-you-should-start-paying-attention-to-indie-games-developers/#comments</comments>
		<pubDate>Thu, 17 May 2012 21:47:10 +0000</pubDate>
		<dc:creator>Eric Johnson</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Android]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Bolt Creative]]></category>
		<category><![CDATA[Braid]]></category>
		<category><![CDATA[casual games]]></category>
		<category><![CDATA[Double Fine Productions]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Get Set Games]]></category>
		<category><![CDATA[Independent Games]]></category>
		<category><![CDATA[Indie Devs]]></category>
		<category><![CDATA[Indie Game: The Movie]]></category>
		<category><![CDATA[iOS]]></category>
		<category><![CDATA[Kickstarter]]></category>
		<category><![CDATA[Mega Jump]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[Pocket God]]></category>
		<category><![CDATA[Rovio]]></category>
		<category><![CDATA[Super Meat Boy]]></category>
		<category><![CDATA[Valve]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=203887</guid>
		<description><![CDATA[Combine small teams, personal passion and a large accessible market and you have the makings of a creative explosion.]]></description>
			<content:encoded><![CDATA[<p><a href="http://allthingsd.com/files/2012/05/meatboy.jpg"><img src="http://allthingsd.com/files/2012/05/meatboy-380x253.jpg" alt="" title="meatboy" width="380" height="253" class="alignright size-medium wp-image-204161" /></a></p>
<p>Big video games like Mass Effect 3 and Halo 4 aren&#8217;t going away anytime soon. But a growing cadre of independent games developers is taking the road less traveled &#8212; keeping teams tiny and visions narrow. </p>
<p>In fact, they say they don&#8217;t want to grow. And despite that unorthodox philosophy, they&#8217;re reaching big audiences, making some impressive money and shaking up the games industry as a whole.</p>
<p>These independent developers, or &#8220;indie devs,&#8221; fill a huge spectrum of opinions about what video games can and should be. But, as with their counterparts in music and movies, it&#8217;s not always easy to nail down which games are indie and which aren&#8217;t.</p>
<p>Up-and-coming publishers like Zynga and Rovio started out small and indie, of course. In the loosest sense, the term applies to pretty much anyone who&#8217;s not one of the big legacy game companies, such as Nintendo, Sega or Electronic Arts.</p>
<p>However, after they put out a hit or two, a few independents peel off from the pack by continually hiring and growing. Contrast Zynga, which has nearly 3,000 employees at 21 offices around the world, with unconventional companies such as San Francisco-based <a href="www.boltcreative.com">Bolt Creative</a>, where the two co-founders pointedly avoided hiring anyone but themselves.</p>
<p>&#8220;We made a decision to stay small,&#8221; said Dave Castlenuovo, Bolt&#8217;s only programmer. &#8220;To me, I get the most enjoyment working out of my home, getting to see my wife.&#8221;</p>
<p><a href="http://allthingsd.com/files/2012/05/pocketgod.jpg"><img src="http://allthingsd.com/files/2012/05/pocketgod-380x253.jpg" alt="" title="pocketgod" width="380" height="253" class="alignright size-medium wp-image-204163" /></a></p>
<p>Castlenuovo and his design partner Allan Dye eschewed the new-normal start-up song-and-dance: Securing VC funding, finding office space and building a company on the idea of scaling bigger and bigger. </p>
<p>Instead, they found huge success, despite staying small, with their flagship game Pocket God. The game lets sadistic smartphone owners punish an island of perennially doomed cartoon pygmies. </p>
<p>Pocket God was a one-off project started in late 2008, which went from idea to a first version on the iPhone App Store in about a week, Castlenuovo said. </p>
<p>But it has outperformed most one-week larks. The 99-cent app and its downloadable extras have earned about $7.5 million so far. </p>
<p>And the game&#8217;s pygmy characters have racked up an additional $600,000 through a spinoff comic book series, which is not bad for a two-man team.</p>
<p>So, how does a little operation such as Bolt Creative thrive while a company like Nintendo, with access to some of the world&#8217;s top talent and most beloved video game characters, is reporting to investors its <a href="http://allthingsd.com/20120426/nintendo-records-531-1-million-annual-loss/">first annual loss</a> since 1981?</p>
<p>Part of it, of course, is the conventional wisdom that smaller start-ups are just nimbler on their feet. But to get at the real answer, you have to look primarily at three big companies: Valve, Apple and Facebook.</p>
<p><a href="http://allthingsd.com/files/2012/05/steam.png"><img src="http://allthingsd.com/files/2012/05/steam-301x285.png" alt="" title="steam" width="301" height="285" class="alignright size-medium wp-image-204164" /></a></p>
<p>On PCs, Valve&#8217;s <a href="store.steampowered.com">Steam Store</a> eliminated the need for developers to get their games distributed in brick-and-mortar stores in order to find a mass paying audience of gamers. Mobile app marketplaces, starting with Apple&#8217;s on iOS, similarly leveled the playing ground for smartphone game developers.</p>
<p>And games have also infiltrated social networking sites, especially Facebook, although the spoils are decidedly lopsided: Zynga alone was responsible for 15 percent of the company&#8217;s revenue in the first quarter of 2012.</p>
<p><a href="http://allthingsd.com/files/2012/05/doublefine.png"><img src="http://allthingsd.com/files/2012/05/doublefine-380x264.png" alt="" title="doublefine" width="380" height="264" class="alignleft size-medium wp-image-204168" /></a></p>
<p>To raise the money to make new games, new avenues are also springing up fast. In March, San Francisco-based Double Fine Productions <a href="http://www.kickstarter.com/projects/66710809/double-fine-adventure">solicited donations on Kickstarter</a> for a new point-and-click adventure game in the style of the classic games made by its founder, Tim Schafer. They <a href="http://allthingsd.com/20120210/kickstarter-comes-into-its-own/">met their $400,000 goal</a> in about eight hours and ultimately raised $3.3 million from Kickstarter users.</p>
<p>These sorts of developers don&#8217;t always have it easy: They have to do more with less, taking on more responsibilities than they might have to in much larger teams. And they can&#8217;t bank on legacy pieces of intellectual property for success. </p>
<p>Not that this is an equally bad fate for everyone. For his part, Castlenuovo compares himself to Robert Rodriguez, an independent filmmaker who famously produces, writes, directs, shoots and edits most of his movies solo. </p>
<p>“I enjoy wearing many hats,” Castlenuovo said.</p>
<p>Plus, indie devs can now focus more on making the games they&#8217;re most passionate about and less on how they’re going to sell them, at least initially. </p>
<p><a href="http://allthingsd.com/files/2012/05/megajump.jpg"><img src="http://allthingsd.com/files/2012/05/megajump-190x285.jpg" alt="" title="megajump" width="190" height="285" class="alignright size-medium wp-image-204170" /></a>Derek van Vliet, co-founder of a Toronto-based indie shop called <a href="http://getsetgames.com/">Get Set Games</a>, seems to be in a good place. His company’s casual iPhone/Android game Mega Jump, initially developed by just three people (now upped to four), has racked up 24 million downloads since May of 2010. </p>
<p>But van Vliet grumbled that bigger companies like Electronic Arts can temporarily take over app store charts by throwing around the weight of some of their biggest properties, including Madden, Tetris and Scrabble.</p>
<p>“That’s getting a lot from very little work for them,” he said.</p>
<p>For better or for worse, the business of games is not a meritocracy. But it might be a mistake to assume it’s all one big, cohesive business in the first place. After all, the devs say, isn’t at least some of what we’re doing art?</p>
<p><strong>Art vs. entertainment?</strong></p>
<p>If you want to quickly start a fight on the Internet, you should follow Roger Ebert’s lead and assert in broad strokes that <a href="http://blogs.suntimes.com/ebert/2010/04/video_games_can_never_be_art.html">video games are not and will never be art</a>. Even among the game developer community, the dividing line between art and entertainment is fuzzy at best and may be impossible to place outright.</p>
<p>After all, some games are just casual fun. But others are deeply personal for their creators and, if you believe their many fans, are more meaningful and higher-quality as a result.</p>
<p><a href="http://allthingsd.com/files/2012/05/plantszombies.jpeg"><img src="http://allthingsd.com/files/2012/05/plantszombies-380x285.jpg" alt="" title="plantszombies" width="380" height="285" class="alignright size-medium wp-image-204171" /></a>George Fan, co-creator of Plants vs. Zombies, said he knows his game is a piece of entertainment, which he developed independently and later distributed through PopCap before EA bought the company in 2011. But he questioned whether art and indie projects even have a chance amid the business pressures at EA.</p>
<p>“It’s pretty much as far as you could get from indie in any company,” Fan said.</p>
<p>Castlenuovo echoed the sentiment, noting big companies are best able to serve their investors when they focus on making top-10 hits.</p>
<p>&#8220;I&#8217;m going to stick with the creativity,&#8221; he said. </p>
<p><a href="http://allthingsd.com/files/2012/05/Braidlogo.jpg"><img src="http://allthingsd.com/files/2012/05/Braidlogo.jpg" alt="" title="Braidlogo" width="219" height="262" class="alignleft size-full wp-image-204172" /></a>Even if you accept that some developers are making artful games, getting others to appreciate them in that way is an uphill battle. In the delightful new documentary “<a href="indiegamethemovie.com">Indie Game: The Movie</a>,” developer Jonathan Blow explains how his indie mega-hit Braid explores the concept of trying to reverse past mistakes by giving players the ability to rewind time.</p>
<p>However, the directors then cut to an online video reaction to the game from Soulja Boy. The young rapper enthusiastically tells his fans that Braid “ain’t got no point … you just walking around, jumpin’ on shit.” </p>
<p>Still, when developers can work by themselves or on very small teams, rather than as part of a publicly traded company, they’re freer to pursue &#8220;passion projects&#8221; that mean more to them. On the surface, that’s good, but it can also be a sort of psychological poison.</p>
<p><a href="http://allthingsd.com/files/2012/05/tasty-static-2.jpg"><img src="http://allthingsd.com/files/2012/05/tasty-static-2-380x285.jpg" alt="" title="tasty-static-2" width="380" height="285" class="alignright size-medium wp-image-204173" /></a>For Leo Alterman, a hobbyist indie dev and senior at Stanford University, making games is about recreating a sense of wonder he felt as a child playing Nintendo 64. And he’s not just talk: A game he built from scratch starting in high school, Tasty Static, has racked up 100,000 free downloads online in the past two years. </p>
<p>But Alterman said he could never make games his profession &#8212; the personal stakes are just too high.</p>
<p>“If you’re doing that as a job, and you fuck it up, then yeah, you’re kind of in trouble,” he said.</p>
<p>Indie devs straddle the stressful line between living to work and working to live. Despite his quest for childlike wonder, Alterman describes himself as morbid, and he’s in good company: In “Indie Game: The Movie,” one developer compares his work to being in a concentration camp as a major deadline approaches. Another earnestly threatens to kill himself if he can’t finish his game as planned.</p>
<p>“So, that’s my incentive,” he deadpans.</p>
<p><a href="http://allthingsd.com/files/2012/05/190195-meatyboy1.jpg"><img src="http://allthingsd.com/files/2012/05/190195-meatyboy1-380x209.jpg" alt="" title="190195-meatyboy1" width="380" height="209" class="alignright size-medium wp-image-204174" /></a>It seems unlikely that gamers would look at the latest update to Madden or Words With Friends and use it to judge those games’ creators. But Edmund McMillen, co-creator of the popular (and maddeningly difficult) indie platformer game <a href="http://supermeatboy.com/">Super Meat Boy</a>, said the game and its public image are so tied to his story and personality that it’s impossible not to feel judged.</p>
<p>“We put everything into it,” McMillen said of himself and his &#8220;Team Meat&#8221; partner Tommy Refenes. “We are the game.”</p>
<p><strong>The mainstream response</strong></p>
<p>Just as with indie music and movies, there’s a more emotional response to the idea of a game produced by one or two people than one produced by a faceless company. And finding indie game developers who are willing to question the values of big games companies &#8212; like EA and Zynga &#8212; is like finding sand on a beach.</p>
<p>“That doesn’t seem like art to me,” the hobbyist dev Alterman said of Zynga, which did not respond to requests for comment. “They’re playing a different game.”</p>
<p>“Zynga’s a business,” Team Meat&#8217;s McMillen said. “I would go so far as to say they don’t even make games. They make money.&#8221;</p>
<p>“That sounds like hell to me,” Refenes says in &#8220;Indie Game: the Movie,&#8221; after he&#8217;s asked about working at EA or Epic Games.</p>
<p>Plus, players are responding to independent developers in a big way. According to the mobile app analytics and advertising firm Flurry, 56 percent of all mobile games played in Q1 2011 were made by indie devs; one year later, in Q1 2012, <a href="http://blog.flurry.com/bid/82758/Indie-Game-Makers-Dominate-iOS-and-Android">that share had jumped to 68 percent</a>.</p>
<p><a href="http://allthingsd.com/files/2012/05/01HillemanEA5933.jpg"><img src="http://allthingsd.com/files/2012/05/01HillemanEA5933-189x285.jpg" alt="" title="01HillemanEA5933" width="189" height="285" class="alignright size-medium wp-image-204175" /></a>But those opinions and trends don’t seem to deter Rich Hilleman, EA’s chief creative officer and one of the company’s first 20 employees from the early 80s. He’s careful to praise talented indie devs who have gone on to join EA, but also stresses the administrative headaches that come with staying small.</p>
<p>“I want to not have to worry about clearing credit cards and legal issues and translating this stuff into Maltese,” he said. “I think you recognize that it was fun to be independent, except that that stuff wasn’t all that fun.”</p>
<p><a href="http://allthingsd.com/files/2012/05/billbudge.jpg"><img src="http://allthingsd.com/files/2012/05/billbudge-283x285.jpg" alt="" title="billbudge" width="283" height="285" class="alignleft size-medium wp-image-204176" /></a>When Hilleman joined EA, the company didn’t do any development in-house; it was solely a publisher that connected independent game designers with bigger audiences. Within the gaming world, the company helped make rock stars out of developers like Bill Budge, whose game, Pinball Construction Set, was packaged like a music album, with Budge’s name in giant script on the front.</p>
<p>Not really something you&#8217;d see today. I&#8217;ve sunk countless hours into EA&#8217;s Need for Speed racing game on my iPhone, but I couldn&#8217;t tell you the name of a single person who helped make it.</p>
<p>When I told him this, Hilleman countered that customers, not publishers, are the ones who decide who the stars are, although it&#8217;s hard not to wonder why that star status doesn&#8217;t correlate with hugely popular games like EA&#8217;s Star Wars: The Old Republic, which gained 1 million subscribers within three days of its launch last year.</p>
<p><a href="http://allthingsd.com/files/2012/05/minecraft-creeper-statue_2183430.jpg"><img src="http://allthingsd.com/files/2012/05/minecraft-creeper-statue_2183430-366x285.jpg" alt="" title="minecraft-creeper-statue_2183430" width="366" height="285" class="alignright size-medium wp-image-204177" /></a>Hilleman readily volunteers that one of the closest modern rock-star successors to Bill Budge is an indie dev: Notch, the creator of Minecraft. In the past three years, Notch&#8217;s sandbox game has built an extremely passionate community of over 16 million players, despite having primarily three programmers listed in <a href="http://www.minecraft.net/game/credits">its credits.</a></p>
<p>Despite all this, Hilleman draws a firm line in the sand in opposition to independent developers who say they’re freer to pursue “passion projects&#8221; than developers at EA.</p>
<p>“Building video games is just hard,” Hilleman said. “There is no such thing as building something you do not like. It just does not happen.”</p>
<p>Of course that doesn&#8217;t mean life is necessarily easier for devs who, at big companies, don&#8217;t have to translate anything into Maltese. James Swirsky, co-director of &#8220;Indie Game: The Movie,&#8221; said he saw plenty of hardship in his two years as a games tester at EA.</p>
<p>Devs there, he said, &#8220;were just as stressed out and pushed to the brink as the guys you see in the film.”</p>
<p><strong>The key difference</strong></p>
<p>Independent game developers share a lot of DNA with their big-business brethren, and the differences aren’t big enough to merit a culture war or to force audiences to choose between one or the other. </p>
<p>Furthermore, the mainstream world is not clueless: EA has learned its lessons from the years in the mid-aughts when console games seemed stuck in a rut, and has tried to reach out to and learn from the independent community &#8212; although Hilleman is quick to point out the irony of the situation, since in the 80s “Electronic Arts” was still small enough to be synonymous with the indie scene. </p>
<p>Meanwhile, Zynga has established a successful pattern of growing by acquisition, looking for the independent shops that are happy to sell out (not that that&#8217;s a bad thing, as OMGPOP and others can tell you).</p>
<p>But there&#8217;s still a key difference between the independents and the rest, and everyone watching the gaming space should note: With the rise of indie games as an economic force to be reckoned with, the charges are set for an explosion of creativity in the gaming world in the coming years. Indie devs have been around for decades, but now it&#8217;s easier than ever for them to make a comfortable living while making the games they personally pick and love.</p>
<p>The “hardcore” gamer community often derides social games on Facebook and mobile devices as too simplistic. But that will change. Games will get better and more ambitious as barriers to entry continue to fall and more outlier voices come into the mix. </p>
<p>With indies coming into the spotlight, games may finally be able to come into their own. Call it a real-world power-up. </p>
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		<title>Mobile Gaming Is Hot, but Pocket Gems Won't Sell Out</title>
		<link>http://allthingsd.com/20120517/mobile-gaming-is-hot-but-pocket-gems-wont-sell-out/</link>
		<comments>http://allthingsd.com/20120517/mobile-gaming-is-hot-but-pocket-gems-wont-sell-out/#comments</comments>
		<pubDate>Thu, 17 May 2012 16:26:13 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<guid isPermaLink="false">http://allthingsd.com/?p=209143</guid>
		<description><![CDATA[Pocket Gems says it is not for sale, even though other mobile gaming companies like OMGPOP and Funzio are cashing out at big valuations.]]></description>
			<content:encoded><![CDATA[<p><a href="http://pocketgems.com/">Pocket Gems</a>, which routinely hits the top of the charts with its mobile games, says it isn&#8217;t for sale, even though it must be tempting right now.</p>
<p><img class="alignright size-medium wp-image-209380" title="dragonpark_splashscreen_960x640" src="http://allthingsd.com/files/2012/05/dragonpark_splashscreen_960x640-380x253.png" alt="" width="380" height="253" /></p>
<p>Recently, <a href="http://allthingsd.com/20120501/japans-gree-buys-mobile-social-game-developer-funzio/">Funzio sold</a> to Japan&#8217;s Gree for $210 million, and Zynga acquired OMGPOP for $180 million; not too long before that, Electronic Arts paid $750 million for PopCap.</p>
<p>In an interview, Pocket Gem&#8217;s COO Ben Liu said that mobile game companies are hot commodities right now, but to sell is shortsighted.</p>
<p>&#8220;We feel like it&#8217;s the early days of mobile,&#8221; Liu said. &#8220;There&#8217;s a decade-long shift occurring from PC and the Web to mobile, and games is only the first vertical to take off. There&#8217;s so much opportunity. We need all of our attention on that to be successful.&#8221;</p>
<p>Liu would not disclose the company&#8217;s revenue, but said that it has been growing extremely fast. Over the past year and a half, the company has moved its offices five times to accommodate the growth of its staff &#8212; from 10 to 120 employees.</p>
<p>And as of a few months ago, the company recorded 60 million app downloads since its founding in 2009. Its hit title Tap Zoo generated 20 million downloads alone.</p>
<p>Pocket Gems&#8217; games fall into the &#8220;casual&#8221; genre, and are focused on building products that have fairly addicting play; they attract a predominantly adult female audience. The games normally have &#8220;tap&#8221; in the name &#8212; Tap Zoo, Tap Pet Hotel and Tap Jungle allow players to build, respectively, their own zoo, pet hotel and mystical rain forest.</p>
<p>Last week, Pocket Gems released its first game exclusively for Android, called Tap Dragon Park, which allows players to train dragons to defend their kingdoms.</p>
<p>Pocket Gems has been able to rise in the rankings without having to tap investors too much. (Maybe their next game will be Tap Bank?) It has raised $5 million in capital from Sequoia Capital and a handful of angel investors, and is profitable.</p>
<p>Here are Liu&#8217;s thoughts on some of the issues facing the mobile games industry.</p>
<p><strong>On making acquisitions versus being acquired:</strong></p>
<p>Liu says Pocket Gems isn&#8217;t entertaining offers at this time, but will consider making acquisitions of its own. &#8220;We&#8217;ve been completely focused on organic expansion, but I think as we continue to grow, something we&#8217;ll look at is acquisitions, as well. We are focused on building a great team organically, and are opportunistic.&#8221;</p>
<p><strong>How many games can you release in a year?</strong></p>
<p>&#8220;Last year, we launched 10 games total. Some of them are new IP that requires a larger team and can be franchise-sustaining, and others are seasonal titles or extensions.&#8221;</p>
<p><strong>Is there an issue with copycats in the space?</strong></p>
<p>&#8220;Yes, all of our games have been cloned extensively by most of our competitors. But that&#8217;s one of the prices of success. We&#8217;ve always prided ourselves on being an innovator. The thing that is difficult to clone is creativity. &#8230; We have a saying: Pocket Gems is a leader and not a follower. And many of our competitors have a fast-follower strategy.&#8221;</p>
<p><strong>What are your thoughts about third-party distribution platforms, like Gree and DeNA, which are trying to create mobile social networks?</strong></p>
<p>&#8220;We haven&#8217;t opened our games to third parties. It&#8217;s in our interest to develop our own platform. Their businesses are really compelling, but there&#8217;s no winning platform yet in the mobile space. We have our own loyal community, which is a powerful game engine. We don&#8217;t want to be dependent on someone else&#8217;s platform. Our own great platform is a powerful source of marketing, and it is good at letting our users know about the games. That&#8217;s the most effective.&#8221;</p>
<p><strong>Is summer a good time for people to play and discover new mobile games?</strong></p>
<p>&#8220;It&#8217;s a good time. People are on vacation and in transit, and it&#8217;s a natural device to use during those times. And people have more downtime and free time. We&#8217;ve found historically for it to be good. Holidays are another.&#8221;</p>
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		<title>EA Says Digital Will Offset New Console Investments for the First Time</title>
		<link>http://allthingsd.com/20120508/ea-says-digital-will-offset-new-console-investments-for-the-first-time/</link>
		<comments>http://allthingsd.com/20120508/ea-says-digital-will-offset-new-console-investments-for-the-first-time/#comments</comments>
		<pubDate>Tue, 08 May 2012 21:45:24 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[Microsoft]]></category>
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		<guid isPermaLink="false">http://allthingsd.com/?p=205367</guid>
		<description><![CDATA[Despite having to sink $80 million into new console game development this year, EA's CEO John Riccitiello is upbeat, saying that "we are absolutely a different company in a different spot."]]></description>
			<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-205444" title="electronic Arts_fifa" src="http://allthingsd.com/files/2012/05/electronic-Arts_fifa-380x213.jpg" alt="" width="380" height="213" />Despite having to sink $80 million into new console game development this year, EA&#8217;s CEO John Riccitiello is upbeat, saying that &#8220;we are absolutely a different company in a different spot.&#8221;</p>
<p>Typically at this point in the hardware cycle, he said, the cost of developing new videogames would lead to a loss. But in a conference call with investors yesterday, <a href="http://seekingalpha.com/article/567641-electronic-arts-ceo-discusses-q4-2012-results-earnings-call-transcript?part=qanda">Riccitiello said</a> revenue from digital content will keep EA profitable.</p>
<blockquote class=memo><p>&#8220;In the face of, unfortunately, somewhat of a headwind relative to console, we&#8217;re getting top line growth, robust digital growth, robust margin expansion, robust EPS growth, while affording the investment in the next-gen console. I don&#8217;t think, going back to our foundation in &rsquo;82, that&#8217;s ever happened before. So what we are guiding for is entirely unprecedented, and it&#8217;s a function of everything we&#8217;ve been saying on the call so far. &#8230; It&#8217;s our hope to be able to accelerate top line through a transition and accelerate bottom line growth through a transition because we won&#8217;t be facing sort of negative console compares.&#8221;</p></blockquote>
<p>Nintendo expects to release the Wii U later this year, which will require new games that tap into both the TV and a touchscreen device. Neither Microsoft or Sony have unveiled plans for their respective next-generation hardware systems, the Xbox and PlayStation. Riccitiello did not mention the new consoles by name, and instead referred any direct questions about hardware to Sony, Microsoft and Nintendo.</p>
<p>&#8220;We intend to invest $80 million in Gen4 console development in fiscal &rsquo;13. We are strong believers that console will return to strong growth, and represent a great opportunity &#8212; one that is in lockstep with our digital plans.&#8221;</p>
<p>In fiscal 2012, <a href="https://allthingsd.com/20120507/ea-predicts-digital-games-wilto-make-up-40-percent-of-revenue-next-year/">EA generated $1.2 billion in digital revenues</a>, representing a 47 percent increase year over year. In the past six months alone, FIFA 12 &#8212; one of the company&#8217;s traditional packaged good titles &#8212; was able to break $100 million in digital revenues for the first time. This year, it&#8217;s predicting digital revenues of $1.7 billion, representing 40 percent of the company&#8217;s overall business.</p>
<p>Even though Riccitiello painted a positive outlook, he failed to turn to the tide.</p>
<p>Along with a broader market meltdown, the company&#8217;s stock fell 65 cents, or 4.3 percent, at $14.48 a share. At that price, the company&#8217;s stock is off more than 40 percent from its 52-week high of $26.13 a share.</p>
<p>During the call, Riccitiello also tried to stress that while Star Wars: The Old Republic is an important title for the company, it is getting an unfair amount of attention by analysts. In the quarter, he said the number of subscribers fell to 1.3 million from 1.7 million when the game launched.</p>
<p>&#8220;So while I understand there&#8217;s an enormous amount of interest, I don&#8217;t know that it warrants as much as what we&#8217;re seeing right now,&#8221; he said, <a href="http://seekingalpha.com/article/567641-electronic-arts-ceo-discusses-q4-2012-results-earnings-call-transcript?part=qanda">according to a SeekingAlpha transcript</a>.</p>
<p>The final highlight from the call was when Riccitiello questioned how much Zynga paid for OMGPOP and its hit title Draw Something, which was No. 1 for a short period of time. He didn&#8217;t actually name the two companies, but it was implied.</p>
<p>&#8220;Right now, what I&#8217;m starting to see is valuation expectations that assume that these things are all hockey stick moving up and to the right with no end in sight, and I think those are bad assumptions,&#8221; he said. &#8220;Some of them will work, some of them won&#8217;t, but they can&#8217;t all be worth the multiple that I&#8217;m seeing in the market right now.&#8221;</p>
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		<title>EA Predicts Digital Games Will Make Up 40 Percent of Revenue Next Year</title>
		<link>http://allthingsd.com/20120507/ea-predicts-digital-games-wilto-make-up-40-percent-of-revenue-next-year/</link>
		<comments>http://allthingsd.com/20120507/ea-predicts-digital-games-wilto-make-up-40-percent-of-revenue-next-year/#comments</comments>
		<pubDate>Mon, 07 May 2012 20:58:17 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<guid isPermaLink="false">http://allthingsd.com/?p=204807</guid>
		<description><![CDATA[Electronic Arts beat analyst expectations for both revenue and profits today for the fourth quarter, driven by strong digital revenues and sales from its latest game, Mass Effect 3.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts beat analyst expectations for both revenue and profits today for the fourth quarter, driven by strong digital revenues and sales from its latest game, Mass Effect 3.</p>
<p><img class="alignright size-full wp-image-170433" title="ea_starwars_oldrepublic" src="http://allthingsd.com/files/2012/02/ea_starwars_oldrepublic.png" alt="" width="380" height="285" />But the company reported fewer than expected users for Star Wars: The Old Republic, which had 1.3 million subscribers at the end of the year, falling short of analysts&#8217; expectations, who were estimating that the company would report roughly 1.6 million subscribers for the online game.</p>
<p>In response, the company&#8217;s stock was down more than 10 percent in after-hours trading at $13.60 a share. The drop is especially harsh given that the company&#8217;s stock <a href="http://allthingsd.com/20120507/will-electronic-arts-q4-performance-help-its-struggling-stock/">has fallen 20 percent</a> over the past few months.</p>
<p>As part of the financial release issued today, the company tried to paint a rosy picture of the company&#8217;s digital future.</p>
<p>In the fiscal year 2012, it generated $1.2 billion in digital revenues, exceeding its goal of $1 billion this year, and representing a 47 percent increase year over year.</p>
<p>In an interview, EA&#8217;s interim CFO Ken Barker said the company is forecasting digital revenues in fiscal 2013 of $1.7 billion, representing a growth rate of 40 percent. At those levels, he said digital will now comprise 40 percent of the company&#8217;s overall revenues, breaking away from its reliance on traditional packaged goods.</p>
<p>Barker noted that in the past six months alone, FIFA 12 was able to break $100 million in digital revenues, a first for one of its packaged goods titles.</p>
<p>The company said mobile revenues totaled $87 million in Q4, up from $70 million in the same period a year earlier. It also said the number of users who played a social game at least once in a given month was up, totaling 49 million in Q4, up from 36 million in the year-ago period. </p>
<p>For the fourth quarter, the company reported non-GAAP earnings per share of 17 cents on revenue of $977 million. Analysts were expecting EA to earn 16 cents a share on revenues of $960 million. EA’s own estimates were calling for a profit of 10 to 20 cents a share on revenues of $925 to $975 million.</p>
<p>When applying strict accounting rules, the company&#8217;s earned GAAP net income of $400 million, or $1.20 a share, on revenues of $1.4 billion. The same quarter a year earlier, the company recorded a profit of $151 million, or 45 cents a share, on revenues of $1.09 billion.</p>
<p>The first quarter, which has only one retail game but 11 digital games scheduled to launch, will be predictably softer. The company expects revenue of $950 million and profit of 40 to 48 cents a share.</p>
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		<title>Will Electronic Arts' Q4 Performance Help Its Struggling Stock?</title>
		<link>http://allthingsd.com/20120507/will-electronic-arts-q4-performance-help-its-struggling-stock/</link>
		<comments>http://allthingsd.com/20120507/will-electronic-arts-q4-performance-help-its-struggling-stock/#comments</comments>
		<pubDate>Mon, 07 May 2012 14:00:46 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<guid isPermaLink="false">http://allthingsd.com/?p=204145</guid>
		<description><![CDATA[Since the company's last earnings release, Electronic Arts' stock has tumbled 20 percent. Can the company's Q4 results -- coming out later today -- be enough to turn things around?]]></description>
			<content:encoded><![CDATA[<p>Will Electronic Arts&#8217; fourth-quarter performance &#8212; to be announced today &#8212; be enough to reverse its struggling stock price?</p>
<p><img class="alignright size-medium wp-image-204165" title="masseffect3_bioware" src="http://allthingsd.com/files/2012/05/masseffect3_bioware-356x285.jpg" alt="" width="356" height="285" />Since the company&#8217;s last earnings release in February, the videogame publisher&#8217;s stock has fallen 20 percent, and on Friday, it tumbled another 3.5 percent, or 55 cents, to trade at $15.12 a share.</p>
<p>In general, the market for game stocks are teeter-tottering, as the industry works through a massive transition from packaged goods sold at retail to digital games that are given away for free and distributed through Apple and Facebook.</p>
<p>Even pure plays like Zynga &#8212; which are focusing exclusively on mobile and social &#8212; aren&#8217;t immune, as investors question the free-to-play model and the dependence on third-party platforms. Zynga&#8217;s stock is off almost 20 percent since its IPO in December.</p>
<p>This afternoon, analysts are expecting EA to exceed the company&#8217;s internal guidance by earning 16 cents a share on revenues of $960 million. EA&#8217;s own estimates are calling for non-GAAP earnings of 10 to 20 cents a share on revenues of $925 to $975 million.</p>
<p>As a sign of the times, Wedbush analyst Michael Pachter revised his expectations down by $5 million due to U.K. games retailer Game Group going bankrupt during the quarter.</p>
<p>Otherwise, Pachter said that he&#8217;s expecting the company to report at the high end of the guidance, thanks to strong sales of Mass Effect 3, which went on sale during the quarter, and to a solid performance by the company&#8217;s online game, Star Wars: The Old Republic.</p>
<p>Other console titles shipped during the quarter include FIFA Street and Tiger Woods PGA Tour 13.</p>
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		<title>CrowdStar No Longer Developing Social Games for Facebook</title>
		<link>http://allthingsd.com/20120425/crowdstar-no-longer-developing-social-games-for-facebook/</link>
		<comments>http://allthingsd.com/20120425/crowdstar-no-longer-developing-social-games-for-facebook/#comments</comments>
		<pubDate>Wed, 25 Apr 2012 17:00:41 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Social Girl]]></category>
		<category><![CDATA[tablets]]></category>
		<category><![CDATA[Top Girl]]></category>
		<category><![CDATA[VC]]></category>
		<category><![CDATA[Wooga]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=199801</guid>
		<description><![CDATA[Crowdstar's CEO Peter Relan said in an interview that the longtime social games maker is no longer developing for Facebook.]]></description>
			<content:encoded><![CDATA[<p>CrowdStar&#8217;s CEO Peter Relan said in an interview that the longtime social games maker is no longer developing for Facebook.</p>
<p><img class="alignright size-medium wp-image-199816" title="crowdstar_mobile app" src="http://allthingsd.com/files/2012/04/crowdstar_mobile-app-380x253.jpg" alt="" width="380" height="253" />Instead, the company is focused on building games for smartphones.</p>
<p>&#8220;We are maintaining the old games, like Happy Aquarium, but we don&#8217;t build new Facebook PC games any more &#8212; we are 100 percent focused on mobile,&#8221; Relan said.</p>
<p>Last year, he said, 90 percent of the company&#8217;s revenues came from Facebook, but he predicts that this year 90 percent will come from mobile.</p>
<p>CrowdStar&#8217;s decision to leave Facebook is bad timing for the social network it as nears its public offering.</p>
<p>A platform must have both a lot of applications and a lot of users in order to be successful, but if the perception is that the platform can be profitable only for a few, developers will go elsewhere. Today, the reality is that Zynga dominates the charts <a href="http://allthingsd.com/20120423/zynga-accounted-for-15-percent-of-facebooks-revenues-in-q1/">and makes far and away more money</a> than anyone else. Meanwhile, fledgling developers <a href="http://allthingsd.com/20120423/consolidationville-coming-to-social-games-market-in-2012/">are seeking financial alternatives</a>.</p>
<p>Founded in 2008, the Burlingame, Calif., company was one of the first to feed off of Facebook’s social graph, which allowed companies to endlessly post messages on players’ walls to get the word out about their games. Since those viral channels were shut down, Crowdstar has had a difficult time keeping up with social game leaders, such as Zynga, Electronic Arts, Wooga and King.</p>
<p>A year ago, the company <a href="http://allthingsd.com/20110523/zynga-competitor-crowdstar-raises-first-round-of-funding-ever/">raised its first round of funding</a> totaling $23 million, but since then, its games have slipped in the rankings as its focus has shifted to mobile. Today, it attracts fewer than 8 million monthly users, down from 29 million a year ago, <a href="http://www.appdata.com/devs/30679-crowdstar">according to AppData</a>.</p>
<p>Since then, said Relan, they have discovered an attractive audience on mobile, consisting of females age 13 to 30 who are not interested in sitting in front of a PC or a console to play games. &#8220;They are very mobile and communications-oriented,&#8221; he said.</p>
<p>For example, Crowdstar&#8217;s Girl franchise, including Top Girl, Social Girl and Modern Girl, has collectively hit 20 million downloads across both iPhone and Android. Modern Girl alone surpassed two million downloads within three weeks of its launch.</p>
<p>The Girl franchise includes role-playing games where users dress up avatars and are judged on their outfits as they walk the runway.</p>
<p>Relan said Zynga has done a good job serving the females, aged 35 and over, who grew up on PCs and enjoy playing games online. But the slightly younger demographic is looking for a different kind of game play on a different platform. Relan said they still will leverage the Facebook platform on mobile.</p>
<p>The decision to pull away from Facebook on the PC is new since the company <a href="http://allthingsd.com/20111020/crowdstar-shares-roadmap-including-eight-new-games-globally-by-year-end/">announced a three-prong strategy in October</a> that included Facebook games, mobile games and an emphasis on Asia.</p>
<p>Relan said that even if the company weren&#8217;t targeting a niche that gravitated toward mobile, he&#8217;d still be wary of developing games for Facebook. That&#8217;s because he believes the audience for Facebook games has plateaued or started to decrease.</p>
<p>&#8220;If I was going after an older audience, I might focus on tablets,&#8221; he said.</p>
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		<title>ConsolidationVille Coming to Social Games Market in 2012</title>
		<link>http://allthingsd.com/20120423/consolidationville-coming-to-social-games-market-in-2012/</link>
		<comments>http://allthingsd.com/20120423/consolidationville-coming-to-social-games-market-in-2012/#comments</comments>
		<pubDate>Mon, 23 Apr 2012 23:25:47 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[bankers]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[consolidation]]></category>
		<category><![CDATA[Digi-Capital]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[king]]></category>
		<category><![CDATA[M&A]]></category>
		<category><![CDATA[mobile gamings]]></category>
		<category><![CDATA[OMGPOP]]></category>
		<category><![CDATA[Peak Games]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[South Korea]]></category>
		<category><![CDATA[Wooga]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=198688</guid>
		<description><![CDATA[This year is expected to be a strong year for consolidation, as social games companies struggle to become profitable.]]></description>
			<content:encoded><![CDATA[<p>Even more social game consolidation is coming this year.</p>
<p><img src="http://allthingsd.com/files/2012/04/moneyville_slide.png" alt="" title="moneyville_slide" width="380" height="285" class="alignright size-full wp-image-199304" />And here&#8217;s the reason why: There are hundreds of game companies competing on Facebook, and <a href="http://allthingsd.com/?p=199124&amp;preview=true">Zynga is single-handedly</a> grabbing 15 percent of all the revenue.</p>
<p><a href="http://www.digi-capital.com/reports.html">A report published by Digi-Capital</a>, an investment bank focused on videogames, says this year will be a strong one for consolidation, based on the number of discussions it is having with investors and management teams.</p>
<p>The bankers said the catalyst for the consolidation is either lack of revenue, or profitability, or both. The report said that Zynga, Wooga, King, Electronic Arts and Peak Games are all doing well, but as you get further down the list, many others are struggling to gain momentum.</p>
<p>Meanwhile, the leaders in the space &#8212; and particularly Zynga &#8212; are constantly having to come up with new games to keep their user base engaged, which is good news for companies that have strong games or teams and are looking for a buyer.</p>
<p>In the first quarter of 2012, Digi-Capital reports, 30 deals closed across all game sectors for a total value of $1.7 billion. In particular, casual, social, mobile and massively multiplayer online games were in demand.</p>
<p>In 2011, a total of 113 games transactions took place, for a total value of $3.4 billion.</p>
<p>Zynga, which recently spent $180 million to acquire OMGPOP, said <a href="http://allthingsd.com/20120417/omg-zynga-planning-a-few-more-hundred-million-dollar-acquisitions/">it is looking to purchase</a> more companies &#8212; and has the deep pockets to do it. Besides the leading social games company, the report noted that other companies looking acquire or invest are from China and South Korea, and they are specifically interested in social, mobile or other free-to-play games in domestic and international markets.</p>
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		<title>OMG, Zynga Planning "a Few" More Hundred Million-Dollar Acquisitions</title>
		<link>http://allthingsd.com/20120417/omg-zynga-planning-a-few-more-hundred-million-dollar-acquisitions/</link>
		<comments>http://allthingsd.com/20120417/omg-zynga-planning-a-few-more-hundred-million-dollar-acquisitions/#comments</comments>
		<pubDate>Tue, 17 Apr 2012 17:13:02 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[acquisitions]]></category>
		<category><![CDATA[Barry Cottle]]></category>
		<category><![CDATA[cash]]></category>
		<category><![CDATA[debt]]></category>
		<category><![CDATA[Draw Something]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[M&A]]></category>
		<category><![CDATA[mark Pincus]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[OMGPOP]]></category>
		<category><![CDATA[PopCap]]></category>
		<category><![CDATA[Rovio]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=197261</guid>
		<description><![CDATA[In an interview with Bloomberg, CEO Mark Pincus said he's looking for both great teams and companies that have break-out hits,  and he's willing to pay for them.]]></description>
			<content:encoded><![CDATA[<p>Zynga is picking up its pace of acquisitions and is willing to do &#8220;a few&#8221; more deals over the next couple of years that are equal or greater to <a href="http://allthingsd.com/20120321/looks-like-zynga-just-bought-omgpop-for-200-million/">its $180 million acquisition</a> of OMGPOP last month.</p>
<p><img class="alignright size-medium wp-image-148436" title="0119_mark-pincus_280x340-feature" src="http://allthingsd.com/files/2011/11/0119_mark-pincus_280x340-feature-380x285.png" alt="" width="380" height="285" /><a href="http://www.bloomberg.com/news/2012-04-17/zynga-flashes-1-8-billion-searching-for-the-new-farmville-tech.html">In an interview with Bloomberg</a>, CEO Mark Pincus said he&#8217;s looking for both great teams and companies that have break-out hits.</p>
<p>It&#8217;s not a big surprise that the social games company would go on a buying spree.</p>
<p>As the largest social games developer on Facebook, it has created a hits-driven business, and since it is virtually impossible to sustain a near-perfect record of hits, it must also buy them.</p>
<p>The San Francisco company also has the resources to pull it off. Thanks to its IPO last year, it has $1.81 <del datetime="2012-04-17T18:58:46+00:00">million</del> billion in cash and no debt, and in January, it hired Barry Cottle from EA to head-up acquisitions and corporate development.</p>
<p>OMGPOP is a case in point: It developed a game called Draw Something, which was an instant sensation on iPhones and Android devices. Zynga paid more for the 40-employee company than it did for the past 22 acquisitions combined. Over the past year, it also tried aggressively to purchase both Rovio and PopCap, which ended up selling to Electronic Arts.</p>
<p>And now it&#8217;s telling the world that its purse strings are loosening.</p>
<p>“We’re sitting in a very advantageous position,” Cottle told Bloomberg. “We have a significant amount of cash, we have no debt, and we have access to debt to be as aggressive as we need to be.”</p>
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		<title>EA Laying Off Hundreds of Employees, but Still Aggressively Hiring</title>
		<link>http://allthingsd.com/20120416/ea-laying-off-hundreds-of-employees-but-still-aggressively-hiring/</link>
		<comments>http://allthingsd.com/20120416/ea-laying-off-hundreds-of-employees-but-still-aggressively-hiring/#comments</comments>
		<pubDate>Mon, 16 Apr 2012 20:02:46 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Activision]]></category>
		<category><![CDATA[Activision Blizzard]]></category>
		<category><![CDATA[Battlefield 3]]></category>
		<category><![CDATA[console gaming]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[layoffs]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[Rajat Taneja]]></category>
		<category><![CDATA[restructuring]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Star Wars: The Old Republic]]></category>
		<category><![CDATA[The Startup Grind]]></category>
		<category><![CDATA[videogames]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=196841</guid>
		<description><![CDATA[Electronic Arts says it's still hiring despite making headcount "adjustments" after completing several blockbuster projects last year, including Battlefield 3 and Star Wars: The Old Republic.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts is laying off hundreds of employees following last year&#8217;s completion of several major games, including Star Wars and Battlefield 3.</p>
<p><img class="alignright size-full wp-image-89264" title="LAYOFFS_BOBS" src="http://allthingsd.com/files/2011/06/LAYOFFS_BOBS.jpg" alt="" width="350" height="190" /><a href="http://startupgrind.com/2012/04/exclusive-electronic-arts-set-to-lay-off-500-employees/">Startup Grind</a>, which first reported the layoffs, said between 500 and 1,000 employees will be affected, representing between 5 percent and 10 percent of the game-publisher&#8217;s workforce.</p>
<p>In an emailed statement to <strong>All Things D</strong>, the company said: &#8220;EA is growing and looking to hire hundreds of people for our digital, console, mobile and social games. Like all game companies, we make occasional adjustments to resize teams as projects are completed and new priorities are established. Overall, we expect that headcount will be up at the end of this year.&#8221;</p>
<p>Our sources indicate that the layoffs will be closer to 500 and are tied to the company&#8217;s game schedule. Last year, the company shipped two epic projects: Battlefield 3 and Star Wars: The Old Republic, which were challenging Activision&#8217;s respective dominance in first-person shooters and massively multiplayer online categories.</p>
<p>Once a title shifts, some employees stay on to work on other projects or remain on teams that build new content for the existing games to keep them fresh.</p>
<p>In this case, it appears the cuts show just how many resources the company was investing in these titles before launch. We expect to hear about these titles&#8217; performance in a couple weeks when EA reports fourth-quarter earnings.</p>
<p>Three years ago, the company conducted a larger <a href="http://allthingsd.com/20091109/electronic-arts-to-sack-1500/">restructuring, totaling</a> 1,500 employees.</p>
<p>Still, the Redwood City, Calif., company has aggressive hiring plans. Previously, it disclosed it wants to hire 5,000 engineers by the end of the decade to help build a platform, crossing all of its labels, including mobile, social and console. In particular, CTO Rajat Taneja has been bulking up his team since joining EA in October and now has 600 people on staff.</p>
<p>In afternoon trading, EA&#8217;s stock was down more than 5 percent, or 89 cents, to trade at $15.29 a share. Over the past year, it has traded as high as $26 a share.</p>
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		<title>Four Types of Advertising Are Emerging in Social Games, EA Says</title>
		<link>http://allthingsd.com/20120404/theres-four-types-of-advertising-emerging-in-social-games-ea-says/</link>
		<comments>http://allthingsd.com/20120404/theres-four-types-of-advertising-emerging-in-social-games-ea-says/#comments</comments>
		<pubDate>Wed, 04 Apr 2012 15:01:57 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[advertiser]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[Dave Madden]]></category>
		<category><![CDATA[Dove]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[ice cream]]></category>
		<category><![CDATA[in-game advertising]]></category>
		<category><![CDATA[shampoo]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[The Sims Social]]></category>
		<category><![CDATA[Toyota]]></category>
		<category><![CDATA[Unilever]]></category>
		<category><![CDATA[Wendy's]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=193058</guid>
		<description><![CDATA[In a new multimillion-dollar partnership with Electronic Arts, Unilever will test in-game advertising inside The Sims Social.]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-medium wp-image-193034" title="dove shampoo" src="http://allthingsd.com/files/2012/04/dove-shampoo-285x285.jpg" alt="" width="285" height="285" /></p>
<p>As it turns out, Electronic Arts&#8217; most popular game on Facebook, The Sims Social, is a perfect candidate for in-game advertising.</p>
<p>&#8220;It lends itself well with brands,&#8221; said Dave Madden, EA&#8217;s SVP of global media solutions. &#8220;Across The Sims Social, there&#8217;s nutrition, hygiene and careers.&#8221;</p>
<p>After all, it&#8217;s much harder to work a bottle of shampoo into a game that&#8217;s set in the forest or at a poker table. But when a game is about sleeping, eating microwave dinners or taking showers, that sort of product placement becomes much easier.</p>
<p>That&#8217;s how Unilever got interested.</p>
<p>In January, the massive consumer brands company &#8212; known for being the second-largest advertiser in the world &#8212; kicked off a multimillion dollar, year-long advertising campaign with EA.</p>
<p>It started with providing a virtual Dove Hair Spa in the Sims&#8217; bathroom, where people&#8217;s avatars shampooed using the &#8220;Care &amp; Repair with Dove Hair Therapy shower.&#8221; Upcoming Unilever products will include ice cream brands for the spring and summer, such as the new Magnum Mini ice cream bars, Yosicle ice pops, Cornetto ice cream cones and Heartbrand ice cream.</p>
<p>Because the advertisements offer virtual goods for free, players don&#8217;t typically mind interacting with the product placements. The Sims Social offers a fairly large global audience, attracting roughly three million daily users and 17.2 million monthly active users to make it one of the top 15 games on Facebook, <a href="http://www.appdata.com/devs/98-electronic-arts">according to AppData</a>.</p>
<p>While advertising in social games by Electronic Arts or other big publishers like Zynga isn&#8217;t new, Madden said it is becoming more routine.</p>
<p><img class="alignleft size-medium wp-image-193033" title="EA_dove sims shower" src="http://allthingsd.com/files/2012/04/EA_dove-sims-shower-380x278.jpg" alt="" width="380" height="278" />&#8220;Everyone knows the audience is there, and that they are spending a lot of time in the games, but from a media standpoint, it&#8217;s still been fairly new,&#8221; he said. &#8220;For a global company like Unilever to want to partner with EA and launch a campaign globally, it&#8217;s an indication that gaming is finding a stage.&#8221;</p>
<p>To accommodate the interest, Madden said they&#8217;ve created a rate card, developed four types of in-game advertising features, and have determined a calendar for how much integration work the developers can handle.</p>
<p>Here are the four advertising types that EA has focused on:</p>
<ol>
<li>Traffic Drivers: Typically, these ads drive players in the game to visit a brand&#8217;s Facebook page, where they can download a free in-game virtual good. In a two-week period, more than one million players from The Sims redeemed the Dove Hair Spa virtual items in their games, and 50 percent of the players chose to &#8220;Like&#8221; the brand on their own accord.</li>
<li>Quests: These are the deepest and most involved. Players will have to take a number of steps inside the game to earn a valuable item at the end. For instance, Toyota launched a quest where players earned a Prius.</li>
<li>Store Tabs: In the virtual goods store, there will be a whole tab dedicated to the brand. Unilever, which plans to do all four types of advertising, plans to roll out a Dove tab, where users will see five items related to vanity and hair care.</li>
<li>Media Integrations: Users can watch a short video advertisement or other type of media, to unlock a virtual good.</li>
</ol>
<div>Madden said EA&#8217;s calendar is currently booked for 10 to 11 months out of the year. Other brands that have appeared in The Sims Social are Dunkin Donuts, Wendy&#8217;s and Toyota. The partnership with Unilever, which is being announced by Madden today at Ad:tech, is also cross-platform, meaning that its brands may also show up in mobile and console games.</div>
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		<title>What It Means Now That Zynga Has Bought Its Way Back to the Top of the Charts</title>
		<link>http://allthingsd.com/20120322/what-it-means-now-that-zynga-has-bought-its-way-back-to-the-top-of-the-charts/</link>
		<comments>http://allthingsd.com/20120322/what-it-means-now-that-zynga-has-bought-its-way-back-to-the-top-of-the-charts/#comments</comments>
		<pubDate>Thu, 22 Mar 2012 13:00:22 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Angry Birds]]></category>
		<category><![CDATA[App Store]]></category>
		<category><![CDATA[Dan Porter]]></category>
		<category><![CDATA[David Ko]]></category>
		<category><![CDATA[Draw Something]]></category>
		<category><![CDATA[drawings]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[in-app purchases]]></category>
		<category><![CDATA[iTunes]]></category>
		<category><![CDATA[M&A]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[Newtoy]]></category>
		<category><![CDATA[OMGPOP]]></category>
		<category><![CDATA[Pictionary]]></category>
		<category><![CDATA[PopCap]]></category>
		<category><![CDATA[Rovio]]></category>
		<category><![CDATA[Words With Friends]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=188925</guid>
		<description><![CDATA[By acquiring OMGPOP, Zynga may have set the expectation that if it doesn't create the most popular game organically -- it will acquire it.]]></description>
			<content:encoded><![CDATA[<p>Rest easy: Zynga once again owns the top game on Facebook.</p>
<p>Yesterday, it acquired OMGPOP, the developer that suddenly unseated the social game giant after its overnight success with Draw Something.</p>
<p><img class="alignright size-medium wp-image-189026" title="drawsome_zynga buys omgpop" src="http://allthingsd.com/files/2012/03/drawsome_zynga-buys-omgpop-190x285.png" alt="" width="190" height="285" />Draw Something, which challenges players to guess what another person is drawing, much like Pictionary, has been downloaded more than 35 million times in the past six weeks.</p>
<p>In the words of OMGPOP&#8217;s CEO Dan Porter, that&#8217;s pretty &#8220;Drawsome!&#8221;</p>
<p>But in making the acquisition, Zynga may have inadvertently set the expectation that if it doesn&#8217;t create the No. 1 game on Facebook &#8212; it will acquire it.</p>
<p>In this case, that wasn&#8217;t a cheap thing to do.</p>
<p>Zynga declined to say how much it spent on OMGPOP, <a href="http://allthingsd.com/20120321/looks-like-zynga-just-bought-omgpop-for-200-million/">but our sources say</a> it paid $210 million, including $30 million in employee-retention payments. </p>
<p>The message Zynga is sending with this acquisition is that it is committed to having the most popular games &#8212; a difficult and expensive proposition, especially if acquisitions are always the answer.</p>
<p>Just ask Porter how difficult it is. It took him 34 attempts and six years to build a hit.</p>
<p>&#8220;You are always trying to figure out what everyone wants,&#8221; he said in an interview. &#8220;But a hit is a hit for reasons that are hard to understand. I&#8217;ve told investors before &#8212; if I could, I would only make those games, and not the other games.&#8221;</p>
<p>Porter likened it to the music business, where he started his career. While busy signing every hot band he could find, the unexpected runaway hit was the &#8220;Dirty Dancing&#8221; soundtrack.</p>
<p>Still, the stock market rewarded Zynga&#8217;s decision yesterday, sending the company&#8217;s stock up about 5.3 percent, to $14.45 a share, after getting confirmation of the acquisition at noon. However, by the end of the day, enthusiasm waned, and shares closed at $13.72 a share.</p>
<p>Since going public in December, it&#8217;s been a rocky ride for Zynga.</p>
<p>After raising $1 billion to make it the largest Internet IPO since Google, it has traded as low as $7.97 and as high as $15.91. Based on yesterday&#8217;s closing price, the stock is now up 37 percent.</p>
<p>Acquisitions are hardly a new strategy for the company.</p>
<p>Last year, it set a pace of buying more than one company every month, seeking both employees and new games to maintain its rapid growth rate.</p>
<p>In this case, OMGPOP&#8217;s 40 New York employees will join forces with Zynga&#8217;s existing New York office, and Porter will become the new VP and GM.</p>
<p>What really stands out about this acquisition is the price &#8212; at $210 million, it&#8217;s the most expensive company Zynga has purchased. Prior to this acquisition, Zynga&#8217;s largest buy was the $53 million purchase of Newtoy, the developer behind Words With Friends.</p>
<p>That&#8217;s not to say that Zynga hasn&#8217;t attempted other big purchases. In 2011, <a href="http://allthingsd.com/20110810/should-zynga-be-on-the-hunt-for-some-angry-birds/">it courted Rovio</a>, the maker of Angry Birds, and unsuccessfully bid for PopCap, which instead sold to Electronic Arts for $750 million.</p>
<p>Although Draw Something has been proven to be astonishingly popular in the short term, it doesn&#8217;t have the same kind of track record as Rovio or PopCap.</p>
<p><img class="alignleft size-medium wp-image-188964" title="zyngako_omgpopdan" src="http://allthingsd.com/files/2012/03/zyngako_omgpopdan-380x285.jpg" alt="" width="380" height="285" />The mobile game sits atop the iTunes “top paid,&#8221; “top free” and &#8220;top-grossing app&#8221; lists, an unusual accomplishment. On iTunes, it beats every single Zynga title &#8212; including Zynga Poker, which is frequently one of the highest-grossing apps.</p>
<p>As mentioned at the top of this post, Draw Something is also the most popular game on Facebook. However, what&#8217;s interesting is that the game isn&#8217;t available on the social network. Instead, it uses Facebook credentials as a way for players to register on their mobile phones.</p>
<p>From what we&#8217;ve heard, it has also been generating a lot of cash, based in large part on in-app purchases made by players. People familiar with the company <a href="http://allthingsd.com/20120321/looks-like-zynga-just-bought-omgpop-for-200-million/">told my colleague Peter Kafka</a> that it has recently been netting around $250,000 a day from the game &#8212; <em>after</em> Apple takes its 30 percent cut.</p>
<p>In an interview, Zynga&#8217;s Chief Mobile Officer David Ko said OMGPOP&#8217;s acquisition represents more than a hit game for the company.</p>
<p>&#8220;It was about the team and how well we connected,&#8221; he said. &#8220;We found a great leader in Dan, and an amazing team around him. I couldn&#8217;t be happier in partnering with the team.&#8221;</p>
<p>Indeed, that&#8217;s Drawsome.</p>
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		<title>YouTube Heavyweight Machinima Gets a Grown-Up With Gamer Cred</title>
		<link>http://allthingsd.com/20120320/youtube-heavyweight-machinima-gets-a-grownup-with-gamer-cred/</link>
		<comments>http://allthingsd.com/20120320/youtube-heavyweight-machinima-gets-a-grownup-with-gamer-cred/#comments</comments>
		<pubDate>Tue, 20 Mar 2012 11:30:54 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[funding]]></category>
		<category><![CDATA[Gaikai]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[JAMDAT]]></category>
		<category><![CDATA[Machinima]]></category>
		<category><![CDATA[Nanea Reeves]]></category>
		<category><![CDATA[YouTube]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=188108</guid>
		<description><![CDATA[Meet Nanea Reeves, the company's new chief operating officer.]]></description>
			<content:encoded><![CDATA[<p><a href="http://allthingsd.com/files/2012/03/nanea-reeves.jpg"><img class="alignright size-medium wp-image-188110" title="nanea reeves" src="http://allthingsd.com/files/2012/03/nanea-reeves-296x285.jpg" alt="" width="296" height="285" /></a>Machinima is a YouTube powerhouse that specializes in videos about videogames and the dudes that play them. Good fit for Nanea Reeves, the company&#8217;s new chief operating officer.</p>
<p>Reeves comes to Machinima after years in the games business, most notably at <a href="http://www.linkedin.com/in/naneareeves">Electronic Arts and Jamdat</a>, the mobile games company EA bought in 2005. Most recently she was at <a href="http://www.gaikai.com/">Gaikai</a>, a cloud company that helps stream games to Web sites and devices.</p>
<p>Machinima is a different but related kind of company: It serves lots and lots and lots of videos to an audience that loves games.</p>
<p>The site is one of the most important players in the YouTube landscape, and passed the billion-monthly-view mark at the end of last year. There&#8217;s still an open question about how much that traffic is actually worth, though.</p>
<p>That&#8217;s in part because advertisers still don&#8217;t know what to do with YouTube eyeballs. And in part because much of Machinima is both a content creator and a distributor/ad network, which counts lots of third-party videos in its view totals.</p>
<p>One of Reeves&#8217; first priorities will be to reduce Machinima&#8217;s dependency on YouTube, where all of its views come from, by creating a &#8220;multichannel platform&#8221; that will allow it to distribute its stuff to other sites and directly to devices. But investors seem okay with Machinima the way it is, too. The company is in the midst of a <a href="http://pandodaily.com/2012/03/01/machinima-raising-capital-at-250-million-valuation/">big-dollar funding round</a>.</p>
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		<title>How Jimmy Fallon Uses the Nike FuelBand (It's Naughty, of Course)</title>
		<link>http://allthingsd.com/20120311/how-jimmy-fallon-uses-the-nike-fuelband/</link>
		<comments>http://allthingsd.com/20120311/how-jimmy-fallon-uses-the-nike-fuelband/#comments</comments>
		<pubDate>Sun, 11 Mar 2012 18:07:56 +0000</pubDate>
		<dc:creator>Lauren Goode</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[data]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[FuelBand]]></category>
		<category><![CDATA[Jimmy Fallon]]></category>
		<category><![CDATA[Nike]]></category>
		<category><![CDATA[sport]]></category>
		<category><![CDATA[SXSW]]></category>
		<category><![CDATA[Vevo]]></category>
		<category><![CDATA[wristband]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=183294</guid>
		<description><![CDATA[The sports and gaming industries are focusing on more data gathering to understand what their customers want. (Just don't ask Jimmy Fallon what he does with the Nike FuelBand.)]]></description>
			<content:encoded><![CDATA[<p>The fitness and gaming industries are getting more and more serious about gathering data about their customers. But that doesn&#8217;t mean comedian Jimmy Fallon isn&#8217;t going to poke fun at them.</p>
<p><a href="http://allthingsd.com/files/2012/03/JimmyFallon2.jpg"><img src="http://allthingsd.com/files/2012/03/JimmyFallon2-380x256.jpg" alt="" title="JimmyFallon2" width="380" height="256" class="alignright size-medium wp-image-183295" /></a></p>
<p>Moderating a SXSW panel today called &#8220;Digital Sport: Know More, Do More,&#8221; Fallon asked a group of execs, as well as gold medal-winning Olympic athlete Allyson Felix, why data gathering is becoming increasingly important in sports and gaming.</p>
<p>After introducing himself as a lover of technology, as evidenced by his impressive Twitter following, Fallon shook his wrist up and down emphatically to try to boost his Nike Fuel, the new currency by which Nike measures activity for FuelBand.</p>
<p>&#8220;That&#8217;s why 12-year-old boys have higher Fuel levels,&#8221; Fallon quipped, to a series of laughs and groans from the audience.</p>
<p>&#8220;Really, Nike+ is pretty cool,&#8221; Fallon added. &#8220;There’s this one loop I used to walk around my house that I thought was two miles &#8212; and it turns out it&#8217;s only one mile.&#8221;</p>
<p>Nike&#8217;s vice president of digital sport, Stefan Olander, said Nike&#8217;s foray into digital data tracking through its gear has taken a practice previously known only to elite athletes and made it available to everyone. Nike used to be a product company, he said, but with Nike+ and the FuelBand, it&#8217;s becoming more of a service company. By offering data tracking, &#8220;you&#8217;re offering a service, too,&#8221; Olander said.</p>
<p>&#8220;Two million EA games have been played in the last month alone,&#8221; said Andrew Wilson, executive vice president and head of sports for Electronic Arts. By gathering data on that activity, &#8220;it&#8217;s like crowdsourcing for how to make a better game.&#8221;</p>
<p>&#8220;It used to be that we’d make a game and present it,&#8221; Wilson added. &#8220;Now we just present the components of the game and continue to build it out based on the conversation from the online community.&#8221;</p>
<p>In recent years, the market for wearable fitness tech for casual athletes has grown rapidly. See our earlier coverage of devices like the <a href="http://allthingsd.com/20091103/fitbit-sees-how-you-run-walk-and-sleep/">Fitbit</a>, <a href="http://allthingsd.com/20111208/up-means-having-to-say-youre-sorry/">Jawbone UP</a> and <a href="http://allthingsd.com/20120119/with-fuelband-nike-gets-into-the-ultra-wearable-fitness-game/">Nike FuelBand</a> to get a sense of how some of these devices work. According to a <a href="http://mobihealthnews.com/11224/by-2016-80m-wearable-wireless-fitness-sensors/">report last year</a> from ABI Research, wearable wireless sensors for fitness and well-being are expected to surpass 80 million devices by 2016, eclipsing the wireless sensor markers for professional and home health-care monitoring.</p>
<p>Fallon asked Nike&#8217;s Olander what his power workout song was. &#8220;Eye of the Tiger,&#8221; someone in the audience correctly guessed.</p>
<p>At the end of the panel, an attendee challenged Fallon to a race down the aisles of the room, which Fallon gamely agreed to. Sadly, the results were masked by the crowds in the aisles and at the back of the hall.</p>
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		<title>Zynga Ad Exec Manny Anekal Leaves for Mobile Start-Up Kiip</title>
		<link>http://allthingsd.com/20120221/zynga-ad-exec-manny-anekal-leaves-for-mobile-startup-kiip/</link>
		<comments>http://allthingsd.com/20120221/zynga-ad-exec-manny-anekal-leaves-for-mobile-startup-kiip/#comments</comments>
		<pubDate>Tue, 21 Feb 2012 14:55:12 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[General]]></category>
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		<category><![CDATA[Mobile]]></category>
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		<category><![CDATA[advertising]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[games]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[Kiip]]></category>
		<category><![CDATA[Manny Anekal]]></category>
		<category><![CDATA[Massive]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=176429</guid>
		<description><![CDATA[Manny Anekal, who headed up brand advertising for Zynga, has left the company. He's now chief operating officer at Kiip, a start-up that hands out "branded rewards" to mobile games players. Business Insider reported the move earlier. Prior to Zynga, Anekal had run ads at Electronic Arts and Massive, the game ad start-up acquired by Microsoft.]]></description>
			<content:encoded><![CDATA[<p>Manny Anekal, who headed up brand advertising for Zynga, has left the company. He&#8217;s now chief operating officer at Kiip, a start-up that hands out &#8220;branded rewards&#8221; to mobile games players. <a href="http://articles.businessinsider.com/2012-02-15/news/31062295_1_zynga-advertisers-rewards">Business Insider</a> reported the move earlier. Prior to Zynga, Anekal had run ads at Electronic Arts and Massive, the game ad start-up acquired by Microsoft.</p>
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		<title>EA Brings The Sims Social Game to China's Tencent</title>
		<link>http://allthingsd.com/20120213/ea-brings-the-sims-social-game-to-chinas-tencent/</link>
		<comments>http://allthingsd.com/20120213/ea-brings-the-sims-social-game-to-chinas-tencent/#comments</comments>
		<pubDate>Mon, 13 Feb 2012 14:01:30 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
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		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
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		<category><![CDATA[Mo Ni Shi Guang]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[The Sims Social]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=173830</guid>
		<description><![CDATA[Electronic Arts said this morning it will launch its Facebook game, The Sims Social, on Tencent, China’s leading social network. The game, which will have the Chinese name of Mo Ni Shi Guang, will be released soon. The Sims Social, which allows players to simulate real life, launched on Facebook in August, and continues to be one of the top 10 games on the platform. The game will potentially reach millions of new players who do not have access to Facebook.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts said this morning it will launch its Facebook game, The Sims Social, on Tencent, China’s leading social network. The game, which will have the Chinese name of Mo Ni Shi Guang, will be released soon. The Sims Social, which allows players to simulate real life, launched on Facebook in August, and continues to be one of the top 10 games on the platform. The game will potentially reach millions of new players who do not have access to Facebook.</p>
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		<title>Zynga Inks Deal With Hasbro to Bring FarmVille Into the Real World</title>
		<link>http://allthingsd.com/20120209/zynga-inks-deal-with-hasbro-to-bring-farmville-into-the-real-world/</link>
		<comments>http://allthingsd.com/20120209/zynga-inks-deal-with-hasbro-to-bring-farmville-into-the-real-world/#comments</comments>
		<pubDate>Thu, 09 Feb 2012 20:40:27 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[Farmville]]></category>
		<category><![CDATA[Hasbro]]></category>
		<category><![CDATA[licensing]]></category>
		<category><![CDATA[Scrabble]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Words With Friends]]></category>
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		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=173277</guid>
		<description><![CDATA[Zynga has partnered with Hasbro to develop a wide range of toy and gaming experiences based on Zynga's most popular Facebook games and characters.]]></description>
			<content:encoded><![CDATA[<p>Zynga has partnered with Hasbro to develop a wide range of toy and gaming experiences based on Zynga&#8217;s most popular Facebook games and characters.</p>
<p><img class="alignright size-medium wp-image-87675" title="Zynga's FarmVille with crops whithering." src="http://allthingsd.com/files/2011/06/ATDFarmville_Cropswither-380x258.jpg" alt="" width="380" height="258" />In other words, we could see a board game of FarmVille, Words With Friends or CityVille in the not too distant future. In addition, we could potentially see action figures based on some of its game characters.</p>
<p>Merchandising around videogames is not new, and has recently spread like wildfire to mobile and social gaming with rising stars like Rovio&#8217;s Angry Birds or ZeptoLab&#8217;s Cut the Rope.</p>
<p>In a press release, Zynga says Hasbro has obtained the license to develop and distribute a wide range of product lines based on Zynga’s game brands, but does not get into too many details.</p>
<p>It also says the deal covers opportunities for co-branded merchandise featuring a combination of both Hasbro and Zynga brands, it said. Could we see a co-branded Words With Friends Scrabble game?</p>
<p>Hasbro already has a long-standing relationship with Electronic Arts, which publishes such titles as Scrabble and Monopoly across many platforms.</p>
<p>In a statement, Zynga&#8217;s CEO and founder Mark Pincus said, &#8220;This partnership is so special because it represents an exciting leap forward in enabling people to connect their virtual and real worlds. Hasbro has inspired play through their famous toys, games and action figures and we look forward to working with a company that continually creates meaningful and fun brands.”</p>
<p>The two companies said the first products will hit shelves in the Fall.</p>
]]></content:encoded>
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		<title>Electronic Arts' CFO Heads to Polycom</title>
		<link>http://allthingsd.com/20120208/electronic-arts-cfo-calls-it-quits/</link>
		<comments>http://allthingsd.com/20120208/electronic-arts-cfo-calls-it-quits/#comments</comments>
		<pubDate>Wed, 08 Feb 2012 21:41:07 +0000</pubDate>
		<dc:creator>John Murrell</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Eric Brown]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[Kenneth Barker]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=172779</guid>
		<description><![CDATA[Eric Brown, executive VP and Chief Financial Officer of Electronic Arts, gave his notice last week, the company said today. Brown is headed for Polycom, where he'll serve as CFO and COO. His last day at EA will be Feb. 17, and Kenneth Barker, chief accounting officer, will hold down the fort until a replacement is named. In another change, Mark Tonnesen is joining EA as senior VP and CIO.]]></description>
			<content:encoded><![CDATA[<p>Eric Brown, executive VP and Chief Financial Officer of Electronic Arts, gave his notice last week, <a href="http://www.ea.com/news/ea-announces-changes-to-executive-team">the company said</a> today. Brown is headed for Polycom, where he&#8217;ll serve as CFO and COO. His last day at EA will be Feb. 17, and Kenneth Barker, chief accounting officer, will hold down the fort until a replacement is named. In another change, Mark Tonnesen is joining EA as senior VP and CIO.</p>
]]></content:encoded>
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		<title>EA's Star Wars Game Scores 1.7 Million Subscribers in First Month</title>
		<link>http://allthingsd.com/20120201/eas-star-wars-game-scores-1-7-million-subscribers-in-first-month/</link>
		<comments>http://allthingsd.com/20120201/eas-star-wars-game-scores-1-7-million-subscribers-in-first-month/#comments</comments>
		<pubDate>Wed, 01 Feb 2012 21:38:48 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Battlefield 3]]></category>
		<category><![CDATA[digital revenues]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[earnings]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Q3]]></category>
		<category><![CDATA[Star Wars]]></category>
		<category><![CDATA[Star Wars: The Old Republic]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=170422</guid>
		<description><![CDATA[The results are in, and it appears that both Star Wars and Battlefield 3 helped Electronic Arts beat expectations for the final three months of the year.]]></description>
			<content:encoded><![CDATA[<p>The results are in and it appears that both Star Wars and Battlefield 3 helped Electronic Arts beat expectations for the final three months of the year.</p>
<p><img class="alignright size-full wp-image-170433" title="ea_starwars_oldrepublic" src="http://allthingsd.com/files/2012/02/ea_starwars_oldrepublic.png" alt="" width="380" height="285" />Its multi-million dollar investment in Star Wars: The Old Republic, is starting to pay off.</p>
<p>In EA&#8217;s third quarter, the massively multi-player online game generated 1.7 million active subscribers and sold more than two million units in a little over one month.</p>
<p>Is that enough units sold to call off the critics?</p>
<p>In an interview, EA&#8217;s CFO Eric Brown said he thought so. &#8221;We were able to sell more units beyond what we were able to plan, and because of that, it was a big part of the upside of our EPS of 99 cents a share,&#8221; he said.</p>
<p>The company said non-GAAP diluted earnings per share, which excludes acquisition costs and other non-cash items, totaled 99 cents, exceeding its guidance of up to 95 cents, and exceeding analyst expectations of 93 cents.</p>
<p>The company&#8217;s non-GAAP revenues also exceeded estimates, totaling $1.65 billion, which was slightly above the top end of internal guidance and the $1.61 billion that analysts were looking for.</p>
<p>Additionally, its big first-person shooter, Battlefield 3, performed well.</p>
<p>To date, Brown said the game has sold 11 million units, and that it was able to gain 12 points of market share in the category year over year. &#8220;It&#8217;s an incredible success,&#8221; he said.</p>
<p>Still, in after-hours trading, the company&#8217;s stock continued to slip, dropping 4.3 percent, or 79 cents, to $17.65 a share.</p>
<p>The company&#8217;s fourth-quarter outlook suggests that it will not be able to sustain the levels seen at the end of the quarter. It predicts that non-GAAP revenue will be between $925 million and $975 million, and earnings per share will fall between 10 cents and 20 cents.</p>
<p>In the third quarter, EA&#8217;s GAAP revenues, which follow all accounting standards, totaled $274 million. Its loss per share was 62 cents, weighed down by the acquisition of PopCap as well as other expenses.</p>
<p>Brown said it was also worth calling out that its digital revenues for the 12 months ended in December hit $1.07 billion, exceeding the company&#8217;s goal of hitting $1 billion in digital revenues by March.</p>
<p>Digital revenues in the quarter grew 79 percent year over year with the assistance of Star Wars and digital revenue coming from Battlefield 3, he said.</p>
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		<title>Electronic Arts Pressured to Outperform in Soft Videogame Market</title>
		<link>http://allthingsd.com/20120201/electronic-arts-pressured-to-outperform-in-soft-videogame-market/</link>
		<comments>http://allthingsd.com/20120201/electronic-arts-pressured-to-outperform-in-soft-videogame-market/#comments</comments>
		<pubDate>Wed, 01 Feb 2012 20:32:30 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Amazon]]></category>
		<category><![CDATA[consoles]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[earnings]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[GameStop]]></category>
		<category><![CDATA[retailers]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=170315</guid>
		<description><![CDATA[Electronic Arts will be under pressure to report strong financial results this afternoon after the industry experienced a disappointing holiday period.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts will be under pressure to report strong financial results this afternoon after the industry experienced a disappointing holiday period.</p>
<p><img class="alignright size-medium wp-image-106676" title="EA_E3 Booth" src="http://allthingsd.com/files/2011/08/EA_E3-Booth-331x285.png" alt="" width="331" height="285" />The videogame company&#8217;s stock has also been hammered by recent concerns about how well its new online blockbuster title Star Wars game is selling <a href="http://allthingsd.com/20111227/ea-star-wars-game-off-to-forceful-start-in-quest-to-catch-world-of-warcraft/">after launching in December</a>.</p>
<p>In 2011, U.S. retail sales of new physical videogame content &#8212; including portable and console hardware, games and accessories &#8212; totaled $17.02 billion, an 8 percent decline over the $18.6 billion generated the year before, according to NPD.</p>
<p>Additionally, multiple reports indicate that while unit sales were up year over year in December, overall revenues suffered from steep discounting. Game retailers, such as GameStop and Amazon, both reported that holiday sales fell below expectations.</p>
<p>Electronic Arts&#8217; third-quarter figures will be released today after the bell.</p>
<p>Its stock is trading down 12 cents, or .62 percent, to $18.46 a share. That has fallen significantly from its recent high of $25.20 back in November.</p>
<p>Back in October, the company said it was expecting third-quarter revenues of $1 billion to $1.1 billion and a loss per share of 77 cents to 63 cents. Excluding some stock-based compensation, acquisition-related expenses and other charges, the company said it is expecting a profit of 85 cents to 95 cents a share.</p>
<p>Analysts are expecting revenues of $1.61 billion and earnings per share of 93 cents.</p>
<p>The company also faced a setback when it announced that Barry Cottle, who was in charge of the company&#8217;s digital efforts, was leaving the company. Cottle took a job with Zynga, the company&#8217;s rival when it comes to talent and publishing games on Facebook.</p>
<p>And, while the industry is continually contracting on the hardware and physical retail front, one area of tremendous growth is digital.</p>
<p>At the time of Cottle&#8217;s departure, <a href="http://allthingsd.com/20120112/zynga-hires-top-digital-executive-away-from-electronic-arts/">which was the third high-profile steal Zynga made over the past year</a>, EA confirmed the company had achieved more than $1 billion in digital revenues in 2011.</p>
<p>Digital revenues include everything from downloadable content on consoles to social games, like the company&#8217;s hit The Sims Social, to the new release of Star Wars: The Old Republic, which is set to challenge Activision&#8217;s World of Warcraft game.</p>
<p>In the second quarter, EA said digital revenues were growing 30 percent year over year, and because of that, it was able to raise its full-year guidance.</p>
<p>Check back here to see if the company can deliver.</p>
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		<title>Super Bowl Predictions: How EA Uses Madden to Guess the Final Score</title>
		<link>http://allthingsd.com/20120130/super-bowl-predictions-how-ea-uses-madden-to-guess-the-final-score/</link>
		<comments>http://allthingsd.com/20120130/super-bowl-predictions-how-ea-uses-madden-to-guess-the-final-score/#comments</comments>
		<pubDate>Mon, 30 Jan 2012 18:53:13 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[AI]]></category>
		<category><![CDATA[artificial intelligence]]></category>
		<category><![CDATA[camel]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Eli Manning]]></category>
		<category><![CDATA[field goal]]></category>
		<category><![CDATA[football]]></category>
		<category><![CDATA[Lawrence Tynes]]></category>
		<category><![CDATA[Madden NFL]]></category>
		<category><![CDATA[MVP]]></category>
		<category><![CDATA[New England Patriots]]></category>
		<category><![CDATA[New Jersey]]></category>
		<category><![CDATA[New York Giants]]></category>
		<category><![CDATA[NFL]]></category>
		<category><![CDATA[predictions]]></category>
		<category><![CDATA[simulation]]></category>
		<category><![CDATA[Super Bowl]]></category>
		<category><![CDATA[Super Bowl XLVI]]></category>
		<category><![CDATA[Tom Brady]]></category>
		<category><![CDATA[videogame]]></category>
		<category><![CDATA[Xbox 360]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=168728</guid>
		<description><![CDATA[Electronic Arts is using artificial intelligence and real-life data to predict that the New York Giants will defeat the New England Patriots by a field goal on Sunday.]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-medium wp-image-168735" title="madden_superbowl" src="http://allthingsd.com/files/2012/01/madden_superbowl-380x213.png" alt="" width="380" height="213" /></p>
<p>Electronic Arts is predicting that the New York Giants will defeat the New England Patriots in the Super Bowl, by a single field goal.</p>
<p>For the past several years, the videogame publisher has been using its hit title Madden NFL to simulate the outcome of the Super Bowl &#8212; and in six out of the past eight matchups, it has guessed correctly.</p>
<p>But unlike the camel in the New Jersey zoo <a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/01/26/national/a145358S00.DTL#ixzz1kxjvvc00">that has picked the winner of five of the last six Super Bowls</a>, EA breaks down the score quarter by quarter.</p>
<p>EA simulates the Super Bowl by using artificial intelligence and real data from each team. It even includes variables such as injuries. The simulation is powered by Madden NFL and Xbox 360, the official console sponsor of the NFL.</p>
<p>EA replays the game&#8217;s highlights in a video, including Giants quarterback Eli Manning being named MVP for completing 25 of 39 passes with two touchdowns, and the Patriots&#8217; Tom Brady throwing for 327 yards and three touchdowns.</p>
<p>Spoiler Alert: To win the game, Giants kicker Lawrence Tynes will make a 40-yard field goal, with the final score 27-24.</p>
<p><object width="560" height="315" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/tqq96Dh3H8s?version=3&amp;hl=en_US" /><param name="allowfullscreen" value="true" /><embed width="560" height="315" type="application/x-shockwave-flash" src="http://www.youtube.com/v/tqq96Dh3H8s?version=3&amp;hl=en_US" allowFullScreen="true" allowscriptaccess="always" allowfullscreen="true" /></object></p>
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		<title>Ex-PopCap Developer Looking for New Ways to Monetize Mobile Games</title>
		<link>http://allthingsd.com/20120125/ex-popcap-developer-looking-for-new-ways-to-monetize-mobile-games/</link>
		<comments>http://allthingsd.com/20120125/ex-popcap-developer-looking-for-new-ways-to-monetize-mobile-games/#comments</comments>
		<pubDate>Wed, 25 Jan 2012 17:00:36 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[advertisers]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[App Store]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[banner ads]]></category>
		<category><![CDATA[David Ng]]></category>
		<category><![CDATA[developers]]></category>
		<category><![CDATA[EA]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Gimmie]]></category>
		<category><![CDATA[in-game incentives]]></category>
		<category><![CDATA[incentives]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[Plants Vs. Zombies]]></category>
		<category><![CDATA[PopCap]]></category>
		<category><![CDATA[Roy Liu]]></category>
		<category><![CDATA[Silicon Valley]]></category>
		<category><![CDATA[sponsorship]]></category>
		<category><![CDATA[Tandem]]></category>
		<category><![CDATA[Tap.me]]></category>
		<category><![CDATA[TapJoy]]></category>
		<category><![CDATA[VC]]></category>
		<category><![CDATA[virtual goods]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=167295</guid>
		<description><![CDATA[One of PopCap's lead developers is starting a company that has come up with a new way to make money using incentives in free mobile apps.]]></description>
			<content:encoded><![CDATA[<p>Free apps today are primarily monetized through advertising or virtual goods.</p>
<p><img class="alignright size-full wp-image-167297" title="Gimmie_logo" src="http://allthingsd.com/files/2012/01/Gimmie_logo.png" alt="" width="355" height="121" />But one of PopCap’s original developers, Roy Liu, believes he has come up with an alternative. <a href=" http://www.gimmieworld.com">Gimmie</a>, based in San Francisco, has created an incentives platform for mobile app developers.</p>
<p>It launches today with 10 mobile app developers in its beta program.</p>
<p>It works like this: In return for using the app, a player can earn points which can be redeemed for real-world products. It&#8217;s sort of like a traditional arcade, where players earn tickets that can be redeemed for candy and toys, but instead of gumballs and baseball cards, Gimmie primarily doles out game downloads and other mobile content.</p>
<p>Gimmie is also announcing today that it has raised $200,000 in funding from Tandem, an incubator in Silicon Valley.</p>
<p><img class="alignleft size-medium wp-image-167296" title="Gimmie2" src="http://allthingsd.com/files/2012/01/Gimmie2-190x285.png" alt="" width="190" height="285" />Liu, who was one of the lead developers on Plants vs. Zombies for PopCap before it was purchased by Electronic Arts, co-founded the company with CEO David Ng.</p>
<p>The idea is not so different from other in-game incentive programs, which ask users to fill out a survey or download a different game in exchange for free virtual goods or other benefits.</p>
<p>Those types of programs, served by companies like TapJoy and others, have been immensely successful &#8212; although more recently, they have been <a href="http://allthingsd.com/20110705/apparently-undeterred-by-apple-crackdown-tapjoy-investors-pour-in-30m-more/">received poorly by Apple and others</a> because they can affect the most popular games list.</p>
<p>Gimmie believes what it is doing is different because it rewards users with items outside of the app for performing actions inside it.</p>
<p>Other companies are also trying to come up with alternative advertising platforms for mobile games. In games, banner ads are often completely ineffective because people are focused on playing the game, and don&#8217;t take the time to read the ad or leave the page to investigate it further.</p>
<p>A Chicago-based start-up <a href="http://allthingsd.com/20111010/tap-me-hires-top-omnicom-exec-matt-spiegel-for-mobile-ad-play/">called Tap.me</a> is creating an ad network for virtual goods, which can gain advertisers on a broad scale for generic items, such as being able to jump higher or more energy across many games.</p>
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		<title>Zynga's Stock Is Up -- And Why Every Other Game Company Stock Is Down</title>
		<link>http://allthingsd.com/20120113/zyngas-stock-is-up-and-why-every-other-game-companies-stock-is-down/</link>
		<comments>http://allthingsd.com/20120113/zyngas-stock-is-up-and-why-every-other-game-companies-stock-is-down/#comments</comments>
		<pubDate>Fri, 13 Jan 2012 21:44:09 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[accessories]]></category>
		<category><![CDATA[Activision Blizzard]]></category>
		<category><![CDATA[Barry Cottle]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[GameStop]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[NPD]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[THQ]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=163674</guid>
		<description><![CDATA[Zynga is bucking market trends today and is trading higher despite a report that came out yesterday suggesting that December sales were extremely weak across the industry.]]></description>
			<content:encoded><![CDATA[<p>Zynga is bucking market trends today and is trading higher &#8212; despite a report that came out yesterday suggesting that December sales were extremely weak across the industry.</p>
<p><img class="alignright size-medium wp-image-97852" title="EA_Battlefield3_E32011" src="http://allthingsd.com/files/2011/07/EA_Battlefield3_E32011-213x285.png" alt="" width="213" height="285" />Zynga was up 42 cents, or almost 5 percent today, to close at $8.87 a share.</p>
<p>That&#8217;s a huge reversal from earlier this week when the stock <a href="http://allthingsd.com/20120109/zyngas-stock-nosedives-falling-nine-percent-to-hit-new-low/">nosedived to an all-time low</a>. Meanwhile, none of the traditional game makers were having such a good day.</p>
<p>Electronic Arts closed down $1.47, or 7.5 percent, to $18.04 a share; THQ fell 7 percent to 66 cents a share; Take-Two Interactive fell .5 percent to $14.50 a share; and industry-leading Activision Blizzard slipped 2.5 percent $12.24 a share. GameStop also traded lower, finishing off the day down 2.8 percent to $23.51 a share.</p>
<p>The game makers were universally feeling the impact of an NPD Group report that revealed yesterday that <a href="http://allthingsd.com/20120112/xbox-accounted-for-40-percent-of-all-videogame-sales-in-2011/">videogame software sales fell 8 percent in December</a> compared to the same month in 2010. When including hardware and accessories, like game cards, the entire industry contracted by 21 percent year over year.</p>
<p>Potentially, investors were betting that if the traditional game-makers weren&#8217;t fairing well, then Zynga was a good bet. The leading Facebook game-maker operates purely online and on mobile, so it potentially would be more isolated from the retail and packaged goods sectors.</p>
<p>The old guard vs. new guard battle also played out on the front lines yesterday.</p>
<p>EA was dealt an additional blow when <a href="http://allthingsd.com/20120112/zynga-hires-top-digital-executive-away-from-electronic-arts/">Zynga announced it had hired away Barry Cottle</a>, head of Electronic Arts&#8217; Interactive division. Cottle, who was in charge of the company&#8217;s digital strategy, including social and mobile games, was EA&#8217;s biggest weapon in fighting Zynga&#8217;s dominance on Facebook and had led EA&#8217;s rise on mobile.</p>
<p>But EA&#8217;s loss was Zynga&#8217;s gain.</p>
<p>The social games leader appointed Cottle to the position of EVP of business and corporate development in charge of new global partnerships, acquisitions and other development roles.</p>
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		<title>Xbox Accounted for 40 Percent of All Videogame Sales in 2011</title>
		<link>http://allthingsd.com/20120112/xbox-accounted-for-40-percent-of-all-videogame-sales-in-2011/</link>
		<comments>http://allthingsd.com/20120112/xbox-accounted-for-40-percent-of-all-videogame-sales-in-2011/#comments</comments>
		<pubDate>Fri, 13 Jan 2012 01:57:29 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[Assassin's Creed]]></category>
		<category><![CDATA[Batman Arkham City]]></category>
		<category><![CDATA[Battlefield 3]]></category>
		<category><![CDATA[Bethesda Softworks]]></category>
		<category><![CDATA[Call of Duty]]></category>
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		<category><![CDATA[Elder Scrolls]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[gaming]]></category>
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		<category><![CDATA[Just Dance]]></category>
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		<description><![CDATA[Despite sales declines bringing down the overall game industry last year, Microsoft dominated the market, with the Xbox capturing nearly half of all consumer spending from physical sales.]]></description>
			<content:encoded><![CDATA[<p>Microsoft dominated the videogame industry last year, with the Xbox capturing nearly half of all consumer spending from physical sales in 2011.</p>
<p><img class="alignright size-medium wp-image-155693" title="xboxgamesatbestbuy" src="http://allthingsd.com/files/2011/12/xboxgamesatbestbuy-380x214.png" alt="" width="380" height="214" />According to NPD data released today, about $6.7 billion, or 40 percent of consumer retail spending, was spent on the Xbox, breaking down into two categories: $2.1 billion on consoles and $4.6 billion on games.</p>
<p>The figures take into account U.S. retail sales of new physical videogame content, including portable and console hardware, games and accessories.</p>
<p>In all, those sectors generated revenue of $17.02 billion in 2011, an 8 percent decline over the $18.6 billion generated last year. (Yes, I repeat, Microsoft got 40 percent of that in 2011.)</p>
<p>The initial report does not take into account sales from digital formats such as downloadable content on the console, social and mobile games, or other categories, including used and rentals.</p>
<p>Those so-called &#8220;newer&#8221; categories generated $7.24 billion in revenues last year, an increase of 7 percent over the prior year.</p>
<p>The increase in spending on alternative formats, however, wasn&#8217;t enough to offset declines in physical retail. All told, consumer spending across both categories totaled between $16.3 billion and $16.6 billion, falling 2 percent over last year.</p>
<p>Separating physical and digital sales is quickly becoming an outdated concept, since the two are so intertwined. Consumers have the choice of purchasing many of the games over the Internet via a digital download versus buying them at Wal-Mart or Target.</p>
<p>NPD acknowledged today that it needs &#8220;deeper visibility&#8221; into digital distribution to get a complete picture of the industry, which will be its focus in 2012.</p>
<p>Still, the report can still be used as a litmus test to see what is performing well.</p>
<p>Overall, a surprisingly disappointing December is what dragged down results for the whole year, NPD discovered.</p>
<p>&#8220;Because of the great slate of content that came to market during the fourth quarter, I had expected December sales to represent a larger portion of total year sales than what occurred,&#8221; said NPD Group analyst Anita Frazier, in a release.</p>
<p>Frazier added that December sales accounted for just 23 percent of the annual total, compared to the past 10 years, when December, on average, represented 28 percent of the total.</p>
<p>In addition to Microsoft&#8217;s Xbox, Sony&#8217;s PlayStation also performed well, with both witnessing a 5 percent increase across all game categories for 2011. Meanwhile, the Nintendo Wii, which cannot display HD content, saw a decline year over year.</p>
<p><a href="http://blogs.technet.com/b/microsoft_blog/archive/2012/01/12/xbox-360-extends-win-streak-to-12-straight-months-with-banner-holiday-sales.aspx">In a separate statement</a>, Microsoft said that it outsold the PlayStation, the second-place console, by 2.7 million units, and that in all, <a href="http://allthingsd.com/20120110/kinect-helps-keep-aging-xbox-at-the-top-of-its-game/">it has now sold 66 million Xboxes and 18 million Kinect accessories</a>. On a global basis, Sony said in a statement that it sold more than 6.5 million units worldwide this holiday season.</p>
<p><strong>Here are the Top 10 best-selling games in December, according to NPD:</strong></p>
<ol>
<li>Call of Duty: Modern Warfare 3 by Activision Blizzard</li>
<li>Just Dance 3 by Ubisoft</li>
<li>Elder Scrolls V: Skyrim by Bethesda Softworks</li>
<li>Mario Kart 7 for 3DS by Nintendo</li>
<li>Battlefield 3 by Electronic Arts</li>
<li>Madden NFL by Electronic Arts</li>
<li>Assassin&#8217;s Creed: Revelations by Ubisoft</li>
<li>NBA 2k12 by Take Two Interactive</li>
<li>Super Mario 3D Land for 3DS by Nintendo</li>
<li>Batman: Arkham City by Warner Bros. Interactive</li>
</ol>
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