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	<title>AllThingsD &#187; Steam</title>
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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>
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		<category><![CDATA[David DeMartini]]></category>
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		<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>
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<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>
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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>Telltale Signs That Videogames Will Be Downloaded, Not Sold at Retail</title>
		<link>http://allthingsd.com/20110217/telltale-signs-that-videogames-will-be-downloaded-not-sold-at-retail/</link>
		<comments>http://allthingsd.com/20110217/telltale-signs-that-videogames-will-be-downloaded-not-sold-at-retail/#comments</comments>
		<pubDate>Thu, 17 Feb 2011 19:00:24 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[Steve Allison]]></category>
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		<category><![CDATA[Tricia Duryee]]></category>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=2942</guid>
		<description><![CDATA[If selling $60 plastic-wrapped videogames in the store is not the future of the industry, what is? Telltale Games thinks it has the winning formula, and is announcing today a number of exclusive publishing agreements with Warner Bros., the AMC TV network and Universal Pictures.]]></description>
			<content:encoded><![CDATA[<p>The business of selling plastic-wrapped videogames for $60 apiece is becoming an ancient practice, as digital downloads take over&#8211;often at lower prices.</p>
<p><img class="alignright size-medium wp-image-2943" title="telltale_Marty_Doc" src="http://emoney.allthingsd.com/files/2011/02/telltale_Marty_Doc-275x155.jpg" alt="" width="275" height="155" />But a small San Rafael, Calif.-based videogame company thinks it has the winning formula as the business moves to digital.</p>
<p>Today, <a href="http://www.telltalegames.com/">Telltale Games</a> is announcing an exclusive worldwide publishing agreement with Warner Bros. Interactive Entertainment to develop videogames for the comic-book series Fables, and an exclusive worldwide agreement to develop and publish a series of videogames based on the AMC cable network&#8217;s zombie hit &#8220;The Walking Dead.&#8221; It&#8217;s also working with Universal Pictures on &#8220;Back to the Future&#8221; and &#8220;Jurassic Park&#8221; games.</p>
<p>The past eight years for the company haven&#8217;t always been so rich.</p>
<p>Starting a new videogame company focused on digital downloads in 2003 was a little early (to say the least), so much of the last few years were spent experimenting, developing its own original games and staying afloat by doing work-for-hire projects.</p>
<p>Now, it&#8217;s ready for those days to be a thing of the past.</p>
<p>Steve Allison, SVP of marketing for Telltale Games, said that finally the market has caught up with its ambitions.</p>
<p>In 2010, the company&#8217;s revenues totaled $10 million, increasing nearly 90 percent over the previous year. This year, revenues are expected to grow at the same pace, and the studio is expected to jump to 140 employees from 90. So far, it&#8217;s raised $6 million, and more is expected to close any day.</p>
<p>Allison said the magic is all in Telltale&#8217;s formula for building games in bits and pieces&#8211;a mission that fits squarely with today&#8217;s trends.</p>
<p>Last year, unit sales of PC games via download outstripped sales of boxed games in stores for the first time, according to research firm NPD Group. Based on Telltale&#8217;s own back-of-the napkin estimates, it believes that&#8217;s a market that could hit $3 billion by 2012.</p>
<p><img class="alignright size-full wp-image-2945" title="telltalegames" src="http://emoney.allthingsd.com/files/2011/02/telltalegames.jpg" alt="" width="217" height="83" />Telltale&#8217;s games are written as a narrative or a cinematic adventure and are divided into five separate episodes. Players download a new one every four weeks for a six-month period. A season pass for a game, including all episodes, costs roughly $35.</p>
<p>Telltale then repeats the process and sells the games across a combination of consoles, mobile devices, tablets, PCs and Macs.</p>
<p>As an example, the company recently released the first episode of &#8220;Back to the Future.&#8221; The plot picks up six months after the end of the third film, and Marty McFly must help save Doc Brown.</p>
<p>Allison said they can hit profitability on games like these after 100,000 units are sold. Today, the company averages 200,000 units sold across all its titles.</p>
<p>With these new blockbuster titles coming soon, Allison said the goal is to produce a title that hits one million digital downloads, and thinks &#8220;The Walking Dead&#8221; could become a $20 million to 30 million franchise if all goes well.</p>
<p>However, licensing content from movie studios or other publishers has not always been a recipe for success. Steep fees and up-front guarantees have buried companies in the game industry in the not-too-distant past. &#8221;&#8216;See the movie, play the game&#8217; doesn’t work anymore,&#8221; Allison acknowledges, &#8220;but the way we make content, it does.&#8221;</p>
<p>He says his team works closely with the original filmmakers and screenwriters. &#8220;We do want mass-market brands that have a lot of fans, but we want to pay homage to them. We aren’t re-creating &#8216;Back to the Future,&#8217; we are continuing the adventures of Marty and Doc.&#8221;</p>
<p>Additionally, he said, the publishers are more realistic now. &#8220;They don’t break the business model, but they do put a little weight on it.&#8221;</p>
<p>The new games will trickle out over the next year and will be available on the company&#8217;s Web site, and also through downloading services, like Valve-owned <a href="https://steamcommunity.com/">Steam</a>.</p>
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		<title>Steam Punk&#039;d: Google to (Not) Buy Valve</title>
		<link>http://allthingsd.com/20080917/steam-punkd/</link>
		<comments>http://allthingsd.com/20080917/steam-punkd/#comments</comments>
		<pubDate>Wed, 17 Sep 2008 16:33:05 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Half-Life]]></category>
		<category><![CDATA[John Paczkowski]]></category>
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		<category><![CDATA[Valve]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=5123</guid>
		<description><![CDATA[“Well-placed sources” tell The Inquirer that Google is in talks to acquire video game developer Valve Software. Which seems a bit unorthodox, even for a company as capricious as Google. What would Google want with a game company? Surely it doesn’t plan to plaster the Half-Life universe with mesothelioma AdWords.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2008/09/halflife2.jpg" alt="" title="halflife2" width="200" height="222" class="alignright size-full wp-image-5127" />&#8220;Well-placed sources&#8221; tell The Inquirer that <a href="http://www.theinquirer.net/gb/inquirer/news/2008/09/17/google-valve">Google is in talks to acquire video game developer Valve Software</a>.  Which seems a bit unorthodox, even for a company as capricious as Google. What would Google (GOOG) want with a game company? Surely it doesn&#8217;t plan to plaster the Half-Life universe with <a href="http://www.4morebusiness.com/adsense_keywords.html">mesothelioma AdWords</a>.</p>
<p>Well, perhaps it does. But more likely it&#8217;s after Valve for its Steam distribution platform. With its robust digital rights management scheme and a Distributed File System that allows games to launch before they&#8217;ve been fully downloaded, Steam is likely the the premier digital distribution network for computer games. Were Google to acquire it, the company could expand it to encompass all manner of digital goods.</p>
<p><strong>UPDATE:</strong> Reached for comment, Valve described The Inquirer&#8217;s report as a &#8220;<a href="http://kotaku.com/5051164/valve-kills-google-buy+out-rumor">rumor</a>&#8221; and then dismissed it as a <a href="http://multiplayerblog.mtv.com/2008/09/17/valve-on-rumors-of-google-buy-out/">&#8220;complete fabrication.&#8221;</a> Guess those sources weren&#8217;t so well-placed, after all.</p>
]]></content:encoded>
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		<title>Steam Punk'd: Google to (Not) Buy Valve</title>
		<link>http://allthingsd.com/20080917/steam-punkd-2/</link>
		<comments>http://allthingsd.com/20080917/steam-punkd-2/#comments</comments>
		<pubDate>Wed, 17 Sep 2008 16:33:05 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Half-Life]]></category>
		<category><![CDATA[John Paczkowski]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=5123</guid>
		<description><![CDATA[“Well-placed sources” tell The Inquirer that Google is in talks to acquire video game developer Valve Software. Which seems a bit unorthodox, even for a company as capricious as Google. What would Google want with a game company? Surely it doesn’t plan to plaster the Half-Life universe with mesothelioma AdWords.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2008/09/halflife2.jpg" alt="" title="halflife2" width="200" height="222" class="alignright size-full wp-image-5127" />&#8220;Well-placed sources&#8221; tell The Inquirer that <a href="http://www.theinquirer.net/gb/inquirer/news/2008/09/17/google-valve">Google is in talks to acquire video game developer Valve Software</a>.  Which seems a bit unorthodox, even for a company as capricious as Google. What would Google (GOOG) want with a game company? Surely it doesn&#8217;t plan to plaster the Half-Life universe with <a href="http://www.4morebusiness.com/adsense_keywords.html">mesothelioma AdWords</a>.</p>
<p>Well, perhaps it does. But more likely it&#8217;s after Valve for its Steam distribution platform. With its robust digital rights management scheme and a Distributed File System that allows games to launch before they&#8217;ve been fully downloaded, Steam is likely the the premier digital distribution network for computer games. Were Google to acquire it, the company could expand it to encompass all manner of digital goods. </p>
<p><strong>UPDATE:</strong> Reached for comment, Valve described The Inquirer&#8217;s report as a &#8220;<a href="http://kotaku.com/5051164/valve-kills-google-buy+out-rumor">rumor</a>&#8221; and then dismissed it as a <a href="http://multiplayerblog.mtv.com/2008/09/17/valve-on-rumors-of-google-buy-out/">&#8220;complete fabrication.&#8221;</a> Guess those sources weren&#8217;t so well-placed, after all.</p>
]]></content:encoded>
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