Submit your Gossip
B-nole
AUG 17, 2012 5:13 PM
6,966
Video Games
Video Games May Be Free of Charge in the Future
Imagine if video games were completely free to play.
Believe it or not, more video game makers in the U.S. are pursuing the idea.
Although it doesn't seem very appealing for business, the game companies can attract more players while continuing to make money through advertisers.
Game publishers are interested in this in partly because the disk-based retail business has weakened significantly, with sales of new game software in the U.S. decreasing more than 30% in the first half of this year compared to the same period last year, according to data from NPD.
The drastic drop in sales has driven many investors to sell the stocks of game publishers hard this year. Companies such as Electronic Arts Inc. saw its shares rise on Thursday on a media report that a couple of private-equity firms were interested in the company, which has lost over a third of its market value during during 2012.
Zynga Inc. has achieved some success through bringing games such as “FarmVille” and “CityVille” to the Facebook Inc. FB platform, but these titles have appealed primarily to a more casual gaming audience.
Personally, I don't find those games very attractive or fun to play. I did like a free game that was on MySpace called "Mobsters" and actually found it pretty addicting, but that was a short-lived phase I went through. The game still didn't compare to the thrill I felt playing pricey games like "Madden" or "Need for Speed".
Free-to-play games have been popular in other parts of the world, but will they be hot in the U.S.?
Frank Gibeau, president of EA’s games labels business agrees, stating that EA’s revenues from these sorts of games have surged by 156% over the last year.
Not everyone agrees with about the future success of free gaming.
“There’s a market for it, but the notion that in three years, all games will be free-to-play is ludicrous,” said Doug Creutz, videogame analyst at Cowen & Co., in an interview.
I agree with Creutz. I don't see all games being free-to-play within three years. I don't see it happening anytime soon. However, I predict an increase in the popularity of free games, and popular ones will get the attention of advertisers.
via Market Watch
Believe it or not, more video game makers in the U.S. are pursuing the idea.
Although it doesn't seem very appealing for business, the game companies can attract more players while continuing to make money through advertisers.
Game publishers are interested in this in partly because the disk-based retail business has weakened significantly, with sales of new game software in the U.S. decreasing more than 30% in the first half of this year compared to the same period last year, according to data from NPD.
The drastic drop in sales has driven many investors to sell the stocks of game publishers hard this year. Companies such as Electronic Arts Inc. saw its shares rise on Thursday on a media report that a couple of private-equity firms were interested in the company, which has lost over a third of its market value during during 2012.
Zynga Inc. has achieved some success through bringing games such as “FarmVille” and “CityVille” to the Facebook Inc. FB platform, but these titles have appealed primarily to a more casual gaming audience.
Personally, I don't find those games very attractive or fun to play. I did like a free game that was on MySpace called "Mobsters" and actually found it pretty addicting, but that was a short-lived phase I went through. The game still didn't compare to the thrill I felt playing pricey games like "Madden" or "Need for Speed".
Free-to-play games have been popular in other parts of the world, but will they be hot in the U.S.?
“We view this as a tsunami going on in the games business. It’s been happening around the world, and it’s coming to the West,” Nexon CFO Owen Mahoney said in an interview earlier this month.
Frank Gibeau, president of EA’s games labels business agrees, stating that EA’s revenues from these sorts of games have surged by 156% over the last year.
Not everyone agrees with about the future success of free gaming.
“There’s a market for it, but the notion that in three years, all games will be free-to-play is ludicrous,” said Doug Creutz, videogame analyst at Cowen & Co., in an interview.
I agree with Creutz. I don't see all games being free-to-play within three years. I don't see it happening anytime soon. However, I predict an increase in the popularity of free games, and popular ones will get the attention of advertisers.
via Market Watch
Submit Your Tip
Got some juicy gossip?
Wanna air out some dirty laundry?
Wanna air out some dirty laundry?
