Xfire, which connects gamers and lets them know when their friends are playing, has released some statistics about the usage of online games—and it’s no surprise that World of Warcraft blitzes the competition. World of Warcraft had an average of 390,703 hours played on it each day in March, while the second most popular game, Counter-Strike Source, had less than half that figure with 157,187 hours played on average each day. When the massively multiplayer online (MMO) genre is considered WoW does even better, garnering about three quarters of the total hours played, and 8 times as many as the second most popular MMO game, Guild Wars. No other genre is so dominated by a single game—which is hardly surprising, since MMOs are similar to social networks in that the more people who play the better they tend to be, and the more players they attract, and the more those gamers play the game. These figures are based on hours played, not subscribers, so they can’t be equated to market share. They should be very interested for anybody looking at in-game advertising, though.
It should be noted that these figures are for users of one service, and should be taken as such. Xfire claims to cover all games indiscriminately, so games within the MMO category can be compared, although there could be some bias in the results based on founding populations—if a high percentage of one MMO uses Xfire, it encourages more people to do so. But you definitely can’t compare between genres—for example, Solitaire showed 6,517 hours average usage on each day in March, which is indicative of the fact that Solitaire players don’t need to communicate with other Solitaire players rather than that World of Warcraft is played more.
Casual online gamer Outspark has secured its first round financing from Altos Ventures and DCM, DMW reports. The amount was not revealed. The San Francisco-based company, which plans to bring Asian games to the U.S., will use the funds to develop its distribution platform, and for publishing and production. Game Biz Daily adds that members of Outspark’s management team have previous experience managing casual games portals for companies including Yahoo, Nexon, and NHN.
Online golf gaming/networking site World Golf Tour has secured its first round of funding from Battery Ventures. The amount was not revealed. The company claims that its aim is to “democratize” the sport by bringing casual golfers together with experts through an online social net feature. Also, players can practice their virtual swing over a variety of courses within the photo-realistic site.
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Virgin Radio, UK, the rock station once owned by Richard Branson, has begun streaming on to Sony Playstation 3 and Nintendo Wii consoles, Guardian reports. Virgin is taking advantage of that fact it’s the only such station to offer a clean MP3 stream by plugging the stream into a Flash applet accessible via the web browsers on the machines. It is the first time a UK radio station has been made available on a games console and is clearly a nod to the Trojan Horse notion that games boxes could become home entertainment hubs. Sister stations Xtreme, Classic Rock and Groove are also available; the app also includes retail options for music and concerts but is not yet available for Xbox 360. Digital media director James Cridland: “People now treat consoles as part of their home entertainment media center. Plus the platform has great growth potential, particularly among early-adopters and the 25-44 audience popular with advertisers.”
Instant messaging continues to be one of the major pluses for portals as they expand social networking. Where new social nets have to create their own, AOL, Yahoo and Microsoft already have that tool in their belts and they’re looking for every way possible to make it even more effective. The latest example: Microsoft’s decision to add Windows Live Messenger to Xbox 360 and its current text and chat features. The company said Windows Live Messenger has more than 260 million active accounts. As of May 7, the six-million-plus Xbox 360 users will be able to use WLM to chat with up to six contacts at a time. Release.
-- Among other changes, the same update should make it easier for users to see what games their friends are playing and to perform downloads. They’ll also be able to stream WM-DRM content from the PC to the console.
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Microsoft has give the Xbox360 an upgrade, called Xbox360 Elite, with a 120-GB hard drive and a souped up HD video connection, in a bid to broaden the appeal of its popular console beyond video games. The earlier version has 20GB storage. The new Xbox 360 Elite will sell for $479.99. Consumers who already own the $399.99 20-gigabyte model will be able to buy a snap-on 120-gigabyte hard drive for $179.99, reports AP.
Also, importantly for the content industry, it has added an HDMI connection, which sends HD content from the console to the TV without losing picture or sound quality, while also helping prevent piracy, the story says.
On the content side, it has announced new partners: New Line is the latest studio to join Microsoft’s Xbox Live video download service, while existing partner Paramount is going HD, reports Variety. Paramount has been in the service since Nov, but going HD for the first time. Warner Bros. has offered pics in HD since the service launched, while Lionsgate joined in January with HD.
A&E is also joining this week with digital downloads of its TV shows, including “Dog the Bounty Hunter.” Shows from CBS, MTV Networks, WB and Paramount TV are already on Xbox Live, with many available in HD. Action sports company TotalVid and Japanese anime distrib ADV Films have also signed onto the service.
Gizmodo: People are spending about 40% of their time using the Xbox 360 for a lot of these entertainment-type experiences like music, movies and TV.
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Electronic Arts, the biggest video gaming company, has spun off its music label efforts with Canadian label Nettwerk One Music into a new company, called Artwerk. The label will sign and develop both new and established artists for publishing, master recording and sync deals, as well as digital and physical distribution. The LA-based label will be actively pursuing talent in all parts of the world.
This follows a smaller EA deal with Nettwerk in 2005, where it formed EA Recordings, a unit supposed to bring its in-game theme music to digital music services and ringtones. So not sure if this is just added spin or something new beyond the earlier deal.
More info on the new company here.
A report by Screen Digest has found that massively multiplayer online games generated more than $1 billion in 2006 in the West (North America and Europe), notes the BBC. The report claims 87 percent of the revenue is from subscriptions, while virtual item sales and in-game advertising also brings in revenue. The NA subscription market was put at $576 million, while Europe was worth $299 million. It’s a pretty big figure, but if you note that World of Warcraft has 3 million subscribers in the west (out of 8 million globally) paying monthly subscription fees of $13-15, it becomes more believable. WoW accounted for 54 percent of the subscription market in 2006, pulling in $471 million in revenue. Screen Digest predicts that the MMOG subscription market will grow to over $1.5 billion by 2011, with Germany remaining the largest European market followed by the UK. France will see the most significant value growth of over 16% CAGR over the term, whilst Spain and Italy will both experience subscription value CAGR of more than 15%.
The Beeb quotes report author Piers Harding-Rolls listing the multiplayer categories:
--Virtual world building games, such as Second Life
--Virtual pet rearing games, such as Neo pets
--More casual MMO puzzle games
--Sports games in which you have to buy items and build up your character
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Electronic Arts, the world’s biggest game publisher, has bought a stake in South Korea’s Neowiz for about $105 million and jointly develop games for Asian markets, reports Reuters. When the deal closes, EA will become Neowiz’s second biggest shareholder after the Korean firm’s CEO, with about 19 percent of common stock equivalent.
WSJ: Founded in 1997, Neowiz of Seoul is one of the leading online game companies in Korea, with expected revenues of $150 million for fiscal 2007. One of its most popular titles is a shooter game called Special Force. The two partnered last year to launch the online version of EA’s popular FIFA sports game.
More details in release here.
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