Virtual currency poker leaves money on the table

zynga poker could be making much more with real-money play

Google YouTube PM Hunter Walk asked on Twitter Monday:
@hunterwalk tweeted about Zynga Poker and real-money play

There are some serious competitive advantages that Zynga would bring to the table if they decided to pursue this idea and provide legal online poker to its Zynga Poker players. For one, Zynga’s poker game currently holds over 28 million active players, which makes it the world’s largest poker site of any kind.

Clearly, Zynga has the potential to be a real-money poker powerhouse
But what would that mean for them?

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The Real “New Frontier” of Gaming

the new frontier of gaming is real-money play

Last week’s Wall Street Journal article, “Gaming’s New Frontier After Zynga”, talks about how the future of games is new, high-quality massively multiplayer online role-playing games (commonly known as MMORPGs). The author alleges that innovative new MMORPGs created by companies like Trion and Tiny Speck will lead to a revolution akin to social games’ emergence over the last 5 years. While this article captures part of the trend, it misses the bigger picture.

The future of gaming is not immersive massively multiplayer games. People have been saying that MMORPGs were the “future of gaming” since back in the days of the original Everquest. To quote David Radd from his IndustryGamers post last week, “things didn’t quite pan out as planned”.

Today, the resurgence of MMOs is just one piece of the larger trend:

The intersection between virtual worlds and the real world is the future of gaming. [Click to Tweet]

 

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Mine the theme space

Earlier this month, Roger Dickey spoke at our Game Monetization meetup event. Roger is the creator of Mafia Wars, one of the most successful social games of all time, and also served as the GM of Fishville once his company was acquired by Zynga. You can watch the full video below, but we wanted to pull out one topic today that we found really interesting: mining the theme space.

 

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Roger Dickey’s Hacks for Game Monetization

Roger Dickey is the creator of Mafia Wars, one of the most successful social games of all time, and learned game monetization strategy during his time as a GM of multiple games and international product advisor at Zynga. At our Money Talks event in San Francisco, Roger dropped some serious knowledge that showed how the leading social game companies maximize their game monetization. You can watch the video below, or read our cliff notes to get a quick overview of the best social game monetization strategies he shared.

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Money Talks: Improve your game’s CLV by listening

Our first meetup event, “Money Talks”, was a great success. With over 75 attendees, we had a packed house full of game developers itching to learn. Our three great speakers gave our audience great insight into game monetization:

  • Roxanne Gibert, CEO of Spyra, formerly game monetization & product strategy at Zynga, Playdom, and Playfirst.
  • Roger Dickey, former GM of Zynga and creator of Mafia Wars, the most successful social game of all time.
  • Chris Griffin, CEO of Betable, the only platform that lets game developers legally integrate real-money gambling into their games.

Roxanne Gibert, of Spyra Games, spoke at our talk about CLV and ARPPU

The first speaker was Roxanne Gibert, whose game monetization and product strategy background comes from years at premier social game companies including Zynga, Playdom, and Playfirst. Now running her own company, Spyra, Roxanne presented a great overview of game monetization and the framework that you need to implement to make impactful decisions to move the needle on your CLV and ARPPU.

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Game Monetization Lessons from Magic: The Gathering

Adam Summerville is a Co-founder of CircleCat Games. Adam’s hobby is analyzing the non-intuitive design decisions behind his favorite games. If you need to, grab a glass of water and get comfortable: this post is a long one but it’s a good one, and well worth the read.
magic_the_gathering_planeswalkers
We live in a bold, new era in game monetization. A full-production desktop game that is free-to-play makes on the order of $37.5 million every year. Games companies that see less than 5% of their users ever spend a cent make almost $1 Billion a year in revenue. Entirely new ways of selling games are being devised every day. How should a game developer pick a monetization method in these crazy times? To help us understand what really drives consumers to open up their wallets for their favorite games, I suggest we look back to one of the progenitors of micro-transactions, Magic: The Gathering (MTG from here on out).
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Exposing Social Gaming’s Hidden Lever

In our last post, Gambling Makes Billions Without Innovation, we showed how each gambling game has spent decades or longer without a single gamplay innovation. We are following this up with a series where we outline each major type of gambling game and how their mechanics can be applied to the modern gaming world. One of the most striking things that we found in our research was that social gaming, a burgeoning $2 billion industry that’s beloved by over 900 million players worldwide, is merely a modern adaptation of an invention created in 1887: the slot machine.
slot machine gambling mechanics exist in modern social games such as FarmVille
See if this sounds familiar to you:

To play the game, you put currency into the machine. You then pull the knob and wait for the result. When the result is presented, you are rewarded with a cacophony of exciting sounds, attention-grabbing images, and some form of currency. Often times, this winning helps you progress towards a larger goal. You also have the opportunity with each play to win a rare prize of significantly higher value than the value of the currency you contributed to play the game.

That’s a slot machine, right? Wrong. It’s the basic action loop of FarmVille. Continue reading

Gambling Makes Billions Without Innovation

Last week, we outlined The Game Innovator’s Dilemma, which shows how large, successful firms become reliant on sustaining technologies that only improve their existing products. Often times, these firms’ successes can hamper their ability to adapt to new market conditions and adopt disruptive new technologies.Nowhere is this Dilemma more apparent than in the gambling industry. Just think about the four major gambling games that you see in modern casinos: poker, blackjack, roulette, and slots. By implementing sustaining technologies, gambling companies have barely kept them current. Yet the gambling industry makes money hand over fist in amounts that would make any game company jealous: over $458 billion all told. Just to rub it in, let’s take a quick look at these four popular games and the innovations that they’ve undergone in since they were created. Continue reading

Money Talks – and you can listen

San Francisco Banner

For those in the San Francisco Bay Area, Betable is going to be hosting its second Game Monetization meetup, Money Talks. The event will be from 6pm to 9pm on November 10th, 2011 and hosted at K&L Gates’ beautiful SF Office on the 12th floor of 4 Embarcadero Center. Best of all, this talk is completely free.

Game Monetization is a hot topic and many developers are willing to learn. We’ve put together a great set of speakers to teach you how to make more money with your game. These speakers bring a wealth of game monetization experience from some of the most prestigious companies in the industry. Continue reading