Image source: Gameify

It’s easy to see why. Good games are highly engaging, with the potential of helping you connect with players in meaningful and lucrative ways.

But the gamification of everything is a bad thing.

Let’s be honest

Some people in the gaming community have dismissed certain kinds of popular games (particularly the Facebook games popularized by Zynga) as Skinner boxes that are essentially playing the consumer rather than the consumer playing a fun game.

I don’t necessarily agree or disagree with that sentiment. I mean, one could argue that pretty much every game employs rewards for repeating certain actions or engaging in certain activities.

However, in the conversations around “gameification”, you could substitute the word “reward” with “trick” and get a much truer sense of what’s really grabbed hold of every marketer’s attention.

When people are talking about making their product or service into a game, or more game-like, they’re usually not really talking about making their product or service into a game or even more game-like.

The statement they’re really making is, “I want to crassly exploit human psychology for profit! What’s the best way to do that?” The answer right now is, “Games!” Which, as one of my friends recently put it, cheapens the idea of what a game is much like reality TV can water down our understanding of what a real TV drama is supposed to be.

I’ll argue that gameification, done poorly, diminishes your product, too.

Where’s the value?

Daily Burn is a good example of modern gameification done right: They use game mechanics and social networking to help motivate people to lose weight. Mint.com is another company often cited as using game mechanics to help people manage their personal finances.

However games and meta games are not a cure-all, and not all game mechanics are appropriate to every situation. For example, even programs designed to reduce health care costs by paying sick people to take their medication can’t always convince sick people to take their medication.

Games are more than just a collection of points, leaderboards, and levels. If you’re just checking game functionality off a list, if all you’re implementing are rote concepts that don’t mesh well with your actual product or service, or deliver actual value, then you’re not doing yourself, your customers, or your business any favors.

If you’re considering implementing game mechanics in your non-game product or service, please take a moment to evaluate your reasons why.

Will the game mechanics you’re considering bring more value to users of your product? If so, great! Otherwise, hit “Restart Level” and try again.

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Bonus Content

For a usability-driven slant to this topic, please see Just add points? What UX designers can (and cannot) learn from games by Sebastian Deterding

In 2009, a total of around $600.5 million was raised by game startups — that’s down 36% from the year previous, but is still a Lot Of Money. And venture capitalists remain bullish on the future of game funding.

How do you get a piece of that action? What’s it like to work with a venture capital firm? What do VCs look for in an investment?

The MIT Enterprise Forum’s New England Games SiG and the New England Venture Capital Association co-hosted an event last night titled “A Meeting Of The Minds: Game Companies And The VCs That Fund Them” to help answer those questions. Here’s my summary…

Who Led Last Night’s Discussion?

On the game company side…

• Jim Crowley (CEO of Turbine)
• Nabeel Hyatt (CEO of Conduit Labs)
• Rob Seaver (CEO of Vivox)

On the VC side…

• Alex Finkelstein (Spark Capital)
• Dayna Grayson (North Bridge Venture Partners)
• Austin Westerling (Charles River Ventures)

Wade Roush of Xconomy moderated the event.

Why Are VCs Interested In Games?

Traditionally, games has been considered a hit-driven business. VCs are not normally interested in hit-driven businesses. So, why are they interested in games?

According to the panel, their interest stems from two exciting trends:

• Games –and game mechanics — are at the heart of what’s happening now in the economy, in the culture, online, everywhere
• Differentiated distribution networks that bring customer acquisition costs down to nil

Those two trends, coupled with passionate and intellectually honest entrepreneurs, create opportunities for a successful sale or IPO, which is ultimately what VCs are after.

What Kind Of Games Are VCs Interested In?

PC and console games do not interest VCs. Based on what was said last night, they aren’t actually interested in any particular game genre, either.

Instead, they’re interested in (and have invested in)…

• Gaming infrastructure – examples: Vivox (voice chat for games); LiveGamer (virtual goods); OfferPal (virtual currency monetization)
• Games that solve meaningful problems – example: 8d World (teaches English language through gaming)
• Those who can produce games quickly and cheaply, evaluate results, gain traction – example: OMGpop
• Non-game applications that borrow game dynamics to create a more compelling experience – example: foursquare
• Social games — which, Grayson noted, aren’t “social” as much as viral and reduce acquisition costs dramatically

What Do VCs Look For In A Business?

• Intellectual honesty, passion, and realism
• Have you identified a significant and under-served segment?
• Do you have a strategy for serving this segment in a unique, compelling, and defensible way?
• Do you have traction already? Have you started to build the product and acquire customers?
• Is there a realistic chance for a significant exit through IPO or acquisition? “Significant” last night was defined as $100 million or more.

What Should Entrepreneurs Look For In VCs?

Find someone…

• you’re personally compatible with
• who understands your business
• and has solid credentials and references

You’re going to be working very closely with this person for 5-7 years, so you need to be comfortable with them on a personal and professional level.

How To Attract & Work With VCs?

• Understand they’re investing in a business, not a game
• Don’t oversell; realistically explain the pros/cons of the business
• Know your P&L, your roadmap & milestones, your cost structure
• Do your research: Know the VC you’re selling to!
• Iterate your presentation to make it stronger each time you present

More Insights

For more insights in 140 characters or less be sure to check out Twitter coverage of the event at hashtag #VCGameOn

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Rating Last Year’s Predictions

#1 – Casual Games Will Prove Their Mettle
A+. The casual gaming companies that made big headlines in ’09 — Tapulous, Playfish, Zynga, and Nintendo, among others — had solid products and diverse revenue streams. As predicted, those who cleaved too tightly to their tried and true made headlines of a different stripe.

#2 – The End Of DRM As We Know It
D-. Did we learn from 2008′s Spore debacle? Maybe. Not really. 2D Boy (World of Goo) came out against DRM in casual games. EA claims Sims 3 lost $9m to piracy. Valve claims to have made DRM obsolete. In other words: Same old, same old.

#3 – Underpricing Of iPhone Game Apps Will Continue
A+ (unfortunately). The race to the bottom continues. At least one casual games developer raised its prices by 13x in protest to complaints about their puzzle game’s $2.99 pricetag being too high.

#4 – The Rise Of Online Game Shows
B+. The second season of 1 vs. 100 debuted on Xbox Live. My own business was profitable. Not everyone fared so well: PlayCafe closed their doors, and Microsoft powered down Jellyfish. Amuso retired its user-generated game shows but moves ahead with trivia for prizes.

#5 – Turbulent Times Will Spark Innovation
A. Savvy game makers focused on low-friction offerings that satisfied value-minded consumers and encouraged self-distribution. That’s part of the secret sauce behind EA’s acquisition of Playfish, and part of the reason Kongregate launched the Konduit Application Platform.

Not too shabby, overall. Now, let’s look into… The Future!

Trends & Predictions For 2010

#1 – Product Differentiation
Remember when Bejeweled spawned the “match three” genre? We’re there now with casual games on Facebook: Many similar titles relying on the same mechanics and experience. In 2010, as Facebook evolves and its growth slows and its members become more savvy… look for innovation in gameplay, marketing, and monetization. The $600.5 million raised by casual game companies this year should help.

#2 – Sales Of Virtual Goods Skyrocket
Revenue from the sale of digital content in games will surpass $1 billion by the end of 2009, thanks to an expanding population of casual gamers and the increasing sophistication of casual games. That’s 2x the revenue generated in 2008. Now that Apple is allowing free iPhone apps to charge for add-on content, look for sales to climb higher in 2010 and margins to stay fat.

#3 – Flash-Based Development Booms
With near-total browser penetration, “comeback” isn’t quite the right word. However, with new opportunities for monetization and distribution, and the debut of Flash CS5′s Packager for iPhone that enables ActionScript 3 projects to run as native iPhone apps, the future looks brighter for Flash-based development than ever.

#4 – Rhythm-Based Games Sales Decline
Pre-orders for DJ Hero were weak, and actual sales were “modest” in November. The Beatles: Rock Band fell short of initial sales predictions, and sales for the Guitar Hero 5 bundle (game plus peripherals) were down 50% year over year. Look for that trend to continue as consumers realize they have way too many fake musical instruments in their homes. However, in-game song purchases will take off.

#5 – East Meets West, Returns Favor
This will work three ways: 1) Western developers will step up their efforts to enter the booming Chinese casual games market; 2) Eastern investors will make big bets on American mobile and social gaming infrastructure; and 3) Western consumers will start to mimic Japan’s infatuation with mobile games, opening up new opportunities for casual gaming and monetization.

What Do YOU Think?

Lightspeed Ventures, Morgan Stanley and ReadWriteWeb have some broader predictions for 2010. What do you see coming next in casual games, mobile, or consumer technology in general?

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I’m particularly interested in the idea of meta gaming, and how that could be applied to businesses outside of gaming to drive engagement and reap benefits…

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Today, we’re pulling the curtain back a bit to look at lessons learned from the development and release of the game.

Ninja daggers can’t solve every business problem. Many, yes. But not all.

Ninja Rally is a first for Gamesville in many ways: it’s our first mobile application… our first premium product… our first project by our brand new development team. Focused on a new platform that, in many ways, is still coming into focus.

Lots of opportunities for things to go wrong. And to go right. Here’s what we learned.

Analyzing New Markets Is Difficult, But Doable

When we first embarked on this journey, back in December 2008, the App Store was five months old. Scarce data available. But what was available, we pounced on!

In fairly short order, a picture started to develop of both the target user (young early adopters, comfortable making financial transactions on their mobile devices, looking for cheap entertainment on the go) and market potential (10 million iPhones sold in 2008, games are the most popular apps but prices are racing to the bottom).

Information was gleaned from a number of disparate sources: fellow developers, Twitter, blogs, Google News Alerts, anywhere and everywhere. Including the numerous app and review sites. And Apple’s own top app lists.

Of course there were–and are–many questions that need answers: How does the typical iPhone gamer select their games? Based on review sites? Recommendations from friends? Influenced by Twitter/tumblr? Top 25 lists? Pricing? Screenshots? Ratings? At present, the answer looks like: Yes.

Time, Resources & Scope Can Constrain Anything; Even Ninja

Project management 101 tells you all about constraints. For us, the constraints looked like this:

Resources were fixed–we had three people, plus a little bit of my time.

Speaking of which–time was fixed. For business reasons, we needed this app completed and on sale in Q2 2009.

That left scope. In other words, with 12 weeks of fixed development time and fixed resources of 3.5 people, what sort of game could be made that would meet market desires and, hopefully, open up a new revenue stream for us?

(That is a Big Topic. Too big to cover right now. But one day, soon.)

A Working Prototype Is Worth Its Weight In Shuriken

Once the team narrowed down on game play, we started iterating on prototypes. These helped us obtain feedback, early and often, which then was collected, analyzed, and often iterated upon.

Prototypes were very useful–but also a little misleading.

There’s a huge difference between playing a prototype of a game on your computer with a mouse, and playing that same game on a touch-screen device with your finger. A colossal difference. A completely different play experience. So that’s something to keep in mind. In other words…

Get Onto The Device ASAP

Or, allow plenty of extra time for optimization. That was a hard lesson.

The binary that ran so well on our laptops and PCs took about two weeks to debug and optimize for the iPhone. Not just for the gaming experience, but for memory leaks and getting it to run as smoothly as possible across devices.

In hindsight, this is obvious. Of course, this is something you’d need to do.

But, in our initial project plan, we hadn’t allotted for it properly. We knew we had to playtest iterate. We knew we had to QA the finished product on the device. We knew there would be back and forth with Apple for approvals.

That optimization period was critical, to ensure a solid and smooth experience for the iPhone and iPod Touch. And, unfortunately, we glossed over it in the planning.

Don’t make that mistake: Get a working version of the game on the iPhone as soon as possible.

Grab The Apple From My Hand

Many developers have written about nightmares getting their apps reviewed and approved by Apple. Getting Ninja Rally into the App Store wasn’t really a nightmare. In fact, Apple was pretty good with us. Especially given that Gamesville is basically an indie studio.

The biggest delays came in the initial developer application. The process of submitting the application, of responding to Apple’s requests for documentation about our business (articles of incorporation, anyone?), of finally being approved–that took about six weeks.

Now, this was back in December 2008, so maybe the turnaround time is different now. I recommend you assume it’s the same or worse.

Before you do anything game related, submit your developer application.

Seriously. I’ve heard from several people working on iPhone games who have not yet completed the paperwork. That’s crazy.

Because, really–after slaving away at your game for weeks or months, do you really want to delay it an additional 6+ weeks because of paperwork?

There’s So Much To Talk About…

In this high level walk through we barely scratched the surface of creating your first iPhone game–let alone marketing and promotion! We’ll look at those issues in greater detail in the future.

Until then, check out these articles for more advice:

• iLang Syne: A Guide To iPhone Game Development In 2009
• Symbol6 : How We Created an iPhone Game
• WordFu Post-Mortem
• How to Price Your iPhone App out of Existence

New Around Here?

Subscribe to the feed to receive future updates; follow me on Twitter to keep the discussion going!

Bonus Content!

We’ve revealed high-level tips on making a game for the iPhone. Now–learn more about the dark arts of the ninja…

#1 – Casual Games Will Prove Their Mettle
After 9/11 and the dotcom crash, the Dow Jones Industrial Average dropped 22% … but video game revenue climbed 43%. With that, and the maxim that inexpensive entertainment booms during hard times, it’s no wonder that many think casual games will prove recession proof. Will all casual game providers make it through the crunch? Probably not; no one’s invincible. The casual game providers who do survive will have–besides interesting products–a diversified mix of revenue streams.

#2 – The End Of DRM As We Know It
The industry will learn from the Spore debacle. Rather than risk consumer backlash, alternatives will be sought that focus on a game’s strengths and make the legal version of the game more valuable than the pirated version. Online components–such as a solid authentication system that does not interfere with a customer’s right to enjoy the game (think, Valve’s STEAM)–will be the beginning.

#3 – Underpricing Of iPhone Game Apps Will Continue
In the race to cash in on the iPhone goldrush, app providers–including game developers–are trying to grab market share by slashing prices at an hysterical rate. Many are in danger of pricing themselves out of existence. While I hope developers start to understand that lowering prices actually decreases the value of their products in the eyes of consumers, there’s no indication that anyone (including Apple) is trying to rectify the situation.

#4 – The Rise Of Online Game Shows
Game shows and reality TV shows are big business offline–and they’re hitting their stride online. Established players, such as my own site, Gamesville.com, are launching new game shows for free cash prizes every few months. Newcomers PlayCafe and Amuso focus on user-generated game shows, and a Newton, MA, entrepreneur just launched his own “televised” online game show. Microsoft acquired shopping-oriented game show site Jellyfish in 2007, and plans to launch “programmatic, highly concurrent social interactive games” (eg, “game shows“) in 2009. The online game show space is heating up, and will only get hotter.

#5 – Turbulent Times Will Spark Innovation
Some analysts believe that hard economic times will stifle innovation in games. I disagree. Sure, companies may feel the need to batten down the hatches but other industries have demonstrated that cutting back on R&D during down times is not necessarily good business sense. To survive, game makers need products that satisfy value-minded consumers; they also need to continue introducing and executing new concepts and ideas–otherwise, it truly is game over.

Take a look back at the year that was: Check out the top trends in casual games in 2008…

Additional Resources

• Joel Brodie: Recession? What Recession?
• iPhone Application Price Points And Business Models
• Online Game Economies Weathering Real-World Financial Blizzard
• Consumer Internet Predictions For 2009

If you enjoyed this post, please leave a comment or subscribe to the feed to receive future updates automatically. You can also follow me on Twitter.

Today, we’re looking at the top five trends in casual gaming in 2008…

#1 – The PC Is The Gaming Platform Of Choice
Numerous people have been claiming “The PC is Dead!” for years. Guess what? Playing games on the PC remains strong: Nearly three-out-of-four gamers (73%) use computers to play, while just over half (53%) use game consoles.

#2 – Draconian DRM Rears Its Ugly Head
Because of its DRM scheme, EA’s Spore went from one of the most “eagerly anticipated” casual games of the year, to the most pirated game of the year, to the poster child for the death of PC gaming.

#3 – The iPhone Goldrush Begins
Over half of the best-selling iPhone Apps of 2008 were games. Small development teams are generating significant revenue off iPhone apps, so expect many more games to come.

#4 – The Rise Of Social Games
Social games are casual games that leverage players’ social graphs to find new ways to interact with friends and family on social networks. Facebook, of course, led the way thanks to third-party titles like Scrabulous, among many others. But with Facebook’s redesign, social games appear to take a backseat to other features.

#5 – Almost Everyone’s A Gamer Now
Nearly all American teens (97%), and more than half of adults age 18+ (53%) play video games, according to research from the Pew Internet Project. Even more impressive: About one-in-five adults (21%) plays video games every day.

Next time we’ll look at predictions for casual games in 2009!

What trends did you see in 2008? What’s coming up for 2009?

Additional Resources

• Casual Games May Be Recession-Proof; Companies Report Record Revenues, and Some Surprising Trends
• Gamasutra’s Top 20 Trends of 2008
• Casual Gaming Year In Review, 2008
• How Casual Game Startups Can Survive Recession
• Causal Games Are Recession-Proof

If you enjoyed this post, please leave a comment or subscribe to the feed to receive future updates automatically. You can also follow me on Twitter.

Facebook CEO Mark Zuckerberg once remarked that, “A lot of companies get grouped as social networking. Lots are dating sites, or media sites or sites for community. But our mission is helping people understand the world around them.” Some might think that’s just green, marketing fluff. Maybe it is. But there’s also something very appealing about that idea in terms of games.

The community benefits of online games are recognized by medical professionals: No matter where gamers live, they love the ability to meet other people from around the world. It’s that option, that unique ability for real-time social interaction, that enhances the game experience, making it more than just a game.

Of course, you might be hard-pressed to argue that any game is going to help anyone understand their place in the world — and that’s fine. Is it silly to think of Peggle as the new Da Vinci Code? Maybe. However, I think the opportunity exists in the play space.

Sometimes, it’s conversation via in-game chat. That’s where you meet people, hear their viewpoints, learn something about their part of the world. We see that all the time in massively multiplayer game shows such as Bingo Zone or group chat in single-player games on Pogo.

Sometimes, the game itself is overt about its socially conscious intent. For example, Peace Maker and Future Flow let you know, up front, that these games are about our world and what’s happening to it.

HopeLab’s Remission is credited with helping many cancer patients better understand the disease, and at least one with actually defeating leukemia. Games are also useful in pain management and can potentially help people with acute depression and Attention Deficit Disorder.

At their most basic, productivity games such as Diner Dash can help people feel like they’re exerting some control over their lives where they otherwise may not have any.

Real life might be complex and tedious at times, with rules being broken left and right. Games provide structure — rules that can’t be broken — and tasks that can be completed. There’s something very satisfying about that, something that perhaps cannot always be achieved in reality. And maybe that therapeutic nature helps people deal with their real lives just a little bit better.

Someone once remarked that, “The game of life is like the game of boomerangs — deeds and words return to us sooner or later with astounding accuracy.” Good thing casual games can also help with alertness, contentment and hand-eye coordination. (Thanks, Peggle!)

Christopher Cummings, author of The Left Click, is senior product manager for Gamesville.com, where thousands of people compete daily in free, massively multiplayer games to win real cash prizes. You can join the Gamesville group on Facebook or follow them on Twitter.

This editorial originally appeared at
http://www.dailygame.net/news/archives/008221.php

Some people see this Gamer’s Bill of Rights as a way to re-establish trust among players, publishers, developers and retailers. Others see it as impractical, wishful thinking, or too vague to be useful. Reading through its enumerated points, it’s clear that a lot of the conversation stems from frustration about PC games sold at retail, and at a fairly high price point, that fail to function as promised.

Casual games typically don’t cost as much as high-end PC games or current-generation console games. But just because something is free or comes at a lower price point does not mean the consumer of casual games should be disrespected or ignored.

If a casual game isn’t free to play, it’ll most likely cost you $20 to purchase. Regardless of whether it’s free or paid, the gameplay will most likely imitate the game mechanics and/or art style of other games that have proven successful. And if it’s a premium game, you can bet there’s most likely a 60-minute free trial.

What does that leave you with? An endless parade of “new” games aping existing games, all sold at the exact same price point after the exact same length of trial.

That’s boring. That’s Predictable. That’s why casual gamers deserve better.

With these thoughts in mind, I offer the Casual Gamer’s Bill of Rights:

1. The right to games that keep things clear without being condescending or pandering.
2. The right to appropriate feedback, to understand whether or not I’m succeeding.
3. The right to games whose price points equate logically to the games themselves, not the genre to which the games belong.
4. The right to customer service that is both prompt and courteous.
5. The right to games that innovate more than imitate, and push my boundaries without breaking my spirit.
6. The right to games that help me understand the world and my place in it.

While I’d like to say that every casual game I’ve had a hand in during the past 10 years has lived up to these values, I can’t. However, I do think I’ve learned from the past and have helped push my particular casual-game niche, online game shows, to the next level. But, as always, there’s so much more to learn and do.

This six-point Casual Gamers’ Bill of Rights is by no means complete, and questions, comments and suggestions are definitely welcome. Just remember to keep it casual. You have every right to enjoy your games that way.

Christopher Cummings, author of The Left Click, is senior product manager for Gamesville.com, where thousands of people compete daily in free, massively multiplayer games to win real cash prizes. You can join the Gamesville group on Facebook or follow them on Twitter.

This editorial originally appeared at
http://www.dailygame.net/news/archives/008221.php

DFC analyst David Cole puts it best, noting that the fizzling economy doesn’t appear to be affecting game software sales. “Consumer spending on software is at record levels,” he says, “and the game business seems to actually benefit from a recession, because games are a relatively cheap form of home entertainment.”

If you go back to the Depression, obviously times were tough — even tougher than they are today — but people still needed to be entertained. They needed to escape their everyday lives and forget their problems. So what did they do? They went to the movies, read books, listened to the radio, played card and board games. They did everything we do today, and they had to do it cheaply, because money was in short supply.

Know something that’s not in short supply? Computers. I know, I know, you probably don’t even consider the PC a viable game platform since everyone knows the PC as a gaming platform is dead. Except, it’s really not — and that could be gaming’s great salvation during these tough economic times.

The PC Gaming Alliance estimates there are 263 million online PC gamers. And according to DFC’s new Online Game Market Forecasts report, PC online game revenue alone passed $7 billion in 2007, not including retail sales. Total PC game revenue is expected to reach $19 billion by 2013. Those are impressive figures for a “dead” gaming platform, and they add an exciting wrinkle to the question of games being recession-proof.

As times toughen economically, will consumers continue to shell out $30 to $60 for a console game? Will they back off the higher-priced games in favor of budget-oriented Wii titles? Or will they fire up the PC to play free casual games online?

Of course, there’s a very real danger that shrinking consumer spending will affect advertising buys, which will negatively impact the free casual games market, which is largely ad-supported. However, while ad spending may slide in TV and the offline world, analysts predict inexpensive media types, such as the Internet, will weather this economic downturn relatively well. So maybe free online games aren’t such a bad place to be, for consumers or for game developers/publishers.

My money, as always, is on online bingo. If you have a few minutes to kill, why wouldn’t you go online, play a free game that you know with people you like, and try to win a few bucks? As gas prices rocket up and down, and the stock market sits and spins, family night with Dickie the Bingo Caller looks better and better.

– Christopher Cummings

Christopher Cummings, author of The Left Click columns appearing on DailyGame.net, is senior product manager for Gamesville.com, where thousands of people compete daily in free, massively multiplayer games to win real cash prizes. You can join the Gamesville group on Facebook

This editorial originally appeared at
http://www.dailygame.net/news/archives/008398.php