Blizzard v. In Game Dollar Analysis
Patent Arcade has a case analysis of the In Game Dollar lawsuit, perhaps more well known as Peons4Hire.com. Though the case settled and therefore doesn’t serve as binding precedent, it makes for a good study of Blizzard’s methods that they’d later use in other cases. Also, Virtually Blind (now defunct) has their own analysis here. Thanks again to the excellent Patent Arcade for the heads up.
Zynga v. Playdom
Social game maker Zynga has sued another social game company, Playdom, for trademark infringement over Mafia Wars, Zynga’s popular facebook game. The complaint alleges that Playdom’s advertising for their Mobsters game used the phrase “Like Mafia Wars? Click here to play Mobsters.” but doesn’t display Playdom’s mark anywhere, and is confusing as to whether it is an ad for Mafia Wars or Mobsters. Notably, users can click on Mafia Wars, and a window to install the Mobsters game opens. Zynga is alleging several Lanham Act violations including trademark infringement (confusion) and false advertising. The full complaint can be found here. Thanks Patent Arcade for the heads up.
China bans RMT, perhaps EVE Online.
China’s Ministry of Culture and Ministry of Commerce have banned the trading of virtual currency for tangible goods or services. According to the ministry, “the virtual currency, which is converted into
real money at a certain exchange rate, will only be allowed to trade in
virtual goods and services provided by its issuer, not real goods and
services,” and specifically includes prepaid game cards for online games.
This presents something of a problem for games with sanctioned RMT models, as by the ministry’s wording not even game publishers can traffic in real goods and services. For a game like EVE, where the developers have sanctioned third party trading in prepaid time cards, this seems to run afoul of the letter of the policy; …
Free2Play MMO Revenue Metrics
Gamasutra has a great article by Daniel James of Three Rings Design, about the metrics for measuring free2play MMO revenue: specifically, average revenue per paying user (ARPPU) vs. average revenue per user (ARPU). The piece argues that ARPU is a superior model for determining potential financial viability of a free2play game.
For instance, an average ARPPU may look like $50 (because it only includes paying/premium users), while an ARPU may be in the $0.80 to $3 range (because it includes free users as well as paying users). According to James, his ARPU is within $1-$2, but only 10% of his user base will ever pay him something. As a result, 5,000 gamers are generating $230,000 per month for him. James argues that the …
Study Shows Game Developers Focusing on Wrong Subjects
I recently did an article at Stratics on a new study from Absolute Quality on bio-sensory feedback testing in games. I want to expand on it a bit here, and discuss some of the development and financial implications for the industry. First, the original article:
In a report to be released later this week, a company called Absolute
Quality (a subsidiary of gaming services company e4e) has completed a
bio-sensory study of how “engaged” gamers really are when they play.*
The study concluded that while game developers get the biggest reaction
out of cutscenes, exposition, and scripted ecnounters, their target
audience does not and prefers the simpler gameplay aspects of “running
and gunning”. Using a wireless headset from EmSense that scans subjects
brain waves (EEG), visual reactions, and the like from …
A Pair of Major Settlements
Well, two major settlements in the news today. On Friday, the NFL Players Association announced a settlement in Parrish Adderley et al v. NFL Players Inc. If you don’t remember, that’s the retired players law suit against the union for breaching licensing agreements over the use of their images. Incidentally, the suit lives on in a recent law suit from former Arizona State and Nebraska QB Sam keller against EA Sports and the NCAA over the use of player images.
Simultaneously, Midway Games’s shareholder Mark Thomas and the Midway Games creditors committee (these are the unsecured creditors), have secured a settlement that appears quite favorable to the creditors. If you haven’t been tracking the whole complicated mess, basically Thomas purchased Sumner Redstone’s …
Activision Sues Over Brutal Legend
Activision Entertainment Holdings filed suit yesterday against Double Fine Studios, developer of the upcoming game Brutal Legend, seeking an injunction to stop the game’s release. Claiming that Double Fine transferred various rights to EA that they did not possess, Activision is alleging $15 million in restitution already invested as well asserting that they in fact have the rights to release the game. So why did they drop the game in the first place? The timing on this suit also smells fishy. IGN reports that Activision threatened EA to sue back in February. Why EA, and not Double Fine? And why time it now, right in the middle of E3? Seeking a greater amount to claim for the game’s value? Or to sabotage EA?
Either …
Double Fine Double Dipping?
Probably not, but according to Activision, Tim Schafer’s Double Fine has been working on Brutal Legend all this time while it is Activision who still holds the rights to publish it.
Timeline, please. Here you go:
Late 2007 - Activision and Vivendi merge into Activision Blizzard. Sierra, who was owned by Vivendi is eaten up in the merge.
July 2008 - Activision drops much of the Sierra lineup, including Brutal Legend, Chronicles of Riddick, and Ghostbusters.
Late 2008 - EA Partners breaks the legal logjam and buys the rights to publish Brutal Legend.
Despite dropping the game, Activision now claims that, because they invested nearly $15 million into Brutal Legend, they retain publishing rights. Thus, they are suing to block the release of the game …
For The Fallen
We pause our normal coverage today in honor of the men and women in uniform that have served and fallen in the service of our country. I’ve always been disturbed by the concept of a “Happy Memorial Day”. It’s not a happy day. It’s a day where we should be reflective, pause, and look at the freedoms that we have, and question whether we are taking full advantage of them. Enjoy your barbecue and your beer, and whatever you do. But when you finish, take a moment to think about what is going on in the world. Actually scratch that, just think about what is going on in this country. Think about the politicians that want to control what you can or play. Think about …
