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In This Issue

AUGUST 2007

DAM Speaks Out »
» DAM Q&A With
Gaia Online's Craig Sherman

Giving You The Business »
» A Place For Indie Developers
To Kongregate

More Giving You The Business »
» Nielsen Turns To TV Viewers
To Report On Video Games

Events Calendar (August-November) »

A Walk in the Park
art art
 
DAM Speakers
DAM Q&A WITH GAIA ONLINE'S CRAIG SHERMAN

Craig Sherman
Gaia Online's
Craig Sherman
Craig Sherman, the CEO of Gaia Online, joined "the fastest-growing online hangout for teens" in May 2006 after sizing up 250 companies, looking for one that met his two criteria.

DAM took a few minutes of Craig's time to learn what those two criteria were … and to chat about what's made it so successful.

DAM: Craig, tell me a little bit about why you took over the reins of Gaia Online.

Craig Sherman: I was at Benchmark Capital, a venture capital firm that did eBay and some other great deals over the years, working as an entrepreneur-in-residence, looking for the next big thing. My goal was to find something in the consumer space that had two criteria. It needed to be an awesome value proposition for the end customer, meaning that if we built it, people would really come; we wouldn't have to actively market it. Something like TiVo. And, two, something with a group of founders who have an uncanny grasp of the end customer. In the case of Gaia, the founders were actually the end customers because they were building the site for themselves; it just happened to resonate with millions of other people too.

DAM: Didn't Gaia actually start as an anime site but it seems to have moved in the direction of a social gaming site?

Sherman: Exactly. For instance, we are now the #2 forum site on the 'Net (after Yahoo) with over a million posts a day; we had been #3 but we overtook AOL last fall. We've got about 2 million monthly unique visitors with well over 2 billion monthly page views. There's about a five- or six-hour period every afternoon and evening when we typically have over 65,000 people concurrently on the site. And all of these stats are roughly three or four times higher then they were a year ago.

DAM: Pretty impressive. What's drawing them to the site?

Click here to read the full article » 

 
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Giving you the Business

Industry insight from journalist Paul “The Game Master” Hyman. [Reprinted with permission from “The Hollywood Reporter.”]

A PLACE FOR INDIE DEVELOPERS TO KONGREGATE

Kongregate.com
Gamers can find approximately 960 browser-based casual games on the site, such as "The Fancy Pants Adventure."
As George Carlin used to say, everybody needs a place for their stuff.

But finding a place for game developers' "stuff," somewhere where they can show off their wares, get a little exposure -- and perhaps some cash to boot -- hasn't always been so easy.

In general, the Web portals that are in business to sell casual games aren't interested in fledgling developers. And, until recently, there's been no equivalent of YouTube for games -- a site where anybody can upload a game they built, have it scrutinized by the gaming public, and perhaps make a name for themselves.

Then along came Kongregate.com.

At the moment, gamers can find approximately 960 browser-based casual games on the site, the majority posted by amateur game developers.

"Many of them tend to be teams of two college kids -- one a programmer in, say, a dorm on the East Coast and the other, perhaps, an artist on the West Coast," explains Jim Greer. "Some of them are older but, if they are older, most aren't making games full-time."

Greer is the company's CEO and co-founder (along with his sister, Emily). This is his 16th year in the games industry, having been at Electronic Arts' Pogo.com Web site for the last 4-1/2, most recently as technical director.

Last year, Greer set out to create a site that not only attracts gamers but gives them plenty of reasons to stick around. Kongregate.com, he says, has been designed to be a "social networking" site that provides the same sort of accoutrements that make similar Web destinations so enticing.

In addition to playing games and voting for their favorites, visitors to Kongregate.com can create profiles, hook up with friends, engage in text chat, and participate in challenges that earn them points and virtual collectibles.

"There are lots of sites where you can play games and then leave," says Greer, "which, if you can imagine, is sort of like playing 'World of Warcraft' and then having to start from scratch the next time you log on. On those sites, there's no persistence of any kind. On Kongregate.com, however ...

Click here to read the full article » 

 
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Giving you the Business

Industry insight from journalist Paul “The Game Master” Hyman. [Reprinted with permission from “The Hollywood Reporter.”]

NIELSEN TURNS TO TV VIEWERS TO REPORT ON VIDEO GAMES

NBA 08
"NBA '08" is a soon-to-be-released Sony game whose stats will be tracked and supplied to Nielsen.
They say the third time is the charm and Nielsen Games is hoping that's true. On July 25, the research company was scheduled to start providing a metric to measure the effectiveness of in-game advertising. But this isn't its first attempt.

Two-and-a-half years ago, in January 2005, the division of The Nielsen Company said it was poised to unveil a TV-industry-type metric for games. The plan called for the use of "tags" that developers could build into their video games that could be used by Nielsen to measure all sorts of in-game activity, especially response to advertising. It included how people navigated through the games, what levels they reached, and how long they spent on each level.

It never happened. Nielsen reported that the tags had turned out to be incompatible with the complex technology within the industry's next-generation game consoles.

A year later, in January 2006, Nielsen gave it another shot, but because the project was so dependent on the forthcoming launch of Sony's PlayStation 3, the company admitted its measuring system wouldn't be up and running before the third quarter of 2007.

Meanwhile, the industry struggled to sell what is known as dynamic in-game ads -- meaning that the ads within the video game can be altered remotely so they can be used for time-critical campaigns, like movie launches. Last year, despite all the hype, less than $15 million was spent on so-called DIGA commercials, which is just about 4% of the $370-million total generated by the U.S. video game advertising industry.

But, in five more years, DIGA spending is expected to skyrocket to $676 million, which will be about 33% of a market projected to hit $2 billion by Dallas-based research firm Parks Associates. If that happens, dynamic ads will be the darling of the video games industry -- and its biggest ad revenue producer.

However, all of this is predicated on advertisers feeling comfortable with their DIGA return on investment. And, so far, that isn't the case ...

Click here to read the full article » 

 
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Event Calendar

August 5-9, 2007
SIGGRAPH 2007
San Diego, California
www.siggraph.org/s2007

August 13-14, 2007
Microsoft Gamefest 2007
Seattle, Washington
www.microsoftgamefest.com

August 20-22, 2007
Games Convention
Leipzig, Germany
www.gc-germany.de/gcinfo_e.shtml

August 27-29, 2007
GDC China
Shanghai, China
www.gdcchina.cn

September 5-7, 2007
Austin GDC
Austin, Texas
www.austingdc.net

September 6-9, 2007
GC Asia
Singapore
www.gc-asia.sg

September 8, 2007
Women In Games International -- Austin
Austin, Texas
www.womeningamesinternational.org/register.html

September 10-12, 2007
GAMEON-NA 2007
Gainesville, Florida
www.eurosis.org/cms/?q=taxonomy/term/67

September 20-23, 2007
Tokyo Game Show 2007
Tokyo, Japan
http://tgs.cesa.or.jp/english

September 24-28, 2007
ADAPT 2007 Conference
Montreal, Canada
www.adaptmontreal.com

September 27-28, 2007
Mobile Games Seminar
Los Angeles, California
www.mobilegamesseminar.com

October 18-21, 2007
E For All Expo
Los Angeles, California
www.eforallexpo.com

October 18-21, 2007
Project Bar-B-Q
Burnet, Texas
www.projectbarbq.com

October 25-27, 2007
Toronto Independent Games Conference
Toronto, Canada
www.torontoigc.com

November 1-4, 2007
Project Horseshoe
Burnet, Texas
www.projecthorseshoe.com

 
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