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Thread: Sony Charging Game Publishers for Bandwidth...

  1. #1
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    Sony Charging Game Publishers for Bandwidth...

    http://www.gamasutra.com/php-bin/new...hp?story=22843

    http://www.examiner.com/x-3674-SF-Vi...for-PS3-owners

    Capcom owes Sony $226,000 for bandwidth usage of the RE5 Demo. LOL.

    Oh DLC, the ps3 hardly knew ye.
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    Its like facebook encouraging companies to develop apps, but once an app becomes popular facebook just copies it and pushes the original developer out.

    Hurray for short sighted business practices!
    Good lord are there no good games to play?

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    Quote Originally Posted by x[bodyshot] View Post
    Its like facebook encouraging companies to develop apps, but once an app becomes popular facebook just copies it and pushes the original developer out.

    Hurray for short sighted business practices!
    erm which app is this you speak of?

    but yes, fuck sony. bullying can only take you so far. as soon as digital (netflix probably) overtakes blue ray that pos company is going to die.

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    they gotta try to get profitable somehow huh? Could you imagine having a success drive you to bankruptcy? lol

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    Quote Originally Posted by x[method] View Post
    erm which app is this you speak of?


    You work for that VC back whole or something?

    I don't remember, I read an article about it a while back, Yahoo Finance maybe. According to the article Facebook developers don't own their own code. The article then went on to list some instance where Facebook integrating features of popular apps (SuperWall?) leaving the apps developers out in the cold.

    However, that is not Facebook's biggest problem. Facebook's biggest problem is that it has no way to make money. It only good for branding advertisements, which wont make it profitable at 1/1000 its current cost basis.

    People laughed at me when I said M$ purchasing a stake in Facebook was a HUGE mistake, but who is laughing now *Insert Maniacal Laughter*

    Take it from someone who runs SEM campaigns for a living (comparison shopping engine), and who has tried Advertising on Facebook. Facebook has no future in sales driven advertising only branding driven advertising (which generates far less revenue)
    Good lord are there no good games to play?

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    Quote Originally Posted by x[bodyshot] View Post


    You work for that VC back whole or something?

    I don't remember, I read an article about it a while back, Yahoo Finance maybe. According to the article Facebook developers don't own their own code. The article then went on to list some instance where Facebook integrating features of popular apps (SuperWall?) leaving the apps developers out in the cold.

    However, that is not Facebook's biggest problem. Facebook's biggest problem is that it has no way to make money. It only good for branding advertisements, which wont make it profitable at 1/1000 its current cost basis.

    People laughed at me when I said M$ purchasing a stake in Facebook was a HUGE mistake, but who is laughing now *Insert Maniacal Laughter*

    Take it from someone who runs SEM campaigns for a living (comparison shopping engine), and who has tried Advertising on Facebook. Facebook has no future in sales driven advertising only branding driven advertising (which generates far less revenue)
    I run the marketing and monetization for a social gaming company (games on FB and MS). Before this I ran the performance programs division for a display ad network, so I know something about performance advertising. I'm currently spending alot of money on Facebook, because it performs really well for me on an eCPI and more importantly ARPU perspective. With that in mind, its working very well for some advertisers like myself and the market is going to continue to grow as they improve their targeting functionality/ UI.

    Superwall is owned by rockyou which is another one of the companies that I advertise on. They make 3-5mm per month and employ about 200 people.

    Bottom line - FB is only getting bigger. They havent started their monetization phase yet, which is why they dont have that much revenue (yet). Once they have most of the market share in the US, look for that to change.

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    I am not saying it dosnt work for any advertisers. It just wont work for retail advertisers. You are in a unique situation because you are advertising a product that FB users might actually be interested in gaming. The same cant be said for BigBox, CSE and PurePlay advertisers (where all the money is).

    As for their "targeting", no matter how good general interest based targeting is for display it will be terrible. Google has the only decent display advertising targeting and that's because it keyword targeted not interest targeted.

    I am interested though is your marketing targeting user acquisition and then monetizing off internal ad display or are you actually charging for your games?

    Also how are you getting to your eCPI number? Are you actually advertising on a CPC basis and then making the conversion?
    Last edited by x[bodyshot]; 03-25-2009 at 11:00 AM.
    Good lord are there no good games to play?

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    My god take this analysis to pms please. Bring on the fanboi flamefests!
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    Quote Originally Posted by x[johnblaze] View Post
    My god take this analysis to pms please. Bring on the fanboi flamefests!
    Original thread was dead already, go jump on xbox-live and badmouth Halo3 if you want a fanboi flamefest
    Good lord are there no good games to play?

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    I like the live setup better. Charge the users the cost equal to a game a year for content. Don't piss off the software companies that keep your console afloat by making them pay even more to put out a game on your system that already costs who knows how fucking much to make.

    It's a wonder why ps3 is getting less and less exclusive content. Alot of the people making comments to the articles seem to think they entire cost of the game is in releasing a demo and the actual game costs nothing so they are making a 30mil profit. They also dont seem to understand that if developers have to spend even more to make a game for ps3 it might keep them from making more content for ps3. This is some basic shit, I don't get how people do not understand this stuff.
    Illiteracy is sexy.

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    Quote Originally Posted by x[bodyshot] View Post
    I am not saying it dosnt work for any advertisers. It just wont work for retail advertisers. You are in a unique situation because you are advertising a product that FB users might actually be interested in gaming. The same cant be said for BigBox, CSE and PurePlay advertisers (where all the money is).

    As for their "targeting", no matter how good general interest based targeting is for display it will be terrible. Google has the only decent display advertising targeting and that's because it keyword targeted not interest targeted.

    I am interested though is your marketing targeting user acquisition and then monetizing off internal ad display or are you actually charging for your games?

    Also how are you getting to your eCPI number? Are you actually advertising on a CPC basis and then making the conversion?
    http://www.iab.net/media/file/IAB_PWC_2008_6m.pdf
    Search is roughly 45% whereas display is roughly 20-25% of the total spend online. Only about 40% of that 20% is for branding, the other 60% is for performance driven display. My point was that performance is not limited to only search, retailers are not the only ones interested in performance and that there is money to be made outside of the retail world (in performance advertising). Search is powerful because it's niche, but it doesn't scale nearly as well as display does for many offers. Display is much more a toss 10 handfuls of shit up on the wall and if 1 sticks, blow it out. Whereas nearly everything works on search, it just depends on the price point/ optimization.

    btw sorry for the hijack =P

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    Quote Originally Posted by x[mop] View Post
    I like the live setup better. Charge the users the cost equal to a game a year for content. Don't piss off the software companies that keep your console afloat by making them pay even more to put out a game on your system that already costs who knows how fucking much to make.

    It's a wonder why ps3 is getting less and less exclusive content. Alot of the people making comments to the articles seem to think they entire cost of the game is in releasing a demo and the actual game costs nothing so they are making a 30mil profit. They also dont seem to understand that if developers have to spend even more to make a game for ps3 it might keep them from making more content for ps3. This is some basic shit, I don't get how people do not understand this stuff.
    I think they do. They realize they are losing market share and this is their attempt to cash in on the existing deals before its gone (therefore increasing revenue overall).

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    I had already read that IAB report, and FB it a different beast, but in regards to the report a lot of the current spend and distribution is occurring because many market participants aren't sophisticated enough in their tracking to know how effective or ineffective certain types of advertising are. A lot of the non/semi target display advertisers can and do blowout spend but don't know that they are actually throwing their money away. I except the distribution to change over time as advertiser become more savvy.

    Anyway, I'm also sorry for the highjack... its all yours.
    Good lord are there no good games to play?

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    Quote Originally Posted by x[bodyshot] View Post
    I am not saying it dosnt work for any advertisers. It just wont work for retail advertisers. You are in a unique situation because you are advertising a product that FB users might actually be interested in gaming. The same cant be said for BigBox, CSE and PurePlay advertisers (where all the money is).

    As for their "targeting", no matter how good general interest based targeting is for display it will be terrible. Google has the only decent display advertising targeting and that's because it keyword targeted not interest targeted.

    I am interested though is your marketing targeting user acquisition and then monetizing off internal ad display or are you actually charging for your games?

    Also how are you getting to your eCPI number? Are you actually advertising on a CPC basis and then making the conversion?
    To answer your question about monetizing our games, we do a little bit of display, but we dont acquire users for those properties. We acquire users for our rpg's and we monetize those through micro payments on in game items (think paying for epics in wow with no subscription cost).

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