Jul 20, 2006 19:17
Better than sex?
Posted by babelmachine
I'm now in Pulai Desaru Beach, Malaysia, to cover the ITJourno Asia Forum 2006 organized by MediaConnect Asia.
Interestingly enough, I was also a speaker, kicking off the Enjoy segment of the forum this afternoon with a presentation on the gaming industry and the Asian Gaming Journalists Association (AGJA) which I founded last year to unite gaming journalists across the region. AGJA now has over 50 members in the Philippines, Singapore, Malaysia, Indonesia and India.
In my presentation, one of the things I pointed out was that games are becoming a driver for e-commerce around the world. In fact, g-commerce, which is short for game commerce, is now a growing trend for online games. Instead of charging a monthly fee for access to the online game, some publishers give away the game for free and earn through micro transactions by players who buy virtual items.
Right-click here to download a copy of my PowerPoint presentation (2.43MB).
I quipped that right now, porn is the main driver behind e-commerce. Think about how stupid people become when it comes to sex. Worries over credit card fraud? Viruses and other security risks? All these concerns magically disappear in the face of the seemingly insatiable desire for online porn.
Heck, wouldn't it be better if games, rather than porn, were the killer app?
Gaming is becoming the killer app for broadband adoption in the Philippines and across Asia. Online gamers can't live with lag, and it's only when you start gaming that you realize just how Jurassic your dial-up connection is.
Meanwhile, the virtual economies that online games are spawning are fast translating to real-world money. Gamers are willing to spend on virtual items, whether for trivial (to get an outfit that looks really cool) or strategic (to beat the heck out of your opponent by getting a powerful weapon) reasons. These may be micropayments, but they do add up.
I've always maintained that instead of focusing on being a utility, companies should look at the emerging digital lifestyle. As in real life, we shell out more for the items we really want to buy--we're forced to pay the bills for our utilities, but it's on everyday stuff like shopping and entertainment that we end up spending more.
In-game advertising is also on the rise, and Microsoft has upped the ante by buying Massive Inc. for its in-game advertising network, for a rumored US$200 million to US$400 million. This will now allow it to leverage ads for its games on Xbox Live, as well as games on the PC, mobile and other platforms. In fact, Microsoft can now offer the Massive in-game advertising forum to Sony and Nintendo for ads on their consoles if its rivals choose to bite.
According to the Yankee Group, in-game advertising revenue will reach US$732 million by 2010. In a news release, the Yankee Group said:
The killer app is Xbox Live, which is now becoming a one-stop gaming portal, marketplace and advertising network, as well as interconnecting with all aspects of our digital lifestyle
Who knows, in the future, Microsoft might even give away the Xbox 360 just to get us all hooked on Xbox Live.
The plot thickens.
Interestingly enough, I was also a speaker, kicking off the Enjoy segment of the forum this afternoon with a presentation on the gaming industry and the Asian Gaming Journalists Association (AGJA) which I founded last year to unite gaming journalists across the region. AGJA now has over 50 members in the Philippines, Singapore, Malaysia, Indonesia and India.
In my presentation, one of the things I pointed out was that games are becoming a driver for e-commerce around the world. In fact, g-commerce, which is short for game commerce, is now a growing trend for online games. Instead of charging a monthly fee for access to the online game, some publishers give away the game for free and earn through micro transactions by players who buy virtual items.
Right-click here to download a copy of my PowerPoint presentation (2.43MB).
I quipped that right now, porn is the main driver behind e-commerce. Think about how stupid people become when it comes to sex. Worries over credit card fraud? Viruses and other security risks? All these concerns magically disappear in the face of the seemingly insatiable desire for online porn.
Heck, wouldn't it be better if games, rather than porn, were the killer app?
Gaming is becoming the killer app for broadband adoption in the Philippines and across Asia. Online gamers can't live with lag, and it's only when you start gaming that you realize just how Jurassic your dial-up connection is.
Meanwhile, the virtual economies that online games are spawning are fast translating to real-world money. Gamers are willing to spend on virtual items, whether for trivial (to get an outfit that looks really cool) or strategic (to beat the heck out of your opponent by getting a powerful weapon) reasons. These may be micropayments, but they do add up.
I've always maintained that instead of focusing on being a utility, companies should look at the emerging digital lifestyle. As in real life, we shell out more for the items we really want to buy--we're forced to pay the bills for our utilities, but it's on everyday stuff like shopping and entertainment that we end up spending more.
In-game advertising is also on the rise, and Microsoft has upped the ante by buying Massive Inc. for its in-game advertising network, for a rumored US$200 million to US$400 million. This will now allow it to leverage ads for its games on Xbox Live, as well as games on the PC, mobile and other platforms. In fact, Microsoft can now offer the Massive in-game advertising forum to Sony and Nintendo for ads on their consoles if its rivals choose to bite.
According to the Yankee Group, in-game advertising revenue will reach US$732 million by 2010. In a news release, the Yankee Group said:
"In a highly fragmented media environment, Yankee Group finds that video games present a promising window of opportunity as a growing advertising medium.
"As television advertising loses its effectiveness, advertisers must reach a largely segmented audience with discerning tastes."
The killer app is Xbox Live, which is now becoming a one-stop gaming portal, marketplace and advertising network, as well as interconnecting with all aspects of our digital lifestyle
Who knows, in the future, Microsoft might even give away the Xbox 360 just to get us all hooked on Xbox Live.
The plot thickens.
- Talkback
-
January
