The Instant In-Game Community For Mobile Games

As mobile games continue to grow and expand into new genres, it seems apparent that mobile gaming is becoming the center of the games industry, in much the same way that mobile computing is becoming the place where people spend most of their computer time. That evolution for mobile games has been accompanied by the shift from casual games as the core of mobile gaming, to other genres. We’ve seen strategy games like Clash of Clans and Game of War: Fire Age become enormously profitable, and roleplaying game elements have been important in the success of Puzzle & Dragons. Other mobile games are finding tremendous success with fighting genres, card games, and of course location-based gaming with Pokemon Go (now at 100 million downloads and $10 million in revenue per day).

There’s one factor that’s been driving the long-term success of many games on consoles and PCs, and this has been true for decades. That’s community—the groups of fans of a game who connect with each other (both online and, increasingly, in person at various gatherings) to discuss their favorite experiences, share tips and tactics, and generally hang out with like-minded people. The role of game fans in evangelizing games to new users has only grown over time—and with the advent of game streaming, it’s reaching hundreds of millions between streaming and social media. Yet, for the most part, the communities built around mobile games have been feeble things compared to the communities of PC and console games.

Spencer Liu
KTplay CEO Spencer Liu

Now KTplay, which bills itself as “your instant in-game community” for mobile games, has been changing all that. The company, headed by CEO Spencer Liu, has been serving millions of mobile gamers in China with a full-featured community platform that mobile game developers can easily add to their games. Best of all for small developers, Ktplay is free—supported by advertising within the platform. KTplay has been used by dozens of games in China, with tens of millions of users and impressive metrics for virality, retention, engagement and revenue. Now, KTplay is bringing its community platform to Western developers, and there’s tremendous potential for growth.

Why hasn’t community been as important for mobile games as it has for PC and console games? “We feel that so far there has not been a platform that’s effective,” said Liu. “The reason being, where are your most active, your most loyal, your most engaged players? Are they on Facebook? No. Are they on Twitter? Instagram? Maybe, I don’t know. The one place you know where to find them is in your game, that’s where we can be 100 percent certain they will be there. That’s where their minds are on your game, they are focused on playing your game and understanding your game. That’s also where they will most likely run into issues advancing in your game. They want new tactics, they want strategies, and they would be very interested to find other players who are like-minded and share their passion for your game. Where? Right inside your game. It’s all about in-game.”

The role of communities in helping make games successful is clear for PC and console games, but those communities have found their home on the Internet, on forums and websites. Now that we see deeper mobile games, where do people go to find a community? It’s a problem for lots of mobile games, and KTPlay sees itself as the answer.

“We have to admit there are a lot of good developers who are developing many more social features right inside their game,” said Liu. “You can check out each other’s villages, you can even do game replays and share a video clip inside the game. But those features, those user flows are built to directly benefit the entire game mechanism, the game experience. And monetization, retention, and so forth What about casually meeting other players, what about asking a question on how I can advance? So far there has never been a place or a platform or a tool where users can do that. Developers default to what has been done for many years—let’s launch an open-source forum on their web site. So it’s extremely disconnected from the game experience, the user accounts are not linked in.”

Developers can customize the look and feel of KTplay to their game, so that it fits right into the style and interface—and you never have to worry about uniting users spread across Facebook, web forums and other platforms, because you can find them all in the game itself.

KTplay offers a community management tool within your game that helps with marketing efforts, by better targeting of customers and engaging with them more directly, within the game itself. “Now that we’ve aggregated all the users inside the game, how do we help developers to influence their behavior? Besides content curation and community management tools on the back end, we also have a series of light live ops tools,” Lui said. “In-game messaging with deep links that can be sent to specific segments of the users. For instance, if I have certain IAPs on sale, most developers would send a notification and say ‘Come buy this, it’s 50 percent off.’ We want to add a more social element to the whole experience, so you ask people to come into the community and talk about it. You click on the in-game notification, you are led to that specific topic in the discussion forum.”

In other words, it’s much more targeted and effective marketing, and that’s what KTplay’s community tool provides. The product isn’t difficult to install; Liu estimates it takes about a day if the game is built in Unity. Of course, adding in deep links and other features could take more time, and require the involvement of the product team. The business model for KTplay grows out of the company’s concept of trying to benefit all parties in the ecosystem.

“Our philosophy has always been ‘let’s create a great product first that will benefit players, then benefit the developers and the publishers,'” Liu said. “Based on that win-win scenario, how can we create a great product that’s offered to developers for free? Phase one of monetization is native advertising right inside the user experience. Right now we’re partnering with AdMob to power our native ad experience. We chose native because we don’t want the ad experience to be intrusive or interrupting. There are multiple native ad injection points throughout the experience.”

KTplay also has a paid model for larger publishers who don’t want to have other advertisers in their games. “From our experience, some 90 percent of developers welcome this ad solution because it’s not intrusive,” Liu said.

Now the challenge for KTplay is to get the package installed in the West. “We’re at the very beginning of pushing it out to the Western market—KTplay has existed in Asia-Pacific for the past year and a half, and it’s gained great traction in China,” Liu said. “Now we believe the platform has been battle-tested, it’s very stable, the features are extremely robust, and most importantly beneficial to retention and revenue. We’re launching our big PR blitz now, and plan to attend various conferences and shows to get ourselves out there.”

Buffalo Wild Wings Exec Discusses Future ELeague Plans

The members of Counter-Strike: Global Offensive (CS:GO) team, Virtus.pro, aren’t the only winners at the culmination of Turner and WME/IMG’s inaugural 10-week ELeague. Buffalo Wild Wings, one of the primary sponsors of the event, has committed to the first year of Turner eSports, including the upcoming $300,000 Overwatch Open with FaceIt.

ELeague, which focused on digital coverage of CS:GO competition four days a week with Friday night television matches, saw over 897 million gross minutes of video consumption on TBS and Twitch. ELeague also attracted more than 3.4 million new viewers to TBS during its 10-week season, with the audience composition consisting heavily of millennial viewers falling in the coveted male 18-34 demographic.

Bob Ruhland

Bob Ruhland, vice president of North America marketing at Buffalo Wild Wings, talks to [a]listdaily about what these Turner numbers mean for his restaurant chain in this exclusive interview.

Why did you decide to enter into eSports with Turner?

It was the perfect combination that brought a new audience together with a trusted partner we had with our NCAA basketball relationship. Turner told us where they were going and about the relationship with IMG in getting talent, and the model of having the best-of-the-best top gamers in the country combined with the discipline behind Turner Broadcasting. All the planets aligned.

Who is your typical Buffalo Wild Wings consumer?

Our typical demo with media marketing is 18-49, but we tend to skew younger. It’s important to look at growth vehicles to build our fans of tomorrow. We look at people who are younger than 18 like a farm team. We think that this ELeague opportunity can help build up our fans of the future. ELeague spans both younger viewers and our traditional demographic, so it’s a great opportunity to engage with both.

How does ELeague viewership compare to your NCAA basketball fans?

There’s a lot of overlap with our NCAA basketball audience. We define our core audience as MPVs. They enjoy casual dining and want to be socially engaged. There are a lot of common threads across NCAA basketball and eSports. We do regular surveys and we know that two-thirds of our MVPs are engaged with gaming on smartphones.

Have you asked MVPs about eSports?

Not yet. We have some info on MVPs from previous surveys. We’re now changing some of the questions we have, from a research perspective, to get more info about their gaming. We have enough evidence today to know that it’s the right way to communicate directionally, but we need more evidence so we’re reaching out to MVPs and asking questions around this category.

What are your thoughts on the Season 1 stats Turner released on ELeague?

Everything we anticipated happening, happened. We were impressed, from a Turner perspective, in the production and how people who tuned in on Fridays could see where everyone was in the whole (CS:GO) map so they knew what was coming—which you don’t get in the game itself.

Do you anticipate any changes for Season 2?

Seasons can’t be as long as they were. We knew this was an area that was going to change in a hurry. Even Turner offering Overwatch as a bridge season before they go into CS:GO Season 2 is a good example of them learning on-the-fly.

How long are you committed to ELeague?

We’re a sponsor of ELeague for the full year. Turner only wanted to do one-year commitments for ELeague. We’re in for whatever they decide they’re going to rally around for that first year. We’ll have the same role in Overwatch as we did with CS:GO. Then they’ll go to the second season CS:GO later in the year.

What are your thoughts on the flexibility Turner has had with eSports?

Craig Barry, EVP at Turner, did a good job of building out this first year. It’s interesting to see how many different games they’re focusing on.

We were at Turner Studios about two weeks ago to get a chance to watch Craig and how he’s approaching this in a fluid way. He’d tell us: “this is what we think is going to work, but as the year progresses and we see what’s happening on Twitch, we’ll adapt to this.” This is the way this category has to be, changing on-the-fly.

What has being part of the massive Twitch audience opened up for your brand?

We have a TV network within our network, B-Dubs, in close to 900 locations now. By the end of this year, it will be in all 1,200 locations. We’re not just focusing on the TBS ELeague broadcasts, but also exploring streaming online (eSports) content in restaurants moving forward as an extension of the Friday Night “Game On” opportunity. That’s really intriguing to us as content participants.

When do you anticipate the streaming of weekly ELeague content in restaurants?

I probably see us going that deep next year. We’re looking at other opportunities around eGaming that extend beyond Turner ELeague and Twitch Showdown. We’re looking at a holistic, national eGaming offering. We’re not limiting it just to Turner.

What’s been your customer reaction to having eSports in restaurants?

This is our first time in eSports. Initially, the reaction has been good. We wanted to do a soft launch with the start of the season to make sure it looked good on the TVs. What we didn’t anticipate was how much demand there would be out of the gate. We missed the expectations of the guests. Overall, we’re comfortable with what we did with our first season.

Did you see an uptick with the Finals?

One thing that happened on Friday was that the ELeague championship occurred on National Chicken Wing Day, so we had half price chicken wings. We don’t know yet if the surge in attendance was because of the first of the two-day Finals or Chicken Wing Day.

Was ELeague bigger than your Twitch Showdown activation July 25-27?

It was bigger for ELeague. Certain locations like Sherman Oaks, CA saw over 80 people who are fans of Luminosity Gaming and Team Karma come in and store sales were up 9 percent that night. It shows us there are opportunities out there, and we should reach out and do more from a local development community perspective to get people into the restaurants. We’ll do that in Season 2 and beyond.

How long had you been exploring eSports before jumping in?

We’ve been looking at this for two years. It was something we’re very proud of, and while we knew it was going to be a big deal, we wanted to make sure we’d done all of our due diligence before we jumped in. This was a great first test and now the genie’s out of the jar.

How ASTRO Gaming Is Empowering ESports Players Through Headsets

ASTRO Gaming brought some serious heat this summer to eSports players around the world when they introduced a new iteration of their best-selling A50 headsets.

Launched at E3 and still set to be available to major retailers later this summer, the A50 wireless gaming headsets feature a new base station transmitter, low-latency 5GHz technology and Dolby surround sound, as well as a slew of other upgrades.

For the company that was born from the pits of pro gaming, it’s just another extension of marrying technology and lifestyle with innovative industrial design.

James Lang, technical product manager at ASTRO Gaming, joined [a]listdaily (video above) to detail the how gamers swear by their array of audio equipment, and how they’re working with non-gaming brands.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

Industry Execs Discuss The Future Of Mobile Games

What was the mood from games industry executives at the 2016 San Francisco Casual Connect? That’s easy: a renewed sense of optimism about the mobile and gaming market. While there’s plenty of concern to go around about discovery issues, increasing cost-per-installs (CPI) and the resistance of the top-grossing mobile games charts to change, there’s also optimism. The wild success of Pokémon GO has brought a smile to many faces, and not just at Niantic.

The message that Pokémon GO brings is that the games industry is still open to new hits, and that innovation can succeed in multiple areas. Some see Pokémon GO as validating the enthusiasm for augmented reality (AR), and by extension, virtual reality (VR). Others see location-based gaming as a new genre that has rich possibilities, not just in motivating gamers, but in finding new sources of revenue like getting businesses to pay for in-game items that can draw customers. Others see the power of an iconic brand that has been building enthusiasm for twenty years, and that makes them want to double down efforts to license other top brands. There’s also a question: will the success of Pokémon GO mean that Nintendo will take mobile games more seriously?

Meanwhile, enthusiasm continues unabated for the areas of the industry that are showing massive investment and growth: VR and eSports. The intersection of mobile gaming with streaming, eSports, VR and AR is obvious, and people in the industry are working to make those connections and crossovers. Mobile games will not be left out in any of those areas, and mobile is becoming the center of people’s online and computing experiences.

Industry executives pointed out specific areas ahead that they see of prime importance. These trends will be defining the market over the next few years, so getting on board early is important.

Social Features In Games

Numerous executives pointed out how mobile games are becoming more social than ever, and the more connected a game becomes, the better. Community is becoming as important to mobile games as it is to console and PC games, as are streaming video and the phenomenon of eSports. Even casual games are beginning to see the importance of this trend. “Casual gaming companies like SGN are going to be adopting midcore features that will make them a lot more social,” said Chris DeWolfe, CEO of SGN. “People want to play games with their friends—it goes back to the board game days; it’s game night. To the degree that you can replicate with mobile games you’re going to be more and more successful. Pokémon GO is hugely social, and things like clans and chat that we see as midcore are all going to be coming to casual games.”

Consolidation

The total number of large companies in the mobile games industry will probably drop, just as we’ll see more consolidation among all the mobile services vendors offering advertising, financial, and other services to mobile companies. We’ll keep seeing mergers and acquisitions in the mobile space for years to come. “There are definitely more gaming companies than there will be in five years in the mobile space, at least of any size,” said Niccolo de Masi, CEO of Glu Mobile. “Console went through this very healthy consolidation where it went from thousands of companies to five or six. Mobile gaming is different because it’s a global market for both labor and distribution. There will be two tiers—a dozen or perhaps half a dozen multinational holding companies that are big in the four markets that matter: Japan, China, Korea and the US. Each of those markets can support a billion dollar game in a year. Very little in the middle, and then you’ll have a very vibrant indie space.” Tencent, the world’s largest game company, will still hold that position in five years, de Masi predicts.

New Markets Will Emerge

Some proclaim that we are seeing another paradigm shift occurring in the tech industry. First the PC revolution, then the internet revolution, and we’re seeing the tail end of the mobile revolution. What’s next? Messaging apps are a platform, and Game Bots are the new apps, “Messaging apps are showing explosive growth,” said Alexander Krug, CEO of Softgames. “Two billion users are using messaging apps. Messaging apps are the top apps—in terms of usage about 8 percent of the time spent with a mobile phone. Bots are the new apps, and the bot store is the new app store.” He sees games already appearing in messaging, and their current crudeness will rapidly give way to more sophisticated efforts. Shopping and gaming will become important things that can be done entirely within messaging apps.

Innovation Is Important

Although there’s more content coming, it’s important to remember that innovation is the engine that drives the whole industry. A new match-3 game may produce some revenue for a publisher, but that’s not going to ignite a whole new audience or boost a company to the next level. VR hardware is coming along nicely, but it’s going to be innovation in the content that will truly see the VR market take off. “Great content is going to drive adoption [of VR], it always does,” said Clive Downie, chief marketing officer for Unity. “Content is and always has been king. That’s where the creators of tomorrow come in. The opportunity is here, it’s real, and it’s waiting for people like you to dream and to invent something we haven’t thought about. Eventually, everyone will be in this place. My advice is to get there first, because it’s going to be worth it.”

Investment In Games

While there’s no scarcity of capital available to fund ventures in the games business, most investors are being careful about where they make their plays. “Games are my home base, it’s a place I’ve done a lot of my investing and I really love the games business,” said Mitch Lasky, managing director of Benchmark Capital. “Despite my background in mobile, I haven’t invested in a mobile game company in four years. I’m finding it increasingly difficult to find competitive advantage in the mobile business. The tyranny of the App Store and Facebook’s customer acquisition is just a very hard place to generate outsize returns.”

Hennessy Brings Modern Approach To Its Historic Brand

Hennessy is taking a substantial swig back into the Unites States market with a dynamic interactive experience in “Harmony. Mastered from Chaos.”

The spirit maker is banking on a stateside integrated marketing strategy—specifically for Hennessy V.S.O.P Privilège—that’s designed to cater to cognac connoisseurs by communicating the company’s rich history in craftsmanship.

The creative multidimensional campaign, V.S.O.P Privilège’s first in the US over the last 10 years, brings to life the spirit’s complex variables and brand’s distinctive blend. The cinematic journey uses 3D lidar scanning, depth capture and binaural recording and merges with live-action footage to capture the cognac-making process. The interactive digital experience— narrated by 2016 Tony-Award winner Leslie Odom Jr.—adds another chapter to the legacy luxury brand’s “Never stop. Never settle.” platform. It continues the strong push Hennessy has been having in 2016 for its overall brand, which also includes “Each Drop of Hennessy X.O is an Odyssey.”

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The French multinational brand hasn’t had a shortage of brand awareness and reaching its sophisticated consumers across the states over the last decade. The likes of Tupac, Snoop Dogg, Tech N9ne, Nas and Swizz Beatz—among a slew of other rappers—have helped Henny to never leave the lexicon of pop culture, as well as brown bottle enthusiasts.

Hennessy was one of four sprits that accounted for more than half of alcohol brand mentions in the songs that mentioned alcohol use in Billboard’s most popular song lists in 2009, 2010 and 2011, according to a 2013 study from the Johns Hopkins Bloomberg School of Public Health.

Nas and Swizz Beatz even turned rapping about the company’s cognac to lucrative endorsement deals for themselves.

Giles Woodyer, Hennessy’s senior vice president, joined [a]listdaily to discuss how the cognac maker is keeping it classy and complex all at the same time with “Harmony. Mastered from Chaos.” 

What is the brand promise you’re trying to communicate with the “Harmony. Mastered from Chaos.” campaign?

A history of unwavering quality. Hennessy is an incredibly vibrant brand that has a very loyal following, however, few people know the full story of our history, craftsmanship and family legacy. We have chosen to share this rich heritage through the lens of V.S.O.P Privilège.

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After 10 years, why was it important to re-introduce the V.S.O.P Privilège brand to the US audience? How does your US audience differ from the one in Europe? 

Hennessy enjoys incredible momentum with our very special cognac in the US market. Hennessy V.S is one of many cognac expressions that we offer and want to introduce people to the full richness of our portfolio. For many, V.S.O.P Privilège is the next step on the journey. V.S.O.P Privilège is an exceptionally well balanced blend that naturally lends itself to a broader base of brown spirits drinkers during a time when we are seeing unprecedented levels of brown spirits consumption. Hennessy is perfectly positioned to be one of the brands that benefits from this renewed interest in the category. In addition, we have seen a resurgence in the interest in classic cocktails and a rise in mixology around the country. At the turn of the last century, cognac was the base spirits of many of the iconic, classic cocktails. V.S.O.P Privilège works extremely well in those classics, such as the sidecar and vieux carré, and is delicious neat or on the rocks. 

What’s the relationship between the rich visual language of the film and an interactive site with the heritage of Hennessy? What’s the message you’re trying to get across? 

Creating Hennessy cognac is a beautiful experience that starts in the vineyards of Cognac, France and travels to the distillery and to our extensive cellars. We wanted to bring some of this beauty to life for people to experience so we are revealing the story behind the crafting of Hennessy cognac—a story that dates back 250 years. Making cognac requires patience and exceptional skill honed over generations.  Our Comité de Dégustation is comprised of a highly skilled group of individuals who have dedicated their lives to making cognac. We want to provide a glimpse into the magic of this world. We cannot do justice to the many elements and stages involved in the cognac making process in a short format film, thus our desire was to create truly immersive chapters so that people could explore each of these stages that is so unique and essential to the art of making an exceptional Cognac.

What does having company pillars like Hennessy’s mysterious Comité de Dégustation (Tasting Committee) allow you to do?

When people think of Hennessy, they often associate the brand with our role in popular culture—the Tasting Committee are a living, breathing embodiment of our savoir faire. We are exceptionally lucky to have a depth and richness to our history and our cognac making process that is the envy of the industry. Sharing the intriguing story of the Hennessy Tasting Committee, its exacting practices and long standing rituals, illustrates the crucial role that over 250 years of tradition and excellence play in mastering this well-structured spirit. Telling this story helps to bring the extraordinary legacy of our brand to life.  

How does Hennessy further plan on using social media, content and other storytelling tools to engage in new ways with consumers? What kind of social rollouts can followers expect?

Hennessy uses social media engagement and original content as part of the integrated programming with all of our cognacs. We plan to bring our V.S.O.P Privilège campaign to life on social media via month long stories that convey the essence of “Harmony. Mastered from Chaos.” These compelling stories feature experts, in varying disciplines, who display a high level of mastery in their chosen field. These stories will begin rolling out across all of our social platforms starting in August.

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How will you measure success for the “Harmony? Mastered from Chaos.” campaign?

We have created this campaign to engage and educate consumers by offering a glimpse into some of the 250-year-old inner-workings of Hennessy, through a modern and powerful cinematic experience.  This campaign will be a success if consumers respond to it and enjoy learning more about cognac, Hennessy and V.S.O.P Privilège.

How does using immersive experiences best position Hennessy’s marketing efforts moving forward? How will Hennessy continue to leverage interactive promotions?

Hennessy will continue to offer immersive experiences, whether virtually or in reality, to surprise and delight our brand fans. We find that consumers of Hennessy embrace the brand as part of their lifestyles and want to engage with our cognacs across many facets of their lives, from enjoying cocktails with friends and attending our events, to sharing across social media. These immersive experiences help to build and strengthen meaningful brand connections which are important to our Hennessy drinkers.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

NVIDIA Exec Explains First-Mover Advantages Of Virtual Reality

NVIDIA has grandiose plans to bring virtual reality to 130 million computers by the year 2020, and they’ll mostly do that by marketing their latest graphics hardware through engineering.

But they’re also keen on bringing VR to another burgeoning market—specifically the professional one—with their NVIDIA VR Ready program.

In short order, the graphics firm has started working with original equipment manufacturers like Dell, HP and Lenovo to offer NVIDIA VR Ready professional workstations and are enabling the industry’s first professional-class mobile workstation.

David Weinstein, NVIDIA’s director of professional virtual reality is responsible for the company’s professional VR products, projects and software developer’s kit, joined [a]listdaily to discuss some of the pressing questions about VR that industry insiders are pondering.

Professional VR extends to such fields as medical, architecture and manufacturing, among others. Which sector do you think has the most potential? 

I think that education will be huge. The opportunity for personalized education where curriculum is presented in VR—where it’s much more of a choose your own adventure type of education—will be a really compelling domain for kindergarten through twelfth grade, as well as college. And that sort of leads in to the next one in training. When you want to train someone to do a job, or say, doing it in a VR environment—whether it’s the battlefield or the assembly line—when you experience it in an immersive environment, you learn it and remember it in a much deeper way than you do just watching it on a screen.

Are consumers ready for VR today?

Yes. In some ways, we’ve been really well prepared for it thanks to Hollywood. We’ve all seen Minority Report, The Matrix. We’ve all seen Star Trek with the holodeck. A bunch of us have read The New York Times bestseller Ready Player One. We’ve been well prepared, perhaps even better than we were when cell phones came around. Steve Jobs had to get on stage and pound smart phones into us. With VR, everyone is going to go, ‘OK, it’s finally here. I’ve been waiting for it.’ I don’t think adoption will be slow, or complicated. I think everyone is ready for it.

Who will help drive the growth of VR?

The leading edge, as always, is going to be gaming because gamers want great gaming experiences. That drives a lot of sales, and the professional markets benefit from those sales. It’s really the consumer side that is leading things, which is starting to become a theme. On the graphics processing unit side, the performance we’re pushing out every year with our new cards is largely driven by gaming, which is fantastic, and professional application leverage that.

How do you share a VR story in a non-VR format? How do you overcome that challenge of someone having to actually experience it?

Doing it directly will be difficult. How do you experience a movie in a book format? We’ve gotten good at translating formats. Whether something will translate in an automated way, that’s going to be harder. It’s hard to take our existing modes of storytelling and translate that to VR. People have additional degrees of freedom.

Why should brands be lining up for VR activations? 

We’re kind of still in the requirements-gathering stage of VR. For storytelling in VR, nobody really knows the answers. So, if you want to influence what products look like, you have to get in early. That’s one reason for early adopters to participate in the VR space. There will also be first-mover advantages. If you’re the ‘first’ and people like it, you may stay on top of that field for a long time. If you get there first, you have the opportunity to influence the conversation.

One of the main problems currently for VR is people don’t have access to headsets. What is the workaround for people who don’t own the gear?

That one is hard. The solution to that one is time. HTC and Oculus are expected to ship around a million units by the end of the year, and there’s a fast rate of sales currently happening. Those are the high end devices. You already have a bunch of people with Google Cardboards and Samsung GearVR headsets. During a physical convention or show, it’s hard when one person at a time has to get a VR experience, and each takes 15 minutes. How many people are we going to get through? It’s hard, because it’s a one-to-one transaction.

How can VR turn from one-to-one to a social experience? 

Mark Zuckerberg has been trumpeting that, as have others. VR is going to have a huge impact on the personal side of things. I think there is compelling reasons why it will become social, very, very, fast. Gaming could be social, and in most cases, it already is. VR can make it more social. I think gaming will be at the leading edge again.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

Glu Mobile: ‘Gaming Is Poised To Be The Apex Predator Of Entertainment’

At the Casual Connect conference in San Francisco, Glu Mobile CEO Niccolo de Masi was interviewed by Michael Metzger, senior vice president of investment banking firm Houlihan Lokey, about Glu Mobile’s celebrity game strategy and de Masi’s views about entertainment and games. The following are some excerpts from the talk.

You released Gordon Ramsay DASH recently. What worked well and what hasn’t worked well compared to the other DASH games you have?

Glu’s strategy in celebrity gaming is fundamentally about, “how do we take a proven game that monetizes well and has a solid LTV [Lifetime Value] and turbocharge that experience?” We do that not only by trying to expand the audience, which fundamentally drives more installs organically, but it also tends to be a lowering of the average cost per install. So there’s a an audience expanding function for these partnerships. Then there’s also unique content tie-ins. Gordon Ramsay DASH demonstrates all three of these turbocharging factors.

Gordon has been a strong supporter of his own game. You can tell from his Twitter feed. He’s been on social media and TV talking about this. The game itself is quite unique. Gordon does a lot voice-over in it, you can be sworn at by him as you play, and it has a lot of his own refinements and polishing of the design. Whether you’re a Gordon Ramsay or Kim Kardashian, it’s the three same effects: grow the installed base, lower the actual CPI for paid marketing, and then sometimes you get a welcome boost in retention as well. Both in Gordon’s and Kim’s games, we have seen that people stay in the game longer than they do in predecessor titles, namely Gordon Ramsay Dash and Stardom, respectively. There’s probably, on the margin, a greater propensity to spend. We certainly saw that in Kim’s game and to some extent in Gordon’s as well. We are pleased with both of those partnerships. There a template for what we’re trying to accomplish with the rest of our roadmap. Next up for us will likely be a Nicki Minaj game this fall.

You mentioned that your celebrity games have higher LTV’s. How does the celebrity factor play into the LTV of these games?

Thankfully, we’re a public company so I can answer that fairly accurately. If you look at Kim Kardashian: Hollywood‘s cumulative revenue between June 2014 and the end of 2015, you come to something like $157 million in revenue. We’ve also done about 40 million installs, so if you divide that you get to about a cumulative $4 LTV so far. I expect that we’ll see similar numbers from Gordon’s game and other successful partnerships. The expansion comes about through a mixture of factors moving up, so it’s not one single thing. It’s a little bit better retention, a little bit better conversion, and together those ARPPU (Average Revenue Per Paying User), those three metrics if they each go up ten or twenty percent in aggregate you get quite a big boost to overall LTV.

You have a wide range of celebrities with a large following in your games. What makes for a more successful celebrity game, and what makes for a less successful one?

Making games is hard. It’s not only difficult to bring together the art and the science so that there’s a really good experience, but there’s an element of market timing to it as well. There’s always an element of variability, a balance between what’s old and what’s new, ultimately. When you look at our portfolio of celebrity games, the successes we’ve had have been a mixture of the art and science coming together well and being a great experience. Also, something that hasn’t been seen before helps. There’s always an element of whether or not you are doing something that is fresh enough. We perhaps didn’t do that with our Britney Spears or Katy Perry games, for example. We were counting on a new brand and a more established monetization engine to carry the games forward. What we’ve seen in those games is a decent LTV but not a big enough audience.

What’s interesting is when you think about Kim’s game audience, it’s actually three or four audiences pulled into it. You’ve got Kim’s core fan base, which at the time was 40 million followers. Today it’s more than 60 million. She’s actually pulled in other adjacent demographics: you’ve got people interested in Hollywood and becoming famous, then you also have young adult female decision makers, 14 or 15-year-olds, and then those who want to experience what it’s like being a celebrity. You pull all three of those together, you have a $150 million to $200 million game by the time you’re done. Gordon—to some extent—is doing the same thing, there’s never been a celebrity food game before, so we’re first.

We continue to believe in what we are doing. We are leading what I call the personalization of media through gaming. It’s the same trend you’ve seen on TV and on all forms of media, where in the Western world people are becoming what is followed, what is more important. When Tim Cook says “we figured out the future of TV is apps,” we totally agree. The future of everything is apps—the future of magazines, the future of TV, the future of music, and the future of gaming is obviously an app as well. I think gaming is poised to be the apex predator of the entertainment space. We can generate more revenue per second of engagement, [and] more revenue per daily average users, than any other form of entertainment because we are better at driving that compulsion loop. The future of gaming and entertainment is intertwined. The personalization of entertainment is what we’re going to see a lot of in the next five to ten years.

Will games be a key platform for celebrity engagement with their audience?

Performance is the #1 revenue generator if you’re an artist. After that, you’ve got merchandising. I think gaming and apps are poised to be right there on the podium. For Kim, we are #2 on the podium; according to Forbes we were 40 percent of Kim’s haul last year, which means we’re probably #1 or #2. For Taylor or Nicki, we’re planning to do the same thing.

What is your vision of the future of the mobile entertainment space? You look at the top apps and the media streaming apps weren’t there six to twelve months ago, and now they are. What is this doing to gaming apps?

We’re keeping our eyes on it. There’s no hiding the fact that in the past 18 months, a third of the top 25 grossing spots have been taken away from gaming companies and are occupied by Spotify, HBO, Pandora etc. The world has gone mobile and it’s here to stay. For the first three years, the App Store was just a game store. Today, Facebook is a majority mobile revenue company. YouTube is a top-grossing app.

Consumers are spending the majority of their time and revenue on mobile devices. So we have to compete in that landscape. That’s why I think gamification of entertainment is a really interesting intersection for the entire gaming industry to sit up and take note. There will be Pokemon GOs that punch through and occupy the top-grossing spots. But subscription apps have a sizable advantage: a simple UI that cycles a lot of content through, and it’s frictionless, it’s very mass-market. We can learn from this. In the future, our roadmap is going to integrate some of what’s been successful there. Certainly, we’re already making entertainment products with our celebrity partners that are competing for that time. If 20 percent of consumer time goes on Facebook or instant messaging, that’s something we actually have to compete for as part of the consumer’s day.

How Epson Is Reinventing Their Brand Through Augmented Reality

Epson is having a coming out party of sorts to let everyone know that they’ve long shed their image as your father’s favorite printer maker. One way the company is furthering its foothold in tech is through augmented reality.

AR—by way of the overnight sensation Pokémon GO—is certainly stealing headlines from the nightly news to The New York Times and all the way down to the mommy blogger as the next “it” thing, forcing brands to quickly react and pivot to get a piece of the proverbial pie. Nintendo’s stock suddenly skyrocketed by an excess of $7.5 billion, but as industries like automobiles have proven over time, the consumer applications have been open for the taking for a long time.

On the other hand, on lands far away from Lickitung, the likes of Epson are positioning themselves as leaders in AR through smart eyewear. Epson believes display technology—colloquially known as the fourth screen—will soon dominate the electronics industry.

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One way the providers of the Moverio AR platform are

staying ahead of the curve is by teaming up with cutting-edge app developers to showcase mobile phone mirroring, 3D AR shopping, indoor location tracking and more.

Start-ups like AR-Cadia use Epson’s flagship product in the Moverio BT-300—which enables transparent, mobile AR for businesses and consumers, and is set for a fall release—to bring mobile phone apps to life. From social media sites to streaming video services, the AR-Cadia software allows mobile apps to be enjoyed privately through a large, transparent display in the user’s field of view; users can also “pin” apps, web pages or 3D images as “holograms” to targets in the physical world.

In May, Epson joined forces with Super Ventures on a $10 million AR incubator that will provide entrepreneurs with pre-production versions of its Moverio device and work with Super Ventures in discovering new companies like AR-Cadia.

By June, Epson was commanding primetime real estate—and serious attention—at the Augmented World Expo in San Jose, California, where they partnered with Atheer to deliver remote collaboration and task flow deployment on the Moverio platform. The collaboration enables solutions for enterprises that are ready to be implemented and is part of Epson’s ongoing strategy to leverage their smart eyewear.

“Our AiR Suite for Enterprise on the Epson Moverio platform can deliver easy collaboration, management and rapid task flow creation and deployment to ‘deskless’ professionals in the industrial space,” said Ryan Fink, vice president of business development for Atheer. “By leveraging the robust features of Moverio smart eyewear, we can offer an efficient wearable computing solution that makes hands-on work easier and safer.”

Michael Leyva, product manager at the Long Beach, California-based Epson America, joined [a]listdaily to further discuss the company’s efforts in the field of AR.

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What prompted Epson to embrace AR?

It’s a question everybody asks. They go, ‘Epson … Aren’t you guys a printer company?’ And it’s a very valid question. What most people don’t know is that Epson is more of an overall technology company. Our parent company in Seiko Epson Corporation in Japan makes a lot of different products that nobody sees, like internal components that we license to other companies, like the original iPhone screens, or motion sensors for the Nintendo Wii. A lot of people have no idea that there are Epson parts in there helping drive technology.

With regard to AR glasses in particular, there are two things that made it a natural extension for Epson. One is that our most dominant market is projectors. Epson has roughly 40-to-50 percent market share. You can imagine that with glasses, the technology from projectors was taken and used in a new way. The glasses have micro-projectors on each side, or ‘leg’ of the glasses that if we produce an image, it’s refracted back and forth through the prism, or the optic wave guides it until it reaches the prism, and then you get the virtual screen that you’re looking at. Second is that Seiko Epson, which also makes Seiko watches, is great at precision manufacturing, a process in and of itself that we have patents on and mass produce in.

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What are some applications brands can use with Epson’s AR hardware to connect with consumers?

Our colleagues in Europe have had tremendous success in the B-to-B-to-C market with tour guide companies, or integrators in museums who build software. Let’s say you’re at in an attraction in Italy and want real-time translations, subtitles, or some sort of visual information to accompany the tour—digital information can now be overlaid on the real world. In the US, we’ve rolled out some experiences with sports teams where you get real-time analytics and information while watching a game. It’s been great for fantasy football, so you don’t have to look down on your phone. In general, enterprise is very much a work tool where you’re really trying to bring information to the forefront.

How has Moverio made its way into drone racing to help pilots? How are you furthering the growing industry?

There is a very defined reason to wear it. With something like our DJI Phantom 4 Camera Drone, the use-case that we’ve really built out with drone pilots, the biggest issue they have is when they use their phone or tablet to connect it to the holster on their controller, it gets washed out in bright sunlight. It can be very hard to see the screen at times. Another issue is that they’re looking down at their controller to get real-time telemetry information and video stream from the camera. That means they’re looking down, and not at their drone. What the glasses enable is that instead of having the info on your phone, you have it directly in the field of view.

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What are the gaming and eSports applications?

Gaming is a fun one. It’s one for us that people might not buy the product right away as a gaming device, but if they buy it for drone racing, and they later want to go home and play games on it, it’s a great second-use case scenario. With gaming, the key is that you want the content to have some interaction with the real world. If you think about the mobile experiences, they’re often using multi-touch. With glasses, the great thing is that you can still interact with the real world since it’s transparent. You don’t want for the game to be confined to the screen. We’re hoping people can build experiences similar to mobile and tablet that are a little less power hungry.

How do you see the next handful of years developing for the AR industry? 

That’s everyone’s million dollar question—‘when will AR really hit with adoption?’ We’re seeing 2016 as the year with a lot of virtual reality momentum. You have all of the big headset manufacturers launching their products this year. We think VR has that chance first. AR is a little behind on that curve. Maybe a year or two from now. Epson has seen a lot of adoption. I’m not promising millions by any means, but we’ve sold a lot of units. We encourage to use AR hardware when they have an exact reason to do so.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

SGN Discusses The Growing Opportunities Of Mobile Gaming

The mobile games industry is a place of great opportunity from the perspective of SGN Games, according to its CEO Chris DeWolfe—especially since the company recently acquired mobile game developer, TinyCo. At the recent Casual Connect conference in San Francisco, DeWolfe talked to [a]listdaily about the recent acquisition of TinyCo, the value of licensed IP for games, and how VR looks to SGN.

Chris DeWolfe
Chris DeWolfe, CEO at SGN

How does the TinyCo acquisition fit into SGN’s vision?

We’re seeing massive consolidation in the mobile gaming space. There’s certainly room for some new entrants to come in. It’s pretty simple in economic terms. We’re seeing the industry grow by 20 percent, but it also consolidates for a bigger piece of a growing pie. That’s super interesting, but it also gets us into a new segment, the builder genre, or invest and express, where TinyCo is a leader using Hollywood-based IP. I don’t think we could have replicated that on our own.

What is the appeal of licensed IP?

I don’t think all licenses are alike. The really interesting thing about TinyCo is they had a unique take on the types of IP they would go after. It’s hardcore, rabid fans that want to watch a TV show or a movie and want to get immersed in the environment. They don’t get enough of it while they are watching TV or a movie, and they want to extend that immersion into playing a mobile game. That got us really excited. Their revenues—we think they’re going to do somewhere around $100 million this year—it’s a meaningful number, and we think it can get a lot bigger than that.

Why IP? Because you have to pay someone a licensing fee? User acquisition is tough for all you guys, it’s tough to get new players into your game—there’s a million new players coming into the App Store. IP helps you get more users, more quickly, and higher click rates that all accelerates. It’s a little bit substitutional for advertising costs. In some ways, it may be lower margin, in some ways it may be higher margin. It’s very nice to have a mix of the two.

When you look at the mobile market now, what worries you about its state? How would you fix the market?

I wish we could experiment with everything and try everything. I wish we could do midcore games, I wish we could do social casino, I wish we could do storytelling games. I think with the maturity of this market, you have to think about one thing that you do really well, and that you can be an expert in. Get really good at that, and then begin to try something new. For us, we always want to try something new. We want to do VR, we want to do AR, have a big R&D team, and at the end of the day, managing your resources is probably the most important thing.

When you look at the mobile game companies out there, which ones do you admire?

Everyone in this room probably admires Supercell. I don’t think we can learn enough from them or talk about them enough. They have maybe a couple of hundred people, they’ve sold their company twice, they’ve made plenty of money but they don’t seem to be worried about it. They’ve created hit games, they’ve created pretty original games, they’ve created brands in their own right. They’ve created games that work globally—probably the only Western game that actually works throughout Asia very well. I admire them a lot. I think EA’s done a very good job in the IP space.

How important is it for something to be global, when you’re thinking about IPs or building IPs?

At least in your portfolio, you have to think about it. If you have something like Family Guy it’s probably not going to do well in Asia, because they don’t know what Family Guy is for the most part. Then there’s other IP out there, like Marvel, that is very universal and works great everywhere. You need to have a good balance that works well in every country, and then you can think about what game mechanics work in which country. The US is very similar to Western Europe, and obviously Canada and Australia. You can’t even say “Asia” because China, Japan and Korea are so different. We’ve actually done pretty well in Japan. Over the next twelve months, we’re going to think a lot more about localizing in Japan, to the point where we may even change out a lot of our art.

Is VR going to be a big market for the types of games SGN is developing over the next few years? 

I don’t know if it’s the next couple of years. My point of view is that VR would work better with big core games and console games than it would be for pure casual games, but I’m sure there will be great executions on the casual side. There are still a couple of big problems. I still feel the latency and the technology may be an issue. Whenever I put on any of the headgear or the wearables, I still feel nauseous after ten minutes. I still think there’s a critical mass of people who just don’t feel good putting on that equipment. It’s got to get to a different form factor, it’s got to get to critical mass before a lot of money goes into it. There’s just not a lot of great titles out there and I don’t think people are going to invest in those titles until the problems are solved. I think it will happen, but people said 18 months 18 months ago. To me, it’s more like 36 or 48 months from now.

How would you categorize the types of players you are appealing to? Are they casual or midcore gamers?

That’s a big question. For SGN, in the past, it’s been more casual gamers, more female skewed. We have created games for more people that have typically been under-represented in the marketplace, like a female demographic for casual puzzle games that has deep gameplay with thousands and thousands of levels. You don’t have to invest forty-five minutes on your console. That’s what we’ve been doing on the SGN side.

The TinyCo side has been much more male oriented, all of their titles have been male-oriented. Some of the new titles which will be coming out will have more of a female skew to them. The majority of people playing games out there don’t self-identify themselves as gamers. It’s interesting because everyone has a certain amount of excess time where they just want to get away from all their problems, get away from all their stresses, and just hangout, pick up and play and escape the world. Those are the types of games we’ve traditionally made.

Why Ford And Jose Cuervo Are Teaming Up To Create Plastics From Plants

This Sunday is National Tequila Day (really), and Ford is making its toast by taking a shot toward sustainability with Mexico’s proud spirit by teaming up with Jose Cuervo to make car parts from agave.

The environmentally conscious collaboration, part of the automaker’s #FarmtoCar campaign, entails researchers exploring and testing the use of the seven-foot tall, desert-climate plant to develop a sustainable bioplastic material to incorporate in Ford cars and trucks.

By successfully developing the sustainable composite, it gives the agave fiber byproduct a second chance at usefulness, all the while reducing the overall weight of the car—an average car has about 400 pounds of plastic—to help improve fuel economy and decreasing the overall impact cars cause in the environment.

The spirits maker’s and motoring manufacturer’s partnership positions the two iconic brands to be innovators in waste-based materials research.

Debbie Mielewski, Ford’s senior technical leader of sustainability research department, joined [a]listdaily to talk about why Ford is using new methods to go green.

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How did Ford identify that making car parts out of agave byproducts would be their next frontier?

Ford has been exploring the use of sustainable materials for years, with the goal of reducing the use of petroleum-based plastics in its vehicles. We currently use eight sustainable biomaterials in our vehicles, including soybeans, cellulose, castor oil, wheat straw, kenaf fiber, wood, coconut fiber and rice hulls, and have researched the use of other innovative materials such as tomato skins and captured carbon dioxide. When we first started discussing the opportunity of using agave as feedstock, Jose Cuervo was the first name that came to mind and we approached them with the idea to source small amounts of agave for our initial research. Given the company’s commitment to agave sustainability, the team was eager to work together to explore opportunities to give agave a second life after the tequila manufacturing process.

Ford is currently in the research phase investigating mechanical properties. Can you please explain how the agave process will exactly work? And for what particular parts of the car?

We put the agave fiber through a chopper to get the right particle size (less than three millimeters) for the extrusion process, which involves mixing the particle fibers with the plastic. We use about 20 percent fiber to reinforce our plastics. The mixture is then put through injection molding to shape into the part that we want. We are currently in our initial research phase, where we are molding simple parts and testing different geometric shapes. So far, the agave material has gone through all of the necessary screening tests (chemical, physical and odor) to help us determine the appropriate applications for the material.

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When are you expecting to yield results to see if this process is actually possible? What’s the timeline looking like?

We are still in the research phase of this project to see if we can use agave fibers for application and initial assessments show that the material has potential, given its properties.

At first thought, alcohol and cars sound like an odd couple. How has the partnership with a booze brand been received so far?

Agave is just one of the many sustainable materials we are researching for application in Ford vehicles, and for many people, it is a pleasant surprise to hear that we are looking to repurpose many biomaterials in our vehicles, like soy foam or wheat straw. In this case, we are trying to find a new purpose for a material that could otherwise be landfilled or burned, and we have a good collaborator in Jose Cuervo to help us figure it out.

There are dozens of well-known tequila brands. Why was Jose Cuervo the perfect fit for this new initiative?

Like Ford, Jose Cuervo is a family-owned company with a rich history of being a visionary in its field, making tequila with the same craftsmanship and recipes for more than 220 years. More importantly, Jose Cuervo shares our vision and is deeply committed to promoting agave sustainability, which is why they were excited to work with us in finding a second use for their remnant agave fibers.

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What other range of industries and brands have you worked with that offer a good source of natural waste products?

For nearly two decades, we have worked to develop sustainable materials and have collaborated with a number of industry leaders and brands to find innovative uses for different waste streams. For example, we teamed up with Heinz in 2014 to explore the use of tomato fiber to create a more sustainable bio-plastic material for wiring brackets and storage bins in vehicles. In 2012, we also partnered with Heinz, Coca-Cola, Nike and Procter & Gamble to form the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100 percent plant-based PET materials and fiber in our respective products. Other partners include Unifi, where we use Repreve fiber made from recycled plastic bottles in our vehicle seats, allowing us to divert millions of plastic bottles from landfills.

How is Ford planning on further marketing and branding its push toward sustainability?

Sustainable materials research and development is a key element of the company’s broader sustainability strategy, and as a global company, Ford is always exploring new opportunities for sustainability not only in North America, but in other countries as well. For example, in Canada it’s too cold to compost wheat straw, so we started transforming it into bioplastics and is now featured into all Ford Flex sold in Canada.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan