Comments on: Sharing the Wealth http://www.edery.org/2007/01/sharing-the-wealth-2/ For those interested in the business of making great video games. Entrepreneurial spirit a must. Wed, 08 Feb 2012 08:07:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: breath http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-38915 breath Fri, 19 Jan 2007 17:18:21 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-38915 I should add that "creating a platform" doesn't mean that you have to be the broker. If there are peripheral business opportunities, people will take them. Anshe Chung's business is partially brokered by Linden Lab, in that they have to make the tools that allow her to manage land that is rented by tenants. However, the entire industry of developers is hardly brokered by Linden at all, since they get paid real US dollars and then go in to Second Life and make things for their clients. Metacafe's challenges seem to stem from its being the broker, and thus responsible for managing clickfraud and the like. Not that they don't have the right idea, but what they could have done is create an API that allowed third parties to view traffic metrics, place ads, and share revenue with users. I should add that “creating a platform” doesn’t mean that you have to be the broker. If there are peripheral business opportunities, people will take them. Anshe Chung’s business is partially brokered by Linden Lab, in that they have to make the tools that allow her to manage land that is rented by tenants. However, the entire industry of developers is hardly brokered by Linden at all, since they get paid real US dollars and then go in to Second Life and make things for their clients.

Metacafe’s challenges seem to stem from its being the broker, and thus responsible for managing clickfraud and the like. Not that they don’t have the right idea, but what they could have done is create an API that allowed third parties to view traffic metrics, place ads, and share revenue with users.

]]> By: breath http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-38460 breath Fri, 19 Jan 2007 07:03:47 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-38460 Maybe a better way of putting it than "share the wealth" is "creating a platform". What it's really all about is that someone is going to make a business off of making your game/site/thing better and more compelling. And you don't have to pay them, see them, or negotiate with them in any way other than a standard EULA. Nor do they have any startup costs, they typically get a distribution network for free, and a readymade user base equipped with the necessary technology. This is apparently a major component of Linden Lab's strategy. Maybe a better way of putting it than “share the wealth” is “creating a platform”. What it’s really all about is that someone is going to make a business off of making your game/site/thing better and more compelling. And you don’t have to pay them, see them, or negotiate with them in any way other than a standard EULA. Nor do they have any startup costs, they typically get a distribution network for free, and a readymade user base equipped with the necessary technology.

This is apparently a major component of Linden Lab’s strategy.

]]> By: Mark Nebesky http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-37723 Mark Nebesky Wed, 17 Jan 2007 17:11:30 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-37723 David, as you know, our strategy to share the wealth is our primary focus at this moment...we've seen some interested publishers/developers/content providers that have been looking for a way to get a slice of the used video game market pie and this hopefully will become a sustainable advantage for us... there are some hurdles, however. From a startup perspective we have to work extra hard to sell the notion that in the long-run this can create a strong and viable revenue stream for an established firm/brand. Another is the business model skeptic who just won't move from the status quo. Also, there is sometimes an initial "I can do more for you than you can for me," type of attitude that can create an imbalance of negotiated terms for the startup. But that's all part of the fun and excitement. David,
as you know, our strategy to share the wealth is our primary focus at this moment…we’ve seen some interested publishers/developers/content providers that have been looking for a way to get a slice of the used video game market pie and this hopefully will become a sustainable advantage for us…

there are some hurdles, however. From a startup perspective we have to work extra hard to sell the notion that in the long-run this can create a strong and viable revenue stream for an established firm/brand. Another is the business model skeptic who just won’t move from the status quo. Also, there is sometimes an initial “I can do more for you than you can for me,” type of attitude that can create an imbalance of negotiated terms for the startup. But that’s all part of the fun and excitement.

]]> By: David J Edery http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-37651 David J Edery Wed, 17 Jan 2007 07:52:27 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-37651 Kim -- there's a difference between "assuming money is what motivates your audience" and using rev share as one of several motivators. Kim — there’s a difference between “assuming money is what motivates your audience” and using rev share as one of several motivators.

]]> By: Kim http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-37646 Kim Wed, 17 Jan 2007 06:49:10 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-37646 There are a number of youtube competitors (www.revver.com is the best example) that have the same model but share revenue. That being said, I'd caution that to assume that money is what motivates your audience is to (a) make a big and perhaps insulting assumption about your audience, and (b) may dictate/limit teh audience you end up getting. There are a number of youtube competitors (www.revver.com is the best example) that have the same model but share revenue.

That being said, I’d caution that to assume that money is what motivates your audience is to (a) make a big and perhaps insulting assumption about your audience, and (b) may dictate/limit teh audience you end up getting.

]]> By: Patrick http://www.edery.org/2007/01/sharing-the-wealth-2/comment-page-1/#comment-37388 Patrick Tue, 16 Jan 2007 23:34:53 +0000 http://www.edery.org/2007/01/sharing-the-wealth-2/#comment-37388 A friend of mine is working on a "YouTube of games" project that seems to take into account recombinant content, and thereby reputational and self-expressive factors. It also has an implicit financial incentive built in, that I don't think my friend is aware of, and that is that content creators can distinguish themselves and learn important lessons about game development by participating, and therefore get head start on a game career. There's also a more explicit incentive in paying artists for seed content, but thats not build into the process (though a nessecary part of the catalysis of that process). A friend of mine is working on a “YouTube of games” project that seems to take into account recombinant content, and thereby reputational and self-expressive factors. It also has an implicit financial incentive built in, that I don’t think my friend is aware of, and that is that content creators can distinguish themselves and learn important lessons about game development by participating, and therefore get head start on a game career. There’s also a more explicit incentive in paying artists for seed content, but thats not build into the process (though a nessecary part of the catalysis of that process).

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