Monthly Archives: October 2007

Licensing IP, the Web 2.0 Way

First: my apologies for using the phrase “web 2.0″ in the title of this article. I couldn’t resist.

Anyway, here’s a random idea I’ve been tumbling. Could major IP holders (like Marvel Comics, Fox, etc) work with user generated content services (like Kongregate, XNA Creators Club, etc) to make their IP available to hobbyists and small businesses under explicit terms, in controlled conditions, for a non-negotiable revenue share? If managed correctly, how much profit and “brand excitement” could this generate, and would that outweigh any “sales cannibalization” and/or “brand damage” caused by the community?

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Man, wait a couple weeks to write an AoI and the notables really pile up: CNN explores Second Life’s “real potential” as an experimentation platform (rather than an entertainment experience). Emphasis on ease of use and cost-savings. As you must … Continue reading

Games as Platforms Wrap-up

Kim has already responded to my most recent post with a concise wrap-up. To avoid belaboring things, I’ll do the same.

This still seems to me like a case of “take no chances” vs. “take full advantage of the opportunities.” Kim argues that the FS team is already capitalizing on most of my ideas, but that’s not actually the case. For example, he notes that the FS team already helps third parties advertise, but my whole point was that FS can offer both free venues (as they do now) and premium venues — deriving more revenue in the process. Isn’t that a good thing?

At the end of the day, this is a bit like a liberal and ultra-liberal arguing about politics. We’re both platform fanatics. More to the point, we’re suckers for a vigorous debate. …But you’re still wrong, Kim. ;-)

Stay tuned till next time, when we’ll tackle the even thornier subject of peanut butter: “creamy or chunky?” It’ll be a battle royale!

Games as Platforms

Yesterday, I wrote that Microsoft should be doing more to tap the aftermarket for goods and services related to Flight Simulator. Kim, my friend and coworker here, took notice and essentially argued that I was wrong because: A) the 3rd party after-market is good for sales of Flight Simulator, and B) Microsoft could never think of and/or develop most of the aftermarket things that have arisen.

Permit me a bit of grumpiness. I hardly need reminding that 3rd party extensions, especially of the user-generated type, can be very good for business, nor that 3rd parties will think of & do things that Microsoft could not. My point was this: platform monetization strategies (be it for games, websites, or anything else) don’t need to begin and end with “releasing an SDK” or “building a community.” Yes, you can greatly increase the penetration of your platform (in this case, sales of a game) by encouraging 3rd party / hobbyist support of it. And sometimes, you can earn even more by remaining active in the aftermarket. You just need to be smart about it.

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Develop Interview

I was recently interviewed by Develop about XBLA. Part 1 here. Part 2 here. Registered users can download the PDF version here.

Penny Arcade highlights SquawkBox, a free plug-in for Microsoft Flight Simulator, which connects virtual pilots with virtual air traffic controllers. Basically a free MMO for aviation addicts, run entirely by volunteers. (Random thought: Flight Simulator may possibly be the least … Continue reading