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Soft Sell

Newsdesk by Newsdesk
Wed 18 Feb 2009 at 16:00
netizens
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Soft Options

Alternatives to the traditional cash betting revenue model in the Asian online market

Gaming products broadly categorised as ‘soft’ currently come in five basic formats:

Subscription games of chance and/or skill

A common approach is for online service providers already providing real money betting on games such as baccarat, poker and mahjong, to offer subscription games or play for fun games in jurisdictions where online cash betting is illegal. This is the approach used by Mahjong Time, a leading provider of mahjong software and turnkey systems for companies wishing to place mahjong games on their website for commercial or advertising purposes.

The games on offer under the subscription format may be casino-style ones or traditional regional pastimes such as mahjong or choi dai di, a poker-style Chinese game also known as ‘Big Two’. The structure of the subscription can vary depending on the service provider and the target market. For games such as poker or mahjong, players’ subscriptions may be pooled together, with the house taking a rake for operational expenses and its own margin, and the rest of the money offered as prizes. In other subscription formats, the fee may entitle the player to a certain amount of ‘virtual’ cash for betting, or a certain number of games or certain predetermined amount of playing time. The essential point about the subscription model is that it automatically caps the spending of the player, discouraging the sort of compulsive betting behaviour that is likely to attract hostile regulatory action in some Asian jurisdictions.

Play for fun games

These services may include casino-style games, but no cash betting takes place. Only virtual bets are made. They typically rely on subscriptions paid by individuals for their betting model, but without the option of cash prizes. Alternatively the subscription for access to the game may be paid by a company in order to offer the game free to customers or would-be clients. An example of a supplier is the Canadian company DTI Software that provides in-flight gaming to 81 airlines, including In-Flight Hold’em Poker, on a play-for-fun basis. In live online versions of play for fun games, players can compete against either a random number generation program or may be offered peer-to-peer or peer-to-multi peer formats.

Games of skill

These include games such as bridge, chess or sudoku. An example of an online provider in Asia is T45ol.com, a sudoku site operated by Beijing-based Front Network Ltd. The company specialises in ‘advergames’. Advergaming is the practice of using games, particularly computer games, to advertise or promote a product, organisation or viewpoint. Advergaming normally falls into one of two categories. In the first a company provides interactive games on its website in the hope that potential customers will be drawn to the game and spend more time on the website, or simply become more product aware. The games themselves usually feature the company’s products prominently. In the second form games are published as standalone products in various media. The games themselves though relate to a product or subject designed to interest the player and get them to investigate further. The subjects may be commercial, political or educational. Regardless of the media platform on which the game is launched, they are often spread ‘virally’ from peer-to-peer.

Casual games

These are normally simple video-style games in 2-D that can be picked up quickly and played during work breaks or on portable systems on public transport. They are often offered in a free demo form, supported by advertising, but with options to purchase a more sophisticated version online.

Most casual games also have common features, including: simple game play that can be activated using a minimal number of keys or a one-button mouse; the ability to complete a cycle of the game without needing to save it to hard drive or memory card; and a demo mode.

PacNet is one example of a casual games provider to the Chinese and Asia Pacific markets. Another is Boonty, a privately held company based in Paris, France, but with offices in Singapore, Beijing in China, Seoul in South Korea and Tokyo, Japan. The company’s casual game platform is utilised by over 100 partners worldwide, including Internet portals, ISPs, and mobile operators. Boonty.com is available in localised versions for a number of Asia Pacific markets including Hong Kong, Japan, Taiwan and Singapore.

In September 2006, Boonty launched Clickgames.com, a destination for 100% free, first-run casual games. The available portfolio features popular games including Zuma, Luxor, Diner Dash, Poker Superstars Invitational Tournament and Virtual Villagers. Free play is supported by advertising, which the company says ensures there is no spyware or adware imported with the program. In October 2006, Boonty announced the acquisition of Beijing-based casual game developer Gamehub, while in the following February Boonty launched Cafe.com for free multiplayer social casual games.

Massively multiplayer online role-playing games

This mouthful of a product name is mercifully abbreviated to MMORPG in most gaming industry literature. In some ways it is the spiritual computer-driven descendant of the progressive rock music and fantasy live gaming of the 1970s exemplified by such exponents as the rock band Yes and the International Fantasy Games Society.

The most famous example of modern MMORPG is Blizzard Entertainment’s World of Warcraft, the largest pay-to-play game of that type. In April 2008 World of Warcraft was estimated to account for 62% of the global market for MMORPG with 11 million monthly subscribers.

Free-to-play MMORPGs are also available, supported by advertising and purchases of in-game items. The free-to-play model is particularly common in Korean MMORPGs such as MapleStory and Rohan: Blood Feud.

MMORPGs are normally graphics-rich and use complex computer programs often in 3-D, normally making them unsuitable for delivery or download to mobile handsets. As far as content goes, they frequently use a story or narrative based on a fantasy adventure. Other common traits of MMORPGs are that they usually have the option of multiple skill levels and/or storylines. Their availability in live online format means they also offer players social interaction with their peers, as the name suggests. MMORPGs often have a sub-culture specific to the game, such as jargon or special names for objectives. In many games characters can be customised in terms of appearance and playing style.

One of the most interesting features of MMORPGs in terms of its financial model is that many feature the characteristics of ‘real’ economies. Virtual items and currency have to be gained through play and have definite value for players. Players can sell items to one another for in-game, virtual, currency or barter items of similar value. They can also purchase items for use in game, such as personalised avatars, using real-world currency.

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The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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