Worlds.com Inc. Enforces Patent On Virtual Worlds…

Interesting bit of news out of the MMO world, as Worlds.com Inc., a company known for creating virtual worlds back in the 90s, announced that it had filed a civil suit against NCSoft for patent infringement. Worlds.com is trying to enforce patent #7,181,690, which it was originally filed for back in 1996. The patent, in short, describes a “highly scalable architecture for a three-dimensional graphical, multi-user, interactive virtual world system”. In the broader scale, Worlds.com is claiming that the patent gives it controlling interest in the massive multiplayer online market. The first company it’s lining up in its legal crosshairs is NCSoft, the company behind the MMO games City of Heroes, Tabula Rasa,Guild Wars, and even the free to play MMO Dungeon Runners. In the suit, Worlds.com is seeking a permanent injunction keeping NCSoft from infringing on the patent in question, as well as unspecified monetary damages.

Based on a quick read through of the complaint filed in Texas court, it looks like World.com is going after NCSoft simply for its use of MMO technology. So why not go after Blizzard or Sony first? It looks like NCSoft was just the unlucky first case. Admittedly, it’s a smart move on World.com’s part, as NCSoft is a big enough target to help establish a case against other companies in the future should World.com win this first lawsuit, while at the same time, NCSoft it not so big as to have the huge bankroll for a massive legal battle. Win or lose, this’ll certainly be a case to watch in the coming year.

Virtual World Times has a full PDF copy of the complaint here.

Video game industry looks to thrive in downturn

Barbara Ortutay writes in San Francisco Cronicle (Monday, December 29, 2008) :

They stand in line outside stores waiting for midnight launches of new video games. When they get home after a long day, they plop down in front of the TV not to sit back and watch, but to play.

They’re known as “core gamers.” They are people like Greg Wilcox, who writes about video games and has bought roughly 100 this year, and people like Mark Hengst, who’s in law enforcement and says daily gaming gives him an “interactive form of escapism.” And there’s Wyatt Du Frane, a geology graduate student who’s been playing since he was a little boy.

“I like their scope,” said Du Frane, 28, a student at Arizona State University. “A movie is only a couple of hours. A video game is more like a book or a TV series, where you can kind of continue the story.”

For the video game industry, core gamers are proving crucial. Their willingness to regularly, loyally buy new titles - no matter what - gives the industry a better chance of success than other businesses that rely on discretionary spending vulnerable to the recession.

“As long as hard-core gamers have a job, they will continue to buy games,” said IDC video games analyst Billy Pidgeon.

The industry’s ability to lean on core gamers is a bit of a twist, because video game makers have been working hard to grow by expanding their mainstream appeal.

Families and people who haven’t picked up a game controller in ages, or ever, have flocked to the easy-to-master Nintendo Wii since its 2006 launch. Taking note, Sony Corp. and Microsoft Corp. have been expanding what their game consoles offer, adding movies and TV shows, to attract people whose idea of the perfect Sunday afternoon doesn’t involve shooting aliens. Software publishers like Ubisoft Entertainment, Activision Blizzard Inc. and Electronic Arts Inc., have boosted their titles aimed at young girls, families and women over 35, who have helped push game sales higher.

Yet some analysts believe it will turn out to be core gamers - who might be more reliable consumers of their favorite form of entertainment than movie buffs or sports fans, for example - who keep the industry afloat as the rest of us cut back.

Michael Pachter, an analyst with Wedbush Morgan, estimates that core gamers buy roughly half of all video games.

“They may be wealthy, they may be poor, but they have no clue we are in a recession,” Pachter said.

Wilcox - who does know we are in a recession - said he’s trimmed how much he spends on video games because of it. Still, he said, “people will always be buying games.” After all, added the 44-year-old New York City resident, people need entertainment.

New blockbuster titles, like the post-apocalyptic Fallout 3, the choose-your-own-adventure epic Fable II and alien shooter Gears of War 2, go for $60 each. So if they don’t have a lot of cash, core gamers have to get creative by renting, trading or selling used games. Du Frane uses this strategy to often avoid paying full price for games. But at least he’s still buying them: In the economic downturn, instead of pulling back on games, he’s cut back on going to bars and restaurants.

“For the same price, I can get a game to occupy me,” he said.

Americans are spending more money than ever on video games - nearly $3 billion in November, according to the NPD Group. That was a 10 percent increase from the same month last year.

In 2007, people bought $18 billion worth of games, consoles and accessories. Even with discretionary budgets shrinking, the NPD Group expects this number to grow to at least $22 billion this year.

In contrast, U.S. consumer spending on home video is going down. Spending declined 2.4 percent for the first three quarters of the year, to $14.2 billion, according to industry tracker Video Business. The decline reflects lower purchases as well as a dip in rentals. Meanwhile, major pro sports leagues have begun cutting jobs and expenses, fearing that ticket sales will drop next year.

Hengst, 31, who lives in Los Angeles, recently bought the new Prince of Persia and the latest Call of Duty video games and estimates he spends a couple of thousand dollars a year on games.

“For me it’s much like why I enjoy reading so much,” Hengst said. “It’s a form of escapism.”

The Industry Standard’s Take On Gaming

Caught this report last week from the Industry Standard written by Cyndy Aleo-Carreira, The Industry Standard.

In the article she writes about the growing megatrend in MMOG and how it is becoming ubiquitous amongst age demographics.  Here is an excert:

“The Pew study found that more teens play games than adults, and more men play than women — no surprises there. Digging down into the data, more nuanced trends emerge: Older players gravitate toward computer-based games, while younger players, who are more likely to have grown up gaming, tend to play console games. And gamers are more likely to have at least some college education.

But when it comes to describing regular gamers and the games that they play, the Pew survey results clash with the AP story’s “core gamer” angle. The AP story cited several examples of core gamers, all younger and middle-aged men. However, according to the Pew data, while young people are far more likely to game than senior citizens (81 percent aged 18-29 versus 23 percent of those 65 and over), those seniors are more likely to play frequently owing to the fact that they have more free time.

Moreover, recent sales data indicates consumers are spending more on casual gaming titles, such asWii Fit and Cooking Mama. A quick look at Amazon’s best selling games shows Wii Fit, Mario Kart,Club Penguin for DS, and Wii Music in the top 10. The only “core” title to make it into the top 10 wasCall of Duty: World at War. VG Chartz shows a similar trend – four of the top five games are casual games for the Nintendo Wii, arguably the one console not designed for the typical hardcore gamer. Incidentally, the Wii is still dominating console sales for the third holiday season in a row.

Massively multiplayer online games and virtual worlds still comprise a relatively small portion of the gaming industry (Pew data shows a mere 9 percent of gamers playing any MMOG), but those who play MMOGs or in virtual worlds are more likely to play every day or several times a week. Such titles are still heavily oriented toward PC-based play, but most focus on online interactivity, something older gamers report themselves less likely to engage in. The Pew data shows that only 13 percent of those aged 50-64 and a mere 5 percent of those 65 and older engage in online gaming.

What types of games and demographic groups offer the most potential profit for gaming companies? The core gamers referenced in the AP article are considered more likely to buy new titles. However, new titles require significant development time and expenses. MMOGs and virtual worlds comprise a relatively small market segment, yet seem to have a fanatically loyal user base . Not only do players want to play in these worlds every day, but they are also willing to pay for subscriptions, multiple accounts, and in-game micropayments. 

The reality is that continued growth in the gaming industry during a recession probably isn’t as simple as the AP’s analysts described. ”

What’s your take on the clash on the growing MMO trend?

Year In Review: MMO Rules + PC Games Live!

Columnist from San Francisco Chronicle writes:

“This year came and went in a blink of an eye and with plenty of video games to occupy your time. We saw the merger of Activision and Blizzard to create a megapublisher. We saw the closure of onetime favorite developer Sierra making titles like Brutal Legends and Ghostbusters: The Video Game temporarily homeless. Publishers narrowed their lineup and, surprisingly, created better games. Here’s what happened in 2008:

Take 2 Games Drops SuperHero MMO Champions Online

Take Two has officially dropped Superhero MMO Champions Online from its line-up, due to developer Cryptic being bought out by Atari.

Speaking in a investor conference call yesterday, a company spokesperson confirmed the drop, stating: “we no longer intend to publish MMO Champions Online due to Atari’s acquisition of Cryptic.” Can’t say simpler than that.

Although Atari’s made no official confirmation, it looks now like it will be the one to bring Champions online to PC and Xbox 360 next year.

The game, in case you missed it, started life as the fabled Marvel Universe MMO for Xbox 360 and PC, and has since picked up ex-Hellgate boss Bill Roper as its creative lead. 

Smart move for Atari to bring this game to online micro transaction service (aka “Free-To-Play”) MMO world don’t you think?