Flash Truth

…about flash gamedev and business

My expectations for 2009

I think that 2009 will bring some movement to the flash game market. Some are good, some are bad.

The quality of flash games is growing. This trend was easily spoted in 2008 and I believe that the bar will keep rising. Portals such as Kongregate and services (or dare I say “The Service”) offered by the Flash Game License crew really pointed many developers the right way: Quality over Quantity.

Although this is good news, it can also be the beginning of the end of money making hobby developers. It was easy to notice that quality developers are becoming full professional game development companies while existing game development companies make their way to the flash market.

What does this mean? Will we have publishers? Thus killing the flash game development risky and yet wonderful game design? Will we have more and more exclusive content to the established portals making the traffic wars less sponsor based and more content based? Will there be any other portal with a view for the midcore market?

Will see…

January 15, 2009 Posted by | General, Portals | , , , , | 2 Comments

Understanding the flash game space

In my most humble opinion, most developers are clueless about where they stand in the flash game space from a market point of view. This leads to wasted time, bad business and bottom-line: low money. This only applies to developers that want to make a profit from flash games, to all others that live up for their passion, it’s pointless, although, maybe, educative.

Here’s how most developers face business assuming there’s a sponsorship deal for a small game…

1. Developer makes a game in a week;

2. Developer shows game around to get a sponsorship deal, although not full time, it can take two weeks easily;

3. Game is sponsored, let’s say, for $500 and developer takes a couple of days to include sponsor stuff;

4. Developer puts ads on game and distributes it which generally means at least another week;

5. Game spreads and traffic goes to the sponsor thus generating money;

6. Developer gets an average of 15% (from my personal experience) from ads, so an extra $75;

Let’s crunch the numbers…

First and most obvious there’s no such thing as one week games, or one day games, since build to market time is always bigger, but I’ll dedicate a post to that one of these days, but the hard truth is that a one week game can easily be a 22 business days game, meaning, a full month. All of that for $575 if you are lucky. Assuming you work 8 hours a day, that’s a $3,26 per hour rate, which, let’s face it, it’s pretty bad.

And why did this happen? Let’s follow the money now…

1. Developer makes a game;

2. Sponsor picks it and sponsors it for $500;

3. Most sponsors don’t actively spread the game, thus, no distribution costs;

4. Sponsor gets pass-through traffic that will generate around $1 per thousand visits but it isn’t that important;

5. Sponsor gets traffic that sticks from users that register and visit the site and play their games continuously, which can generate a lot of money if the site is good which the large ones are.

6. Advertising networks keep a huge chunk of the money generated.

The Truth

1. Has I have said before, developers have nothing to win from distribution itself. Portals and advertising networks get most of the profit from the plays and the traffic games generate, still, developers are worried about distributing their games like if it was the most important thing of their, second only to sponsorship. In fact, the most important thing is THE GAME! A good game will attract good sponsorship deals, not to mention extra licensing if you are smart.

2. Developers waste too much time, thus loosing money, doing things that will make others win money. Mochi Ads is a class act in this department. They do handle distribution but they do it at a low cost for themselves since they have an established network, which is good for both Mochi and the developer.

3. Smaller portals do make a huge effort to distribute the games they sponsor but most of the bigger ones simply don’t care. And they don’t care because they usually get the high profile games that will, sooner or later, wide spread on the web, usually at the expense of the developer or, if they allow it, Mochi.

Understand where everyone fits and make everyone do their job

1. Developers should make the best game they can. They should also strive to make all necessary arrangements to fit their sponsor and licensing portals needs, which is something I often see developers lacking: professionalism. Developers should not distribute games since game spread is not their income source or investment return.

2. Portals should either spread the game themselves or allow ads on games thus leaving the distribution for the advertising network since both have direct income from game spreading wildly. Using advertising would then be an extra incentive to the developer, not a need, a badly paid one.

3. Advertising networks should be the major spreading force since they are the ones that get the most of it. Most bigger portals already have a considerable user base, thus making licensing more interesting as a model.

4. Bottom line: each part does what it’s profitable for their core business: Developers make games, portals manage content and advertising networks manage advertising inventory.

Wow… this was a big one…

Still there? Ok… What matters here is that there’s a culture of “roles” in the flash game space and it’s the developer that takes the toll. Why? Well, most are naif and the big guns take advantage of it. I’m not saying portals are bad or good or that advertising networks are bad or good, what I’m saying is that the developer is the small guy that can be easily bullied if he acts alone while the herd is following a different direction.

We must rethink all of this, together. Us, portals and ads networks are partners in this, not enemies, so we need to sort our act together so that the market continues to grow based on quality, not a dogmatic approach of how it is handled.

January 8, 2009 Posted by | Advertising Networks, General, Monetizing, Portals | , , , , , , , , , , , | 5 Comments

Mochi Ads and Game Jacket CPM 2008 results

Hi and Happy New Year everyone.

This blog is new but there are things to be learnt from 2008. For instance, what keywords people used to get to the blog. The most common keywords were MochiAds, CMPStar and GameJacket.

So, sort of a delayed Christmas present for everyone, here are my stats from Mochi Ads and Game Jacket and my conclusions regarding 2008 results.

CPM rules it all…

Mochi Ads: $0.21 per 1000 game impressions
Game Jacket: $0.54 per 1000 game impressions

I did about $360 from both, mostly from Mochi since I didn’t use Game Jacket early on. What’s interesting to notice is that if I was using Game Jacket mostly, I would have made $925.

…until distribution steps in.

Here’s the underlying problem: Game Jacket distribution SUCKS! While Mochi Ads distribution means an average of 1.000.000 plays per game, Game Jacket distribution means an average of 3.500 plays per game.

Game Jacket argues that the games were released earlier on Mochi Ads, thus jeopardizing their own distribution… I personally believe that Game Jacket makes an effort on only some games, while Mochi’s distribution is pretty much automatic, making it more… democratic lacking a better word.

I will be releasing a game with Game Jacket only soon, so I’ll let you all know how that goes. But right now, with the info I have, I must say that even with a lower CPM, Mochi’s distribution pays for the difference.

It’s still early to say exactly where the benefit is, but I’ll be releasing games with several types of licenses, several distribution patterns and everything will be posted here.

A great 2009 to all flash game developers out there!

January 4, 2009 Posted by | Advertising Networks, Monetizing | Leave a comment