Social Gaming Scams

Social gaming is exploding, in a slightly different way that everyone thinks... Yes, there have been some major successes in the space, most notably EA's recent acquisition of Playfish. But over the past week, there has been tremendous press about scams among the social game sites.

It started with Michael Arrington's post, "Scamville: The Social Gaming Ecosystem of Hell" -- which essentially laid bare accusations that behind the Mafia wars, the farms, and the Texas-styled poker lie affiliate marketing scams that sign users up for expensive things they don't need (which appear free at first glance) in exchange for in-game currency. The piece has since drawn a number of press releases, confessions of past misdeeds, and claims of having turned over new leaves. Execs were replaced. It's also created a bad taste in the mouth for larger advertisers considering the social games space.

There's an underlying issue of scale. Currently, ad inventory exceeds demand by credible advertisers in most of these markets. Excess inventory drives down CPMs, and publishers are stuck between a rock and a hard place. If they don't allow the more unsavory advertisers, it'll be much harder to turn a profit and remain competitive, and they'll just burn through their VC money. If they do allow the unsavory scams, it's going to turn off legitimate advertisers who might be interested in reaching the game's audience. It's the AdSense problem. No self-respecting brand wants to appear in the same spot as a "punch the monkey" ad.

Video Game Consoles Amp Up The Video

Game consoles are continuing their stealthy takeover of the living room. We've been seeing this trend for a while, but the pace is accelerating as the holiday season approaches.

The PlayStation 3 is going Netflix next month. The second console to get the streaming video service, this added functionality should help the PS3 sales for the holiday (which are already predicted to be high due to the lower price point of the PS3 Slim). The solution currently works using a disc shipped out from Netflix, though it's been confirmed that eventually a native client will be released. There are still rumors of a similar disc-based approach coming to the Wii.

The Xbox 360 just saw the release of Sky TV on the system for Sky subscribers in the U.K. This service has one up on the Netflix services already being used by Xbox 360 users in the U.S.: live TV. A number of Sky channels are available for live streaming to the system, including sports. And there's an on-demand content library. The Xbox 360 is also getting 1080p HD streaming for "Zune Marketplace" video content, with a system update coming next month (assuming a download speed of 8Mbps and an HDMI connection). This will apply to purchased and rented content within the video marketplace, and replaces the existing download method.

These trends in the consoles mirror a larger trend among consumer behavior. Streaming of full-length TV or movie content is on the rise in the U.S., increasing by about 100% year to year. For the general population, 26% have streamed a full-length TV episode in the last month (up from 11% eight months prior), and 51% of 18- to 24-year-olds have (up from 26%). These numbers mirror streaming growth reported on Netflix's earnings call this quarter, with 42% of subscribers viewing instant stream content today versus only 22% last year. As the ease of use and quality increase for streaming content to the living room, this behavior will likely continue to spread - and, at least so far, the consoles are sitting at the forefront of this transformation.

Xbox Looks To Have The Jump On Motion

Over the past few weeks Sony and Microsoft have offered new details on who/what will be used to launch their own entrances into the world of motion-controlled games, which has thus far been wholly dominated by the Nintendo Wii.

Judging from the initial list of titles for both Microsoft's Project Natal and Sony's as-yet unnamed motion control wand, Sony is looking to move first-party titles by catering to players who already own a PS3 and the titles that are being upgraded to be motion-control compatible, whereas Microsoft, with its partnership with top publishers like Ubisoft, Activision Blizzard and Sega, is looking to create must-own titles that will move consoles.

In the current environment, Microsoft's strategy is the right one. While the Wii was the only motion-control game in town, Nintendo could get away with having mostly shovelware titles with only a few games worth owning. Now that all the major players are getting involved, the list of motion-control titles offered by each platform really needs to be exceptional, and the third-party publishers Microsoft's lined up looks ready to make that happen.

Online Retailers: 99% Plan to Have Facebook Fan Pages

With two-thirds of marketers using social media, and retailers shifting marketing dollars towards social initiatives, it comes as no surprise that new research from the e-tailing group and PowerReviews shows that brands are more hip to social media than ever before.

What is quite remarkable, however, is the extent at which brands and retailers are adopting and implementing social media tools, and their preferred social home — Facebook. According to eMarketer, a combined 99% of surveyed online retailers currently employ (86%) or plan to employ (13%) Facebook Fan Pages.

Similar stats hold true for Twitter too. 65% are already all a-Twitter, with 26% planning to get in on the action as well. If the survey results are to be trusted, nearly all online retailers will have Facebook Fan Pages, and 91% will be using Twitter for status updates by the year 2011.

Data from the “Community and Social Media Study” was gathered between August and September of this year, and shows that retail respondents are also favorable to creating and managing their own blogs, but they’re not as keen to adopt the longer form outlet as readily as they are Facebook or Twitter. In fact, at first glance, it might be a little surprising to find that only 55% of those surveyed have blogs now, but 65% and 86% have Twitter accounts or Fan Pages respectively.

Marry those stats against the fact that retailers still fear losing control of their branding, and you have a bit of a oxymoron. The data shows that retailers are actively adopting social media tools on third-party sites over adding social utilities like a blog, Facebook Connect (43% use today), or forums (27%) to their own sites. But, according to the report, “One of their biggest fears was that customers would abandon their site in favor of one that was more socially engaging.”

Perhaps that conundrum can be rectified by the notion that the study also found that “the primary social media goal … was to increase customer engagement.” Social sites do offer a quick and easy way to reach and engage with a broader customer base. Just look at the New England Patriots Facebook initiatives for a prime example of a big brand opting to add social utility on Facebook instead of their own website.

Interesting enough is that this study’s social media adoption rates closely mirror a recent Mzigna/Babson Executive Education study, but that particular study also found that 84% don’t measure the ROI of their social media programs. Clearly we can expect to see adoption rates continue to rise, but what happens after the Facebook Fan Page, Twitter accounts, and blogs are created still remains somewhat of a mystery.

Social Media Tools Gaining For Driving Sales

According to the first annual Community and Social Media Study, from the The e-tailing group five out of ten social media tools have been adopted by more than 50% percent of brands and retailers, with the Facebook Fan Page leading the way at 86%. In addition, the study found three-fourths of the survey respondents feel brands have accelerated their use of, and commitment to, community and social media in the past six months.

The study found that the penetration of social media tools within brand and retailer organizations is extremely high, given the length of time these tools have been around:

Community and Social Networking Tools Employed and Planned (% of Respondents)
	Anticipated Timing
Network or Tool	Today	Next 12 Months	Beyond 1 Year	No Plans to Employ
Facebook fan page	86%	10	3	1
Twitter	65	19	7	9
Customer reviews	55	26	13	6
Blogs	55	25	12	8
Viral videos	50	22	13	15
Facebook connect	43	31	10	16
Social listening	36	31	19	14
Q & A	29	20	25	26
Community forums	27	18	23	32
Product suggestion box	19	26	20	35
Source: e-Tailing Group, September 2009

The motivators, which drove the last wave of social media adoption, will also be driving the next wave in the coming year, says the study. Over the next 12 months, study respondents say they plan to adopt:

• Facebook Connect (31%)
• Social Listening Tools (31%)
• Customer Reviews (26%)
• Product Suggestions (26%)

The study also found the primary goal for adopting social media was:

• Customer engagement (39%)
• Mobilizing advocates to drive "word of mouth" (30%)
• Increasing brand loyalty (21%)

Regarding advocacy and word of mouth (the #2 goal of using social media tools), the study found that Facebook is considered by brands and merchants to be the "single most effective tactic in mobilizing brand advocates and influencers to spread the word about products/services."

However, when it comes to driving sales and customer engagement, customer reviews came out on top by a wide margin, with 78% of those polled listing customer reviews as the #1 social media tool for generating sales and 61% listing customer reviews #1 in driving customer engagement.

Top 3 Sites or Tools Expected to Yield Greatest Sales Increase (% of Respondents)
Social Media or Tool	Total Response	% Rank 1	% Rank 2	% Rank3
Customer reviews	100	78%	14%	8%
Q & A	43	16	49	35
Facebook fan page	39	13	36	51
Viral videos	34	18	44	38
Community forums	33	6	45	49
Blogs	30	10	47	43
Social listening	22	14	27	59
Facebook connect	19	26	32	42
Product suggestion box	17	41	24	35
Twitter publishing	14	7	57	36
Source: e-Tailing Group, September 2009

Top 3 Sites or Tools Expected to Create Greatest Customer Engagement Increase (% of Respondents)
Social Media or Tool	Total Response	% Rank 1	% Rank 2	% Rank3
Customer reviews	67	61%	16%	23%
Q & A	46	20	50	30
Community forums	46	48	26	26
Blogs	43	16	58	26
Facebook fan page	42	31	43	26
Twitter publishing	29	34	14	52
Product suggestion box	27	22	30	48
Viral videos	24	12	38	50
Facebook connect	21	19	29	52
Social listening	6	33	17	50
Source: e-Tailing Group, September 2009

The Power of Facebook Fans

Facebook Fan Pages are proving to open up dialog with consumers, empowering them to deliver actionable insights to global brands. Creating Facebook relationships and shifting communications from monologue (Brand-centric) to dialog (Fan-centric) can take time but if done correctly, can be extremely valuable. Addressing general trends and recognizing contributions from Fans can go a long way to motivating your Fans to become evangelists. The brands that are using Facebook effectively are actively engaging consumers. Their pages have creative content, two-way communication, active discussion boards, videos and images, and a fun and casual tone to match the medium. Below are five examples of brands that excel with this medium.

1. Coca-Cola (3.6 Million Fans)
The Coca-Cola fan page is a testament to the brand’s commitment to user participation. Coca-Cola has taken the unorthodox step of displaying user created content in their main page Wall feed by default, something that most brands shy away from. That’s a bold move for Coca-Cola, but one that really demonstrates their interest in getting fans involved with the brand. Coca-Cola also stands out in their approach to photo albums. Many companies simply incorporate an album of product pictures and call it a day, but Facebook offers companies a chance to get creative with photos, and Coca-Cola has taken advantage of that. They have a number of albums showing off the product, workers at the company, photos of Coke fans, pictures of Coke products from all around the world, and pictures of old Coke nostalgia. Coke knows that their brand is an icon and people don’t just interact with their product by drinking it — they actually collect it. The best example of how Coke is truly committed to their fans on Facebook is the story of how the page came to be. The page was originally created by two fans who just loved Coke. Coca-Cola found the page, and rather than trying to buy it or create another “official” page, they rewarded the two fans and worked with them to continue building the page and representing the brand. By empowering their existing fans, rather than trying to marginalize or steam roll them, Coca-Cola has been able to build on the connections that were already established with fans on Facebook before they even arrived in an official capacity.

2. Starbucks (3.8 Million Fans)
Starbucks is clearly dialed in to the world of social media, and that is reflected in the Starbucks fan page. The page incorporates great videos, varied content, and has active engagement with the fans. But what makes it truly exceptional, is its use of status updates. Status updates are an important aspect of any fan page because they provide two-way communication between company and fan, while keeping the page fresh with new content and information, which gives fans a reason to return. So many companies struggle to understand how best to utilize these updates and either don’t use them at all, update solely about product announcements, or update so often users become overwhelmed and the updates turn into so much noise. Starbucks, on the other hand, has established a good frequency of updates, sharing something new every couple of days. More importantly, though, the content is varied, fun, and interesting. Their updates share videos, blog posts about all aspects of coffee — and not just on the official company blog — including how to grow coffee beans, articles about Starbucks and Starbucks employees. The tone of each update is informative and casual, and even their product updates are kept varied enough to remain interesting, for example, by offering up reviews of new music or books for sale in their cafes. As a result, the quality status update content has led to a very engaged fan base, with every update receiving thousands of comments. The Starbucks Facebook fan page is a great example of how a company can still engage fans without the use of flashy apps, and instead simply focusing on quality content.

3. Adidas (2 Million Fans)
The Adidas fan page offers all the usual attributes of a strong page: active fans, a branded application, lots of content variety, plus, good video, pictures and notes. That’s all good stuff, but what really makes them stand out is the way they use their page’s tools to promote their other social media and advertising campaigns. Running a contest on Facebook brings variety to a page’s content, engages fans, and has the ability to directly increase the company’s revenue by introducing new customers to the brand. Lots of brands attempt to promote campaigns on Facebook, but there are only a few do it well. Most recently, Adidas teamed up with MTV to run an exclusive Facebook contest where a fan could win an all-expenses-paid house party. Their campaign was successful for a few reasons. First, Adidas chose a prize and partner that would resonate with their Facebook user demographic. Second, they wisely chose to promote the contest on their fan page not only before the contest, but after it had ended as well. Once they had chosen the lucky winner, they used their page to share the fan’s blog posts, photos and video from the party. The integration of status updates, photos, notes and videos, with a smart contest, resulted in a whole lot of fan engagement, and keeping the winning fan involved even after the contest had ended showed their commitment to fans and helped them get extra mileage out of the campaign. The contest also gave the page content variety by breaking up the usual status updates with something new, fun, and with an included call to action for fans to get involved.

4. Pringles (2.7 Million Fans)
While Pringles has created an inviting laid back tone, and managed to engage fans via reviews, discussions, and original interactive games, the most notable aspect of the page is definitely their use of video. Because videos are so easy to consume, video is among the most commonly shared types of content online. Pringles recognizes that its Facebook fans react well to comedy and have used their fan page to catalyze the spread of videos that certainly have the potential for virality. The videos are low budget productions with little editing or props depicting people singing goofy songs. It’s not much, but Pringles clearly knows its demographic, and the way Facebook works. By distributing the videos on their fan page, they’ve given users the chance to spread the Pringles brand to their friends without resorting to paid ad placements, which is exactly what thousands of people have done by “liking” the videos, an action which is then repeated in the newsfeeds of their friends and can potentially attract new people to the Pringles fan page.

5. Red Bull (1.2 Million Fans)
The Red Bull fan page is easily one of the best on Facebook simply because it has been able to break out of the typical fan page mold by providing fun content that encourages fans to interact with and ultimately connect with the brand. Their uniqueness is captured in their innovative incorporation of Twitter into their Facebook fan page. Integrating a Twitter stream is not special on its own, but Red Bull doesn’t just pull in tweets from their official corporate account, as you might expect most brands do. Instead, Red Bull has aggregated tweets from sponsored athletes like skateboarder Ryan Sheckler and snowboarder Shaun White and included them directly in their Facebook presence. Associating themselves with popular athletes, and letting fans connect to those athletes on a separate social network (i.e., not boxing them in) gives Red Bull some instant cool points. Their page’s “Boxes” section is also pretty darn incredible. Red Bull has built all kinds of content and applications that help them break out of the vanilla Facebook mold that forces all brands to look and feel more or less the same. They also deliver humor with an app that lets fans rate phone calls of people who “drunk dialed” the Red Bull 1-800 number. It’s not only hilarious, but it also successfully encourages fan engagement. Clearly Red Bull is a company that understands their audience and knows that the best way to connect with them on Facebook is with humor, fun, apps that get people engaged, and by being creative.

When designing your Facebook strategy, it's worth keeping in the mind the following objectives:

1) How can you drive awareness with product updates, promotions, events, etc.?
2) How can you build relationships with Fans by engaging in authentic conversations?
3) Can you get input and insights by requesting feedback from Fans and tracking what they are talking about?
4) Can you motivate action by encouraging Fans to try or buy new products?
5) Can you build brand evangelism by encouraging Fans to help reach new customers?

All the brands above have benefited from a solid brand image and loyal following before they actually joined Facebook and started using social media tools. They are all committed to engaging and empowering their Fans and have effectively done so.

Widgets & Apps that Might Scare You into Loving RE5

Resident Evil is returning to computers with its 5th addition to the revolutionary series. With unbelievable detail, realism and control, Resident Evil 5 will bring new fans to the series, adding to the existing mega franchise. The Resident Evil series has sold over 40 million units since the original game was released in 1996 and has spawned a multi-million dollar trilogy of films from Sony Pictures. The latest installment of the game, Resident Evil 5 promises to revolutionize the series just as Resident Evil 4 did.

In order to help promote the release of this ultra successful, horror-filled video game for PC, The Game Agency has created two applications:

A Facebook application (http://apps.facebook.com/majini-makeover/) that gives users a chance to see their most evil side –literally. Targeting gamers and non-gamers ages 17 to 35 who are fans of the franchise and the horror genre in general, MAJINI MAKEOVER allows Facebook users to transform a regular photo into a grotesque Majini. Once a user selects an image from a personal or friends’ public photo gallery, he or she can use a library of gruesome wounds, stitches, worms and more to turn themselves into one of the infected Majini’s that scare their way through Resident Evil 5. If you don’t feel like getting infected, then grab a friend’s photo, tag them and suddenly you’ve created a photo album with one evil friend – or maybe a new enemy. Users who enter their transformed image into a public Facebook gallery are entered to win a laptop computer, five top of the line Intel processors, copies of the game and Resident Evil collectables.

A Resident Evil 5 SuperWidget (http://demo.thegameagency.com/demo/611) that can be accessed on consumer desktops and across 60 online destinations including Facebook, MySpace, iGoogle, etc. For 5 weeks, this widget will offer some seriously disturbing screensavers, eye opening wallpapers, and a trailer that will get even the casual gamers excited for this blockbuster PC experience. In addition, users who install the widget will be able to enter their name and email for a chance to win an Intel Core i7 processor or digital download of the game! Users can enter once a day and prizes are awarded weekly.

Please check these two apps out when you have a chance.

Effective Consumer Outreach Proves To Be Fun And Games

September 01 2009

Online games targeting a more casual participant are attracting a wider audience, including more women, due in part to ease of play, the free or low cost, and overall popularity of video games. Given that trend, PR and marketing pros are leveraging such games to better connect with consumers.

“Gaming is a key mechanism that works with the overall strategy to help drive awareness and deepen consumer engagement,” says Heather Mitchell, Unilever's PR communications manager.

Unilever's Axe recently incorporated the game Pogo Xtreme as part of an education campaign that teaches guys how to use a “double pits to chesty” move to apply its deodorant body spray.

“Based on consumer insights, we know that gaming is a big part of our guys' world,” Mitchell notes in an e-mail to PRWeek. She adds that Unilever sees gaming as a still-growing trend.

Intel, which recently created a PC version of Atari's Ghostbusters, used a branded Facebook game as part of the marketing campaign surrounding the game, which is part of Intel's product line.

“It's an interesting way to reach a new audience, but also get people to spend a little more time getting those messages,” says Erik Cubbage, software marketing manager for Intel. Intel worked with AOR Burson-Marsteller and The Game Agency (TGA), which says it is seeing more companies interested in casual games as part of PR or marketing campaigns.

“There are still companies licensing pre-designed games and slapping their logos on them, but they are not finding success be-cause there is nothing unique,” says Stephen Baer, managing partner of TGA. Instead, he says, success comes when games are original and incorporate a brand or product in a relevant and unique way.

Tone Skin Care, part of the Dial Corporation, took part in a Facebook fashion game called What To Wear as part of the PR campaign around the launch of its Tone Antioxidant Blueberry Body Wash. It gave the brand a unique way to reach out to its target: 18- to 35-year-old women, says Sami Myohanen, brand manager for Tone, which works with AOR Marina Maher Communications.

“When this opportunity came up, it just seemed like a natural fit, as we've seen this age group interacting with online games and social media,” he adds.

What to Wear was created by Plus Media and Large Animal Games, which both report a rise in companies asking about this tactic for PR efforts. Other firms have also seen that shift.

“There is definitely an increased appetite and inquiring to see how online original gaming can be included within the PR mix,” says Jennie Kong, digital and games consultant for Atomic PR.

“It's another example of how the marketing mix is breaking down,” adds Jud Branam, MD of MS&L Digital. “You would have thought of programming something like a game as maybe an interactive agency piece, but that is becoming more common ground for everybody.”

There is still debate about where gaming falls within the marketing mix. It would appear that PR has an edge, as games allow for consumer interaction, storytelling, and building community – all areas where PR takes the lead.

“I definitely see that falling more to PR,” says Victoria Lang, co-president of Plus Media. She adds that digital PR pros are also a necessary part of these campaigns.

“If you're looking to create an original online game specifically for a client or company,” Kong adds, “the digital team is pretty much integral to working with the PR team.”

INDUSTRIES USING ONLINE GAMES

Healthcare
Companies such as Humana, Novartis, and Teva have all introduced online games as ways to educate consumers about well-being and train employees

Automotive
Car companies like Lexus and GM have used online games to promote driving safety, showcase products, and teach consumers about car parts

Video games
Its target audience is already into gaming, so companies like EA Sports use free online games to promote their NASCAR and golfing games

Casual Video Games Demonstrate Ability to Relieve Stress, Improve Mood: Potential Clinical Significance Highlighted

East Carolina University's Department of Recreation and Leisure Studies revealed the results of a six-month long, randomized, controlled study that measured the stress-relieving and other mood-lifting effects of so-called "casual" video games. The three puzzle and word games used in the study, Bejeweled® 2, Peggle™ and Bookworm™ Adventures, are all made by PopCap Games, a leading publisher of casual video games. (PopCap underwrote the study and provided copies of the games for research purposes.) The hypotheses were tested using state-of-the-art technologies and methodologies to measure heart-rate variability (HRV), electroencephalography (EEG) and subjects' mood states pre- and post-activity (POMS). The study yielded significant findings in several areas while identifying potential therapeutic applications of casual games as a means of addressing serious mental and physical disorders. Due to the significance of the findings and their implications in health promotion, disease prevention and treatment, East Carolina University's Psychophysiology Lab and is planning to start clinical trials in the fall to determine the efficacy of these games and their prescriptive parameters.

In all cases, the changes in stress levels and mood were measured in comparison to a control group that experienced a Web-based activity similar in physical and mental nature to the game-playing groups. Full results of the study will be presented at the Games for Health Conference in Baltimore, Maryland by the director of the study, Dr. Carmen Russoniello, associate professor of recreational therapy and director of the Psychophysiology Lab and Biofeedback Clinic at ECU's College of Health and Human Performance. The study results will also be published in a peer-reviewed journal later this year. High-level findings of the study are provided below.

"I've conducted many clinical studies in the area of recreational therapy in the past, but this was the first one seeking to determine the potential therapeutic value of video games," stated Dr. Russoniello. "The results of this study are impressive and intriguing, given the extent of the effects of the games on subjects' stress levels and overall mood. When coupled with the very high degree of confidence we have in those results based on the methodology and technologies used, I believe there is a wide range of therapeutic applications of casual games in mood-related disorders such as depression and in stress-related disorders including diabetes and cardiovascular disease. Granted, this study was a first step and much more needs to be done before video games can be prescribed to treat medical conditions. However, these exciting results confirm anecdotal evidence that people are playing casual video games to improve their mood and decrease their stress, and herald casual games' potential in health promotion, disease prevention, and treatment of stress- and mood-related disorders."

Stress Relief

With respect to stress relief, measured primarily through HRV which captures sympathetic (fight or flight) and para-sympathetic (relaxation) nervous system activity by assessing the variability in the heart's "beat-to-beat" interval, Bejeweled was found to reduce physical stress activity by 54% compared to the control group. There was no statistical difference between male and female subjects. Peggle and Bookworm Adventures did not reduce subjects' physical stress levels significantly but did affect psychological tension, depression and other aspects of mood, in some cases dramatically (see below).

Changes in Aspects of Mood
Mood was measured in six different categories: Psychological Tension, Anger, Depression, Vigor, Fatigue and Confusion. Cumulatively, these six aspects of mood are called "total mood disturbance," with a decrease in total mood disturbance being a positive change in mood. In terms of total mood disturbance, Peggle had the greatest effect, improving mood by 573% across all study subjects compared to the control group (which saw a modest improvement in mood). Bejeweled 2 (435%) and Bookworm Adventures (303%) also had significant positive effects on subjects' overall mood. Interestingly, among those subjects who played Bejeweled 2, male subjects showed a 10% greater increase in total mood than female subjects, while females who played Peggle experienced a 40% greater improvement in mood than males who played that game. "It's not surprising that Peggle had the greatest effect on overall mood, given the game's over-the-top celebration of players' success each time they complete a level," noted Dr. Russoniello. "The other games also provide positive feedback to players, but not to the same extent or in the same ‘exhilarating' fashion."

Data from electroencephalography (EEG) supports the study's hypotheses and confirms the participant's psychological assessment (POMS). All three PopCap® games increased mood but in different ways. Peggle significantly increased positive approach/engage brain activity, especially in females — who accounted for 97% of the positive change. Bejeweled 2 significantly decreased brain activity associated with avoid/withdrawal activity. Males had a significant (191%) decrease when compared to females and significantly differed from the control group. Bookworm Adventures had the greatest impact on left brain - right brain synchrony (421% increase). Males had a 214% greater increase in mood after playing Bejeweled and a 78% increase in mood after playing Bookworm Adventures, compared to females. Age was an important factor as well. Those subjects under the age of 25 had a 156% increase in left brain alpha, indicating a substantial decrease in avoid/withdrawal brain activity when compared to those subjects age 25 and older. In addition subjects under 25 had a significant increase in right brain activity (318%) indicating that they also had an increase in approach/engage brain activity. On the other hand, those subjects age 25 and older experienced an 891% increase in right/left brain synchrony indicating a greater mental relaxation state. (Additional break-outs of the study data by gender and age are available online.)

Psychological Tension
Peggle had the greatest effect on psychological tension, with study subjects who played that game averaging a 66% reduction compared to 36% reduction among those who played Bejeweled 2 and 24% reduction among players of Bookworm Adventures. Specifically with respect to Peggle, female subjects accounted for two thirds of the overall reduction in tension after playing that game.

Anger
Bejeweled 2 and Peggle had similarly positive effects on subjects' anger levels, reducing anger by 65% and 63%, respectively. Bookworm Adventures had a more modest effect, reducing anger by 33%. Among female subjects, Peggle produced the greatest anger reduction, 86%. Men experienced the greatest reduction of anger while playing Bejeweled 2 (63%). "Peggle may have reduced anger more effectively in women due to its light-hearted characters and somewhat cartoony presentation featuring unicorns and rainbows," Dr. Russoniello conjectured. "For men, it's likely the nature of this game — Bejeweled 2 encourages focus, introspection and calmness — which facilitated a release of anger-oriented feelings like certain other therapeutic activities such as art."

Depression
All three games had similar effects on depression, reducing subjects' depressions levels by 45% (Peggle), 43% (Bookworm Adventures) and 37% (Bejeweled 2). Among men, however, Bookworm Adventures had the greatest depression-reducing effect, with male subjects accounting for 98% of depression reduction, on average, when playing that game. "All three games, but particularly Peggle, should be used in more focused trials with a group of clinically depressed subjects, to gauge the effects," suggested Dr. Russoniello. "If these games can reduce depression this significantly among a population of people who are not diagnosed with depression, the potential for positively affecting the mental state of someone who is in fact depressed is very significant."

Vigor
Vigor is the only positive variable reflected in the POMS and represents a state of increased mental energy. Bejeweled 2 increased vigor by an average of 210% among subjects who played that game. Bookworm (10%) and Peggle (24%) had modest affects on subjects' vigor levels. Among players of Bejeweled 2, females accounted for 59% of the overall increase in vigor.

Fatigue
Peggle had the most significant impact on fatigue, reducing it by an average of 61% among subjects who played that game. Bejeweled 2 (49%) and Bookworm Adventures (33%) also reduced fatigue. Peggle was nearly equally effective at reducing fatigue among male (52%) and female (48%) subjects.

Confusion
Compared to the control group surfing the Web for articles (which collectively experienced a modest decrease in confusion), all three games reduced confusion dramatically, suggesting that the rules, objectives and input controls for the game were very clearly understood by the subjects. Subjects playing Peggle saw confusion drop by an average of 486%, while those playing Bookworm Adventures (462%) and Bejeweled 2 (426%) also experienced sizable reductions in confusion. "These findings are especially intriguing as they present the possibility that casual games may be useful in ameliorating conditions such as attention deficit disorder, memory loss and general confusion attributed to dementia and Alzheimer's disease," said Dr. Russoniello.

Study Methodology
The study was conducted between October 2007 and April 2008 and included a total of 134 subjects. Thirty-one subjects served as members of the control group, tasked with surfing the Internet looking for journal articles. The experimental groups consisted of 31 subjects who played Bejeweled 2, 29 subjects who played Bookworm Adventures, and 36 subjects who played Peggle. The study included the collection of physical data (based on Heart Rate Variability (HRV) measurements) and psychological data (based on POMS (a profile of mood states pre- and post- activity) and electroencephalography (EEG) measurements) during a 5-minute baseline period and 15 minutes of game playing or (in the case of the control group) Internet surfing.

TGA Interview with NYCGameIndustry.com

Below is a recent Q&A with NYCGameIndustry.com

"Spotlight On" is a recurring feature on nycgameindustry.com that allows us an opportunity to get to know the passionate students, talented developers and professional companies which make up the New York video game industry even better. This month we sat down with The Game Agency, a marketing firm uniquely devoted to meeting the video game, interactive entertainment, and social media needs of clients.

NYCGI: What is The Game Agency and what is its focus?

TGA: The Game Agency is an awarding winning marketing firm that specializes in video games, interactive entertainment, and social media. Our employees have worked in every facet of the interactive software industry and we pride ourselves on delivering this medium to our clients. We leverage a deep network of developers, publishers, distributors and retailers to find new markets to create, market, and distribute content. Bringing content to life is fun and maximizing the reach and impact of that content is our sweet spot!

NYCGI: You recently developed a Facebook game for the Ghostbusters license. Have you seen an upward trend in requests for these social-casual games?

TGA: Social media has changed the way we communicate, both personally and professionally. Without a doubt, marketers are leveraging this medium to position and promote their message, engage dialogue and change behavior. According to a recent Nielsen study, social networks have become more popular than email with more people are now using social networks rather than email to communicate.

NYCGI: What are some ways that people are taking advantage of social networks?

TGA: Many different ways, however social gaming is actually among the most popular activity across the spectrum. On Facebook, the top 10 games have an average of 7 million active monthly users. Among these 10 games, 5 of them focus on building a community and interacting with others and almost every one of our clients wants to be part of this.

NYCGI: How do you make a successful app on an already heavily saturated social platform like Facebook?

TGA: At The Game Agency we have five rules when designing our games/apps for Facebook.

1. Keep Simple

Facebook is simple. The features on Facebook are simple. Our hypothesis is that no application which is more complex than the most complex feature on Facebook will succeed. The simpler you make your app the better it will do.

2. Be Social

Just because you’ve built it doesn’t mean the users will come. Facebook is still first and foremost a social platform. If your application has no social component it will fail to achieve its full potential. Make it a group effort or there will be little reason for people to install it.

3. Get Viral

Write an application which does nothing more than spread itself. If your idea is funny enough, like Vampires or Zombies and Mafia Wars, people will use it.

4. Stay Fun

We ensure that all of our designs incorporate game mechanics. Games are successful for many reasons but understanding the properties and mechanics of popular games and then deploying those properties in our social applications has proven a recipe for true success.

5. Quality Matters

This might be obvious, but quality matters. Apps like Mafia Wars, YoVille, Lil Green Patch and Causes provide a set of high-quality features. They are straight forward and very compelling. In addition, be prepared to deal with your growth. Predict how many users you’ll have in a few days, weeks, months, etc. If it’s more than you anticipated make sure you have the hardware to handle it— users will uninstall apps that are slow or broken, even if it’s not the apps’ fault.

NYCGI: Tell us a bit about the basic idea behind the Ghostbusters Facebook game.

TGA: Atari was looking to promote their Ghostbusters game (now available on PC, X360, PS3, PS2, Wii and DS) in the social media environment. The Game Agency's solution was to create an interactive Ghost Hunt (http://apps.facebook.com/ghostbusters-game/) that challenges players to search for ghosts, share their findings and slime their friends.

Ghosts can be found throughout Facebook profile and product pages, blogs, game sites and corporate websites. This game provides prizes including a custom Ghostbusters designed Dell computer, Intel Core Processors and copies of the Ghostbusters game. In its first month, the game had over 35,000 people sign up and over 1,000,000 slimes.

NYCGI: When a client approaches you with a request for a game, how much do they typically bring to the table and how much is TGA's creative input?

TGA: The Game Agency has 3 divisions: TGA Digital, TGA Events and TGA Public Relations. We have a variety of capabilities that we deploy for clients including game development, marketing, promotions, partnerships, media, licensing and public relations.

Every project is different but often our clients are looking to extend a current campaign via games. We get briefed about their brand, their consumer and the creative components already in the works and we challenge ourselves to deliver a compelling game strategy that will engage a target audience and achieve their overriding goals.
Sometimes we focus on online games, sometime we focus on mobile games, sometimes we focus on live events. We are lucky that our clients trust us to get our hands dirty with them.

NYCGI: What's the turnaround time on most of these projects?

TGA: There's no firm rule for turnaround. Some games take a few weeks to develop while others take up to a year. It all depends on the platform and the depth of the user experience. The average campaign is 3-6 months.

NYCGI: Do you foresee TGA working with any of the new motion-sensing technologies on display at this year’s E3?

TGA: 3D camera motion sensor games are one of our biggest initiatives right now. The Game Agency is working on one fitness game targeting Microsoft's project Natal’s launch and several games that will be introduced in 2010 with global brand and retail partners. We like to think of these games as the next-next generation in gaming. They all focus on getting consumers active utilizing the human body as a game controller.

The physical activity of running, jumping, crouching, balancing and many more moves allows players to advance through the game. This is cutting edge technology and a real jaw dropper for everyone we've shown it to so far.

NYCGI: What other game technologies are your teams excited about?

TGA: The Game Agency is working with Aspyr Media on a new Nintendo DS game called Treasure World. It's the world’s largest treasure hunt with hundreds of millions of treasure spots around the world. Players use the DS to find Wi-Fi signals and unlock content (characters, clothing, environments, etc.). Our team has established co-promotional programs with restaurant chains, malls, libraries and children's non-profits to engage kids nationwide. We are now focused on the using this game engine for companies trying to reach consumers and employees through custom game development on Nintendo DS and Wi-Fi USBs.

NYCGI: Do you see the industry trending towards casual or core gamers in the next five years?

TGA: The high growth area in gaming is casual. Core games and gamers will always play a huge role in shaping the gaming landscape but technology has thrown open the door for every company to utilize gaming for advertising, social engagement, public relations...even employee training. Whether online, mobile, console, handheld or events we expect more and more content to be introduced for the everyday person (kids, parents and grandparents). The better the hardware gets the lower the barriers are to engage.

NYCGI: Thank you so much for your time and best of luck with all those amazing projects!

Traditional Marketing Budgets Lose to Interactive

According to Forrester Research, 60% of marketers surveyed will increase their interactive marketing budgets by shifting funds from traditional media. Direct mail was cited by 40% of marketers as being one being cut, outranking newspapers (35%), magazines (28%) and television (12%).

Among the interactive channels, the study finds social media and mobile marketing spending expanding between 2009 and 2014, with social media jumping by 34% on a compounded annual basis and mobile marketing increasing by 27%. Social media starts at $716 million in 2009, increasing to $3.11 billion by 2014. Mobile marketing expenditures stand at 319 million this year, and goes to $1.27 billion by 2014.

47% of CMOs whose budgets have been cut are increasing their spending on social media, while another 44% are increasing spending on Web site development. 40% will spend more on online advertising, and nearly that amount will increase financial resources in e-mail, considering these functions critical to their businesses, or needed to maintain competitive advantages.

Online Gaming Continues Strong Growth in U.S.

The number of U.S. citizens visiting online gaming websites rose 22 percent in May 2009 from May 2008 to 87 million, as people search for cheaper entertainment in a tough economy, research firm comScore said Friday.

Online gaming continues to be one of the top gaining categories over the past year growing at ten times the rate of the total U.S. Internet population and reaching nearly one out of every two Internet users.

Yahoo Games led comScore's list of most popular online gaming websites during May 2009, rising 6 percent from May 2008 to 19.4 million. EA Online followed, attracting 18 million users during the month, a 34 percent year-on-year increase. Nickelodeon Casual Games, which didn't exist in May 2008, attracted 14.8 million visitors. WildTangent was up 16 percent year-on-year with 13.8 million users.

comScore said Mochi Media, an online game distrubution company, attracted 17 million unique users, or about 8.7 percent of the total internet audience (193.8 million in total). Games2Win attracted 1.8 million, or 0.9 percent of the total internet population, while Tetris Online attracted 165,000 unique visitors during May, or 0.1 percent of the total internet population.

Top Online Gaming Sites May 2009 vs. May 2008 Total U.S. – Home/Work/University Locations Source: comScore Media Metrix
	Total Unique Visitors (000)
	May-2008	May-2009	% Change
Total Internet : Total Audience	190,858	193,825	2
Online Gaming	71,624	87,102	22
Yahoo! Games	18,340	19,391	6
EA Online	13,374	17,988	34
Nickelodeon Casual Games	N/A	14,836	N/A
WildTangent Network	11,896	13,844	16
Disney Games	12,137	11,717	-3
MSN Games	10,017	8,986	-10
AOL Games	8,318	8,711	5
MINICLIP.COM	7,551	8,432	12
Betawave Partners - Partial List	3,894	7,406	90
Spil Games	4,345	7,163	65
GSN Games Network	910	6,034	563
Big Fish Games Sites	4,392	5,592	27
ARMORGAMES.COM	2,684	3,860	44
Y8.COM	1,243	3,537	185
GAMEVANCE.COM	3,982	3,466	-13
RealArcade Sites	6,143	3,427	-44
IWIN.COM	2,112	3,356	59
Midasplayer.com Ltd.	1,601	2,872	79
GAMENINJA.COM	1,172	2,434	108
Stardoll Sites	N/A	2,294	N/A

Games Keep Growing

The following study was released yesterday by Nielsen. As you read below it's worth noting which months consumers play, purchase and subscribe to the most games.

The economic recession could be pushing up gaming hours, and accelerating the used games and video game rent-by-mail businesses, according to a new report from research firm Nielsen. As seen in the chart below from Nielsen's report, average gaming hours per week in 2009 have been ahead of the comparable months in 2008. But hardcore gamers, he said, are not likely driving factors in the rise of hours played. Nielsen recorded that gamers logged nearly 19 hours per week in January 2009, compared to less than 16.5 hours per week in January 2008. In May 2009, the most recent month in Nielsen's report, gamers played just over 16.5 hours per week, compared to under 16 hours per week in May 2008. The full graph explaining this reads as follows:



Also on the rise from last year are used game sales purchases. In May 2009, the ratio of used games purchased by Nielsen survey subjects was 0.36. "Used game purchasing is at all-time highs in 2009, looking back since 2006," Nielsen said.



GameStop is the leading used video game retailer, and in May reported used software sales were up 31.9% for its first fiscal quarter, as consumers have become more value-conscious. Another way that gamers are seeking out more bang for their gaming buck is through rent-by-mail services such as GameFly and Blockbuster's Total Access. The average subscription rate for using such services is trending ahead of prior years so far in 2009.



The rising popularity of used game sales and rentals is at the expense of new game sales, Nielsen suggests. But new game sales are also softer this year because of a lack of huge hits in the first have of 2009. By comparison, 2008 saw massive releases such as Grand Theft Auto IV and Mario Kart Wii. While gamers may be more value-conscious, many of those surveyed also said that the recession will not impact the amount that they spend on games in the year ahead, even though 50 percent said they have been negatively affected by the economy. 35% of gamers claim they are spending more money or plan to spend more on gaming this year than last year and 39% claim they are spending the same amount Nielsen's report said.

THE 2009 E3 SUMMARY

E3 has come and gone and has again graced the gaming world with a glimpse of where the industry is heading. If it wasn’t pronounced clearly enough by the three media briefs, the industry is shifting from pushing high production benchmarks to changing the way in which we interact with games.

As the ones who ultimately started the motion based gaming revolution, it’s only appropriate to start by talking about Nintendo and their Wii Motion Plus add on for the Wii Remote. Previously incapable of tracking subtle movements, the Wii Remote will no longer be bound to broad strokes and simple “waggle” controls due to the precision granted by the Wii Motion Plus, a small attachment that just barely extends the length of the Wii Remote. Through simple demonstrations of how the new technology will work in Wii Sports Resort, it was clear that this was no gimmick, but a way to completely open up a new realm of what is possible on the Wii. The added precision and ability to have one to one motion tracking will vastly improve the current genres of games such as EA is doing with the revamped Tiger Woods PGA Tour 10 and the new Grand Slam Tennis. Imagine having your golf swing accurately tracked to point where your hook is perfectly reflected in game. Or how about a Star Wars lightsaber fighting game that not only tracks your movements perfectly, but has the crackle of clashing beams come out of the Wii Remote speaker for another level of immersion. The possibilities are endless.

The one thing getting the most buzz at the moment is Microsoft’s motion tracking camera, the Natal. Like Stephen Spielberg said at the Microsoft conference, “it’s not about reinventing the wheel, it’s about having no wheel at all.” The Natal will be compatible with all Xbox 360 consoles and will track movement and pick up sound from those using it. Judging from the presentation, the technology works and has some true potential for a variety of games. The demonstration of Ricochet, a 3D Breakout-like title that make the user the paddle and tasks them with deflecting a bunch of balls off of their virtual self to break bricks at the end of a corridor. The short demo looks fun and showed that this is truly working in a three dimensional space, not just capturing a 2D representation of yourself like traditional camera peripherals have done in the past. Demos on the show floor including a racing simulator has garnered a lot of positive press and show that the Natal can be applied to current genres and go beyond being a simple gimmick.

Though it’s getting minimal press of the three, Sony’s motion device is blowing many folks away. Maybe it was because the demonstrations were so varied. Maybe it was because my initial perception upon seeing a glowing wand was so low and then immediately picked up when I saw it in action. Whatever it was, it’s Sony’s combination of a remote and its Eye Toy that make it appear to have the most potential of the three. Using what appears to be a glowing ball on the tip of a Wii Remote, the Eye Toy can track the users movements almost flawlessly. At first, the user was standing in a room holding the device, which then transformed into a variety of different things such as a tennis racket, golf club, sword, and (my personal favorite) a plasma whip not far removed from Ratchet and Clank: Up Your Arsenal. The demonstration only became more engaging when possible mechanics were shown for genre titles such as real time strategy, first person shooting, and melee combat. During the shooting demonstration, the person in control said, “this would be impossible without a trigger.” Though clearly a cheep shot at the Natal, it’s better to look at the statement as a way of justifying multiple motion tracking technologies. For a shooting game, I would probably want to use something that has a trigger like Sony’s controller or Nintendo’s Wii Remote, but if I were playing the demoed Ricochet where a controller clearly isn’t required, then the Natal would be the way to go.

This E3 has shown what the future of gaming will hold. Not content with the confines of controllers and buttons, Nintendo, Microsoft, and Sony have officially broken every wall of gameplay restrictions to the point where literally everything is possible.

Size Matters!

Is it unprofessional to write a love letter to a publisher or developer? Whether it is or not, I’m going forth and stating my compassion towards Bethesda and all they’ve done to keep me glued to Fallout 3 for dozens of hours on end without any stopping point in sight. This is something more than just my extreme satisfaction with a particular game (though it’s certainly part of it) it’s a model that developers should aspire to achieve in an effort to satisfy gamers over a longer stretch of time. Sticking strictly to console based games, there are two extremes here. On one hand you have the mentioned Bethesdas and Criterions of the industry that work towards expanding their titles beyond the initial feature set offered on the disk. I should give Criterion a special nod for making its first wave of Burnout Paradise content free, but that’s another topic entirely. On the other end of the spectrum, you get the guys at Grin who recently put out the Terminator Salvation game and Wanted: Weapons of Fate which offer nothing more than a story mode clocking in under five hours of gameplay with little else to offer. I’m not putting down Grin for making bad games, but rather using them as an example to point out the minimum that can be put in a game that sells for $60. Rushing through Fallout 3 will take between fifteen and twenty hours. How’s that for a value? Playing through the game and seeing everything could take up to sixty hours when, again, you’re rushing. Not only that, but once you finish the game, you can download content that seamlessly integrates itself into the game adding new missions, sometimes in new locales, to an already massive world with sure to be unexplored terrain. Criterion is offering another island to their massive world that is Paradise City after already giving away motorcycles, a day/night cycle, new multiplayer modes, and a restart function to races! They gave it away! Capcom should have thought about that before charging $5 for the adversary mode in Resident Evil 5, which was already on the disk to begin with.

Allow me to summarize: I won’t be buying Terminator Salvation because it’s $60 for a five hour game. I will, however, continue to buy additional content for Fallout 3 and Burnout Paradise. Recent drops in game sales prove that gamers are being more selective about their purchases and as a result will be looking towards the future and how a game will continue to stay fresh. It’s why World of Warcraft has stayed so popular and continues to attract new users. It’s why I’m still playing Burnout Paradise over a year after I bought it. Most importantly, it’s why anyone is still playing any given title long after it’s release.

- Jason Polansky

The Dos and Do Nots of In Game Advertising

In IGN US’s recent Bionic Command review, one of the biggest issues the reviewer had was the product placement throughout the title, referencing Pepsi vending machines and NVIDIA billboards. Really? Is that such a big deal that it hampers the enjoyment of the game? I’ll admit that there are times when product placement can be excessive to the point where I refuse to buy a product because of its annoyance, but you have to acknowledge that not all advertising is bad? Games have to be funded, and guess what… a portion of those funds come from the brands in the game. I don’t mind a Pepsi vending machine in a break of an office. That’s fine. However, don’t put a row of them in some otherworldly setting for the hell of it. A good example of how to do obscure brand placement right is Oddworld: Munch’s Oddysee. In it, Sobe vending machines were periodically scattered throughout the world to give the player power-ups. Did it make sense? Not really, but it conveniently fit within the game’s themes of flatulence and general hilarity. On the other hand, if you dropped a vending machine in Shadow of the Colossus, there would be a problem. There are times when product placement can be a blessing and times when it can be the epitome of shameless nonsensical cash-in as was the case with Darkened Skye for Gamecube which revolved around collecting magic Skittles.

Some will give the argument that when playing a game you should be able to escape from the we live in. I can relate to that, especially after putting numerous hours into Fallout 3, a game world entirely self sustained. The standout case of avoiding product placement for the better of the game is in the case of making fictional soda manufacturer Nuka-Cola as opposed to splatter Coke all over the Wasteland of post-apocalyptic Washington DC (though something tells me a certain plot point would have probably turned any brand manager off). So these fictitious worlds can lead to some controversy over what’s acceptable or not, which can be why the reviewer of Bionic Commando was so annoyed by it, but it’s not something you are constantly surrounded by (such as in Fallout 3 where you can drink to regain health), it’s more of a matter of swinging through a city, seeing a billboard, and thinking it’s a legitimate billboard advertising something. I don’t recall there being a huge outcry against EA’s billboards in Burnout Paradise, which constantly change and promote a lot more than just Pepsi and NVIDIA (there were Barack Obama ads at one point).

The point I’m driving at here is use product placement strategically. The best use of product placement could be seen in sports games, where the idea is generally to make the game as realistic as possible. If that’s the case, you’re going to need to have a bunch of ads all over the place, just like the real event. In fact, there are times when a lack of brand placement can be detracting. For example, EA owns the rights to ESPN, but still insists on putting “EA” on scoreboards and timers. How about putting that license to use and giving me the true ESPN broadcast experience like the 2K sports of 2004? Ultimately use your brands wisely. The thing to remember is to use the brand with a certain respect for the environment on hand, and, most importantly, respect for the gamer and their world.

- Jason Polansky