Yesterday, Disney announced that it was spending more than half-a-billion dollars to buy Playdom, the third largest social game publisher responsible for Facebook games, such as Social City, Sorority Life and Wild Ones.
While this move makes it clear that Disney's ready to get elbow-deep in social gaming, one analyst tells Gamasutra that Disney's latest acquisition is looking "very expensive," and that the Mouse House might not get a good return on investment for several reasons, including the fact that social games are losing players by the week. For instance, the most popular Facebook game, FarmVille, dropped roughly 20 million players in a matter of months, and lesser games haven't fared much better.
"We believe the dynamics of the social gaming space are becoming increasingly commoditized and fad-based, and attracting gamers could become an exercise in increasingly aggressive marketing budgets, impacting the economics of the social gaming model," warns the analyst.
Other reasons for questioning Disney's big splurge are historical. The company bought the kid's social gaming site Club Penguin for the same deal several years ago -- offering a huge chunk of cash plus bonus performance incentives. And, the analyst says, Club Penguin never met Disney's expectations, and missed out on banking a few million dollars. Why would Playdom be any different? He also wonders why Disney paid double what EA paid for Playfish last year,. even though Playdom's monthly active user base is 15% smaller -- a great question which I don't expect have answered anytime soon.
Right now, what Disney's plans are with Playdom are still unknown, though I'll speculate Disney will let Playdom keep on with its more successful social games, close Playdom's lesser social games, launch the ESPN games the two companies were already working on together and then start looking in-house at existing brands to see if any of them would work on Facebook.
Games.com blog readers (yes, you!) have not been enthusiastic about the Playdom takeover by Disney. From the Games.com Facebook fanpage:
"Judging from how Disney manages to rewrite (and IMO RUIN) stories for animation, charge too much for their @#$% merchandise which is marketed directly to CHILDREN, I do not want Disney to take over the world or have more social networks or more of anything," one reader says.
"[Disney] just likes to, steal, and buyout other peoples success. Its a very cut throat company, who dosent care about the people who support it," says another.
Disney buys Playdom: Good move or bad?
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Showing posts with label ESPN. Show all posts
Showing posts with label ESPN. Show all posts
Thursday, February 9, 2012
Thursday, October 20, 2011
Disney-branded Facebook games coming in 2012, Playdom head says
Can we all just say, “finally?” During a panel named “The Rise of Social Games” at the f8 Facebook Developers Conference in San Francisco, Disney Interactive and Playdom head John Pleasants revealed that two to four Facebook games surrounding Disney xd brands will hit Facebook in 2012. The general topic of the panel was the fact that branded social games are taking off.
Pleasants was joined on the panel by Kabam CEO Kevin Chou, EA Interactive head Barry Cottle and Zynga CBO Owen Van Natta. Facebook director of games partnerships Sean Ryan moderated the panel with the preface that branded games will take over the Facebook platform. And he might be right: EA just released The Sims Social, Zynga will soon re-brand its new Adventure World with Indiana Jones and Kabam recently announced The Godfather: Five Families.
Playdom, which Disney acquired in July 2010 for a whopping $740 million, is ahead of the pack with two branded games on Facebook: ESPNU College Town and ESPN Sports Bar & Grill. Both games performed well, thanks to advertising through the ESPN TV network. While Disney owns the ESPN brand, notice how neither of those actually involve the insanely popular Disney characters we’ve come to love.
Honestly, we’re surprised this didn’t happen sooner. Consider this: Disney has its own cable TV channel through which it could, in theory, advertise whatever it wants. Pleasants didn’t get into why it’s taken this long for disney channel games to throw its cast of characters into Facebook games, but did reveal the power of the Disney name.
Gnome Town, which Playdom launched in the summer–and we enjoyed quite a bit–peaked at 530,000 daily players. But just plopping the Disney logo on top of the existing one made users more likely to spend in the game just through trust of the company’s name, according to Pleasants. “We think it’s an advantage, if you put game play first,” Pleasants said.
It’s comforting to hear this emphasized by these developers. (Kabam’s Chou shared the same sentiment.) Branded games on Facebook are OK in my book, but the last thing anyone wants to see is the genre become a branding machine.
Pleasants was joined on the panel by Kabam CEO Kevin Chou, EA Interactive head Barry Cottle and Zynga CBO Owen Van Natta. Facebook director of games partnerships Sean Ryan moderated the panel with the preface that branded games will take over the Facebook platform. And he might be right: EA just released The Sims Social, Zynga will soon re-brand its new Adventure World with Indiana Jones and Kabam recently announced The Godfather: Five Families.
Playdom, which Disney acquired in July 2010 for a whopping $740 million, is ahead of the pack with two branded games on Facebook: ESPNU College Town and ESPN Sports Bar & Grill. Both games performed well, thanks to advertising through the ESPN TV network. While Disney owns the ESPN brand, notice how neither of those actually involve the insanely popular Disney characters we’ve come to love.
Honestly, we’re surprised this didn’t happen sooner. Consider this: Disney has its own cable TV channel through which it could, in theory, advertise whatever it wants. Pleasants didn’t get into why it’s taken this long for disney channel games to throw its cast of characters into Facebook games, but did reveal the power of the Disney name.
Gnome Town, which Playdom launched in the summer–and we enjoyed quite a bit–peaked at 530,000 daily players. But just plopping the Disney logo on top of the existing one made users more likely to spend in the game just through trust of the company’s name, according to Pleasants. “We think it’s an advantage, if you put game play first,” Pleasants said.
It’s comforting to hear this emphasized by these developers. (Kabam’s Chou shared the same sentiment.) Branded games on Facebook are OK in my book, but the last thing anyone wants to see is the genre become a branding machine.
Thursday, October 13, 2011
Disney-branded Facebook games coming in 2012, Playdom head says
Can we all just say, “finally?” During a panel named “The Rise of Social Games” at the f8 Facebook Developers Conference in San Francisco, Disney Interactive and Playdom head John Pleasants revealed that two to four Facebook games surrounding Disney xd brands will hit Facebook in 2012. The general topic of the panel was the fact that branded social games are taking off.
Pleasants was joined on the panel by Kabam CEO Kevin Chou, EA Interactive head Barry Cottle and Zynga CBO Owen Van Natta. Facebook director of games partnerships Sean Ryan moderated the panel with the preface that branded games will take over the Facebook platform. And he might be right: EA just released The Sims Social, Zynga will soon re-brand its new Adventure World with Indiana Jones and Kabam recently announced The Godfather: Five Families.
Playdom, which Disney acquired in July 2010 for a whopping $740 million, is ahead of the pack with two branded games on Facebook: ESPNU College Town and ESPN Sports Bar & Grill. Both games performed well, thanks to advertising through the ESPN TV network. While Disney owns the ESPN brand, notice how neither of those actually involve the insanely popular Disney characters we’ve come to love.
Honestly, we’re surprised this didn’t happen sooner. Consider this: Disney has its own cable TV channel through which it could, in theory, advertise whatever it wants. Pleasants didn’t get into why it’s taken this long for disney channel games to throw its cast of characters into Facebook games, but did reveal the power of the Disney name.
Gnome Town, which Playdom launched in the summer–and we enjoyed quite a bit–peaked at 530,000 daily players. But just plopping the Disney logo on top of the existing one made users more likely to spend in the game just through trust of the company’s name, according to Pleasants. “We think it’s an advantage, if you put game play first,” Pleasants said.
It’s comforting to hear this emphasized by these developers. (Kabam’s Chou shared the same sentiment.) Branded games on Facebook are OK in my book, but the last thing anyone wants to see is the genre become a branding machine.
Pleasants was joined on the panel by Kabam CEO Kevin Chou, EA Interactive head Barry Cottle and Zynga CBO Owen Van Natta. Facebook director of games partnerships Sean Ryan moderated the panel with the preface that branded games will take over the Facebook platform. And he might be right: EA just released The Sims Social, Zynga will soon re-brand its new Adventure World with Indiana Jones and Kabam recently announced The Godfather: Five Families.
Playdom, which Disney acquired in July 2010 for a whopping $740 million, is ahead of the pack with two branded games on Facebook: ESPNU College Town and ESPN Sports Bar & Grill. Both games performed well, thanks to advertising through the ESPN TV network. While Disney owns the ESPN brand, notice how neither of those actually involve the insanely popular Disney characters we’ve come to love.
Honestly, we’re surprised this didn’t happen sooner. Consider this: Disney has its own cable TV channel through which it could, in theory, advertise whatever it wants. Pleasants didn’t get into why it’s taken this long for disney channel games to throw its cast of characters into Facebook games, but did reveal the power of the Disney name.
Gnome Town, which Playdom launched in the summer–and we enjoyed quite a bit–peaked at 530,000 daily players. But just plopping the Disney logo on top of the existing one made users more likely to spend in the game just through trust of the company’s name, according to Pleasants. “We think it’s an advantage, if you put game play first,” Pleasants said.
It’s comforting to hear this emphasized by these developers. (Kabam’s Chou shared the same sentiment.) Branded games on Facebook are OK in my book, but the last thing anyone wants to see is the genre become a branding machine.
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