2004 Web and Downloadable Games White Paper 

IGDA Online Games SIG 

based on an older generation technology. Thus without the serious threat of consoles penetrating the 

China market, PC platform MMP and web based casual games consumption should grow considerably in 

2004 and beyond. Already several players have taken a significant lead in the early market, with players 

like Shanda with leadership in both the MMP and casual game market and the three top web portals 

Sohu, Sina and Netease entering aggressively. 

In Japan the future of online gaming is less clear as it continues to be a rich console dominated market. A 

number of PC platform online game publishers emerged in 2003, including Softbank's BB Games, which 

launched in July 2003 with a target of offering over 100 mass market casual web games, and NTT's 

game service partnership with the Korean Game Development and Promotion Agency with a current pilot 

service of 10 casual online games. 

European Development of New Revenue Sources for Internet Games 

Written by Miguel Oliveira, CEO GameBubbles 

For  some  developers  publishing  on  their  own  is  the  most  accessible  way  of  monetizing  their 

games.  The  Internet  has  produced  several  great  solutions  with  Digital  Rights  Management 

(DRM) tools and e commerce platforms that have made the independent game developer's life 

much easier. Despite significant online success, many developers still see reasons to move their 

games into the offline retail space. In the US, publishers such as Cosmi, eGames, and Valusoft 

focus  on  the  value  or  budget  market,  which  could  be  considered  to  fall  into  a  $19.95  price 

category comparable to most of the games distributed online. In comparing online and brick and 

mortar game distribution we find a serious difference in the genre and complexity of the games. 

While puzzle, tile, and card games are being sold online for $19.95 a piece, very similar games 

seem to be bundled with about 10 100 other games in compilation jewel cases priced at $9.99 to 

$19.99. 

In Europe, and in particular Germany, publishers and developers are taking a different approach 

to monetizing paid download content in the retail game environment. Companies like AK Tronic, 

dtp, and Koch Media bring paid download games to retail for about the same price as their online 

counterpart.  One  of  Germany's  most  popular  game  brands, 

Moorhuhn

,  is  famous  for  its  free 

download  game  version,  which  is  available  as 

Moorhuhn

  1,  2,  3,  and  Winter  Edition.  Despite 

being available for free during its promotional campaign, the bundle of those four game versions 

(

Moorhuhn Compilation

) sells for 

5 (

1 = $1.2) online on Bild.de as well as in retail through AK 

Tronic.  

Harry  Buster

,  a  side scrolling  shooter  for  casual  gamers,  claims  to  have  been  downloaded 

100,000 times within four weeks of its online release. While the downloadable version, available 

through T online.de, offers 10 levels at 

4.50, the retail version published by Koch Media contains 

20 levels at 

9.99. Another example is 

Beetle Junior

. This game is being distributed in the US for 

$19.99 on such portals as RealOne Arcade and Shockwave with 60 levels. In Germany, on the 

other hand, it offers 150 levels in the downloadable version off Bild.de for a mere 

7.50. The retail 

box sells for 

5 and provides 100 levels. 

A slightly different approach is taken by BigBen and JoWood with their title 

Bose Nachbarn

. Due 

to its file size (require approximately 130 MB free space on hard disk) this game appears to be 

rather  appropriate  for  retail  distribution.  However,  Bild.de  opted  to  distribute  a  free  21MB   XS  

version (3 tutorial, 2 game levels) for free, and the so called 31MB  XL  version (6 full episodes) 

for 

6.99 online. At the same time, the publisher Big Ben is offering a full version with 14 episodes 

for 

14.99  through  regular  retail.  Interestingly  enough,  the  localized  game  is  being  distributed 

throughout the US retail market for $29.99. Another game that made it into the ranks of US paid 

download top 10 lists is  Froggy Castle . With the well accepted price tag of $19.99 it stormed into 

RealOne  Arcade's  top  10  for  several  weeks.  The  same  game  is  being  distributed  in  Germany 

through T online.de and retail for 

9.95. 

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