Sunday, January 25, 2009

VC Dollars Dropped 33 Percent In The Fourth Quarter


Venture capital firms tightened their purse strings in the fourth
quarter of 2008, according to the latest MoneyTree Report released by
the National Venture Capital Association and PricewaterhouseCoopers.
The total dollar amount invested in venture financings was $5.4
billion, down 33 percent from the fourth quarter of 2007 (when it was
$8.09 billion) and down 26 percent from the third quarter of 2008
(when it was $7.3 billion). For the entire year, the total venture
capital invested into startups was $28.3 billion, down 8 percent.

Article Link (Tech Crunch)

Friday, January 16, 2009

Spark to Spearhead WowWee UK

spin master, wowwee

Former Spin Master sales director Graham Spark is moving on from a short spell with Tomy to set up a new UK operation for robotics specialist WowWee.

The move sees WowWee end its successful UK distribution deal with Character Options, which has already signed up a new range of robotic toys from US manufacturer Bossa Nova.

Article Link (Toy News Online)

Wednesday, January 14, 2009

Electronics and Women

CES-panel2
Women buy 57% of consumer electronics (to the tune of about $80B), but influence 90% of all CE purchases. The number of women who said they thought manufacturers had them in mind when developing products: 1%. That’s a number from 2004.

According to the Femme Den Smarties, Larry Summers was right: women’s brains ARE different from guys’ and, frankly, figuring out how to hook up a router is harder for us. For example, a Yale study tested college students’ ability to set a VCR from written instructions. Some 68% of the men managed to do it on the first try. Only 16% of the women succeeded. This could explain why we’re hopeless when it comes to simple things, like installing a home theater.

Men, literally, have more gray matter in their brains. That makes them better at specialized and focused tasks. Women, on the other hand, have more white matter. That’s the tissue that wires processing centers together. That means we rock at multitasking, and integrating functions, but figuring out the glitch with the WiFi can be a hurdle.

How can manufacturers use these differences to their advantage? The Smart Design women had a few pointers. Among them:

  1. Recognize that being female is not niche.
    We’re 51% of the population, people! And, when it comes to
    shopping, we control over 80 cents on the dollar. “The biggest
    mistake we have seen is treating women like a special interest group
    with only post-design considerations like color and finish. We call
    this the ’shrink it and pink it’ approach. And, it’s
    offensive to most women.” says Enga.
  2. Design for an average user, not a power user. This
    doesn’t mean a dumbed-down product, but one that’s
    accessible to the largest number of people. While men have more
    patience than women with technological complexity than women (see
    above), they’re equally charmed by products that are easy to
    use. The iPod is, of course, the benchmark CE product for every
    manufacturer, but the easy-to-use Flip Mino camcorder, which last year
    sold 1.5M units, demonstrates the universal appeal of intuitive design.
    Focus on pleasing the ladies, and you’ll likely get the guys as
    well.
  3. Expand the focus to include warmer values.
    Cold values focus on things like faster, bigger, slicker, with more
    features. Warm values include such things as a focus on how a product
    fits into a user’s lifestyle. How does it fit into the home or
    office aesthetically? Does it enable the buyer to do something she
    normally wants to do, only better or easier?
  4. Design with a recognition of a product’s broader impact.
    Women’s language around consumer electronics invariably includes
    other people. They worry about the effect of video games on their
    children, the ability of their parents to use a cellphone in an
    emergency, their husband’s obsession with his
    Blackberry. They are, therefore, intrigued with products that have
    positive social effects--like the Wii’s knack for enabling
    interactive fun for a range of users.
  5. Add features only if there’s a good reason to do so
    – not just to please the marketing department, or because the
    company’s engineers are enamored with their own technological
    wizardry. “A 50-page quick start manual is not a good
    idea,” says Eden.
Article link (Fast Company)

Wednesday, January 7, 2009

Why events are scheduled on Tuesday

Travel: Journalists won't travel on Sundays, a non working day, for an event or presentation on Monday.

Weeklies: While a blog or website only needs moments
to distribute the news, the longest lead time of any publication that
can still be considered timely is the weekly. And the Print cycle for
most weeklies is run such that Wednesday or Thursday is not always
enough time for the weeklies to get the news in print.

Analysts: Analyst briefings are usually set the day before the news, minimizing time for info to leak out.

Set Up: The Apple event team has an extra last minute working day to set up their event.

It's PR 101: Apparently, most companies aim for
Tuesday as an important day to break news for all the reasons above.
It's just that most companies don't get noticed for this, because their
news isn't received by millions of cultists.
Article Link (Gizmodo)

Tuesday, January 6, 2009

Thursday, January 1, 2009

Casual MMOs get between 10-25% of users to pay

There's been some good number crunching going on at conferences and on the blogosphere to find out the basic economics of casual mmo / free to play companies. From a post a few months ago Jeremy Liew figured that successful MMOGs can expect around $1-2 per unique monthly user. A few of the figures from that post below:

* Club Penguin: $1.62/mthly user/mo
* Habbo: $1.30/mthly user/mo
* Runescape: $0.84/mthly user/mo

others from outside that article:
* Puzzle Pirates: $1.50/mthly user/mo
* IMVU: $1.66/mthly user/mo (from GigaOM)

Article Link

Social Gaming in 2009: Challenges and Opportunities

First, the challenges: Many of the execs I contacted brought up the unpredictability of social games. For example, Charles Edward Hudson III, V-P of business development for Serious Business, noted that the majority of startups in the space are still at the mercy of the top social networks, which have a habit of suddenly changing their policies — to the detriment of third-party applications such as social games.

There’s unpredictability in competition, too. Hudson pointed out that most social network-based games are easy to produce, so established developers often find themselves competing with quickie knock-off versions of their IP. Kristian Segerstrale, CEO and co-founder of Playfish, was also concerned with how dubious fly-by-night social games might hurt the genre as a whole. “Poor quality user experiences or misleading monetization mechanisms like some of the aggressive CPA practices we’ve seen in 2008 could jeopardize the perception of social games and our growth potential as an industry,” he wrote me.


Article Link