The folks over at Epic Games have a special treat in store for players hopping on Fortnite today. In celebration of New Year’s Eve all around the world, Fortnite is having an in-game live event where a massive, dropping disco ball descends on the map each hour, on the hour.
The virtual ball drop has the same affect on players as a boogie bomb, meaning that everyone playing Fortnite is collectively dancing each time the minutes on your clock read :00.
Obviously, the clock has already struck midnight and 2019 has officially begun in many parts of the world, but the in-game ball drop threw some players off guard.
My parents are approaching 60. When they were young, they hung out at diners, or drove around in their cars. My generation hung out in the parking lot after school, or at the mall. My colleague John Biggs often talks of hanging out with his nerd buddies in his basement, playing games and making crank calls.
Today, young people are hanging out on a virtual island plagued by an ever-closing fatal storm. It’s called Fortnite .
They hang out in Fortnite the way we used to hang out in basements or back yards. We played games or kicked a ball around, but it was all a pretense for the social aspect.
The thread above describes exactly what I’m talking about. Yes, people most certainly log on and play the game. Some play it very seriously. But many, especially young folks, hop on to Fortnite to socialize.
The phenomenon of “hanging out” on a game is not new.
I was in a 50 person clan in World of Warcraft in 2004 and we all hung out on a Ventrilo for hours every day for years and years. I saw real romantic relationships begin, grow and die on there. So “x is a place” is a fine observation, but it’s not a new phenomenon.
Almost any popular game results in a community of players who connect not only through the common interest of the game itself, but as real friends who discuss their lives, thoughts, dreams, etc. But something else is afoot on Fortnite that may be far more effectual.
Gaming culture has long had a reputation for being highly toxic. To be clear, there is a difference between talking about someone’s skills in the game and making a personal attack:
“You are bad at this game.” = Fine by me
“You should kill yourself.” = Not fine at all
But many streamers and pro gamers make offensive jokes, talk shit about each other and rage when they lose. It’s not shocking, then, that the broader gaming community that tries to emulate them, especially the young men growing up in a world where e-sports are real, tend to do many of the same things.
A new type of community
But Fortnite doesn’t have the same type of community. Sure, as with any game, there are bad apples. But on the whole, there isn’t the same toxicity permeating every single part of the game.
For what it’s worth, I’ve played hundreds of hours of both Fortnite and Call of Duty over the past few years. The difference between the way I’m treated on Fortnite and Call of Duty, particularly once my game-matched teammates discover I’m a woman, is truly staggering. I’ve actually been legitimately scared by my interactions with people on Call of Duty. I’ve met some of my closest friends on Fortnite.
One such relationship is with a young man named Luke, who is set to graduate from college this spring.
During the course of our now year-long friendship, Luke revealed to me that he is gay and was having trouble coming out to his parents and peers at school. As an older gay, I tried to provide him with as much guidance and advice as possible. Being there for him, answering his phone calls when he was struggling and reminding him that he’s a unique, strong individual, has perhaps been one of the most rewarding parts of my life this past year.
I’ve also made friends with young men who, once they realize that I’m older and a woman and have a perspective that they might not, casually ask me for advice. They’ve asked me why the girl they like doesn’t seem to like them back — “don’t try to make her jealous, just treat her with kindness,” I advised, and then added “OK, make her a little jealous” — or vented to me about how their parents “are idiots” — “they don’t understand you, and you don’t understand them, but they’re doing their best for you and no one loves you like they do” — or expressed insecurity about who they are — “you’re great at Fortnite, why wouldn’t you be great at a bunch of other things?” and “have more confidence in yourself.”
(Though paraphrased, these are real conversations I’ve had with random players on Fortnite.)
There is perhaps no other setting where I might meet these young people, nor one where they might meet me. And even if we did meet, out in the real world, would we open up and discuss our lives? No. But we have this place in common, and as we multitask playing the game and having a conversation, suddenly our little hearts open up to one another in the safety of the island.
But that’s just me. I see this mentorship all the time in Fortnite, in both small and big ways.
Gaming culture is often seen as a vile thing, and there are a wide array of examples to support that conclusion. Though this perception is slowly changing, and not always fair, gamers are usually either perceived as lonely people bathed in the blue glow of the monitor light, or toxic brats who cuss, and throw out slurs, and degrade women.
So why is Fortnite any different from other games? Why does it seem to foster a community that, at the very least, doesn’t actively hate on one another?
One map, a million colors
First, it’s the game itself. Even though Fortnite includes weapons, it’s not a “violent” game. There is no blood or gore. When someone is eliminated, their character simply evaporates into a pile of brightly colored loot. The game feels whimsical and cartoonish and fun, full of dances and fun outfits. This musical, colorful world most certainly affects the mood of its players.
Logging on to Fortnite feels good, like hearing the opening music to the Harry Potter movies. Logging on to a game like, say, Call of Duty: WWII feels sad and scary, like watching the opening sequence to Saving Private Ryan.
Moreover, Fortnite Battle Royale takes place on a single large map. That map may change and evolve from time to time, but it’s even more “common ground” between players. Veterans of the game show noobs new spots to find loot or ways to get around. As my colleague Greg Kumparak said to me, “Every time you go in, you’re going to the same place. Maybe it’s skinned a little different or there’s suddenly a viking ship, but it’s home.”
Of course, there are other colorful, bubbly games that still have a huge toxicity problem. Overwatch is a great example. So what’s the difference?
Battle Royale has introduced a brand new dynamic to the world of gaming. Instead of facing off in a one-versus-one or a five-versus-five scenario as with Starcraft or Overwatch respectively, Battle Royale is either 1 versus 99, 2 versus 98 or 4 versus 96.
“It isn’t as binary as winning or losing,” said Rod “Slasher” Breslau, longtime gaming and e-sports journalist formerly of ESPN and CBS Interactive’s GameSpot. “You could place fifth and still feel satisfied about how you played.”
Breslau played Overwatch at the highest levels for a few seasons and said that it was the most frustrating game he’s ever played in 20 years of gaming. It may be colorful and bubbly, but it is built in a way that gives an individual player a very limited ability to sway the outcome of the game.
“You have all the normal problems of playing in a team, relying on your teammates to play their best and communicate and to simply have the skill to compete, but multiply that because of the way the game works,” said Breslau. “It’s very reliant on heroes, the meta is pretty stale because it’s a relatively new game, and the meta has been figured out.”
All that, combined with the fact that success in Overwatch is based on teamwork, make it easy to get frustrated and unleash on teammates.
With Fortnite, a number of factors relieve that stress. In an ideal scenario, you match up with three other players in a Squads match and they are all cooperative. Everyone lands together, they share shield potions and weapons, communicate about nearby enemies and literally pick each other up when one gets knocked down. This type of teamwork, even among randos, fosters kindness.
In a worst-case scenario, you are matched up with players who aren’t cooperative, who use toxic language, who steal your loot or simply run off and die, leaving you alone to fight off teams of four. Even in the latter scenario, there are ways to play more cautiously — play passive and hide, or third-party fights that are underway and pick players off, or lure teams intro trapped up houses.
Sure, it’s helpful to have skilled, communicative teammates, but being matched with not-so-great teammates doesn’t send most people into a blind rage.
And because the odds are against you — 1 versus 99 in Solos or 4 versus 96 in Squads — the high of winning is nearly euphoric.
“The lows are the problem,” says Breslau. “Winning a close game of Overwatch, when the team is working together and communicating, feels great. But when you’re depending on your team to win, the lows are so low. The lows aren’t like that in Fortnite.”
The more the merrier
The popularity of Fortnite as a cultural phenomenon, not just a game, means that plenty of non-gamers have found their way onto the island. Young people, a brand new generation of gamers, are obsessed with the game. But folks who might have fallen away from gaming as they got older are still downloading it on their phone, or installing it on the Nintendo Switch, and giving Battle Royale a try. Outsiders, who haven’t been steeped in the all-too-common hatred found in the usual gaming community, are bringing a sense of perspective to Fortnite. There is simply more diversity that comes with a larger pool of players, and diversity fosters understanding.
Plus, Fortnite has solid age distribution among players. The majority (63 percent) of players on Fortnite are between the ages of 18 and 24, according to Verto Analytics. Twenty-three percent of players are ages 24 to 35, and thirteen percent are 35 to 44 years old. However, this data doesn’t take into account players under the age of 18, which represent 28 percent of overall gamers, according to Verto. One way Fortnite is like other games is that 70 percent of players are male.
There aren’t many scenarios where four people, from different backgrounds and age groups, join up under a common goal in the type of mood-lifting setting that Fortnite provides. More often than not, the youngest little guy tries to make some sort of offensive joke to find his social place in the group. But surprisingly, for a shoot and loot game played by a lot of people, that’s rarely tolerated by the older members of a Fortnite squad.
All eyes on Fortnite
The popularity of the game also means that more eyes are on Fortnite than any other game. Super-popular streamer Ninja’s live stream with Drake had more than 600,000 concurrent viewers, setting a record. The more people watching, the more streamers are forced to watch their behavior.
Fortnite streamers are setting a new example for gamers everywhere.
One such streamer is Nick “NickMercs” Kolcheff. Nick has been streaming Fortnite since it first came out and has a huge community of mostly male viewers. I consider myself a part of, albeit a minority in, that community — I’ve subscribed to his channel and cheered for him with bits and participated in the chat. In short, I’ve spent plenty of time watching Nick and have seen him offer a place of support and friendship for his viewers.
I’ve seen Nick’s audience ask him, in so many words, how to lose weight (Nick’s a big fitness guy), or share that they’re dealing with an illness in the family, or share that they’re heartbroken because their girlfriend cheated on them.
In large part, Nick says he learned how to be a mentor from his own dad.
“I remember being in those kinds of positions, but I have a great father that always sat me down and let me vent and then shared his opinion, and reminded me that it isn’t supposed to be easy,” said Kolcheff. “It feels good to bounce things off other people and hard things always feel much easier when you know you’re not alone, and I can relate to my chat the way my dad relates to me.”
Nick always has something positive to say. He reminds his audience that even if they feel alone IRL, they have a community right there in his Twitch channel to talk to. He sets an example in the way he talks about his girlfriend Emu, and the way he treats her on screen. When Nick loses a game and his chat explodes with anger, he reminds them to be cool and to not talk shit about other players.
And it’s easy to see his example followed in the chat, where young people are treating each other with respect and answering each other’s questions.
Nick wasn’t always like this. In fact, the first time that NickMercs and Ninja played together on stream, they brought up the time that Nick challenged Ninja to a fight at a LAN tournament years ago. But both Nick and Ninja have matured into something that you rarely find in online gaming: a role model — and it’s had an effect.
Tyler “Ninja” Blevins, far and away the most successful Twitch streamer ever, decided to stop swearing and using degrading language as his influence in the community and his viewership grew. When his audience said they missed the old Ninja, he had this to say:
I’m the same person, you guys. 2018 can’t handle old Ninja and… guess what, I can’t handle old Ninja because the words that I used to say and the gaming terms I used to say… they weren’t ok, alright? I’ve matured.
Jack “Courage” Dunlop is another Fortnite streamer who uses his influence in the community to mentor young people. He has befriended a young fellow named Connor. Courage helped Connor get his first win and has since continued playing with him and talking to him.
Not only is he being kind to Connor, but he’s setting an example for his viewers.
“In comparison to games like Call of Duty and Gears of War and Halo, the top content creators like Ninja, Sypher PK, Timthetatman, are a little older now,” said Kolcheff. “They’ve come from other games where they already had a following. If you look at me five or six years ago, or any of us, we’ve all chilled out. We were more combative and crazy and had a lot more words to say, but I think we just grew up, and it bleeds through to the community.”
These guys are the exception in the wider world of gaming and streaming. But they represent the future of gaming in general. As e-sports explode with growth, pro players will undoubtedly be held to the same behavioral standards as pro players in traditional sports. That’s not to say that pro athletes are angels, and that’s not to say that bad actors won’t have a following. Just look at PewDiePie.
A matter of time
The e-sports world is realizing that they can’t let their professionals run their mouth without consequences. As the industry grows, highly dependent on advertisers and brand endorsements, with a young audience hanging on every word, it will become increasingly important for leagues, e-sports organizations and game makers to start paying closer attention to the behavior of their top players.
There is plenty more work to do. But the problem of removing toxicity from any platform is incredibly difficult. Just ask Facebook and Twitter. Still, it’s only a matter of time before e-sports decision-makers raise the stakes on what they’ll allow from their representatives, which are pro players and streamers.
Toxic behavior is being rejected in most polite society anywhere (except Twitter, because Twitter), and it surely can’t be tolerated much longer in the gaming world. But Fortnite maker Epic Games hasn’t had to put too much effort forth to steer clear of toxic behavior. The community seems to be doing a pretty good job holding itself accountable.
Winning where it counts
Believe you me, Fortnite is not some magical place filled with unicorns and rainbows. There are still players on the game who behave badly, cheat, use toxic language and are downright mean. But compared to other shooters, Fortnite is a breath of fresh air.
No one thing makes Fortnite less toxic. A beautiful, mood-lifting game can’t make much of a difference on its own. A huge, relatively diverse player base certainly makes a dent. And yes, the game limits frustration by simply managing expectations. But with leaders that have prioritized their position as role models, and all the other factors above working in harmony, Fortnite is not only the most popular game in the world, but perhaps one of the most polite.
We reached out to Epic Games, Courage and Ninja for this story, but didn’t hear back at the time of publication.
On the regular Tuckersoft site, discovered through a QR code embedded in the show itself, Tuckersoft advertises its game lineup including Bandersnatch, a “revolutionary game from Stefan Butler.” In this timeline, Tuckersoft released both Nohzdyve and Bandersnatch and Stefan eventually eclipsed his gaming idol Colin’s own fame, driving the company forward. As the site notes:
“While Colin Ritman was Tuckersoft’s leading man, it was Stefan Butler’s 1984 release, Bandersnatch, that catapulted the company to new heights. The innovative narrative and gameplay transformed interactive entertainment forever.”
If you visit the Tuckersoft site but strip out the www., the company never released Colin’s game due to a tragic incident. If you’ve seen the episode, you can probably guess what that was. This version of the site includes the following text:
“A bleak turn of events would lead to the abrupt cancellation of Colin Ritman’s highly-anticipated game, Nohzdyve, and the end of Stefan Butler’s promising career.
“Metl Hedd remains a classic, but the world will have to wonder what Nohzdyve was like. Rumour has it, an early version of the game is somewhere out there, waiting to be played for the first time.”
Black Mirror fans will note that the fictionalized site for Colin’s other major title, Metl Hedd, depicts the BigDog-like robots that terrorized humans in season four’s particularly harrowing episode “Metalhead.” Tuckersoft’s other games contain plenty of references to Black Mirror episodes too.
In the timeline in which Colin was able to finish Nohzdyve, the game’s sub-page has a download link for a file called nohzdyve.tap and the instructions to “Play Nohzdyve on your ZX Spectrum emulator.” Apparently, the file works and if you run Windows and you’re willing to install an emulator (like Speccy) for the obscure British 8-bit console, you can actually play Colin’s rather prescient release. We’re told it might work on a Commodore 64 emulator too, but haven’t tested that out (yet).
So far it doesn’t look like Bandersnatch is playable anywhere, but given that the episode itself is a game and the game itself results in certain horror, that’s probably for the best.
Some of you out there may be lucky enough to have received over the holidays a fancy new robot vacuum. Turns out it’s even more useful than you’d think: in addition to cleaning your home, it can scan its surroundings and produce a Doom level of your home! Just the right thing to ring in the new year: Hell on Earth.
By combining Doom with Roomba, Whitehouse realized he would not only be able to make something fun, but to “unleash a truly terrible pun to plague humankind.” To wit: DOOMBA.
It works like this, though if you don’t have a Roomba 980, there’s no guarantee it’ll work at all: Using a special utility, your PC will detect the Roomba on the wireless network and begin tracking its movements and collected data. When the little robot has done its work, the data is saved in a file, which you can then convert to a Doom wad via DOOMBA, a plugin for Whitehouse’s Noesis image/model conversion app.
The shape of the level will be taken from your place, but of course things may look a little different. More monsters, probably. That depends on the randomization settings you choose, which control what weapons, critters, and other features show up in this hellish new version of your home.
It’s all free, except for Doom and the Roomba, so if you have both, get cracking. Thanks to Rich for this fun holiday distractio.
Epic Games is having its own Christmas hangover. On Wednesday, a number of Fortnite players reported long queues that time out and problems logging in to Fortnite’s servers. The company is aware of the issue and tweeted that it’s investigating the cause behind the outage that some users are running into when they try to log in.
We are investigating an issue causing some players to encounter a problem with game services and when attempting to log in. https://t.co/3y0X6buriO
We were able to replicate the problem around 1pm Pacific Time, with the game repeatedly throwing us into a queue for around five minutes before timing out. One time, we did successfully log in. When the log in failed we were met with the message “Unable to join the Fortnite login queue. Please try again later.”
Epic has pointed eager holiday players to its status page, where the company reports a “minor service outage” affecting Game Services. The page also notes that Login and Matchmaking are currently experiencing “degraded performance.” TechCrunch has reached out to Epic about the cause of the downtime.
While it’s not quite as catastrophic for an online game as a proper Christmas day outage, the time between Christmas and New Year’s is sure to be a massive week for Epic’s hit game. Given that Epic makes bank charging for cosmetic upgrades through an online store, we’d be curious how much revenue the company loses every minute Fortnite is down during a peak play time. On the other hand, we might rather not know.
HQ’s expansion beyond trivia emerges from beta tonight, but the question is whether it’s different and accessible enough to revive the startup’s growth. HQ Words opens to everyone with today’s 6:30pm pacific broadcast within the HQ Trivia app after several weeks of closed beta testing of the Wheel Of Fortune-style game. The launch will be the first big move of Rus Yusupov now that’s been officially renamed CEO a week after the tragic death of fellow co-founder and former CEO Colin Kroll, HQ confirms to TechCrunch.
“Intermedia Labs introduced the world to a category defining product, HQ Trivia. Once again, with HQ Words, Intermedia Labs is poised to captivate the world with a revolutionary experience that will bring people together in new ways around live mobile video” Yusupov tells us. “HQ Words is the most interactive experience we’ve ever made.”
Kroll’s passing comes at a tough time for HQ. Its daily player count has declined since it became a phenomenon a year ago. The novelty has begun to wear off, and with so many experienced trivia whizzes, cash jackpots are often split between enough people that winners only get a few bucks. Interrupting your days or nights to play at a particular time can be inconvenient compared to the legions of always-available other games. Yusupov, who was HQ’s CEO until Kroll took over in September, will have to figure out what will attract casual crosswords players and those who flocked to Zynga’s Words With Friends — the kind of disruptive thinking Kroll excelled at.
“Colin and I shared many incredible life moments over the last 7 years. We embarked on an incredible journey co-founding two breakthrough companies together – and the lessons we learned at Vine and HQ will continue to have a big impact on me. Like many relationships, we’ve also had our challenges – but it was during these challenging times that Colin’s kind soul and big heart would truly shine” Yusupov wrote in a statement about his co-founder that was originally published by Digiday in a touching memorial post. Between building Vine and HQ together, the pair have reimagined mobile entertainment, giving millions a chance to show off their wits and creativity. “He had this incredible ability to make everyone feel special. He listened well. He thought deeply. But above all, he cared about people more than work. The driving force behind his innovations was the positive impact they would have on people and world. Colin’s innovations and inventions have changed many people’s lives for the better and will continue to impact the world for years to come.”
HQ Trivia’s co-founder and former CEO Colin Kroll passed away earlier this month
How To Play HQ Words
In HQ Words, players compete live to solve word puzzles by correctly choosing what letters are hidden. You can find the game inside the existing HQ Trivia iOS and Android apps. Host Anna Roisman pluckily provides a clue and then dispenses hints as the 25-second timer for each puzzle counts down. If the clue is “gemstone” and you’re shown “_ _ _ m _ _ _”, you’ll have to tap D, I, A, O, and N in any order. Choose three wrong letters or fail to fill out the words and you lose. You’ll spin a wheel before the game starts to get one letter that’s automatically revealed each round.
Make it through ten rounds and you and other winners get a cut of the cash prize, with the three who solved the puzzles fastest scoring a bigger chunk of the jackpot. The startup earns money through selling you extra lives inside Words, though it will probably feature sponsored games and product placement like Trivia does to pull in marketing dollars. Words will go live daily at 6:30pm pacific after Trivia’s 6:00 game, so you can turn it into HQ hour with family and friends.
HQ Words is much more frenetic than Trivia. Rather than picking a single answer, you have to rapidly tap letters through a combination of educated and uneducated guesses. That means it really does feel more interactive since you’re not sitting for minutes with just a sole answer tap to keep you awake. And because it doesn’t require deep and broad trivia knowledge, Words could appeal to a wider audience. The spinner also adds an element of pure luck, as a weaker player who gets to auto-reveal a vowel might fare better than a wiser player who gets stuck with a “Z” like I always seem to.
Fill In The Blank
The concern is that at its core, Words is still quite similar to Trivia. They’re both real-time, elimination round-based knowledge games played against everyone for money. Both at times feel like they use cheap tricks to eliminate you. A recent Words puzzle asked you to name a noisy instrument, but the answer wasn’t “kazoo” but “buzzing kazoo” — something I’m not sure anyone has ever formally called it. Given the faster pace of interaction, even tiny glitches or moments of lag can be enough to make you lose a round. An HQ Words beta game earlier this week failed to show some users the keyboard, causing mass elimination. The pressure to get HQ’s engineering working flawlessly has never been higher.
The phrasing of some HQ Words answers seems like a stretch
HQ originally agreed to let TechCrunch interview Kroll about what makes Words different enough to change the startup’s momentum. Yusupov was supposed to fill in after Kroll was sadly found dead last Friday of an apparent drug overdose. He later declined to talk or provide written responses. That’s understandable during this time of mourning and transition. But HQ will still need to build an answer into its app. Meanwhile, Chinese clones and US competitors have begun co-opting the live video quiz idea. Facebook has even built a game show platform for content makers to create their own.
HQ could benefit from a better onboarding experience that lets people play a sample game solo to get them hooked and tide them over until the next scheduled broadcast. Mini-games or ways to play along after you’re eliminated could boost total view time and the value of brand sponsorships. A “quiet mode” that silences the between-round chatter and distills HQ to just the questions and puzzles might make it easier to play while multi-tasking. Head-to-head versions of Trivia and Words might help HQ feel more intimate, and there’s an opportunity to integrate peer-to-peer gambling like ProveIt trivia. And branching out beyond knowledge games into more social or arcade-style titles would counter the idea that HQ is just for brainiacs.
Around the height of HQ’s popularity it raised a $15 million funding round at a $100 million valuation. That seems justified given HQ will reportedly earn around $10 million in revenue this year. Gamers are fickle, though, and today’s Fortnite can wind up tomorrow’s Pokemon Go — a flash in the pan that fizzles out. Words is a great bridge to a world outside of Trivia, but HQ must evolve not just iterate.
The story of the game Star Citizen and Cloud Imperium, the company developing it, is almost too ludicrous to believe: a crowdfunding effort to create a space sim of unparalleled size and realism, raising hundreds of millions, with backers paying thousands for ships and gear in a game that’s years from release. Yet it’s real enough that it just pulled in $42 million in private funding to help bring it closer to release.
Star Citizen began as the brainchild of Chris Roberts, architect of the Wing Commander series and other well-received space games. His idea was to crowdfund the team’s next game, and did so in 2012; the money started rolling in, and it never really stopped. Nor has the game ceased to grow in its ambitions, adding things like entire planets to the lineup that seem, on their face, somewhat insane.
There’s no shortage of histories of the game and its developers out there, so for our purposes let it suffice to say that over the last six years the company has raised $211 million, the vast majority of which comes from gamers “pledging” anywhere from a few bucks to thousands of dollars for all manner of things related to the title. Early access to builds, exclusive ships, testing new content, etc.
A huge amount of work has been done on the game, so this isn’t just a colossal con, though there are plenty who think the game, and its first-person shooter counterpart Squadron 42, can’t possibly ever fulfill its ambitions and justify the money people have put into it.
That doesn’t seem to be the opinion of Clive Calder, founder of Zomba and producer in a variety of entertainment formats, whom Roberts met during a clandestine campaign to solicit funding.
Roberts, who writes the story in one of his candid messages to the project’s fanbase, had decided a while back that he didn’t want to use pledged funds for marketing purposes — at least not the kind of marketing blitz AAA games tend to require for a successful global release. So he went looking for investment, and found Calder, with whom he “got on like a house on fire.”
Calder’s family office agreed to invest $46 million for a 10 percent stake in Cloud Imperium, which all told puts it near a half-billion valuation. One may very well question the sanity of such a valuation for a company that has not yet shipped an actual product — working prototypes, sure, but not a completed game — but hell, at least they’re making something people are excited about. That’s got to be worth a couple bucks.
Cloud Imperium gains two new board members from outside, though Roberts, who commands the kind of loyalty that only decades in an industry can create, was quick to point out that “control of the company and the board still firmly stays with myself as Chairman, CEO and majority shareholder.”
In another act of not exactly radical but not legally required transparency, the company also posted an outline of the company’s financials over the last 6 years. Unsurprisingly, the company has been investing most of its cash into game development in the form of salaries, contracts, and overhead; a non-trivial amount has gone towards “publishing operations, community, events and marketing,” which with a game as community-focused as Star Citizen is not surprising.
The company has grown steadily, adding a hundred people a year or so to a present size of 464 — which is the kind of size you’d expect on a AAA game like Assassin’s Creed or Red Dead Redemption. Even more would be added on as temporary artists, actors, and so on.
I’m sure it has escaped no one that pledges appear to have peaked, though if they remain steady then the company can clearly the company will have enough to continue operations if it doesn’t expand. But one does also see perhaps a secondary motive in seeking investment from outside the community. At some point people are going to want a game.
To that end Squadron 42, at least, is scheduled for release in Q2 2020 — though backers and critics will both chuckle a little at the idea that Cloud Imperium will be able to hit those goals. The games, infamously, were originally slated for release long ago. But the scope of the project has grown since its conception and although some no doubt would rather be playing the completed game today, they may very well find that good things come to those who wait. And wait. And wait…
Discord, the gaming chat startup with more than 200 million active users, announced Friday that it had secured $150 million in funding at a $2.05 billion valuation. The round was led by Greenoaks Capital with participation from Firstmark, Tencent, IVP, Index Ventures and Technology Opportunity Partners.
The company announced this past April that they had raised $50 million in funding at a $1.65 billion valuation. With this latest bout of cash, Discord has now pulled in more than $280 million in funding.
The influx of new money comes as the chat startup goes full speed ahead on one of its most ambitious offshoots to date, taking on games giant Valve with a gaming store meant to rival the ubiquitous Steam store. The company launched a global beta of the Discord Store in October; they recently announced that starting in 2019, they will be establishing a revenue split of 90/10 for developers that are self-publishing titles on the store, a margin much friendlier to indie devs than the 70/30 split on Steam.
The company’s bread-and-butter remains its chat service, which brings voice and text communications to gamers looking to talk with teammates and fellow enthusiasts during and outside of gameplay. Discord isn’t the only service that offers this capability, but it is definitely one of the most popular with hundreds of millions of users coming to the app every month.
We chatted with CEO Jason Citron at our most recent Disrupt SF event, where he talked about the opportunities available in the online games sales market and what challenges the company had up ahead.
Social game developer Zynga has entered into an agreement to acquire Small Giant Games, the startup behind the popular mobile game Empires & Puzzles, in a deal expected to total $700 million.
Zynga, which has tumbled since its 2011 Nasdaq initial public offering, will initially acquire 80 percent of Small Giant Games for $560 million, composed of $330 million in cash and $230 million of unregistered Zynga common stock. Zynga will fund part of the transaction with a $200 million credit facility.
“We’ve been impressed by the quality and momentum of Empires & Puzzles as we add another Forever Franchise into Zynga’s portfolio,” Zynga chief executive officer Frank Gibeau said in a statement. “Small Giant has created an innovative game that delivers a unique player experience that engages over the long term.”
The deal is expected to close on January 1. Zynga will purchase the remaining 20 percent of Small Giant over the next three years “at valuations based on specified profitability goals.”
Helsinki-based Small Giant Games had raised $52 million in equity funding from EQT Ventures, Creandum, Spintop Ventures, Profounders and others since it was founded in 2013. The company reported $33 million of revenue for Empires & Puzzles, its most popular game, 10 months after its launch in 2017. Small Giant, which is also behind Alliance Wars and Season 2: Atlantis, says they exceeded 2017’s revenue just four months into 2018.
“Our studio was founded on the idea that small, skillful teams can accomplish giant things, and I am confident that partnering with Zynga is the right next step in our evolution,” Small Giant CEO Timo Soininen said in a statement. “We will now operate as a separate studio within Zynga, maintaining our identity, culture and creative independence. By leveraging the expertise and support from the wider Zynga team, we will amplify the reach of Empires & Puzzles and the new games in our development pipeline.”
Zynga, founded in 2007, is the developer of FarmVille, Zynga Poker, Words with Friends and several other mobile games. The company reported revenues of $248.88 million for the quarter ended September 2018, failing to meet analyst estimates.
Zynga expects to bring in $243 million in revenue in the fourth quarter of 2018.
On the back of Disney increasing its shareholding in Oslo-based Kahoot to four percent last week, Kahoot today announced a new initiative that helps to position the popular startup — which already has 60 million games and has seen over 1 billion players engage on its platform over the last year — as the “Netflix for education apps.”
It’s launching Kahoot! Ignite, a new accelerator for like-minded startups that are pushing the boundaries of education through gaming and other means.
In addition to that, Kahoot today also said it would move stock exchanges in its home market of Norway, going from the smaller OTC exchange to the Merkur Market, which CEO and co-founder Åsmund Furuseth explained in an interview is also an exchange for private companies, but one that will be able to provide more transparency to the startup’s bigger investors en route to an eventual full public listing. As of last week’s Disney news, the startup is now valued at $376 million.
Participating in the Ignite accelerator, Furuseth said, will give Kahoot the option to invest in startups in each cohort, and if it makes sense for the startup in question, they will build content that will be usable on the Kahoot platform.
“We have close to $30 million in the bank and are in a financial market where we can get more capital,” he said. “We don’t need to invest, but if we want to, we can.”
The startup today has some 60 million games on its platform, with a good portion of those created by users themselves (making it more like a YouTube than a Netflix). The idea is that bringing in outside developers (in this case, by way of the accelerator) could inject more innovation and interesting takes on the concept of “educational gaming” — not unlike how Netflix and Amazon engage outside studios to develop originals for its platform, alongside what they develop themselves or buy in through deals with rights holders.
In addition to the carrots of investment and distribution on the Kahoot platform — which is likely to hit 100 million monthly active users this month (Furuseth said he was confident of the number today) — Kahoot is offering mentorship to potential cohorts in areas like monetization and product development. Given the fact that educational aides can come in all shapes and sizes, that might not take the form of a piece of content for the Kahoot platform.
“Putting something on Kahoot could be an outcome, but we’re also interested in ‘network products,’ which have the same desire to enable learning,” Furuseth said.
The company today has a double focus, with games for K-12 students as well as for enterprise environments. “Learning is the main topic,” he added. “We like to have the mix.”