Monthly Archives: September 2010

Competitor GOG shuting down?

Big news this Sunday that Good Old Games. com , a competitor to us (GamersGate) have shut down. Everyone on Twitter and game websites are talking about it. This just came out of the blue. While the website (GOG.com) is claiming that the service is down now, it hints that it might not be permanent. Its been hinted that the service will come back in some form, but this is only speculations.

If we analyse GOG, their business model is the same as ours, but they only focus on older games, as the name suggest. Older games, selling for just a couple of bucks, while the margin is quite low is probably something you can’t ONLY build your business on. For us back catalog titles are a good piece of our sales, but new release titles are the biggest by far.

Also some of their unique selling points always promoted is that all games are DRM free and compatible with newer operation systems.  They had a lot older titles we have had problems getting and they have surely spent quite a lot of time making them work for new systems. This process take time and a lot of works, we know!

Somehow its sad if they were to shut the service down, specially for all the customers who have purchased games there. But for us (GG) its an opportunity.

GOG Down

Twitter business model-s

Twitter is really one of the fastest growing phenomenon on the web in recent year, along with Facebook. Becoming a communication standard within basically a year, its on almost every webpage. It have expanded with x millions accounts today. Couldn’t find any numbers but I can only guess. And making expressions like “I just Tweeted this and that” a common expression.

But like most IT start ups, they still haven’t found the right business model to make substitutional revenue from. Google had the same problem in the beginning, but finally developed one which is now one of the standards when it comes to web advertising and marketing (CPC). For Google it came natural, complementing with their basic service. For Twitter its a different ball game.

Discussion online have been when and if Twitter will file for a IPO. Rumors about this have been shot down time and time again by the company. Still, before going public you need a steady revenue stream. As my interest in private stock investment have been increasing lately I am interested to see how they develop and if a IPO opportunity will show it self within a couple of years.

And it looks like Twitter is investigating different business models and which could work for them. Nothing revolutionary. One model is a classic ad-driven model, selling sponsored/promoted Tweets. Also opening for third-party applications to be connected to their service. Another model copies the Free vs Preimum model, such as Spotify. Were everyone get to access and use the service for Free, but if you want to follow special twitter accounts/people, you have to pay a premium fee. Quite a risky model, but could work good for the more confidential business 2 business users.

Its great that they are actively looking at different business model, cause revenue needs to come from somewhere. I can imagine that hosting and running one of the biggest services online isn’t by any means cheap. But at the same time its a tricky question. Ideally you want to follow the Google concept, were the revenue source won’t interfere or distract to much for the regular users. And like Facebook its a social platform, were people come to communicate with friends, follow conversations and news. I mainly use it for getting all news feeds collected in one place. On Google, Adwords/Sponsored Ads works and complements the vital Search function. And people would be furious if a payment requirement were implemented. I think selling premiums have its limited potential, and ads will struggle the same way as one Facebook. Looking forward to see what more business models they will come up with.

And they have also launched a new service for everyone without a Twitter accounts, Fast Follow. Its like the Facebook public setting were everyone can see and follow tweets, by using your cell phone. I think this is one part in their strategy to attract more people and bind them up for a real Twitter account. Get them interested, and when they want to join the conversation, then a registration is needed and you are there. From a business prespection (using Twitter to communicate to potential customers) this is a great idea! If, by some chance, we get the option to talk not only with the ones following our Twitter feed, but others as well through the same medium, its a win-win. Will be interesting to see if this service will be a success or not. Not totally convinced myself.