What are social games? What makes some more successful than others? What business and legal issues do social game designers need to know?

1. SOCIAL GAMES SIEGE CON 2011 Deborah Gonzalez, Esq. deborah@law2sm.com

2. Social Games What are they? Who is playing them? What makes some successful? Business & Legal Issues What does the future hold? “Gamification is reinventing business, marketing, and everyday life” ~ Jennifer Van Grove, Mashable.com, July, 2011

3. Are these social games? Knucklebones Chess Dungeons and Dragons Magic: the Gathering Farmville Words with Friends World of Warcraft 2012 London Olympics: Competitive Tweeting Foursquare

4. What are Social Games? A game that takes advantage of your friendships in meaningful ways. ~ John Romero, game designer Social games take advantage of the social graph to include your real life friends into the game experience. ~ Jens Begemann, CEO, wooga Nicholas Lovell from Gamesbrief.com asked more than 2 dozen gaming gurus how would they define a “social game”.

5. What are Social Games? Any game which uses the social graph to increase and improve the gaming experience, while utilizing game theory and psychology to generate revenue from the active user base from a combination of virtual goods, advertising, and offers. ~ Andy Rogers, managing director, enteraction

6. Who is playing social games? “Social Gamer Thought Leadership Study” ~ RockYou& Interpret, Sept., 2011 37 million social gamers in US alone Social gamers are more socially active online than expected (average 13 hours a week online; 9.5 playing games) Social gamers are increasingly sophisticated gamers (25% prefer games with missions or quests)

7. Who is playing social games? Social gamers are highly receptive to in-game ads (esp. When offered real-world rewards or virtual currency in exchange) Social gamers are avid consumers and valuable customers in the real world Social gamers can be categorized into 4 segments.

8. Who is playing social games? Premium Paul – affluent player who spends on in-game currency to get ahead Competitive Charlie – plays to win and broadcasts his achievements Devoted Danielle – power player but prefers free play Newbie Nancy – less tech savvy; prefers free content From: Study and SocialTimes.com

9. What makes some successful? Based on the interaction between the players. Bragging rights; boasting about achievements Comparing scores and rankings Co-operating; Challenges Gifting; Sharing

10. What makes some successful? Farmville – Zynga Farm simulation game – neighbour system; 10% of all Facebook users

11. What makes some successful? Words with Friends Competitive Scrabble with thousands of “friends” – a classic game everybody already knows the rules to.

12. What makes some successful? World of Warcraft 12 million subscribers; you can live a separate life; become magical and powerful; create relationships – the “guild”

13. Some Business & Legal Issues The Business Model Subscriptions/User Fees Registered Users; Active Users; Lifetime Value Microtransactions for Virtual Goods Facebook Credits Advertising Sponsorships Branded Virtual Goods Product Placement

14. Some Business & Legal Issues Business of Design Original titles vs. Expansion packs Franchising New user acquisition/Marketing of Games Investment Landscape Mobile/Android International Platforms Language & Culture

15. Some Business & Legal Issues Legal Concerns Privacy (TOS & User Agreements) Privacyville - Zynga

16. Some Business & Legal Issues Legal Concerns (cont). Technology (Patent) Platform Content (IP) Production Original vs. Derivative Work Context (Trademarks, etc.) Appropriation vs. Inspiration Publicity Rights Music Licensing Issues

17. Some Business & Legal Issues Legal Concerns (cont). Content (IP) Production (cont). Offensive Content? Children’s Online Protection Act Game Ratings Constitutional Issues First Amendment vs. Censorship

18. Some Business & Legal Issues Legal Concerns (cont). Content Access & Distribution Digital Rights Management Licensing Territory Compensation

19. What Does the Future Hold? The M’s: More & Mobile More complexity in the game (advanced storytelling/augmented reality) More variety amongst genres and play style More expansion to education & business More quality Mobile

20. What Does the Future Hold? The Last M – More respect The use of social gaming to do social good. Zynga and Pizza Hut to help fight world hunger – exclusive in-game items can be purchased by users

21. What Does the Future Hold? The Last M – More respect (cont.) Jane McGonigal: Gaming Can Make a Better World; TED 2010 Gamers Can Be World Heroes

22. What Does the Future Hold? Why can gamers make a better world? Because they learn and acquire the following superpowers: Urgent Optimism Weaving a tight social fabric Blissful productivity Epic Meaning

23. What Does the Future Hold? Why can gamers make a better world? (cont.) So they become “super-empowered hopeful individuals” They are a human resource for good.