WildTangent Announces New Token-Based Payment System for Casual Games Market

Posted by: Leigh Stringer at March 22, 2006 6:27:22 PM

WildTangent, Inc., the leading online games publisher, announced today at the 2006 Game Developers Conference that they will be launching a revolutionary token-based payment system for first and third party games distributed through the WildTangent Games Network.

The company will be unveiling a new game currency called "WildCoins" that consumers will use to pay for games on a per session basis, complimenting the existing $19.95 try-and-buy model. With the launch of the WildCoins system, WildTangent is now the only casual games publisher unlocking the full revenue potential generated from online game play and distributing it directly into the pockets of developers. Leading online game publishers and developers HipSoft, PlayFirst, PopCap and Sandlot have already signed up to participate in the WildCoins system.

In the past, online games would only produce revenue for developers when a consumer purchased a downloadable version of the full game. Given the 1-2% conversion rate of most online titles, this meant that game developers were locked out of recognizing any revenue from the bulk of online gameplay. By creating a way for gamers to consume online entertainment in bite-sized increments, WildTangent is providing developers with an expanded opportunity to enjoy the rewards of their hard work.

"As online game publishers, we have been eagerly awaiting a solution that unlocks the full financial potential represented by this new mainstream form of digital entertainment," said Rich Roberts, vice president of sales and business development, PlayFirst. "With the launch of WildTangent's token-based system, WildCoins, we now have the opportunity to share in the all the revenue generated from our games."

"We've been investigating the 'Pay for Play' business model for some time," said James Gwertzman, Director of Business Development for PopCap Games, "So we are excited to partner with WildTangent in launching their new token-based system. WildCoins provide an elegant way to reach the millions of consumers who enjoy playing some of our hit games like Zuma or Feeding Frenzy but who are not quite ready to spend $20 on a single game."

The WildCoins token system also supports a flexible advertising model enabling sponsors to give away sessions of game play through online and offline marketing programs. As one of the fastest growing segments of the gaming industry, online games represent an increasingly valuable way to enjoy digital entertainment for consumers around the world. In fact, IDC predicts that online games will skyrocket from $500 million in 2004 to over $2.1 billion in 2008. By developing a micro-payment model for online entertainment, WildTangent has built a method for advertisers to create multi-faceted marketing campaigns which allow consumers to redeem their WildCoins for sessions of game play in over 200 innovative online titles such as the award-winning, role playing game Fate.

Companies that are leading the way in marketing through online games recognize the potential of this new technology.

"Being involved with online games provides great opportunities for our brands to offer consumers innovative marketing campaigns in the places where they hang out online," said Carol Kruse, Vice President of Interactive Marketing, Coca-Cola. "WildTangent’s new game currency provides us with a tool to reward consumer loyalty through their gameplay experience."

Through the WildCoins system, WildTangent will lower the cost of entry and expand the way consumers can experience leading digital entertainment. Finally, the online gaming experience will be monetized in an arcade, roll-of-quarters way that is familiar and comfortable to consumers. WildCoins will be available late Spring 2006.

"WildCoins represents an opportunity for advertisers, developers and consumers to take advantage of both a new currency and gaming economy while offering incentives for game players, developers and advertisers. We expect online casual gaming to become the dominant form of broadcast media in the next ten years." said Alex St. John, CEO and co-founder. "WildCoins offers another reason for consumers to play a whole range of games and is an opportunity to help grow the online gaming market."

Empowering Developers with New Technology

At the 2006 Game Developers Conference, WildTangent is also releasing a BETA version of its new software development kit for in-game ad serving. Free to developers, the SDK includes WildTangent’s new HOT/WIRE technology which provides the ability to serve live HTML ads directly into games through WildTangent’s ad-serving network. This infrastructure allows developers to create a broad spectrum of online entertainment while streaming in targeted marketing messages from major advertisers.

In addition, the HOT/WIRE SDK includes an application program interface (API) for posting game scores to secure leader boards. This important feature enables developers to create games that support community contests and events where consumers can enjoy battling it out against other players for a top spot on the leaderboard.

As an additional incentive for developers, WildTangent will increase the revenue share from the WildCoins token system to those developers using HOTWIRE technology. For more information on the HOT/WIRE SDK, developers can e-mail hotsdk@wildtangent.com

Game Developers Conference 2006

WildTangent's CEO and co-founder, Alex St. John, will be holding two panels at this year's Game Developers Conference designed to update developers with the latest information on cashing in on the growing online games market. Developers are encouraged to attend these sessions to pick up a free HOTWIRE SDK.

Wednesday, March 22nd @ 10:30-11:30am PDT
Easy Ad Money For Downloadable Game Developers
Location: Room A8

Thursday, March 23rd @ 10:30-11:30am PDT
Surviving Vista
Location: Room A1

About WildTangent

Founded in 1998, WildTangent is the leading publisher of online and downloadable games. WildTangent is the pioneer of in-game and around-game advertising solutions. The company publishes over 200 leading 1st and 3rd party game titles through the WildTangent Games Network, comprised of Wildgames.com, leading PC Manufacturers, ISPs, and portals. From family friendly games like the Polar franchise to action adventure titles such as Fate, WildTangent provides online entertainment which appeals to a broad range of consumers.

In 2005 WildTangent won major OEM distribution deals that ship the WildTangent Games Console directly on the desktops of over 60% of PCs in North America.