Gamers in North America and Europe are now “largely comfortable” with purchasing digital content such as virtual currency and in-game goods, according to new research. We sat down with the CEO of game aggregator Kongregate to learn how virtual goods are impacting his business.
This year we watched a tremendous amount of money go into casual web game startups, many or most of which heavily depend on advertising as a revenue stream. As we’re all too painfully aware, however, when the economy turns sour, advertising budgets are among the first things to get slashed. So how will these companies survive through the coming quarters, until the economy stabilizes? I emailed the heads of five casual game startups, to get a sense of their strategy. After compiling their thoughts, three themes emerged: Read More about How Casual Game Startups Can Survive Recession
Normally I don’t get too excited about billionaires making investments in start-ups: I mean that’s what they do, but this news about Amazon founder Jeff Bezos investing $3 million in casual gaming company Kongregate, is worth noting. Is this a simple investment? Or is it sign of things to come from Amazon? I think it is the latter.
Kongregate is like YouTube of games, offering free, ad-supported Flash games and an online community. “This is a rainy-day recession fund,” CEO Jim Greer told Red Herring. The company still has more than $3 million of its previously raised cash. After this cash infusion, Kongregate has raised $9 million including $5 million from Greylock Partners. It was angel funded by Jeff Clavier (who apparently is too busy to call his friends) who introduced us to the company. We wrote about them, had them on The GigaOM show as well. Anyway the whole casual gaming sector is catching fire, and we are following it closely, and will be ramping up our coverage on the CGS.