I'm unsure how much zOMG! cost Gaia Interactive to create in total.
In 2006, they went for
$8.93 M in venture capital (their second)...but I think that covered site infrastructure (including improvements to Towns, the avatar system, servers, and more), but I'd imagine part of that money also included initial feasibility studies for the MMO that would eventually become zOMG!
They followed up with
another round of venture capital funding in the summer of 2008 that was reportedly earmarked for zOMG! This enabled Gaia Interactive to finish zOMG! to the initial release state (without the later addition of Deadman's Shadow).
Gaia Interactive
laid off 16 full-time employees and 20 contractors the December after zOMG!'s launch despite earlier statements indicating 2008 was expected to be a banner year: "Gaia Online, a youth world with 7 million monthly visitors, sells more than $1 million a month of virtual goods and expects a record month in December, said its chief executive, Craig Sherman" (
]from Mercury News as layoffs were being announced...ouch...but the quote could've been from earlier in the year).
In part, this looks like Gaian management
planning for survivability in an uncertain economy (remember, Lehman Brothers went under September 15, 2008, and between that mess, the bailout, and more factors, the economic climate was quite chaotic). This was not a great time to miss any performance estimates, especially since by December 2008, Gaia Interactive had
]reportedly received $20.9M in three rounds of venture capital funding.
Other
sources, however, pointed to the successful...but not wildly successful...rollout of zOMG! (I think it's worth pointing out that when another round of layoffs happened in 2010 (the one that took MavDoc, among other people),
Gaia stated zOMG!'s under-performance was a contributing factor [see last section]).
I want to stress that zOMG!
was successful, just not as successful as the investors had hoped, incidentally. Given that Gaia is an unusual website, a hybrid mix of forums and games with an economy that has both site-only and real-world components (Gaia gold as well as Gaia cash), defining the return on investment for adding an MMO was a complete unknown. I suspect the third round of funding probably involved some heady expectations of rewards for the investors' risk. Additionally, I would hazard to say that the VC firms who provided the third round of funding have probably had much to do with pushing Gaia to slow, then cease, zOMG!'s development.
I don't know how much Deadman's Shadow added to the overall price tag for zOMG!. At a low side, I'd estimate $2-3 million (if the
base software engineer is around $80K a year) up to $8M with contractors, infrastructure improvements, and maintenance and updates.
Overall, I'm guessing zOMG! has cost Gaia Interactive $14-20M to bring the MMO to its current state (and somehow, that's sounds kinda low). I can't find the post, but I believe I've read in an Ask the Admin that GC sales of zOMG! items like Superchargers, Ghi Amps, and Revives are sufficient to cover the current maintenance mode on a month-to-month basis. At this point, I would guess this primarily means keeping the servers running and minimal tech support.
- continued in next post -