Starshine
(?)Community Member
- Posted: Wed, 02 May 2012 10:58:03 +0000
I'm sure everyone is already aware that Blue Noodle has gone down recently, I saw a linked article that explained precisely why the company collapsed. Here's an extract from the article.
Which made me think of Gaia's venture into FB games. I have to say that I'm really glad that Gaia isn't dependent on FB for revenue and the news that the new Gaia games would be available on Gaia first, without requiring a FB account is very heartening as well.
While FB may be very helpful in gaining revenue, it is ultimately someone else's backyard and plays by their rules. FB can casually make changes to their site that could render major investment by Gaia or other companies completely useless.
Another example is OMGPOP, when Zynga took over and removed the games from Gaia it's possible that those who love playing OMGPOP games now spends considerably less time on Gaia.
While Gaia isn't exactly a gaming site and it's something that you can tell just by looking at the selection they have to offer us, I think there is a vast area for improvement.
That said I wonder if Gaia could create an inhouse sponsorship program in the same vein as Blue Noodle. Instead of giving users one free item for watching a movie trailer, give users 1 GC instead.
On the subject of venture capitals, Gaia itself relies quite heavily on the venture capital raised from investment funds for their projects, around over 40mil was raised from ventures. Seeing how Blue Noodle ended up, I wonder if one day there might be a repeat, only with Gaia in it's place.
Discuss:
What are your thoughts on partnerships with other sites.
Are there any sites you'd like to see Gaia partnered with? (Keep in mind I'm not talking about sponsorships like FMA, rather other large sites like Twitter, photobucket, meebo, etc.)
What direction you'd like to see Gaia pour their funds into.
Quote:
The basic business plan was to help casual social game publishers monetize in-game advertising, and in 2009 decided to focus on games operating on the Facebook platform...
...All seemed okay until January, when Facebook announced that game publishers would be required to use Facebook Credits as their exclusive currency. "We had put most of our eggs into the Facebook basket, and that was like a shot through the heart," says a former Blue Noodle employee who requested anonymity. "There wasn't really a Plan B."
At around the same time, lender MMV Financial began to seriously flounder. As we reported last month, the firm ultimately would decide to close its U.S. offices and stop all new underwriting. The result was twofold: (1) MMV needed money to repay its own investors, and (2) MMV no longer felt compelled to maintain good relations with its VC firm partners.
By last month, Blue Noodle had defaulted on its debt. MMV took immediate controls of the assets, including the company's bank accounts, for the purpose of a sale.
...All seemed okay until January, when Facebook announced that game publishers would be required to use Facebook Credits as their exclusive currency. "We had put most of our eggs into the Facebook basket, and that was like a shot through the heart," says a former Blue Noodle employee who requested anonymity. "There wasn't really a Plan B."
At around the same time, lender MMV Financial began to seriously flounder. As we reported last month, the firm ultimately would decide to close its U.S. offices and stop all new underwriting. The result was twofold: (1) MMV needed money to repay its own investors, and (2) MMV no longer felt compelled to maintain good relations with its VC firm partners.
By last month, Blue Noodle had defaulted on its debt. MMV took immediate controls of the assets, including the company's bank accounts, for the purpose of a sale.
Which made me think of Gaia's venture into FB games. I have to say that I'm really glad that Gaia isn't dependent on FB for revenue and the news that the new Gaia games would be available on Gaia first, without requiring a FB account is very heartening as well.
While FB may be very helpful in gaining revenue, it is ultimately someone else's backyard and plays by their rules. FB can casually make changes to their site that could render major investment by Gaia or other companies completely useless.
Another example is OMGPOP, when Zynga took over and removed the games from Gaia it's possible that those who love playing OMGPOP games now spends considerably less time on Gaia.
While Gaia isn't exactly a gaming site and it's something that you can tell just by looking at the selection they have to offer us, I think there is a vast area for improvement.
That said I wonder if Gaia could create an inhouse sponsorship program in the same vein as Blue Noodle. Instead of giving users one free item for watching a movie trailer, give users 1 GC instead.
On the subject of venture capitals, Gaia itself relies quite heavily on the venture capital raised from investment funds for their projects, around over 40mil was raised from ventures. Seeing how Blue Noodle ended up, I wonder if one day there might be a repeat, only with Gaia in it's place.
Discuss:
What are your thoughts on partnerships with other sites.
Are there any sites you'd like to see Gaia partnered with? (Keep in mind I'm not talking about sponsorships like FMA, rather other large sites like Twitter, photobucket, meebo, etc.)
What direction you'd like to see Gaia pour their funds into.

