Slow start to 2011 - but not for facebook

Hi all and apologies for the hiatus in posting. End of the old year and start of the new have definitely provided more than a few distractions. In any case, back into it now and hoping to be able to provide more frequent Stickyness in 2011.

To get things rolling, here's a couple things that caught my eye this week:

Facebook is making big strides towards having its own economy. With Facebook Credits out of beta and set to become the mandatory currency for all social gaming purchases (Thanks Mashable: http://mashable.com/2011/01/24/facebook-credits-out-of-beta/), and the recent announcement that Facebook is testing a Group Buying scheme using the credits as currency ( http://mashable.com/2011/01/26/facebook-buy-with-friends/), it certainty looks like the site is setting itself up for a transition into a more commercial environment, and one that it pulls all the levers in. Who's taking bets on Facebook Credits being listed as a tradeable currency within 2 years? I've got a case of red on it if there are any takers?

And, the New York times is thinking of creating its own version of Wikileaks (Thanks Cutline: http://yhoo.it/fU3SDA) The ironic nature of the relationship between Wikileaks, Assange and main stream outlets like the NYT aside, this is certainly an interesting development that might not bode well for Wikileaks in the long run, certainty feels like a good move for news. I'm just left wondering about how much we can trust the main stream outlets when it comes handling really explosive info.

Happy weekend

Technology, Game Mechanics And Bridging The Virtual-Actual Divide

Thanks again PSFK for this interesting talk from Jesse Schell of schellgames.com on the intersections of gaming and the real world... the stuff on much real money social games generate, and the insights behind them, is fascinating.

At our New York Conference last year, Kevin Slavin of Area/Code delivered a talk on gaming in everyday life entitled “This Platform called Everyday Life”. Recently we stumbled upon a talk Jesse Schell of schellgames.com (game developer, previously of the Disney Imagineering division) delivered for this year’s DICE summit (Design, Innovate, Communicate Entertain) that elaborates on this concept.

During the talk, Schell talks about how the explosion of the virtual in our lives has driven us to crave more reality in every facet of life; think the continuing proliferation of “reality” TV programming and “authentic” offerings from major brands and corporations (like Starbuck’s London Conduit Street and Seattle 15th Ave. locations). This trend has had an incredible impact on gaming across the last few years, and has allowed for the continuing success of “real”-ish gaming (the Nintendo Wii which translating real activity into interactivity, Guitar Hero and Rock Band which simulates a rock-stardom with “real” instruments), as well as games driven by very real social mechanics (eg. Mafia Wars). Schell concludes his talk with an elaborate example of how foursquare-like game mechanics complete with rewards points and achievements could impact our everyday lives as world the virtual and actual collide; Imagine getting “achievement points” for taking public transit which result in a government tax credit to further incentivize you.

The particulars of Schell’s talk are debatable, but with the explosion of augmented geolocated technology (SPIMEs) such as Dennis Crowley’s Foursquare, Nike’s Plus, and the prolific use of social networking to interface real life interaction, this continued collision of virtual and actual is inevitable. We were particularly struck by the bizarre economics that bridge the virtual/actual divide. Did you know that Farmville earns more money from lead generation (allowing credit card companies to get players to fill in applications) than micro-payments from users?

Watch a video of Schell’s talk below:

Wii Games - E3 2010 - Guitar Hero 5

Universal Platforms for Virtual Goods and Social Currency

Thanks Mobile Behaviour for this on Viximo's interesting offering for virtual economies

Social currency and virtual goods have kept online gamers locked in their basements for years. Then Facebook introduced us to the virtual gift, and digital birthday cakes became badges of honor. Now game dynamics are becoming an increasingly popular way to encourage behavior online and on mobile, turning life into one big game.

A new startup called Viximo is looking to help smaller social sites build their own virtual goods platforms. Their turnkey solution includes an embeddable gift store, showcase and microtransaction system.

"Our virtual goods solution is designed to provide social networks with a powerful solution they can grow with, yet spend only a week integrating," said Brian Balfour Founder and VP of Product Marketing at Viximo. "This allows web publishers to focus on their core business--engaging their audience--while we provide their users with targeted and merchandised virtual goods through a well vetted and integrated system."

Viximo's solution supports various types of virtual currencies including cash, reward, mixed, or dual currency systems, and aggregates the best payment methods including one click credit card purchasing, PayPal, mobile, and CPA offers.

Techcrunch points out that Viximo’s ‘universal giftbox’ option, which allows for a gift given on one site to also appear on another site, could be both confusing and ugly. This is a good point, but it would be great to see some standardization across networks, not just for virtual goods but for all the gaming elements we're seeing built into social networks and media sites.

Thought Starter:

With the proliferation of “leaderboards” – the hot new SNS accessory that quantify site activity (see Foursquare, Fashism, Hypemachine, Learnvest…)—there’s an opportunity to create a points exchange. So just like you can use your frequent flier miles on partner airlines, you could redeem currencies on partner sites. Or how about a platform that aggregates social currencies and lets you redeem them for branded rewards?