There's an interesting interview with PopCap founder Jason Kapalka.
Casual Game Biz Poised for Growth Despite Non-Paying Customers
It's got a business model that's drastically in need of repair, which may be one reason why the casual games audience is spreading like wildfire. Indeed, because the typical casual game comes with a "try before you buy" offer, fewer than 2% of those played are actually purchased. Conversely, that means that 98% of casual gamers are playing for free without a cent going to the games' developers or publishers.
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He implies that casual games were not previously available by retail, but of course they were. There have been casual games available in retail since the PC began.
I can't think of another industry where it would be acceptable to give away 98% of the product it makes.
Actually, of course, that's a very typical conversion rate for a direct marketing industry. Casual games should be compared to mail order type conversion rates.
As far as advertising in games, that's been tried before and apparently it will be tried again. It will run into exactly the same problems as before - essentially there's an unlimited supply of in game advertising impressions and only so many advertisers willing to pay. And they'll be less willing to pay as soon as they've tried it and discovered how little return they get.
He's right about clones - they are inevitable.
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