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June 29, 2009 10:00 AM PDT

How the Mafia conquered social networks

by Caroline McCarthy
  • 7 comments

Not so long ago, the faces of gaming on social networks were those of zombies, vampires, and cuddly virtual pets. Now it's more along the lines of Michael Corleone or Tony Soprano.

You've probably seen it in your news feed: From Facebook to MySpace and now Twitter, Mafia-themed games have more or less taken over. Mobsters, a game created by development company Playdom, is the most popular application on MySpace's platform. Mafia Wars, owned by Zynga, is a huge hit on Facebook. The Social Gaming Network has an iPhone app called Mafia: Respect and Retaliation. And earlier this month, a Twitter-based game called 140 Mafia launched. The craze appears to have started with a Facebook app called Mob Wars, which was built by a smaller company called Psycho Monkey.

The premises of most of these games are the same. You can found or join a "mob" with friends from the social network that the game has been built on. You can carry out missions, including "killing" other players in rival mobs, in order to earn points. Your activities are broadcast, via news feeds or Twitter posts, to your friends on the network in question.

With the mobster gaming craze, social-network developers may have found the secret to bringing multiplayer role-playing games--long the lucrative domain of ultrageeks--fully into the mainstream. They can build elaborate role-playing scenarios with points, levels, teams, and weapons, but without the nerdy stigma that's become attached to fantasy-themed games in the vein of World of Warcraft. (A 2006 episode of the Comedy Central cartoon "South Park" summed this up well.)

"A lot of the core architecture is very similar to role-playing games in the past, in the way that levels and achievements and so forth are often themed around the certain topic but are pretty generic, actually," said Justin Smith, who runs the blogs Inside Facebook and Inside Social Games. "When you compare a dragon game to a mob-based game, they're actually pretty much the same thing with different content."

"People just really like the crime genre," said Mark Pincus, CEO of Zynga, which publishes Mafia Wars. The mobster game is currently the company's most popular app, with 15 million active users across social networks Facebook, MySpace, and Tagged. "GTA (Grand Theft Auto) and a lot of derivative games of GTA top the charts, and I think that it's more those games feel more culturally relevant to people than a lot of other games that go into other genres that are either historical or more fantasy. I think that people like fantasies that are closer to reality."

There's another side to it: Organized crime in the real world tends to be concerned with the illicit transfer of wealth in one form or another (drugs, laundered money, gambling, you name it). When you take the popular perception of the mobster lifestyle and transport it to a gaming environment, there are plenty of opportunities to bring money into the mix. Most of the Web's Mafia-themed role-playing games make money from display ads as well as the sale of virtual goods, and some make it possible to earn extra points and "level up" by completing offers and surveys. It's no secret that some social gaming companies are making a ton of money, but mobster games are a particularly lucrative enterprise.

"(It's about) climbing your way to the top, and the status, and the ego of being the biggest and the best and the toughest," said Jason Bailey, CEO and co-founder of Super Rewards, the company that has partnered with 140 Mafia to power its payment platform. In 140 Mafia, for example, players who want to speed up their "recovery" from a round of game play can petition to the "godfather" for a favor (and that'll cost them real money).

Plus, Bailey said, it gets personal: "It has that small violence factor as well, being able to feed on people and put them on the hit list. When somebody does that to you, when somebody kills your character...the rage that it conjures up in people is much much stronger and they're much more willing to retaliate than in a sports game or a racing-themed game."

As with any online sensation, though, the question remains: Is this just a fad? From film noir to "The Godfather" to "The Sopranos," mobster themes have a solid shelf life to them, but mobster games on social networks could easily fade from favor if something more exciting comes along. But the real lasting power, social gaming insiders said, is in the fact that Web development makes it possible to keep a game in a constant stage of evolution. Once these games hit critical mass--which Mafia games arguably have--it's easier to keep people around.

Short attention spans
They're also low-maintenance, said Dave Kahn, head product manager for Zynga's Mafia Wars.

"I would say the difference between what makes Mafia Wars more popular over time than your traditional console game or your traditional hardcore game is that you can have the same experience with five minutes of play and you can interact with your friends," Kahn said. "I would say a game like GTA or a game of that crime genre would be much more popular if you could interact with your friends on a daily basis, and it doesn't require much time investment for you and your friends to have that satisfactory interaction."

"You're able to come in and come out in short spurts. You can play for 30 seconds, you can play for five minutes," Jason Bailey said. "It's not like a first-person shooter or a real-time strategy game where, if the phone rings, you're going to get shot. It's really easy to come in and out of these games."

On the flip side, though, casual players who haven't put a massive time investment into a game are quite likely to be more fickle about whether they stick around or not. Time will tell when it comes to just how "sticky" mobster games turn out to be for players who aren't completely hardcore.

But beyond attention span issues, perhaps the biggest challenge to the creators of mobster games is that there are simply too many of them already, and the companies that make them have fallen into courtroom infighting that bears an ironic resemblance to actual mob warfare. There's an outstanding lawsuit between Zynga and Playdom, for example, over the latter's allegedly illegal use of the Mafia Wars name in advertising its own Mobsters game. And Mob Wars creator Psycho Monkey sued Zynga over copyright infringement in February.

"There's a variety of litigation that's still pending, and I think it just generally reflects the current culture of game development on social networks right now," Inside Social Games' Justin Smith said. "There's a lot of rapid iteration based on adapting other games and twisting them in a very slight way, and there haven't been many good examples of cases in which the IP has been successfully protected in the courts. So I think it will really be interesting in seeing how some of these cases play out over the next few months."

As we learned in the Scrabulous-Wordscraper-Lexulous affair last year, in which the manufacturer of board game Scrabble used litigation to force a Facebook-based imitator to change its name, intellectual property laws for games are complicated, and extremely similar games may legally coexist as long as they don't share a few key features. But it's not clear whether the mob wars over Mob Wars and its ilk will be without carnage.

"There's literally 20 or 30 mob-themed games on the Facebook and MySpace platforms, and that's conservative," Jason Bailey said. "If people find something that works, they copy it and copy it and copy it, ad nauseam."

The playing field for mobster games, as well as any other games on social networks that make money through virtual goods and transactions, could also change dramatically when social networks start introducing payment systems of their own. Facebook will start to do this soon, and it's also been circulated as a possible business model for Twitter. It's unclear what the rules will be in either case.

But Super Rewards' Jason Bailey--whose company will be a competitor to Facebook's in-house virtual currency platform, it should be said--thinks the dominance of mobster games won't change much if Facebook brings new rules to the applications on its platform. It may be too late for the massive social network to be the real kingpin when it comes to monetizing the likes of the mobster game craze.

"Facebook's issue, I believe, is it's hard to tack something like this on later...companies go out and spend millions of dollars building games for your platform," he said. Were Facebook to start requiring a cut of the revenues, "there would be literally a riot of people with torches at (CEO Mark) Zuckerberg's house tonight complaining about it."

Well, that's a whole different kind of mob.

November 17, 2008 6:00 PM PST

New game brings iPhone into Wiimote territory

by Caroline McCarthy
  • 5 comments

The Social Gaming Network, a company best known for its Facebook Platform apps, has launched a new iPhone app that uses the handset as...a gaming controller.

Called "iFun," the app is a takeoff on the Social Gaming Network's existing sports apps: iGolf, iBowl, iBaseball, and the like. But instead of playing on your iPhone, you use your iPhone or iPod Touch much like the "Wiimote" device for Nintendo's Wii console. (Both gadgets use accelerometer technologies.) It connects via Wi-Fi or cellular network to your PC. You can then play against friends--remotely, and in real time.

Currently, iFun is restricted to a golf game but will soon expand--as well as to other devices with accelerometers in them, like the Android-powered G1. It also uses Facebook Connect for authentication.

Social Gaming Network CEO Shervin Pishevar told CNET News that the company is currently "lining up advertisers" and is interested in turning iFun into a platform for external developers to create their own games. The Social Gaming Network raised a $15 million investment round last spring, followed by more funding from Amazon founder Jeff Bezos' venture firm.

And--wait for it--here's the recession angle. Playing the free iFun game on an iPod Touch is "significantly cheaper than buying a Wii for Christmas," Pishevar said.

September 16, 2008 5:27 AM PDT

Social Gaming Network acquires virtual-pet app

by Caroline McCarthy
  • 1 comment

It's the M&A deal of the century: FluffFriends got bought!

The virtual-pet application built on Facebook's platform, which once permitted me to display a penguin named Bill Gates on my profile and invite friends to give him a nice hug, has officially been acquired by the Social Gaming Network. A price was not disclosed.

I named him Bill Gates.

(Credit: FluffFriends)

FluffFriends makes money through a virtual currency that translates to real cash, with which members purchase items to spruce up their pets. A release from the Social Gaming Network said that since January, the game makes an average of 192 percent more revenue per paid player, and members spend an average of 143 percent more per transaction.

Of note: FluffFriends was actually created by a Google engineer, Mike Sego.

Last month, the Social Gaming Network announced funding from Amazon.com founder Jeff Bezos' investment firm. It was already backed by $15 million in a round led by Greylock Partners.

July 14, 2008 5:01 AM PDT

Jeff Bezos backs Social Gaming Network

by Caroline McCarthy
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Even though the iPhone has been dominating developer headlines recently, it looks as if there's still some air in the social-network gaming space.

The Social Gaming Network, a start-up that develops games for social platforms such as Facebook and OpenSocial, has received an undisclosed amount of funding from Amazon.com founder Jeff Bezos' personal investment firm, Bezos Expeditions.

This comes just months after the company closed a $15 million Series A round from Greylock Partners, the Founders Fund, and others.

Founded by the creators of Web 1.0 page creator Freewebs (which now calls itself Webs.com), the Social Gaming Network has assembled a portfolio of popular Facebook applications, such as Jetman, Super Snake, and Free Gifts, some of which it acquired from independent developers. It counts more than 54 million game installs.

SGN is one of the more prominent players in the casual-game space. It competes with Zynga, which was created by Tribe.net founder Mark Pincus.

The aim of the new funding, according to CEO Shervin Pishevar, is "to continue capturing new demographics in gaming by distributing the highest-quality games available on the social Web."

Bezos Expeditions also joined the most recent round of Twitter funding.

May 13, 2008 6:00 AM PDT

Jackpot! $15 million for Social Gaming Network

by Caroline McCarthy
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The Social Gaming Network, parent company of social-networking applications that do exactly what the name implies they would, has reason to celebrate.

The company has netted $15 million in first-round funding from Greylock Partners, the Founders Fund, Columbia Partners, and Novak Biddle Venture Partners.

Yes, that's $15 million for the people responsible for the Warbook, Jetman, and Super Snake applications clunking up your friends' Facebook profiles.

It makes sense. Gaming applications have proven to be some of the most popular apps on social-networking developer platforms like Facebook and MySpace.com, and veteran entrepreneurs have taken note. The Social Gaming Network was started by the founders of Webs.com--known in the Internet's earlier days as Freewebs--and Zynga, another well-funded gaming start-up created by Tribe.net founder Mark Pincus. Both companies have turned to independent developers too, encouraging them to work on games on their platforms-within-platforms.

The new funding will be used to "allocate even greater resources to research and development of its gaming platform, and produce more tools for social game developers who want to create a richer gaming experience on the social networks and the social Web," according to a statement. But it was also hinted that the cash will help the company add "more depth to its platform and diversity to its portfolio of games."

Considering the Social Gaming Network has made acquisitions in the past--snapping up Facebook applications such as Free Gifts--there will probably be more on the way.

Wonder if they'll make a play for Scrabulous.

February 14, 2008 12:35 PM PST

Rival gaming networks compete for developer attention

by Caroline McCarthy
  • 2 comments

The Social Gaming Network, which operates gaming applications like Warbook and Super Snake for social-networking developer platforms, announced on Thursday that it has opened a platform of its own. Developers can now access an application program interface (API) so that they can contribute; the company is set to let developers in on Thursday night and put out more information next week at the Game Developers' Conference.

The Social Gaming Network is owned by Webs.com, the Web 1.0 veteran formerly known as Freewebs, and currently works with Facebook and Bebo's platforms.

It's the second gaming start-up to put out an announcement about developers this week. Zynga, a similar site recently launched by Tribe.net founder Mark Pincus and funded by Valley luminaries like LinkedIn founder Reid Hoffman and PayPal founder Peter Thiel, announced earlier on Thursday that it would be launching a developer initiative so that game publishers and developers can get their applications on more social-networking sites. Currently, Zynga's games are compatible with Facebook, Bebo, Friendster, and Meebo, with MySpace.com on the way.

Zynga and the Social Gaming Network aren't the best of friends--Social Gaming Network founder Shervin Pishevar has been critical of Zynga's games, which he claims infringe upon existing ones (Sea Wars, for example, is a lot like Battleship), and company representatives have said that they think Zynga's popularity metrics are exaggerated. Both gaming start-ups claim to be "the biggest social gaming network." It might not be HD DVD vs. Blu-ray, but this is a rivalry that could get ugly.

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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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