Webware

If social gaming is Hollywood, the people aren't as pretty. Well, maybe the avatars are.

Yes, yes, we know that social games are taking over the bloody world: earlier this week, gamemaker Playfish announced its $300 million sale to Electronic Arts, and on Thursday, rival Playdom retorted with the announcement of $43 million in venture funding at a $260 million valuation, and the acquisitions of smaller gaming companies Green Patch (manufacturer of Facebook-based games like Lil Green Patch and Farm Life) and Trippert Labs. Green Patch's games will up Playdom's reach on Facebook by 30 percent, the company said.

Expect to see more of these sales, as smaller developers find they're having trouble treading water in an industry where the big guys--Zynga, Playfish, Playdom--have chomped up most of the market share, and where Facebook, the biggest destination for these games, has shown that it can change the rules at whim. And the big companies, too, want to scramble to get bigger.

Plus, as Playdom co-founder and chairman Rick Thompson explained to CNET News: When gaming companies grow large, they have to deal with a lot of stuff that can get in the way of producing new games and staying on top of consumer trends. That's one reason to keep investing in new talent through acqusitions.

"The hitmakers start spending all their time on operations, and on things that don't improve or enhance the games, and so they become essentially owners and operators," he said. And likewise, "people who can create things shouldn't necessarily be operating a gaming company."

He drew the evolution of a social gaming company parallel to an entertainment studio: "a lot more like Hollywood or the traditional gaming industry" than a Web start-up.

But here's the catch when it comes to acquisitions in this space: Gaming, especially social gaming, is a hit-driven business. If a parent company buys up a hot Facebook game, that game could already be running out of shelf life: which is, indeed, sort of like a Hollywood establishment signing a contract with an actor who's had five hit films in a row, as he could easily be over the hill before long. (Hello, Rob Lowe.)

"I think we're getting pretty good at really looking at their data now, and modeling how these games will evolve over time," Thompson said. "But I think there's essentially a life cycle of growth and then decay. What we really look at in acquisitions is not just daily active users, but bringing on additional team members that can really help create new games in the future."

The industry P.R. frenzy over scams in ads and offers on social networks goes on: Facebook announced on Thursday evening in a post on its developer blog that since it updated its developer platform terms of service this summer, it has disabled two ad networks that it says were running deceptive advertisements.

This comes in the wake of allegations that some companies that power offer- and survey-related moneymaking operations for social-gaming applications on platforms like Facebook's have effectively been scamming users into paying for services without disclosing those costs. One of them, Offerpal Media, has been particularly visible in the crosshairs.

"This battle is not new and it's far from over," the post by Facebook's Nick Giano wrote. "We faced stimulus scam ads on our own system earlier this year and pushed them off the site with rigorous enforcement. We did the same months later when deceptive ads from third-party ad networks appeared in applications. We're doing that again now as we see them appear in the form of offers."

Additionally, Facebook--which has said for quite some time that many of the activities highlighted in the "app scam" controversy are already banned by its terms of service--included in the post that more than 100 developer applications have been either "suspended or brought into compliance" over advertising issues, and that more than half of them were used by at least 1 million Facebook members per month. It's not clear whether these were all related to scams, or to other advertising-related infringements like the Burger King marketing campaign that encouraged users to "unfriend" their contacts in exchange for a free cheeseburger.

Facebook representatives declined to name which ad networks or applications it has banned. But the company did ban two companies in June, Social Hour and Social Reach, citing ad network policy violations. It's possible that the two ad networks mentioned in Facebook's blog post were banned months ago, given the "since July" language.

Earlier this week, MySpace--another big destination for social-network apps--announced that it had updated its terms of service to ban app scams. Prior to that, several prominent application manufacturers announced that they had banned potentially deceptive offers, despite the fact that they are responsible for a big chunk of virtual-goods revenues.

An update was made to this post at 7:51 a.m. PT on November 6 to note that Facebook banned two ad networks in June.

It looks like the brouhaha surrounding social-app moneymaker Offerpal Media is bigger than founder Anu Shukla's "sh*t, double sh*t, and bullsh*t" response to the accusation that its business is built on scamming consumers. It's got upcoming developments in two lawsuits, one in which it's the plaintiff and one in which Shukla is a defendant.

VentureBeat's Dean Takahashi reported Thursday that a lawsuit was filed in an Alameda County, Calif., superior court against Shukla and co-founder Michael Liu on behalf of Kevin Halpern, who alleges that he helped found the company and was then shut out. In a court complaint, Halpert says that in exchange for offering his social-networking expertise to what would become Offerpal, Shukla promised him a 15 to 20 percent stake in the company that never came to fruition.

The defendant's motion to dismiss the breach-of-contract suit is scheduled for November 24, according to public court documents. On Wednesday, Offerpal had announced that Shukla would be leaving her post as CEO and would be replaced by digital-ad veteran George Garrick.

But that's not the only legal dispute that Offerpal is in. There's a judicial settlement conference scheduled for Friday in the trademark infringement lawsuit that Offerpal filed against Kickflip, a former customer that went on to create a competing business, called Gambit, according to a person familiar with the court details. The suit was originally filed in April, and the status of a potential settlement is currently unclear because most of the events thus far, as well as Friday's scheduled meeting, have been behind closed doors.

But the reason why Offerpal has been in the news so much as of late has been because of Shukla's public altercation with TechCrunch's Michael Arrington at last month's Virtual Goods Summit in San Francisco. In response to Arrington's allegations that Offerpal's profitable business, used by many social-gaming companies as a way for users to earn virtual goods in-game, actually misleads players into signing up for paid offers and subscriptions.

Following the Arrington-Shukla spat, a number of high-profile names in the gaming and social-networking world came out against developer-app scams and misleading ads. Offerpal maintains that it runs a legitimate business. But it's clear that this company's issues run quite a bit deeper than a single PR fiasco.

Offerpal Media, a company that helps social-network app creators make money from offers and surveys, on Tuesday announced that it had replaced its CEO in the wake of a high-profile onstage argument at a conference and subsequent press over whether it's scamming consumers who fill out offers in order to earn virtual goods in social games.

Anu Shukla, who founded the company and had been serving as CEO since its 2007 launch, will be replaced by George Garrick, who has served as the CEO of Flycast Communications, Wine.com, Jingle Networks, and Mochi Media. Shukla "will still be involved and help guide the company," an Offerpal representative told CNET News.

A statement from Shukla makes it sound like the company's been CEO-hunting for months ("I have known George for a long time...After many months of searching, I believe that George is the best CEO to scale the company to new heights. I am looking forward to working with him closely"). But the timing is a little too good to be coincidental: a firestorm erupted over Offerpal and other companies in its niche after TechCrunch's Michael Arrington confronted Shukla while she was on a panel at the Virtual Goods Summit in San Francisco last month. Arrington accused Shukla of running a scam operation that tricks consumers into unwittingly spending money--and of course, he then blogged about it.

Shukla's response to Arrington was "sh*t, double sh*t, and bullsh*t."

But the industry has taken the controversy seriously. Social game makers like the massive Zynga have come out and said that they would ban potentially shady and misleading offers, even though those might make up a sizeable chunk of revenue, and on Tuesday social network MySpace joined the debate and said that it had modified its terms of service to outlaw "app scams."

Shukla was interviewed by VentureBeat's Dean Takahashi in a lengthy article published on Tuesday.

This post was expanded at 4:55 p.m. PT.

In the wake of a firestorm over just how much of social-gaming companies' profits can be attributed to potentially scammy offers and incentives, News Corp.'s MySpace has taken a stand (and, it could be said, taken advantage of the PR opportunity) by coming out vocally against them.

"We're adding a fifth principle (to our developer terms of use) that clarifies a specific use case that we feel is particularly damaging to the user experience: promotions that include hidden renewals without specific opt-in will not be permitted," a company blog post by CEO Owen Van Natta read. "Because it's our belief opt-out offers are misleading and do not have the best interests of the users in mind, we will be updating our Terms of Use this week to better clarify this for users and developers."

What exactly is he referring to? In many of the most popular (and profitable) games built for big social-networking platforms like Facebook and MySpace, players can progress faster in the game by either buying virtual goods with "real" money, or by completing offers and surveys from a partner company like the prominent Offerpal Media. Critics say that many of these offers aren't actually free, and unwittingly can sign users up for expensive subscriptions or programs.

After a public confrontation between TechCrunch's Michael Arrington and Offerpal CEO Anu Shukla at last week's Virtual Goods Summit event in San Francisco, game makers like Zynga and RockYou put out statements saying that they're cracking down on offers that are potentially misleading.

Could this lead to real industry changes? Yes. But keep in mind that Facebook, the biggest destination for these social games, already bans this stuff in theory. "Ads cannot be deceptive or fraudulent about any offer made," the company's advertising guidelines read, and adds "if an ad includes a price, discount, or 'free' offer...the destination URL for the ad must link to a page that clearly and accurately offers the exact deal the ad has displayed (and) the ad must clearly state what action or set of actions is required to qualify for the offer."

But judging by the amount of sketchiness that allegedly takes place on the platform, it seems like advertisers aren't necessarily following these guidelines. Whether MySpace's stance against them can lead to a legitimate crackdown has yet to be seen.

The hype surrounding Call of Duty Modern Warfare 2 keeps heating up.

After Gamestop announced last week a $40 trade credit for those who preorder the game and bring it back to a Gamestop store by December 13, Amazon.com has launched a competition, dubbed "The Call of Duty-est Town in America." The contest is seeking the town or city with the most preorders of Modern Warfare 2.

According to Amazon, any town or city with a population of 5,000 or more can compete. It determined population size using the most recent U.S. Census Bureau data.

Whenever a person preorders Modern Warfare 2 from Amazon, the location is tallied. The goal for each location is to have the highest percentage of preorders. Realizing that population plays a role in those figures, the number of orders doesn't factor into the competition.

Amazon said on its contest page that it will give a $5,000 gift certificate to a charity that serves the winning town. If the competition had ended at the time of this writing, the winner would be Grand Forks, N.D.

The page also features some interesting information about those preorders. As of this writing, the Xbox 360 version of the game accounted for 61 percent of Amazon preorders. The PlayStation 3 and the PC versions captured 31 percent and 8 percent of the preorders, respectively.

"The Call of Duty-est Town in America" competition ends on the game's release day, November 10. The winning town will be announced that day.

After Sid Meier announced on Thursday that a new Civilization title called Civilization Network was on its way to Facebook, it had me thinking: what other games could I play until I'm ready to take on Meier's new title next year?

To determine that, I've spent some time with several games on Facebook and narrowed that list down to the titles that are actually worth playing. If you want to have some fun on Facebook, check out these games.

Get your game on

FarmVille At first glance, FarmVille might seem like a lame game that isn't worth playing. But once you give it a few minutes, I think you'll find that it's extremely addictive.

The premise behind FarmVille is simple: build a farm that grows all kinds of fruits and vegetables. When you first start the game, you'll see a few patches of land where you can start planting. From there, you need to ensure that your farm is healthy as you continue to grow the items in your inventory. The game features simple point-and-click controls, making it accessible for any Facebook user.

FarmVille's "neighbors" feature is quite fun. Users can find other "farmers" in their friends list and grow a nice, bountiful farm together. It's a great concept that adds more value to the game. And the best part is, the more people who farm in FarmVille, the more money that will go to Sweet Seeds for Haiti, a charity that gives healthy meals to families in Haiti. Try it out.

FarmVille features some fun, farming goodness.

(Credit: Screenshot by Don Reisinger/CNET)

Mafia Wars If you're as much of a fan of movies like "The Godfather" and "Goodfellas" as I am, you might have some fun with Mafia Wars.

The object of Mafia Wars is simple: become a boss of a mafia family. When you first start playing the game, you'll see several different "jobs" that you can take on. They include (pretty much) any criminal activity you can think of. That said, you won't actually engage in those activities like you would in a Grand Theft Auto game. Instead, you'll simply tell the game that you want to perform a particular job and you will. When complete, you receive more cash and credibility. Think of it as a simple role-playing game.

Like the other games in this roundup, Mafia Wars has a social element to it. Your goal is to recruit members into your own family as you fight for mafia dominance. When that social element comes in, Mafia Wars shows its value. It's a really fun game when you play with friends.

Mafia Wars asks you to perform jobs to become a mafia kingpin.

(Credit: Screenshot by Don Reisinger/CNET)

Civilization Network is coming to Facebook in 2010.

(Credit: Firaxis Games)

Famed video game developer Sid Meier, best known for the Civilization franchise, announced on a Civilization Facebook page Thursday that a new title called Civilization Network is on its way to the social network.

According to Meier, he has been "looking at ways of expanding the Civilization gameplay experience to include solo, competitive, and cooperative play to take advantage of the uniqueness of social networks." Civilization Network will allow users to join with friends to "create the world's most powerful, richest, smartest, or just plain coolest civilization," Meier said.

Like so many of its predecessors, Civilization Network will welcome users into a life-like world. Players will be able to take on others in battle, share technological innovations, form a government, win elections, manage growing cities, and more. Meier also said that users can "spy on enemies and work with friends to create the great Wonders of the World." He didn't say how users will control elements of the game.

Civilization fans will be happy to know that users can play as often as they'd like in the game's "fully persistent environment" for free.

Meier wrote on the game's Facebook page that he'll be looking for beta testers, once the closed beta is ready. Civilization Network will launch in 2010 on Facebook.

If you want to stay up-to-date on Civilization Network happenings, join its Facebook fan page here.

If you've just started using Opera for the first time with the release of Opera 10 (download for Windows|Mac), you're probably looking to add some widgets to your browser. But finding exactly what you need might take some time. That's why it's best to start with Opera's "Fun and Games" widgets. They're perfect for those times at work when you want to forget about the day and just zone out for a few minutes.

Fun and games with Opera

25 Square Puzzle If you enjoyed Lights Out, an electronic puzzle from the 1990s, you might like 25 Square Puzzle.

Unlike Lights Out, 25 Square Puzzle wants you to turn lights on. As you start clicking on different blocks in the game, you'll find that based on the block you click, other lights will turn off. You'll need to find the right combination to get all the lights on in as few clicks as possible. It's much harder than it sounds. Try it out.

Try to get all those lights on in 25 Square Puzzle.

(Credit: Screenshot by Don Reisinger/CNET)

Basketball Basketball is an extremely simple Opera widget, but it's also quite fun once you learn how to play.

Basketball places a basketball hoop to the left of your screen and a ball underneath the hoop. At the top of your screen, you'll find a scoreboard. The goal is to score as many points as possible within the allotted time. To do so, you'll need to click on the ball at the right angle to "shoot" it into the hoop. It's a tough game to get used to, but once you do, you'll probably find yourself sneaking games when no one is looking.

Basketball is a fun, addicting game.

(Credit: Screenshot by Don Reisinger/CNET)