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Thursday, April 5, 2012

Waiting for Gold From Microsoft Mobile Games - Wall Street Journal (blog)

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Waiting for Gold From Microsoft Mobile Games - Wall Street Journal (blog)
Apr 5th 2012, 21:22

By Ian Sherr and Shira Ovide

Making apps for Apple's mobile devices is thought of somewhat like digging in California 150 years ago. There are many success stories, including the likes of Rovio Entertainment Ltd.'s "Angry Birds," and PopCap Games' "Plants vs. Zombies," which have convinced many independent developers that they could strike gold with a successful app.

"Those stories haven't come out of Microsoft's app store," said Dave Castelnuovo, chief executive of Bolt Creative Inc., makers of "Pocket God." "Someone at Microsoft should be worried about getting developers to the point where we have those success stories."

To the contrary, Castelnuovo said developers still struggle to make money on either Android or Windows Phone 7 devices. By comparison, he said, they regularly profit with Apple. "For now, Apple is the biggest pie," he said. "If we put energy into an update for Pocket God for Apple, we'll see pretty big returns."

In response, Microsoft is mounting a renewed effort to connect with popular mobile application developers in order to bring their games, location services and other popular programs to its Windows Phone platform.

Some developers say they're impressed with Microsoft's renewed attentiveness to their needs and understanding that they generally have to work harder in order to grab attention of the typically lean companies that have made hit apps for Apple's iPhone and devices made using Google's Android operating system.

One way that Google has done that has been to provide resources to developers, both in terms of additional help from contractors and by offering financial incentives, a move that developers say is expected of any upstart platform.

"Developers are forced to go to platforms where they can make a living," said Misha Lyalin, chief executive of Moscow-based ZeptoLab, which makes the popular "Cut the Rope" game. He added that when platforms don't have enough paying users to make it worth while, the platform provider typically needs to offer subsides make up the difference. "If the platform proves itself to be valuable, we'll be on it."

Mr. Lyalin said Microsoft realized that ZeptoLab's small staff made developing his popular game on other platforms a burden. So it provided resources in the form of a partnership with Pixel Lab, another developer, to produce a web-based version of his game for the Windows 8 tablet and computer operating system. Other developers have also said Microsoft has paid them the effective development fees to reproduce their apps for the Windows Phone platform.

Mr. Lyalin said the sheer number of users who will likely use the application store for Microsoft's Windows 8 desktop, laptop and tablet operating system made putting his game on it a no-brainer. But, with mobile, Mr. Lyalin said the company's strategy is less clear, and the relationship between its app store and its Xbox Live game store has left him scratching his head and slower to release a copy of "Cut the Rope" for Windows Phone devices.

Other developers have also expressed frustration with Microsoft's dual-branded store. The Windows Phone has both an app store and a separate "Xbox Live" store. Additionally, while  many games have been branded as part of Xbox Live, not all of them have and developers say the process for being included in that listing is complex and frustrating.

They say Microsoft requires that Xbox Live-branded games be ushered to market through a publisher such as Electronic Arts or Microsoft's own game studios. That has caused trouble for Bolt, which is ending its relationship with its publisher, ngmoco LLC.

"It's hurting them," Mr. Castelnuovo said, referring to Microsoft. "They would do a lot better in terms of app store sales if they didn't do that."

Microsoft acknowledged it has separate processes for Xbox Live-branded apps, but said much of that is to ensure higher quality and better gameplay.

Elbert Perez, who develops mobile apps on his own, said he made a living from sales of Windows Phone games such as "Mafia Pizza Car" and "Nom Nom Worm," but his income has shriveled from an average of about $4,000 a month to about half that level, all from sales of advertising in his games.

"The initial gold rush is over," he said.

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