VC Defends Farmville, Touts Virtual Tractor Sales
theodp writes "In a blog post, venture capitalist Fred Wilson gives his thoughts on ripe areas for tech investment in 2010 — mobile, gaming, new forms of commerce/currency, Cloud platforms/APIs, education and energy/environment. Asked to comment on scams and social gaming (he is an investor in Zynga), Wilson defended Zynga's Farmville: 'Zynga makes almost all of its revenue on virtual goods. I said in my etsy/san telmo post the other day that more tractors are sold every day in Farmville than are sold in the US every year. That's where the money is in social gaming. The "scammy ads" thing is total red herring that everyone got excited about but is almost entirely irrelevant.'"
In my Civ 4 game I built more battleships than the US ever produced in its history. Know why? Because it's a fucking game!
I fail to see how they think that their number for tractor sales has anything to do with the fact that it is a borderline scam, and a crap game to boot.
Too many non productive "things" are becoming parts of a virtual economy. What is this? We are still living in RL, this isn't the Matrix and even if, the Matrix still has an RL "dynamic" that keeps it running.
Real products (hard machines or what have you) need to be produced and sold to make an economy (and indeed humanity) better. Not virtual "stuff"....
I know nothing about this story, but I just always assume that anything built on Facebook is a scam, whether for money or ID theft. Go sell your virtual cheese elsewhere, vampire gangsters.
Mind the Gap
Buying virtual tractors for a game seems ridiculous, until you compare it with buying virtual fish for a screensaver...
lucm, indeed.
but I have to get back to Farmville! My pumpkins are dying and I have 57 gifts to receive.
Sorry, but gray text on gray background is making my eyes bleed.
Might as well compare the number of virtual Nazi's killed in games vs. actual Nazi's killed in WWII. I'm guessing there's probably a few gamers who have exceeded that on their own. And, like virtual tractor sales vs. actual tractor sales it's a very potent comparison that proves....I mean, shows that.....I mean, suggests....I mean, that vaguely resembles...ummmmmmm...absolutely nothing.
Might as well compare these:
Cartoon cranial anvil assaults vs actual cranial anvil assaults
"CSI" crime solving rate vs. actual crime solving rate
Virtual car theft vs. actual car theft
Porno movie pizza delivery guy sex rate vs actual pizza delivery guy sex rate
BTW, his claim is BS:
"Andrew Trader, co-founder of Zynga, said the company makes about a third of its revenue from advertising and another third from virtual goods transactions. The last third comes from companies that provide commercial offers, trading Netflix memberships and marketing surveys for in-game cash."
1/3 is not almost all.
This sentence no verb.
Two things:
1. Almost entirely irrelevant is not the same as being entirely irrelevant. There are people for whom Zynga's behaviour is atrocious enough to make them think twice about using its products.
2. This doesn't change the fact that Zynga's games are buggy, derivative pieces of crap, and more than half of my friends who've tried either Farmville or CafeWorld have left their virtual farms and restaurants to gather dust. If you keep dragging newbies in, but most of those wander away due to boredom or frustration, that's not really a "growth" business plan.
Modding "-1, Troll" is not a proper response if you disagree with me. Try reason.
In Farmville things either cost coins or FarmVille Dollars (FVD). Coins are easy to get: whenever you harvest something, you get coins. Coins are spent on the "mundane" things. Crops, some decorations, tractors, barns (red only), a small pond etc.
FVD are difficult to get. You get one FVD every time you level. Or you buy them. FVD's are used to buy more exotic things: barns (in a variety of colors), a large pond, special purpose seasonal stuff, a different class of decorations, fuel for your tractor, etc.
Now, you don't strictly need to have all these goodies, but as people play, they have the oppurtunity to get more stuff (of course), and you need to have a place for your stuff. The only way to get more room for your stuff is to expand your farm. Now, you can expand your farm by either having lots of friends that play FV, and then it only costs you coins, or you can buy a bigger lot, which costs FVD. If your the type of person that buys a lot of the specialty stuff, your already buying FVD so buying the larger farms isn't that big of a deal.
Now, to specifically answer the question: Although tractors, seeders and harvesters are coin based purchases, the fuel refills are not. Now, you don't need to buy the fuel, you can wait a day and get a free refill, but if you have one of the larger farms, you will not be able to harvest, plow and seed all of it on the one refill. And since you have a very limited supply of FVD that you earn.... It becomes a habit that must be paid for.
Except that tractors cost 30000 coins, which is easily obtained with patience, and doesn't cost any real money at all, certainly not the "FarmVille cash" - unless they've changed something recently.
This is not the same as virtual tractors sold for real dollars. In farmville, if you play the game it earns you points you can use to buy a tractor. This would be like saying that more shields were sold in Zelda for NES than were ever sold in real life, and that this fact somehow made Zelda a great game. (Zelda is great for other reasons)
stuff |
I said in my etsy/san telmo post the other day that more tractors are sold every day in Farmville than are sold in the US every year.
Well, at least you know why the economy is down the shitter, everyone's busy playing Farmville and not doing something productive.
But who am I to judge, all I do is sit around and read Slashdot all day, so...
So, if the revenue really comes from honestly entertained consumers trading money for an enjoyable experience, fine. Do that. Stop it with the text message scams and toolbar downloads..
But, since $9.99/mo in hidden text message charges > $1 for a tractor, it seems to me that the tractor is the red herring, in order to get you to the far more profitable malware. But Zynga can easily prove me wrong by stopping these practices....
It sounds fantastic in theory, but once in the real world, Cloud Computing falls flat on its face.
Try explaining that to the 11 million people who play FarmVille. Or to Google. Sure, you don't like cloud computing, I don't love it either, but falls on its face? Nah. Epically popular? Yup.
How about investing in real small farms.
You don't have to be a huge investor.
Make a small loan. Buy pastured pork.
Build a future of real food.
See below.
Cheers
-Walter
Sugar Mountain Farm
in the mountains of Vermont
Save 30% off Pastured Pork with free processing: http://sugarmtnfarm.com/csa
Read about our on-farm butcher shop project: http://sugarmtnfarm.com/butchershop
Now, to specifically answer the question: Although tractors, seeders and harvesters are coin based purchases, the fuel refills are not. Now, you don't need to buy the fuel, you can wait a day and get a free refill, but if you have one of the larger farms, you will not be able to harvest, plow and seed all of it on the one refill. And since you have a very limited supply of FVD that you earn.... It becomes a habit that must be paid for.
Except tractors, seeders and harvesters only reduce the number of clicks you have to do. They don't have any significant bearing on the game - you don't actually need them. Also a bit of planning can let you use them for free even with a large farm: just plant smaller plots with selected crops that will be due for harvest when you know you'll have fuel (this is actually just about the only scope for strategy in the whole game). So it's easy to avoid getting addicted to buying fuel if you don't want to.