The Week in Gaming News

Another week in the paradise of games.

Mochi Media gets funding

It is getting harder and harder to follow the deal closing in the online game industry. This week the news "broke" finally about Mochi Media, the provider of an in-game ad network for casual, Flash-based games. Mochi Media raised $4 million in its first round of funding, led by Accel Partners. Mochi Media's network lets advertisers place ads within online casual games; the company also provides website analytics tools. The company says it's seeing 30 percent growth a month, and this week it added on massively multiplayer online [MMO] game portal Aeria as a partner. I spoke to Jameson Hsu, CEO, and asked him what the plans are for Mochi. The answer was simple, grow fast and if there is a chance for an IPO, we'll take it IPO! Some say that Google might be a potential buyer since their solution takes too long!

For now Mochi Media is not creating revenues where developers can live on, but with the growing online advertising market and increasing interest for (in)game advertising, things should work in the long run.

Next-door neighbor of Mochi Media is Kongregate. This company raised $5 million last year. Accel, early investor in Kongregate, has now 2 stakes in companies that are considered "high potential" companies in the online games space.

The question should be; "what can Kongregate and Mochi Media do together?" For now my answer would be; the 2.0 platform of Kongregate and the games with advertising of Mochi Media might turn out as a holy grail for Accel Partners. Accel holds a stake in Facebook too. Do your math I would say!

Eyeblaster goes IPO

Other news is of course Eyeblaster going IPO. The dream of some companies is the reality of others. New York City-based Eyeblaster offers advertising agencies and advertisers online ad campaign management tools and services. The company's technology enables customers to manage campaigns that span mobile, in-game advertising, video, display, and search, among others.

Eyeblaster faces a robust online ad market. Online advertising is expected to rocket to $147 billion in 2012 from $45 billion in 2007, according to the Kelsey Group.

The startup reported sales of $44.7 million in 2007 compared with $27.7 million in 2006. Eyeblaster said it had 2007 operating income of $7.5 million compared with $4.4 million for 2006.

Underwriters in the offering include Lehman Brothers, Deutsche Bank Securities, UBS Securities, and Pacific Crest Securities. Eyeblaster plans to trade on the Nasdaq under the ticker symbol EYEB.

And of course where money floats people will battle for it

Activision and Guitar Hero

Gibson Guitar Inc. told Activision Inc. (ATVI) that its wildly popular Guitar Hero video games infringe one or more of Gibson's patents. Of course Activision does not agree to this!

Guitar Hero is a "game" in which players press buttons on a guitar-shaped controller in time with notes on a TV screen. The Guitar Hero series has sold more than 14 million units in North America and raked in more than $1 billion since its 2005 debut.

Gibson Guitar is saying that the games violate a 1999 patent for technology to simulate a musical performance. Activision already seems to have filed a lawsuit asking the U.S. District Court for Central California to declare Gibson's patent invalid.

Then of course if you say gaming these days, people say iPhone. Why? Is there any reason to? Any success to report or is it just another hype?

iPhone and Mobile Gaming

Sony (SNE) and Nokia (NOK) are creating mobile gaming devices (such as the PSP or Java-enabled mobile phones). They will face a tough battle as Apple (AAPL) makes its biggest move yet into the gaming market.

So Apple's iPhone will become one of the world's leading mobile gaming platforms. Or at least that is what lots of people do believe. One of the reason is that game-developers worldwide are already creating titles for this new and hyped platform.

Gamers can look forward to a wide selection of titles coming as of this June when the iPhone is finally enabled for third-party applications. Several developers, like for example Gameloft, have all confirmed to develop games for the iPhone's platform. Gameloft will introduce over 15 iPhone games by the end of 2008.

For now this was it, but looking at the calendar, the week is still young. Take care until the next update!