Saturday, December 27, 2008

Introduction For Stakeholders




DBL Limited Liability Company
South Carolina Limited Liability Company
Mailing Address:
10 Reeves Court,
Spartanburg, SC 29301


Project Team: (864)278-0484
Eric Whiteside, Van E. Staggs,
Charlie B. Williams III, Robert Pressley,
& John Lewis


INTRODUCTION
DBL LLC is not a conventional company. We do not intend to become one. Throughout DBL's evolution as a privately held gaming community and non-profit technology society, we have established DBL LLC differently. We have also emphasized an atmosphere of creativity and charity, which has helped us provide unbiased, accurate and assessment of innovation for video game and technology users around the world.
Now the time has come for the company to request funding for our prototype project. This change will bring innovative and cost effective digital solutions, for our present and future stakeholders, for our advertisers, members, and most of all for website users. But the standard start-up funding may jeopardize the independence and focused objectivity that is most important in DBL's innovation and creativity that we consider most fundamental for success of our business model. Therefore, we have implemented a company structure that is designed to protect DBL's ability to innovate and retain its most distinctive characteristics. We are confident that, in the long run, this will benefit DBL LLC and its members, old and new. We want to clearly explain our plans and the reasoning and values behind them. We are delighted you are considering an investment in DBL LLC and or its individual projects after reviewing this website.

SERVING END USERS
We have developed several prototype digital content and social network websites because we believed we could provide an innovative user content engagement strategy to the Digital Marketplace-instantly delivering products, promotional incentives and digital content. Serving and engaging our end users is at the heart of what we do and remains our number one priority.
Our goal is to develop instant digital content delivery in concert with dynamic social network tools that significantly improve the end-users interaction with the internet. In pursuing this goal, we may do things that we believe have a positive impact on the marketplace, even if the near term financial returns are not obvious. For example, we will make our business model as widely available to potential advertisers in order to promote more cost effective digital marketplace advertising enabling a global reach of their product or service. Subscription is our principal source of revenue, and the subscriber will be provided relevant and useful tools rather than intrusive and annoying. We strive to provide users with an excellent opportunity to communicate effectively with advertisers and participate in the process of developing success products and services.
We are proud of the products we designing, and we hope that those we create in the future will have an even greater positive impact on the Global Digital Marketplace.

LONG TERM FOCUS
There are currently opportunities that has and will arise that might cause us to sacrifice short term results but are in the best long term interest of our initial stakeholders, we will take those opportunities. We will have the fortitude to do this. We would request that our stakeholders take the long term view.
You might ask how long long term is. Usually we expect projects to have some realized benefit or progress within a year or two. But, we are trying to look forward as far as we can. Despite the quickly changing business and technology landscape, we are trying to look at three to five year scenarios in order to decide what to do now. We are trying to optimize total benefit over these multi-year scenarios. While we are strong advocates of this strategy, it is difficult to make good multi-year predictions in technology.
Many companies are under pressure from initial investors to keep their earnings in line with analysts' forecasts. Therefore, they often accept smaller, predictable earnings rather than larger and less predictable returns. We feel this is harmful, and we intend to steer in the opposite direction.


RISK VS REWARD IN THE LONG RUN
Our business environment changes rapidly and needs long term investment. We will not hesitate to place major bets on promising new opportunities.
We are presenting high-risk, high-reward projects because of short term earnings pressure. Similar Subscription model for example Blizzard Entertainments “World of Warcraft” has gone extraordinarily well grossing over 200 million last year, and others have not. Because we recognize the pursuit of such projects as the key to our long term success, we will continue to seek them out. Our project with all its innovation and strategy only has a 10% chance of success without key stakeholders participating in our project model. Do not be surprised if the Video Game Industry seems very speculative or even strange when compared to current businesses you are familiar with. Although we cannot quantify the specific level of risk you will undertake, as the ratio of reward to risk increases, you must accept projects further outside your current businesses, especially when the initial investment is small relative to the level of investment in your current businesses.
We encourage our sister organization Delta Beta Lambda Fraternity members, in addition to their regular projects, to spend 20% of their time working on what they think will most benefit DBL LLC. This empowers them to be more creative, innovative and establishes future employment opportunities. Many of our significant advances in the current project have happened in this manner. For example, Virtual Athletic Network and 360 iMeet were both developed with the assistance of those members in "20% time." Most risky projects fizzle, often teaching the market something. Others succeed and become attractive businesses.
As we seek to maximize value in the long term, we may have quarter-to-quarter volatility initial as we attracted important strategic partners. We would love to better quantify our level of risk and reward for you going forward, but that is very difficult. Even though we are excited about risky projects, we expect to devote the vast majority of our resources to increasing subscription and advertising revenue which will be our business core. All of our organizations and strategic partners naturally gravitate toward incremental improvements the core areas and will happen naturally.

SUMMARY AND CONCLUSION

DBL LLC is not a conventional company. We intend to operate DBL LLC differently, applying the core mission values it has developed in concert with its sister organizations. Our mission and business description are available in the rest of this prospectus; we encourage you to carefully read this information. We will optimize for the long term rather than trying to produce smooth earnings for each quarter. We will support selected high-risk, high-reward projects and manage our portfolio of projects. We will run the company collaboratively with discussion and input from our strategic partners, our Project Manager, and fours specific project team members. We are conscious of our duty as fiduciaries for our stakeholders, and we will fulfill those responsibilities. We will continue to strive to attract creative, committed new users, members, and we will welcome support from new stakeholders. We will live up to our "User First" principle by keeping user trust and not accepting payment to compromise that trust. We have a project by project investment structure that is biased toward stability and independence and that requires investors to bet on the specific project.
We have tried hard to anticipate your questions. We look forward to a long and hopefully prosperous relationship with you, our new stakeholders. We wrote this letter to help you understand our company.
We have a strong commitment to our users worldwide, their communities, our web sites, advertisers, stakeholders, and of course our users.

If you accept our invitation to talk, we would like to express that this offering is time sensitive and has a dateline of January 31, 2009
If you would like to follow our company and information feel free to subscribe to our company blog www.dblpro.info

Sincerely yours,
Eric Whiteside
Senior Project Manager
DBL LLC

Monday, December 8, 2008

Professional Video Gaming Milestones

o Creating a real collaborative partnership with ten major companies
o Launching the world’s first 24 hour all access professional video gaming channel
o Negotiate media distribution partnerships with three largest cable provider, Comcast, Time-Warner, and Charter.
o Televising and hosting million dollar tournaments
o Help professional gamers negotiate lucrative endorsement deals

By John Lewis, Co Founder of Delta Beta Lambda Fraternity Inc

Is There A Need For Another Professional Video Gaming Channel?

By John Lewis, Co-Founder Delta Beta Lambda Fraternity Inc
Answer: Yes. But consolidation is the key.
Facts and Statistics: Competitive video-game leagues have contracts with ESPN, MTV, and DirecTV, draw as many as 80,000 paying fans to arena events, and boast dozens of formal teams that pay salaries of up to $90,000 a year, putting video-gaming on the cusp of mainstream competition.
The rise of professional players is proof that the $32 billion a year video-game industry has come of age as a sport as well as a business, says Amy Lee, director of Career Services at Art Institute of Las Vegas Game Art and Design.
One problem that may currently be holding back professional gaming from its ascent is that there is no standard. There are multiple professional organizations, including Major League Gaming, the Championship Gaming Series, and the global World Cyber Games, not to mention many more leagues in Europe and Asia. So one thing that would help, the panelists agreed, would be some consolidation.
XLeague.TV, the first British TV channel dedicated to competitive gaming, will be launched tomorrow, May 16, on Sky channel 291. XLeague will show both live and recorded matches with commentary and analysis, and feature league and tournament play. It will also screen gaming news, reviews and magazine shows.

Although eSports competition is traditionally PC-focused, XLeague.TV will feature prominent console titles across all multiplayer genres, including Resistance: Fall of Man, Pro Evolution Soccer and Project Gotham Racing.
After making a ton of money in the advertising business, Michael Sepso and Sundance DiGiovanni decided six years ago that it was time to goof off. How did these two guys, then in their late 20s, pass the time? They played a lot of "Halo."
Then they had an idea: Why not start a professional video-game league?
Don't laugh. The former ad men raised $35 million from private-equity investors, rounded up some skilled gamers and launched Major League Gaming in 2003. Today, the predominantly web-based league has five million monthly unique users, most of them young men whose average age is 19. They flocked to MLGpro.com to watch star gamers like FearitSelf and ThuggishKilla blast each other to smithereens in shooter games like "Halo 3" and "Gears of War." In June, the league hosted nearly 600,000 amateur matches on its GameBattles Web site.
Now all Major League Gaming has to worry about is not being blown to smithereens by Champion Gaming Series, a competing professional league that made its debut last year and is backed by Rupert Murdoch's News Corp. (NWS, Fortune 500).
Major League Gaming's founders say they aren't afraid of their well-financed rival. "I mean, we're two really competitive guys," says Sepso. "When you do something like this, you want the big guy to fight you. We want to beat News Corporation. Our attitude is, 'Holy s--t! This is cool!'"
Perhaps the biggest reason for Major League Gaming's success is that allows its fans to become its stars. Amateurs who score the highest on GameBattles can join teams that compete in tournaments with as much as $100,000 in prize money. Major League Gaming's July tournament in Orlando, Fla. drew 12,000 people - 20% more than a similar event only a month before in San Diego. Another 365,000 fans watched it on MLGpro.com.
On top of its GameBattles site, Major League Gaming also has a PC-gaming site and another one dedicated to "World of Warcraft." All of them are ad-supported, and have have attracted such blue-chip sponsors like HBO (TWX, Fortune 500), Procter & Gamble's (PG, Fortune 500) Old Spice, Dr. Pepper and Stride Gum.
Championship Gaming Series, on the other hand, has a minimal Web presence and is pouring most of its resources into television instead. The new league is directly bankrolled by three of News Corp.'s satellite television providers: DirecTV, BSkyB and Star. That means it has a potential audience of 450 million viewers worldwide.
"We're creating something that's powerful," Andy Reif, then-CEO of Championship Gaming Series, said in an interview earlier this month before he left the company. "Not just in the U.S., but really big globally." Its sponsors include PepsiCo's (PEP, Fortune 500) Mountain Dew and Dell (DELL, Fortune 500).
Championship Gaming Series started its first season by televising its draft from the Playboy Mansion. Huge Hefner was away, but some of his centerfold models were on hand to make the event more appealing to young male viewers. The league says 2 million viewers watched its second season this year on DirecTV. The champs, England's Birmingham Salvos, walked away with $500,000 in prize money. That's five times more than Major League Gaming's championship "Halo" team can expect.
However, Sepso and DiGiovanni argue that television isn't the best way for either league to attract fans. They should know. Early on, Major League Gaming hired an Emmy-winning producer of more than 30 figure-skating events and spent $6 million on two seasons of shows - one for USA Network and the other for Comcast's (CMST) G4, a cable network that covers video gaming. The former ad guys learned that sponsors didn't want to buy television ads to reach young men. They thought Web ads were a better way to get their attention.
So Major League Gaming pulled the plug on its television shows. Now the award-winning producer handles Major League Gaming's Internet programs. The league says it has more sponsors than ever and expects to be profitable in the fourth quarter. "We can give you five times the number of young men on our Web sites than any television network," Sepso boasted.
It's too early to declare a winner in this smackdown. "I think that, right now, Major League Gaming has more traction than Championship Gaming Series," said Billy Pidgeon, a gaming industry analyst at IDC. Still, he's doubtful that professional video gaming will ever be as popular as other major league sports. "How many people are actually going to watch it?" Pidgeon asked. "I've always thought watching gamers on TV is a waste of valuable gaming time."
Even so, the battle between the leagues should be interesting to watch. In late August, Championship Gaming Series replaced Reif with Dale Hopkins, the former chief operating officer at G4. Unlike Reif, a former executive at pro volleyball league who didn't play video games, Hopkins is comfortable with a controller in her hands. She has a PS3, an Xbox and a Wii at home. She plays "Madden NFL" with her son.
Sepso and DiGiovanni had better look out. It looks like it's finally game on between Major League Gaming and Championship Gaming Series.
DIRECTV, the nation’s leading satellite television service provider, is making sports history once again with the exclusive live broadcast of the inaugural Championship Gaming Series (CGS) World Final. The competition will take place December 6-14 at the Sony Studios in Los Angeles where more than 100 of the world’s top professional gamers will compete for the league’s first-ever World Champion title and a share of the $1,000,000 prize purse. All the action will be captured live and in HD on DIRECTV’s original entertainment channel, The 101, starting December 6 at 10pm ET.
“This is the Super Bowl 1 of professional video gaming,” said Eric Shanks, executive vice president, DIRECTV Entertainment. “We couldn’t be more pleased with year one of the league and the excitement that it has created worldwide.”
The CGS World Final will be the first-ever international gaming event to present all the action live, as it happens, allowing fans at home to experience the match-ups like any other sport. The groundbreaking coverage will commence with the start of CGS World Final on December 6 and broadcast three hours of single elimination competitions each night leading up to the championship game on December 14.
The playoffs will feature the top CGS teams from around the world as they compete in PC and console based games. Valve’s Counter-Strike®: Source® and EA’s FIFA 2007 are the official PC games for CGS while Tecmo’s® Dead or Alive® 4 (DOA4) and Project Gotham Racing® 3 (PGR3) from Microsoft Game Studios will be played on Xbox 360. Each round of the World Final is single elimination and the last team standing will receive the coveted Dew Trophy as well as $500,000 in prize money.
In addition to the team playoffs, the World Final will also feature a special “battle of the sexes” DOA4 match-up where Vanessa Arteaga and Ryan “OffBeatNinja” Ward, the top female and male DOA players in the world, will battle it out for supremacy. The contest, dubbed the “Itagaki Challenge,” is the brainchild of DOA creator Tomonobu Itagaki, who will preside over the face-off and present the winner with the ultimate DOA prize package, including a ceremonial Japanese Katana sword and a trip to Tokyo. The individual competition will air live on The 101 December 13 at 11:30pm ET.
“We’re honored that DOA game creator and international superstar Tomonobu Itagaki recognizes the CGS as the world’s leading professional video gaming league in the world,” said Andy Reif, CGS commissioner and CEO. “We’ve set our stake in the ground and proved ourselves as a legitimate sport and look forward to growing the league and esports in the years to come.”
In what will become an annual platform for the world’s best gamers to compete professionally, the inaugural CGS World Final will be broadcast on television to more than 350 million viewers worldwide by DIRECTV’s The 101 in the U.S., BSkyB’s Sky One, Sky Two and Sky HD in the UK, ESPN STAR Sports in Asia, SKY in Mexico and Brazil, DIRECTV throughout the rest of Latin America, and across mainland Europe via additional soon-to-be confirmed broadcast partners.
The Cyberathlete Professional League, the most popular North American professional game organization, this week received a $45 million commitment from private investors, as well as very public support from Intel, which will provide hardware and marketing support for the next year. This happened on 5-25-02.
The money will help the league host more high-stakes tournaments, which would help it grow beyond its hard-core base.
"We've generated some profits, but we want to expand this concept worldwide," said Angel Munoz, president of the CPL.
After five years of struggling, the league's fortunes need to change -- and by next year, Munoz said. If it can't expand beyond the hard-core gamers, it will be in serious trouble.
Whether the league survives or not, Munoz said professional gaming is here to stay, if for no other reason than the fact that video games generated $9.6 billion last year. With so many consumers paying and playing, companies are falling all over themselves to get involved.
"I love interactive entertainment," Munoz said. "I realized when I launched the CPL that this was historical, whether we failed or succeeded as a business. Now, the trend has been established. Games are going to be a spectator sport."
Currently, the CPL operates very much like professional tennis, hosting invitational tournaments around the world. Last December's (2001) five-man Swedish Counter-Strike team walked away with $50,000 after winning the annual tournament.
The big tournaments can attract several thousand spectators. While it sounds impressive, it's actually an indication that the league doesn't draw beyond its base of hard-core players.
Gamers between 18 and 35 have always made up the bulk of the audience, really limiting the growth of the game culture. Now, a new generation of kids who have never known a day without games is coming of age.
"What really bodes well for the industry's future is the fact that the generation behind (the 18- to 35-year-old demographic), the 6- to 17-year olds, are the first interactive generation in history," said Douglas Lowenstein, Interactive Ditgital Software Association president. "They are the first to grow up not only with technology, but with interactivity at the center of their lives."
The hard-core audience is rubbing shoulders with newbies as well. The CPL has been holding hard-core tournaments since 1997, but league commissioner Frank Nuccio recently launched its amateur leagues online, allowing the casual players to compete. Winners don't receive any money, but they do get a chance to pick up tips by watching the tournaments.
The money and support being thrown at the CPL is paltry in comparison with popular professional sports leagues, but the infusion of cash will allow Munoz to raise its visibility. It's a small step, but it comes at a time when video games have captured the public's fancy.
Despite the popularity of gaming, particularly on the small screen, Munoz said he plans to eschew traditional television coverage. Instead, the league will stream its competitions over the Internet. So far, that has proven to be a rousing success.
Last December, the CPL broadcast its winter tournament, attracting 24,000 users to the site to watch teams battle for supremacy in the Counter-Strike, a war simulation where players hunt down and destroy their opponents, using a variety of weapons.

Tuesday, December 2, 2008

Wednesday, November 19, 2008

Sunday, October 19, 2008

DELTA BETA LAMBDA LAUNCHES WWW.DBLPRO.COM

GAMING FRATERNITY LAUNCHES BETA COMPETITION MODEL FOR PROFESSIONAL & CASUAL GAMERS

United States of America (Press Release) October 19, 2008 -- Spartanburg, South Carolina (Press Release) October 20, 2008 – DBL LLC & Delta Beta Lambda Fraternity Inc., announce the launch of The Virtual Athletic Network, the ultimate professional and causal gaming competition website. This new site is being designed for online tournament s, league and game augmented play. Designed by members of The First Gaming & Technology Fraternity members based in Spartanburg, South Carolina, this site is fully content managed, built in valid and accessible XHTML and CSS. Further site will support the Nintendo DS/Wii, Xbox 360, PSP, PS3, PC and iPhone platforms.
DBL LLC , “ A company of gamers with innovation for gamers” focuses on supporting and developing the Delta Beta Lambda brand, Merchandising and project management of our online communities, while beginning to further the development of educational video games for all gaming and educational platforms.
Delta Beta Lambda Fraternity Inc, founded in 2007; The World’s First Gaming & Technology Fraternity with a mission bringing together shared interested individuals at local, collegiate & online communities to promote community service, technology access and gaming involvement.
This site will be the home of the Virtual Athletic Network Beta, which will be comprised of game publishers/developers, online gaming communities, and gaming organizations that will regulate and provide certification for professional level athletes. Delta Beta Lambda Fraternity has formed an online chapter Psi Gamma (www.deltabetalambda.org ) for professional level gamers in order to function as The First Virtual Athletic players union in the industry.
The site will employ professional gamers as trainers, officials, content editors and referees. Registration is available on www.dblpro.com limited to the first 5,000 registered users.
Sponsorship options available: For more information regarding sponsorship contact Eric Whiteside, Project Manager, Email: projectmanager@dbllive.com 864-574-2055 (office) 864-752-1715 (fax).

Thursday, October 16, 2008

Asian Online Game Community Garena Secures $2 Million

Authored by Mark Hefflinger on July 29, 2008 - 11:11am.

Singapore - Garena, a Singapore-based company that hosts online game tournaments, has raised $2 million in angel funding from investors including Skype co-founder Tovio Annus and the government of Singapore, Alarm Clock reported.

Garena counts over 5.5 million registered users for its advertising-supported service, which supports LAN games, casual games, and various leagues and tournaments.

The company also has a deal with MTV Asia that lets its users watch MTV programs, music videos and animation content on an integrated player.



Related Links:
http://snipurl.com/37bdu (Alarm Clock)

http://www.garena.com

Tuesday, October 14, 2008

Project Manager


Changing The Game 3.0

From: DBLColonel, 38 seconds ago


Changing The Game 3.0
View SlideShare document or Upload your own. (tags: changing the)



Virtual Athletics Network
Professional Gaming For All Gamers.


SlideShare Link

Game industry projections - 2005 to 2010

Short Sunday post - just some Very Important Data:

Total global game software market:
$23.1 billion in 2005
$35.4 billion in 2010
Compound Annual Growth Rate 8.9%

Mobile game software 2005 $1.67 billion
Mobile game software 2010 $6.5 billion
Compound Annual Growth Rate 31.2%

PC online game software 2005 $3.2 billion
PC online game software 2010 $9.1 billion
Compound Annual Growth Rate 23.2%

Console online game software 2005 $0.26 billion
Console online game software 2010 $2.95 billion
Compound Annual Growth Rate 62.5%

Handheld game software 2005 $3.84 billion
Handheld game software 2010 $2.7 billion
Compound Annual Growth Rate -6.8%

PC retail game software 2005 $3.1 billion
PC retail game software 2010 $2.7 billion
Compound Annual Growth Rate -2.7%

Console game software 2005 $11.0 billion
Console game software 2010 $11.4 billion
Compound Annual Growth Rate 0.7%

Online gaming drilldown:

2010 long session market (eg MMOs) $4.82 billion
Compound Annual Growth Rate 26%

2010 mid session market $4.72 billion
Compound Annual Growth Rate 29%

2010 short session market (eg casual games) $2.5 billion
Compound Annual Growth Rate 34%

Video games Reference Sources

The video games market reflects consumer spending on console games (including handheld games), personal computer (PC) games, online games, and wireless games, as well as on video game advertising. The category excludes spending on the hardware and accessories used for playing the games.

A sampling of global facts and forecasts:

* "In the US, the console video game market is being driven by the newest generation of platforms. Console/handheld games will continue to dominate the market, increasing at a compound annual rate of 6.3 percent to $11.7 billion in 2012 from $8.6 billion in 2007."
* "In Asia-Pac, rising broadband penetration will drive online gaming in general and MMOGs in particular, especially in China. Across the region, online games will increase at a 13.3 percent CAGR, reaching $5.6 billion in 2012"
* "The introduction of advanced wireless phones capable of downloading games will help to make wireless games the fastest-growing segment of the Canadian market, with a CAGR of 20.2 percent taking it to $346 million in 2012."

Gaming expected to be a $68 billion business by 2012


If gaming seems to be all the rage these days, just wait until five years from now. PricewaterhouseCoopers has published its comprehensive Global Entertainment and Media Outlook report for 2008. Data from the report indicates that the future of gaming is, unequivocally, a bright one.


The report offers in-depth global analysis and five-year growth projections for the year 2008 through to 2012. As Reuters points out, headlining the report is a projected compound annual growth rate for the gaming industry of 10.3 percent, which will easily top growth in the majority of other entertainment sectors. Global industry sales as a whole will rise from $41.9 billion last year to $68.4 billion in 2012. This falls in line with previous forecasts, including PWC's own from last year that predicted gaming would outpace growth from other entertainment sectors like movies and music.


Console games will continue to lead the way in terms of sales, with an expected growth of 6.9 percent from $24.9 billion in 2007 to $34.7 billion in 2012. In the US alone, the report predicts an increase at a compound annual rate of 6.3 percent, with sales up to $11.7 billion in 2012 from $8.6 billion in 2007. Following suit, online games will also see massive growth. Online games, which generated $6.6 billion in 2007, will jump to $14.4 billion in 2012.

Data source: PriceWaterhouseCooper

Despite comments from industry insiders who adamantly defend the PC market, the study forecasts a decline in PC gaming through to 2012. The sector's sales are expected to drop from $3.8 billion last year to $3.6 billion in 2012. That 1.2 percent drop, though small, isn't great news for the PC market. This will likely come as a result of the general downturn in the number of quality PC game releases, with just a few big titles each year winning the hearts and wallets of PC gamers at large. One would expect that platforms like Steam and GameTap will continue to enjoy growth, however.

Perhaps unsurprisingly, the recent influx in video game advertising ventures—most notably the acquisition of Massive by Microsoft and Sony's recent deal with IGA Worldwide—will lead to a 16.7 percent annual growth rate for in-game advertising, as profits are posited to rise from $1 billion in 2007 to $2.3 billion in 2012. It's likely that more companies will begin to take the plunge, too, as profits continue to soar. In-game advertising is here to stay, whether gamers like it or not.

Riding on the ever-increasing wave of success, the oft-ignored mobile gaming market will see the most substantial increases of all. With handheld devices at large hosting more and better games, predictions peg the mobile gaming sector to grow a staggering 19 percent, sales rising from $5.6 billion last year to $13.5 billion in 2012. Canada will apparently benefit the most from this boom following the introduction of more Edge and 3G phones to the country, with a compound annual growth rate of 20.2 percent, bringing profits for the sector up to $346 million in 2012.

With more and more consumers picking up a controller these days, the video game industry shows no signs of slowing down. The report makes it clear that gaming is clearly going to outpace almost every other form of entertainment, movies and music included. That could mean that movie and music revenues continue to fall as game revenues rise. These forms of entertainment are all competing for the same wallets.

For the gaming industry, growth is proceeding at a rapid rate, and it's not hard to look past these figures for 2012 and see an even brighter future as the industry moves toward the eighth generation. For that to happen, though, game companies will be pressed harder and harder to come up with new ideas, which could make for an uphill battle. After all, the last time industry forecasts looked this rosy, back in 1983, the whole industry crashed.

Video Gaming Industry Adapting to Internet Age

By JARED NEWMAN, Special to the Sun | February 1, 2007

In the future, video games will be shorter in length. They will be easier to comprehend, and they will appeal to a wider audience. They will lack hefty instruction manuals and lengthy tutorials. Many will be downloadable. Some will contain advertisements.

These were some of the ideas tossed around Tuesday evening at a panel discussion on the booming video game business at New York University's Stern School.

With broadband Internet becoming more accessible, everyone wanted to talk about the future of digital distribution of video games. Online gaming sites are popular as ever, and all of the new consoles — Microsoft's XBox 360, Sony 's Playstation 3, and the Nintendo Wii — offer their own online marketplaces for downloading smaller games. The panelists, who included the Vice President of Business Development for Atari, Robert Stevenson, and an interactive entertainment analyst for Bear Stearns, Edward Urban, each had their own strategies and reasons for tapping in to the online market.

"It's kind of a tricky thing for publishers, because your bread and butter is the retail business," Mr. Stevenson said. "So you want to do the digital distribution, but you don't want to bypass or avoid Wal-Mart and Best Buy because it's still a valid business." Mr. Stevenson pointed out that online sales of the game Neverwinter Nights made up 5% of total sales. Although Atari was pleased with that figure, it obviously didn't compare to sales in stores. Still, Mr. Stevenson suggested that the online would strengthen over time.

The chief executive officer of the online game company Kuma Reality Games, Keith Halper, said digital distribution is more analogous to television than to Wal-Mart. His company offers free games over the Internet, distributed in small bursts, or "episodes," and forces players to watch advertisements. "As a startup, you don't want to find yourself competing against the likes of Atari or Vivendi," he said, adding that smaller companies need to find less traditional business models.

The vice president of Sierra Online Latin America, Esteban Sosnik, said there would be a change in the way video games are made as the Internet's role increases. He said that his company's awardwinning game, Assault Heroes, wouldn't have been possible without Live Arcade, Xbox 360's downloadable game service. He also implied that micro-transactions — the purchase of add-ons or upgrades through the Internet — would become more prominent.

Panelists agreed that shorterlength video games would be popular with consumers.

"I think it's happening because of a change in demographics," the coordinator of the New York City chapter of the International Game Developers Association, which helped organize the panel, Wade Tinney, said after the discussion. There are still kids who can play for hours on end, he said, but there are also older people, like himself, who grew up on games and don't have that kind of time anymore. "And I'm the one with the credit card and the income," he said.

"I personally don't think our players have any interest in the 40-hour experience," he said.

Mr. Halper found that his customers, many of whom are new to gaming, were unsatisfied with the company's longer offerings and preferred games to last an hour or less. "There's something about the mass market coming in that makes a difference in the kind of games you create," he said.

After the panel, Mr. Stevenson said that his business model isn't going to change much, but that the games Atari distributes probably will. In his words, video games in the future will simply be more "digestible."

Company's Mission


As the popularity of the gaming industry continues to grow at an exponential rate, expect the demographics of the average videogamer to change significantly. The grow of various game platforms and technology innovation opens up gaming for people who wouldn't normally play videogames.

Our mission is to take steps for the future of the industry by offering so-called "casual games" specifically targeted at an older, female audiences in a innovative competitive convenience environment.

We will focused on creating cooperative, competitive social games in online environments that particularly appeal to this demographic as well as the traditional hardcore gamers.

Our company stakeholders will be comprised of these tight-knit, hierarchical groups that are dispersed geographically, and they' will be used in playing specific roles in the grow of our organizations.

Company Objectives For Fiscal Year 2009




1. 1,000,000 Online Subscribers by the end of fiscal year 2009
2. Less than 20% Turnover Ratio in Subscriptions
3. Two Franchise Developer Level Network Commission Members by fiscal year 2009
4. Average Visits per Visitor of 15 per month by 4 th Quarter of 2009
5. Net income more than 35% of Gross Sales by end of fiscal year 2009
6. Feature minimum one game title per genre offered on Virtual Athletics Network
7. 80% Network Reliability (Measured by trouble tickets)
8. 95% Customer Satisfaction rating from users
9. Develop Dynamic content from platform and game titles for 80% of games offered
10. Gaming Online Communities with 1,000 members registered on site and members of Network Commission by the end of fiscal year 2009
11.100% Callback-driven content derive equally easily from our server, our partner's site and platform manufacturers.

Keys To Web 3.0 Design and Development When Using ASP.NET

1. Think dynamic HTML, not dynamically generated HTML. Think of HTML like food; do you want your fajitas sizzling when when it arrives and you have to use a fork and knife while you enjoy it fresh on your plate, or do you prefer your food preprocessed and shoved into your mouth like a dripping wet ball of finger-food sludge? As much as I love C#, and acknowledge the values of Java, PHP, Ruby on Rails, et al, the proven king and queen of the web right now, for most of the web's past, and for the indefinite future are the HTML DOM and Javascript. This has never been truer than now with jQuery, MooTools, and other (I'd rather not list them all) significant scripting libraries that have flooded the web development industry with client-side empowerment. Now with Microsoft adopting jQuery as a core asset for ASP.NET's future, there's no longer any excuse. Learn to develop the view for the client, not for the server.

Why? Because despite the fact that client-side debugging tools are less evolved than on the server (no edit-and-continue in VS, for example, and FireBug is itself buggy), the overhead of managing presentation logic in a (server) context that doesn't relate to the user's runtime is just too much to deal with sometimes. Server code often takes time to recompile, whereas scripts don't typically require compilation at all. While in theory there is plenty of control on the server to debug what's needed while you have control of it in your own predictable environment, in practice there are just too many stop-edit-retry cycles going on in server-oriented view management.

And here's why that is. The big reason to move view to the client is because developers are just writing WAY too much view, business, and data mangling logic in the same scope and context. Client-driven view management nearly forces the developer to isolate view logic from data. In ASP.NET Web Forms, your 3 tiers are database, data+view mangling on the server, and finally whatever poor and unlucky little animal (browser) has to suffer with the resulting HTML. ASP.NET MVC changes that to essentially five tiers: the database, the models, the controller, the server-side view template,and finally whatever poor and unlucky little animal has to suffer with the resulting HTML. (Okay, Microsoft might be changing that with adopting jQuery and promising a client solution, we'll see.)

Most importantly, client-driven views make for a much richer, more interactive UIX (User Interface/eXperience); you can, for example reveal/hide or enable/disable a set of sub-questions depending on if the user checks a checkbox, with instant gratification. The ASP.NET Web Forms model would have it automatically perform a form post to refresh the page with the area enabled/disabled/revealed/hidden depending on the checked state. The difference is profound--a millisecond or two versus an entire second or two.

2. Abandon ASP.NET Web Forms. RoR implements a good model, try gleaning from that. ASP.NET MVC might be the way of the future. But frankly, most of the insanely popular web solutions on the Internet are PHP-driven these days, and I'm betting that's because PHP is on a similar coding model as ASP classic. No MVC stubs. No code-behinds. All that stuff can be tailored into a site as a matter of discipline (one of the reasons why PHP added OOP), but you're not forced into a one-size-fits-all paradigm, you just write your HTML templates and go.

Why? Web Forms is a bear. Its only two advantages are the ability to drag-and-drop functionality onto a page and watch it go, and premier vender (Microsoft / Visual Studio / MSDN) support. But it's difficult to optimize, difficult to templatize, difficult to abstract away from business logic layers (if at least difficult in that it requires intentional discipline), and puts way too much emphasis on the lifecycle of the page hit and postback. Look around at the ASP.NET web forms solutions out there. Web Forms is crusty like Visual Basic is crusty. It was created for, and is mostly used for, corporate grunts who use B2B (business-to-business) or internal apps. The rest of the web sites who use ASP.NET Web Forms suffer greatly from the painful code bloat of the ASP.NET Web Forms coding model and the horrible end-user costs of page bloat and round-trip navigation.

Kudos to Guthrie, et al, who developed Web Forms, it is a neat technology, but it is absolutely NOT a one-size-fits-all platform any more than my winter coat from Minnesota is. So congratulations to Microsoft for picking up the ball and working on ASP.NET MVC.

3. Use callbacks, not postbacks. Sometimes a single little control, like a textbox that behaves like an auto-suggest combobox, just needs a dedicated URL to perform an AJAX query against. But also, in ASP.NET space, I envision the return of multiple
's, with DHTML-based page MVC controllers powering them all, driving them through AJAX/XmlHttpRequest.

Why? Clients can be smart now. They should do the view processing, not the server. The browser standard has finally arrived to such a place that most people have browsers capable of true DOM/DHTML and Javascript with JSON and XmlHttpRequest support.

Clearing and redrawing the screen is as bad as 1980s BBS ANSI screen redraws. It's obsolete. We don't need to write apps that way. Postbacks are cheap; don't be cheap. Be agile; use patterns, practices, and techniques that save development time and energy while avoiding the loss of a fluid user experience. should *always* have an onsubmit handler that returns false but runs an AJAX-driven post. The page should *optionally* redirect, but more likely only the area of the form or a region of the page (a containing DIV perhaps) should be replaced with the results of the post. Retain your header and sidebar in the user experience, and don't even let the content area go white for a split second. Buffer the HTML and display it when ready.

ASP.NET AJAX has region refreshes already, but still supports only (limit 1), and the code-behind model of ASP.NET AJAX remains the same. Without discipline of changing from postback to callback behavior, it is difficult to isolate page posts from componentized view behavior. Further, should be considered deprecated and obsolete. Theoretically, if you *must* have ViewState information you can drive it all with Javascript and client-side controllers assigned to each form.

ASP.NET MVC can manage callbacks uniformly by defining a REST URL suffix, prefix, or querystring, and then assigning a JSON handler view to that URL, for example ~/employee/profile/jsmith?view=json might return the Javascript object that represents employee Joe Smith's profile. You can then use Javascript to pump HTML generated at the client into view based on the results of the AJAX request.

4. By default, allow users to log in without accessing a log in page. A slight tangent (or so it would seem), this is a UI design constraint, something that has been a pet peeve of mine ever since I realized that it's totally unnecessary to have a login page. If you don't want to put ugly Username/Password fields on the header or sidebar, use AJAX.

Why? Because if a user visits your site and sees something interesting and clicks on a link, but membership is required, the entire user experience is inturrupted by the disruption of a login screen. Instead, fade out to 60%, show a DHTML pop-up login, and fade in and continue forward. The user never leaves the page before seeing the link or functionality being accessed.

Imagine if Microsoft Windows' UAC, OS X's keyring, or GNOME's sudo auth, did a total clear-screen and ignored your action whenever it needed an Administrator password. Thankfully it doesn't work that way; the flow is paused with a small dialogue box, not flat out inturrupted.

5. Abandon the Internet Explorer "standard". This goes to corporate folks who target IE. I am not saying this as an anti-IE bigot. In fact, I'm saying this in Internet Explorer's favor. Internet Explorer 8 (currently not yet released, still in beta) introduces better web standards support than previous versions of Internet Explorer, and it's not nearly as far behind the trail of Firefox and WebKit (Safari, Chrome) as Internet Explorer 7 is. With this reality, web developers can finally and safely build W3C-compliant web applications without worrying too much about which browser vendor the user is using, and instead ask the user to get the latest version.

Why? Supporting multiple different browsers typically means writing more than one version of a view. This means developer productivity is lost. That means that features get stripped out due to time constraints. That means that your web site is crappier. That means users will be upset because they're not getting as much of what they want. That means less users will come. And that means less money. So take on the "Write once, run anywhere" mantra (which was once Java's slogan back in the mid-90s) by writing W3C-compliant code, and leave behind only those users who refuse to update their favorite browsers, and you'll get a lot more done while reaching a broader market, if not now then very soon, such as perhaps 1/2 yr after IE 8 is released. Use Javascript libraries like jQuery to handle most of the browser differences that are left over, while at the same time being empowered to add a lot of UI functionality without postbacks. (Did I mention that postbacks are evil?)

6. When hiring, favor HTML+CSS+Javascript gurus who have talent and an eye for good UIX (User Interface/eXperience) over ASP.NET+database gurus. Yeah! I just said that!

Why? Because the web runs on the web! Surprisingly, most employers don't have any idea and have this all upside down. They favor database gurus as gods and look down upon UIX developers as children. But the fact is I've seen more ASP.NET+SQL guys who halfway know that stuff and know little of HTML+Javascript than I have seen AJAX pros, and honestly pretty much every AJAX pro is bright enough and smart enough to get down and dirty with BLL and SQL when the time comes. Personally, I can see why HTML+CSS+Javascript roles are paid less (sometimes a lot less) than the server-oriented developers--any script kiddie can learn HTML!--but when it comes to professional web development they are ignored WAY too much because of only that. The web's top sites require extremely brilliant front-end expertise, including Facebook, Hotmail, Gmail, Flickr, YouTube, MSNBC--even Amazon.com which most prominently features server-generated content but yet also reveals a significant amount of client-side expertise.

I've blogged it before and I'll mention it again, the one, first, and most recent time I ever had to personally fire a co-worker (due to my boss being out of town and my having authority, and my boss requesting it of me over the phone) was when I was working with an "imported" contractor who had a master's degree and full Microsoft certification, but could not copy two simple hyperlinks with revised URLs within less than 5-10 minutes while I watched. The whole office was in a gossipping frenzy, "What? Couldn't create a hyperlink? Who doesn't know HTML?! How could anyone not know HTML?!", but I realized that the core fundamentals have been taken for granted by us as technologists to such an extent that we've forgotten how important it is to value it in our hiring processes.

7. ADO.NET direct SQL code or ORM. Pick one. Don't just use data layers. Learn OOP fundamentals. The ActiveRecord pattern is nice. Alternatively, if it's a really lightweight web solution, just go back to wring plain Jane SQL with ADO.NET. If you're using C# 3.0, which of course you are in the context of this blog entry, then use LINQ-to-SQL or LINQ-to-Entities. On the ORM side, however, I'm losing favor with some of them because they often cater to a particular crowd. I'm slow to say "enterprise" because, frankly, too many people assume the word "enterprise" for their solutions when they are anything but. Even web sites running at tens of thousands of hits a day and generating hundreds of thousands of dollars of revenue every month don't necessarily mean "enterprise". The term "enterprise" is more of a people management inference than a stability or quality effort. It's about getting many people on your team using the same patterns and not having loose and abrupt access to thrash the database. For that matter, the corporate slacks-and-tie crowd of ASP.NET "Morts" often can relate to "enterprise", and not even realize it. But for a very small team (10 or less) and especially for a micro ISV (developers numbering 5 or less) with a casual and agile attitude, take the word "enterprise" with a grain of salt. You don't need a gajillion layers of red tape. For that matter, though, smaller teams are usually small because of tighter budgets, and that usually means tighter deadlines, and that means developer productivity must reign right there alongside stability and performance. So find an ORM solution that emphasizes productivity (minimal maintenance and easily adaptable) and don't you dare trade routine refactoring for task-oriented focus as you'll end up just wasting everyone's time in the long run. Always include refactoring to simplicity in your maintenance schedule.

Why? Why go raw with ADO.NET direct SQL or choose an ORM? Because some people take the data layer WAY too far. Focus on what matters; take the effort to avoid the effort of fussing with the data tier. Data management is less important than most teams seem to think. The developer's focus should be on the UIX (User Interface/eXperience) and the application functionality, not how to store the data. There are three areas where the typical emphasis on data management is agreeably important: stability, performance (both of which are why we choose SQL Server over, oh, I dunno, XML files?) and queryability. The latter is important both for the application and for decision makers. But a fourth requirement is routinely overlooked, and that is the emphasis on being able to establish a lightweight developer workflow of working with data so that you can create features quickly and adapt existing code easily. Again, this is why a proper understanding of OOP, how to apply it, when to use it, etc, is emphasized all the time, by yours truly. Learn the value of abstraction and inheritence and of encapsulating interfaces (resulting in polymorphism). Your business objects should not be much more than POCO objects with application-realized properties. Adding a new simple data-persisted object, or modifying an existing one with, say, a new column, should not take more than a minute of one's time. Spend the rest of that time instead on how best to impress the user with a snappy, responsive user interface.

8. Callback-driven content should derive equally easily from your server, your partner's site, or some strange web service all the way in la-la land. We're aspiring for Web 3.0 now, but what happened to Web 2.0? We're building on top of it! Web 2.0 brought us mashups, single sign-ons, and cross-site social networking. FaceBook Applications are a classic demonstration of an excelling student of Web 2.0 now graduating and turning into a Web 3.0 student. Problem is, keeping the momentum going, who's driving this rig? If it's not you, you're missing out on the 3.0 vision.

Why? Because now you can. Hopefully by now you've already shifted the bulk of the view logic over to the client. And you've empowered your developers to focus on the front-end UIX. Now, though, the client view is empowered to do more. It still has to derive content from you, but in a callback-driven architecture, the content is URL-defined. As long as security implications are resolved, you now have the entire web at your [visitors'] disposal! Now turn it around to yourself and make your site benefit from it!

If you're already invoking web services, get that stuff off your servers! Web services queried from the server cost bandwidth and add significant time overhead before the page is released from the buffer to the client. The whole time you're fetching the results of a web service you're querying, the client is sitting there looking at a busy animation or a blank screen. Don't let that happen! Throw the client a bone and let it fetch the external resources on its own.

9. Pay attention to the UIX design styles of the non-ASP.NET Web 2.0/3.0 communities. There is such a thing as a "Web 2.0 look", whether we like to admit it or not; we web developers evolved and came up with innovations worth standardizing on, why can't designers evolve and come up with visual innovations worth standardizing on? If the end user's happiness is our goal, how are features and stable and performant code more important than aesthetics and ease of use? The problem is, one perspective of what "the Web 2.0 look" actually looks like is likely very different from another's or my own. I'm not speaking of heavy gloss or diagonal lines. I most certainly am not talking about the "bubble gum" look. (I jokingly mutter "Let's redesign that with diagonal lines and beveled corners!" now and then, but when I said that to my previous boss and co-worker, both of whom already looked down on me WAY more than they deserved to do, neither of them understood that I was joking. Or, at least, they didn't laugh or even smile.) No, but I am talking about the use of artistic elements, font choices and font styles, and layout characteristics that make a web site stand out from the crowd as being highly usable and engaging.

Let's demonstrate, shall we? Here are some sites and solutions that deserve some praise. None of them are ASP.NET-oriented.

* http://www.javascriptmvc.com/ (ugly colors but otherwise nice layout and "flow"; all functionality driven by Javascript; be sure to click on the "tabs")
* http://www.deskaway.com/ (ignore the ugly logo but otherwise take in the beauty of the design and workflow; elegant font choice)
* http://www.mosso.com/ (I really admire the visual layout of this JavaServer Pages driven site; fortunately I love the fact that they support ASP.NET on their product)
* http://www.feedburner.com/ (these guys did a redesign not too terribly long ago; I really admire their selective use of background patterns, large-font textboxes, hover effects, and overall aesthetic flow)
* http://www.phpbb.com/ (stunning layout, rock solid functionality, universal acceptance)
* http://www.joomla.org/ (a beautiful and powerful open source CMS)
* http://goplan.org/ (I don't like the color scheme but I do like the sheer simplicity
* .. for that matter I also love the design and simplicity of http://www.curdbee.com/)

Now here are some ASP.NET-oriented sites. They are some of the most popular ASP.NET-driven sites and solutions, but their design characteristics, frankly, feel like the late 90s.

* http://www.dotnetnuke.com/ (one of the most popular CMS/portal options in the open source ASP.NET community .. and, frankly, I hate it)
* http://www.officelive.com/ (sign in and discover a lot of features with a "smart client" feel, but somehow it looks and feels slow, kludgy, and unrefined; I think it's because Microsoft doesn't get out much)
* http://communityserver.com/ (it looks like a step in the right direction, but there's an awful lot of smoke and mirrors; follow the Community link and you'll see the best of what the ASP.NET community has to offer in the way of forums .. which frankly doesn't impress me as much as phpBB)
* http://www.dotnetblogengine.net/ (my blog uses this, I like it well enough, but it's just one niche, and that's straight-and-simple blogs
* http://subsonicproject.com/ (the ORM technology is very nice, but the site design is only "not bad", and the web site starter kit leave me shrugging with a shiver)

Let's face it, the ASP.NET community is not driven by designers.

Why? Why do I ramble on about such fluffy things? Because at my current job (see the intro text) the site design is a dump of one feature hastilly slapped on after another, and although the web app has a lot of features and plenty of AJAX to empower it here and there, it is, for the most part, an ugly and disgusting piece of cow dung in the area of UIX (User Interface/eXperience). AJAX functionality is based on third party components that "magically just work" while gobs and gobs of gobblygook code on the back end attempts to wire everything together, and what AJAX is there is both rare and slow, encumbered by page bloat and server bloat. The front-end appearance is amateurish, and I'm disheartened as a web developer to work with it.

Such seems to be the makeup of way too many ASP.NET solutions that I've seen.

10. Componentize the client. Use "controls" on the client in the same way you might use .ASCX controls on the server, and in the process of doing this, implement a lifecycle and communications subsystem on the client. This is what I want to do, and again I'm thinking of coming up with a framework to pursue it to compliment Microsoft's and others' efforts. If someone else (i.e. Microsoft) beats me to it, fine. I just hope theirs is better than mine.

Why? Well if you're going to emphasize the client, you need to be able to have a manageable development workflow.

ASP.NET thrives on the workflows of quick-tagging () and drag-and-drop, and that's all part of the equation of what makes it so popular. But that's not all ASP.NET is good for. ASP.NET's greatest strengths are two: IIS and the CLR (namely the C# language). The quality of integration of C# with IIS is incredible. You get near-native-compiled-quality code with scripted text file ease of deployment, and the deployment is native to the server (no proxying, a la Apache->Tomcat->Java, or even FastCGI->PHP). So why not utilize these other benefits as a Javascript-based view seed rather than as generating the entirety of the view.

On the competitive front, take a look at http://www.wavemaker.com/. Talk about drag-and-drop coding for smart client-side applications, driven by a rich server back-end (Java). This is some serious competition indeed.

11. RESTful URIs, not postback or Javascript inline resets of entire pages. Too many developers of AJAX-driven smart client web apps are bragging about how the user never leaves the page. This is actually not ideal.

Why? Every time the primary section of content changes, in my opinion, it should have a URI, and that should be reflected (somehow) in the browser's Address field. Even if it's going to be impossible to make the URL SEO-friendly (because there are no predictable hyperlinks that are spiderable), the user should be able to return to the same view later, without stepping through a number of steps of logging in and clicking around. This is partly the very definition of the World Wide Web: All around the world, content is reflected with a URL.

12. Glean from the others. Learn CakePHP. Build a simple symfony or Code Igniter site. Watch the Ruby On Rails screencasts and consider diving in. And have you seen Jaxer lately?!

And absolutely, without hesitation, learn jQuery, which Microsoft will be supporting from here on out in Visual Studio and ASP.NET. Discover the plug-ins and try to figure out how you can leverage them in an ASP.NET environment.

Why? Because you've lived in a box for too long. You need to get out and smell the fresh air. Look at the people as they pass you by. You are a free human being. Dare yourself to think outside the box. Innovate. Did you know that most innovations are gleaning from other people's imaginative ideas and implemenations, and reapplying them in your own world, using your own tools? Why should Ruby on Rails have a coding workflow that's better than ASP.NET? Why should PHP be a significantly more popular platform on the public web than ASP.NET, what makes it so special besides being completely free of Redmondite ties? Can you interoperate with it? Have you tried? How can the innovations of Jaxer be applied to the IIS 7 and ASP.NET scenario, what can you do to see something as earth-shattering inside this Mortian realm? How can you leverage jQuery to make your web site do things you wouldn't have dreamed of trying to do otherwise? Or at least, how can you apply it to make your web application more responsive and interactive than the typical junk you've been pumping out?

You can be a much more productive developer. The whole world is at your fingertips, you only need to pay attention to it and learn how to leverage it to your advantage.


And these things, I believe, are what is going to drive the Web 1.0 Morts in the direction of Web 3.0, building on the hard work of yesteryear's progress and making the most of the most powerful, flexible, stable, and comprehensive server and web development technology currently in existence--ASP.NET and Visual Studio--by breaking out of their molds and entering into the new frontier.

What is the LLC Charging Order for the Limited Liability Company?


Most business owners create a limited liability company for their business in order to protect their personal selves and their personal assets from the liabilities and obligations of the business.

However, another liability concern relates to what is known as “reverse” liability. If a business owner is sued in his personal capacity for something totally unrelated to his LLC business, is the LLC business protected from being taken over by the person who obtains a judgment against the business owner personally?

The LLC laws of most states contain a “charging order” provision in them which is a great benefit of owning a business through a limited liability company.

The charging order provisions generally state that a creditor of a member of an LLC can only seize the economic rights of the LLC ownership interest held by that member. In other words, the creditor can never get the full ownership and never have voting or management control over the LLC business. What does this mean?

It means that you, as an LLC owner, will continue to be able to run the LLC business as before, and you, as a manager (along with other managers) can decide not to pay out any profits distributions related to ownership interests. This would result in the creditor not receiving any money for foreclosing on the LLC ownership interest AND actually being liable for the tax related to profits of the LLC business that were retained in the company.

Given this, most creditors will not look to take any LLC ownership interests because the potential result could be that the creditor will have to pay taxes on profits he never gets.

LIMITATIONS OF CHARGING ORDER PROTECTION

While charging order protection provisions are found in most state LLC statutes, an important bankruptcy case held that charging order protection would not apply to single member LLCs. This is because the reason for the charging order is to protect other members of your LLC business and the LLC business itself from business interruption related to the personal liabilities of one of its members. With a multi-member LLC, the interests of a personal creditor of one member should not take precedence over the LLC and the other innocent members.

However, if the LLC is owned only by one member and it is that member who is personally liable to a creditor, then in bankruptcy, the law will ignore the charging order protection and could allow the creditor to foreclose on the entire LLC ownership interest and business. To be safe, practitioners are advising that charging order protection should not be relied upon in any single member LLC situations either within or outside of bankruptcy.

This article discusses charging orders generally, but each state has its own scope and details for charging order protection so if this is an important issue to you, please check with your local attorney to receive specific advice for your jurisdiction and circumstances.



Money Contributed to a Limited Liability Company- How is is Categorized?

A new business will always need some capital or access to capital to start a business. Even an ongoing business may need funds from time to time as it deals with cash flow deficiencies or expansion.

While a limited liability company has the right to borrow money, the most common method of getting initial capital is by having the initial members contribute capital to the LLC in exchange for their membership interests.

However, a member can also loan money to an LLC even if he or she is a member.

When a member contributes money to an LLC, it is very important that the transaction categorized as either a capital contribution or a loan and that the transaction be documented in sufficient written documents.

When money sent is a capital contribution, the amount is credited to the member’s capital account but it is not a loan that the LLC is required to pay back. No debtor-creditor relationship exists. If that member is later distributed profits back, it will be credited against the capital contribution amounts of the member.

When money sent is a loan, a debtor- creditor relationship is formed. The LLC owes the member the money back. The terms of the loan (amount, interest rate, repayment terms, default provisions) should be documented in a written loan agreement or promissory note between the member and the LLC.

If there are other members, the loan transaction should be approved by the LLC membership because it is called a “interested transaction” (one between the LLC and one of its own members). It is really important that the loan transaction be fair and equitable to the LLC to avoid any unfair transactions benefitting the lender member.

So, in summary, the LLC and the member can agree on how money sent from the member to the LLC is to be categorized. The categorization of a member capital contribution or a member loan results in a different transaction and different treatment of the transaction by both the LLC and the member. In order to avoid later disagreements, this categorization should be agreed upon and sufficiently set forth in writing signed by the LLC and the member . . . and if applicable, the proper governance vote should take place with all members to approve the transaction.

Why should an LLC include "capital contributions" in its operating agreement?


LLCs: Why should an LLC include "capital contributions" in its operating agreement?

Saturday, October 11, 2008

Modeling The Real Market Value Of Social Networks

Is MySpace worth $3 billion, or $20 billion? It depends on how you value a user.

It’s time to start comparing the big global social networks on something other than unique visitors and page views. I believe an effective way to value a particular user is based on the average Internet advertising spend per person in the country they live in. The higher the spend, the more value the social network can get out of the user by serving them advertising and other products. That means that, for now, users in a handful of key countries are worth far more in terms of revenue potential than those in the rest of the world.

We’ve begun to build out a model that looks at social network usage by country/region and compares that to available data on total Internet advertising spend in each of those countries. The model is then able to turn an apples-to-oranges comparison into an apples-to-apples comparison. The early results are surprising.

The ultimate financial value of any asset is, ultimately, what the market will pay for it. We have only a few data points to help us: Facebook, Bebo and LinkedIn are worth $15 billion, $850 million and $1 billion, respectively, based on relatively recent valuations (although only Bebo was actually sold completely; Facebook and LinkedIn raised investments at those valuations). The last valuation of MySpace was just $580 million, back in 2005 when it was acquired by News Corp.

Which valuation is most “correct?” It’s hard to say based on the data that’s been available to date, which is mostly just aggregate page view and unique visitor numbers from Comscore and other services. Based on worldwide unique visitors, for example, Facebook recently overtook MySpace to become the “largest” social network.

According to raw worldwide user number, the biggest social networks are Facebook, Myspace, Hi5, Friendster, Orkut and Bebo, in that order. But when you apply the model that we’ve created below, which takes into account where users live, the rankings change substantially. MySpace is by far the most valuable social network based on available data. A competitor like Orkut is worth only 1/20th of MySpace, even though it has nearly 1/4 the number of users.

Properly Ranking Social Networks

Our model takes Comscore data for available countries and regions. We’ve graphed each of 26 well known social networks with the data we have been able to collect. We’ve then calculated the average advertising spend (estimated by PriceWaterhouseCoopers in a recent report) for each person online in each of those countries. For example, in the U.S., the total 2008 estimated Internet advertising spend is $25.2 billion. We’ve divided that by the number of people online in the U.S. according to Comscore (191 million), to get an average Internet spend per person of $132. View the raw data and calculations here.

The U.S., by the way, is only the 4th most valuable market per Internet user, trailing The UK ($213), Australia ($148) and Denmark ($144).

We’ve then multiplied the average Internet spend per user in each market with the number of unique users each social network has in that market, essentially creating a “weighted average” based on the advertising dollars chasing users. If a social network has more users in the U.S., Japan, the UK, Germany, Australia, and other bigger advertising networks, they will have a higher weighted average valuation.

We believe this model is an effective way to rank various competing social networks. It bumps down networks like Orkut and Friendster who have tens of millions of users in markets with very little advertising spend, and bumps up networks with lots of users in higher value markets.

Based on this model, MySpace is by far the most valuable social network. Second place Facebook has just 75% of the value of MySpace (even though it now has more users), followed by Bebo (26% of MySpace value), Hi5 and Amebio. LinkedIn comes in at no. 11, at 6% of MySpace’s value.

Valuation Ranges

The real-world revenue numbers being reported for the big networks supports this approach to valuation and shows a direct tie between monetization efforts and where a network’s users are. MySpace is estimated to have generated $755 million in revenue over the last year. The (now) larger Facebook, with a far higher percentage of users in less lucrative markets, will generate just $255 million this year:

EMarketer estimates that MySpace will post $755 million in revenue in the fiscal year ending June 30. MySpace would not comment on the estimate. About a third of the revenue is expected to come from the Google ad pact. For the year, Facebook is estimated to earn $265 million in ad revenue.

Since we have three recent data points valuing social networks (Facebook at $15 billion, Bebo at $850 million, LinkedIn at $1 billion), we can start to apply valuation ranges based on the model. Facebook’s 10.2 million value points and $15 billion valuation puts a $1,467 value on each value point. LinkedIn is valued very similarly, at $1,325 per value point. Bebo, with lots of users in the rich UK market, appears to have been undervalued at only $241 per value point.

Based on these three publicly available data points we’ve created value ranges for each of the top 25 worldwide social networks. There is a very wide disparity (MySpace, for example, is worth between $3.3 billion and $20 billion, based on which comparable you look at). But it does yield very interesting data. For example, If Facebook and LinkedIn were valued similarly to Bebo, they would be worth just $2.5 billion and $182 million, respectively, far less than what their investors recently paid for a piece of them.

Interestingly, the recent sale of Polish social network Nasza-klasa for $92 million appears to be right in sync with Bebo’s price. The model estimates its value at $91 million based on Bebo’s valuation metrics.

There are some big flaws with the model and analysis in its current state. First, LinkedIn may be in a different class of network, given that all of its users are business focused (no super-poking going on there). As a result, it may be able to monetize users far better than its competitors, no matter what geographic market is being looked at. Still, we’ve decided to leave it in as a data point, with that caveat.

The model itself needs more data. The user numbers are based on April Comscore. We will shortly revise it with the May numbers, although the absolute rankings probably won’t change. More importantly, some big markets are not included yet. The Chinese Internet advertising market, for example, is estimated to be $2 billion in 2008, yet they are not included (mostly because I can’t find data on user numbers for the networks). Also, the Philippines isn’t broken out separately, again due to data availability issues (although the total Internet advertising market in the Philippines is just $3 million this year, so it won’t affect the rankings materially even though Friendster is so strong there). Finally, Russia is currently grouped with “the rest of Europe,” and needs to be separately broken out - it has a large and growing online advertising market and lots of users, so that update may affect the mid-level network rankings.

The advertising spend model is just an estimate and from a single source. I’m less concerned with this data since it doesn’t matter to the model if the estimates are absolutely correct. If the estimates are wrong by different rates in different countries, however, the model will break. If we find better relative data between countries, we’ll update the model with that data. But for now, the PriceWaterhouseCoopers data seems to be pretty good.

Finally, this model doesn’t take into account execution at the company level. Two very similar networks may monetize vastly differently based on methods of advertising and even the brute effort and passion of the employees. This model obviously doesn’t take that into account.

I also note Andrew Chen’s analysis last week which takes a similar approach to this using Google Trends data instead of Comscore. The Google data isn’t granular enough to really dig in to relative values, however, and he was lacking current and deep data on average Internet spend. Still, I agree with his methodology.

As I wrote at the very end of this post, you have to consider the current monetization value of users when comparing social networks. Raw user numbers are pointless without it.

Kids and teens have pushed at least 6 immersive online worlds to over 2m UU/mth in the US

Wagner James Au has a great post on GigaOm about Gaia. Gaia is a casual immersive MMORPG that describes itself as:

“The world’s fastest growing online world hangout for teens.”

In an interview with Gaia’s CEO, Craig Sherman, he quotes that Gaia has gone from 0.5m unique users/month midway through last year to 2.5m UU/mth last month. (nb Comscore only has them at 700k UU/mth in March). Furthermore, he claims 300k users log in each day for an average of 2 hours per session, and in their forums area they are getting an average of 1m posts per day for a total of over 1 billion posts so far. And its mostly (85%) US traffic. Impressive stats. Gaia has been pretty quiet about its growth until recently, but Susan Wu was finally able to get them to break their silence by getting Craig to speak at her panel at Web2.0 Expo last week.

Casual immersive worlds have not previously been as popular in the US as they have been in Europe (Habbo Hotel) or Asia (Cyworld). ( I draw a distinction between casual immersive worlds and games such as Runescape and World of Warcraft). Even press darling Second Life, currently reporting 1.7m log-ins in the last 60 days, is lagging Gaia’s usage.

Interestingly enough, Gaia isn’t the only casual immersive world that is getting meaningful usage in the US. The original casual immersive world, Neopets, is still going strong, with 4.2m UU/mth in March according to Comscore.

Neopets® is the greatest Virtual Pet Site on the Internet. With your help, we have built a community of over 70 million virtual pet owners across the world! Neopets has many things to offer including over 160 games, trading, auctions, greetings, messaging, and much much more. Best of all, it’s completely FREE!

Club Penguin, who Susan also got to speak for the first time on her panel at web2.0 expo, is also growing like crazy - 4.1m UU/mth in March.

Club Penguin is a kid-friendly virtual world where children can play games, have fun and interact with each other.

* Kid-friendly chat
* Lots of fun games
* Nothing to download
* Lots more!

Webkinz, who I mentioned last week as one of the few sites getting their users to visit more than 10 times per month, is also at 4.1m UU/mth.

Webkinz pets are lovable plush pets that each come with a unique Secret Code. With it, you enter Webkinz World where you care for your virtual pet, answer trivia, earn KinzCash, and play the best kids games on the net!

And a dark horse entrant that I was unaware of until recently - Millsberry, run by General Mills (the manufacturer of cereals), is getting 2.2m UU/mth.

Millsberry is a fun virtual city for you to explore. You create a citizen of the city and discover Millsberry through his eyes. You’ll need to make sure he takes care of himself, so you’ll need to get food (from the shopping area) and make sure he exercises (by playing games), but you’ll also get to go on adventures, solve mysteries and have all kinds of fun while visiting Millsberry!

.

Even Lego has announced its plans to release a casual immersive world in 2008

These worlds are all exploring different business models. Some are mainly ad supported (Neopets, and effectively Millsberry), others rely on subscriptions (Club Penguin) that deliver certain privileges, and others rely on transactions, either in the real world (Webkinz) or for digital goods (Habbo Hotel, Gaia.

Its worth noting that all of these are websites with no download required. This has likely helped them grow more quickly than other casual immersive worlds such as Second Life and IMVU, which are also growing fast, but not as fast.

One can’t help but notice that all of these immersive online worlds are targeted at kids and teens. If demographics are destiny, then we can expect more and more people to interact with each other in casual immersive worlds over the next few years. Susan Wu thinks so too, and her prediction about web 3.0 (are we there already?) is that it will be:

continuing down this path of improving the user experience of living and socializing online. This story is about human context, social proximity, and a sense of place.

I think she is right. What are your thoughts?

UPDATE, April 26th, 2007: Barbie is now also getting in on the action with Barbie Girls.

UPDATE, April 29th, 2007: Techcrunch reports that IAC’s Zwinky is also launching a casual immersive world. In this case, they are also employing a different business model than the other virtual worlds as the toolbar that enables much of the functionality includes a search box and will be usable both when the user is and is not “in world”. Note that the search box occurs to the LEFT of the URL box… This tactic worked great for previous IAC products such as Smiley Central and Cursor Mania.