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Tuesday 25 November 2008

New reward models for Habbo

As I hinted at last Thursday, and as was noted by Sulka yesterday, we are introducing a second currency to Habbo. We've had Coins (or credits) since the beginning of the service as the purchasable in-game currency, and the business model of Sulake is primarily based on sales of this currency to end users via a variety of mechanisms and sales channels from premium SMS billing (our original method) to credit cards, PayPal transactions and prepaid voucher cards purchasable from kiosks and stores like R-Kioski and 7-Eleven around the world.

Since yesterday, starting from our pilot site Habbo UK onwards, there's now a second currency as well, called Habbo Pixels. This one can't be bought -- you have to play Habbo to get it. There's a whole new set of cool things you can do with this currency, that can't be done using Coins. Naturally, the process doesn't end here, and we'll be introducing plenty more features tied to Pixels, Coins or both over the following months as part of our routine monthly releases.

Because of this tight connection to our primary business model, and because trading is such a big feature of the gameplay in Habbo, the implications of this change are pretty substantial. And so was the process by which we arrived at making this change - starting from (at least on my part) utter confusion of why anyone would want to complicate their economic model by introducing this big new variables. Once we got that part (thanks to everyone who patiently explained why it makes sense), implementing this still took its own sweet time, as did all of the pre-analysis on why it wouldn't immediately collapse our end-user sales and drive the company out of business -- that it would be fun for users was less of a worry.

I've been for a while convinced this will be huge for Habbo. It's way too early to tell whether that will truly be so, but the first indications sure look promising. Our UK service had a new peak simultaneous users record on the day of the launch of Pixels (20% increase -- if you care, you can follow those figures on the front page of each Habbo site), and the community feedback is overwhelmingly positive, despite its normal bias towards resisting change. We'll be following this closely, and follow-up articles are sure to appear in many places.

Friday 27 June 2008

100 million and other metrics

News hit the Internet this week that our favorite social play phenomenon, Habbo has reached a milestone of 100 million registered characters. Several places in the blogosphere have also pointed out the weaknesses of that figure, such as the fact that yes, most of those characters are "alts", abandoned accounts, or otherwise not very meaningful. I'd be the last person to argue against that particular point.

Still, it's a figure that has some comparison basis. MySpace didn't have 100 million registrations when News Corp acquired it, reaching that milestone a year later, and MySpace regs are arguably just as likely to be abandoned as virtual world avatars.

Overall though, we don't really put much weight to that metric compared to many others. The 20 million new registrations made in the last six months is pretty nice, but nicer still is 1.5 million logins per day and over a million hours per day spent in Habbo by users. Those are hard to discredit, never mind whether you think that free-to-play is less sticky than subscribed games or not. I tend to give more attention to that than to the 9.4 million unique monthly visitors, because ubiquitous as the UB/UV measurement style is, it, too is horribly inaccurate due to all kinds of errors from cookie washing to shared computers.

If you're interested in hearing about how we measure Habbo and decide what to do based on what we learn from those measurements, you might want to consider attending Leipzig GCDC this August, where I'll give an updated and more in-depth version of the talk the slides of which are in my earlier posting.

Thursday 3 April 2008

Nokia loses share among global youth, music on mobiles doubles popularity

We just released the results of our second global Habbo youth survey. For this 2007 edition, over 58,000 people contacted via the Habbo sites in 31 countries answered a survey the results of which have been painstakingly analyzed for weeks, nay, months by our in house analytics team.

Among the findings is tha majority of teens are now using their phones as mp3 players, that being almost twice as popular at 71 percent of the surveyed. Sure sign of convergence there. Sony Ericsson has enjoyed a rise in popularity thanks to this trend, and while Nokia is still the global leader in the teen segment as well as overall, it has lost some ground among teens.

This and a lot more, 250 pages worth of brilliant insight, can be found in the book we released in Virtual Worlds Conference today. We're selling this for €475 a piece, a real bargain for the content, because we figured it'll be more useful widely distributed rather than if sold at the typical market research prices. Check out the links above for more info.

Monday 16 July 2007

Ping

It's again been a while since my previous post. First, it was a feeling that there was nothing worthwhile to write about, at least without having to spend hours thinking about it first. Then I had a biking accident and fractured my left wrist, leaving me rather handicapped as far as computers are concerned. Thanks to Helsinki's Rakennusvirasto for that - it would be nice if the few bike lanes weren't mined with road construction asphalt gravel.

I even entertained the idea of switching to a Mac in order to get decent speech recognition software, given that my laptop blew a gasket (well, busted its fan, at least) the day before. No, that won't happen though - an experiment with one proved that Macs are still, despite their aesthetic appeal, really excellent at infuriating me with their UI. I'm sure that's all fault of my own idiosyncrasies, so no comments of that, please.

A few other things of note have happened. We're closing the end of the latest Habbo update rollout, with this version bringing various usability improvements all around, from password retrieval and friend invites, to a more scalable web store interface. In Finland we're already pilot testing the next version, which has more noticeable new features: tagging and related search functionality and music player on the home pages to mention two. However, since I'm such a metrics-driven incremental improvement freak, to me the most significant events are the rollout of Google Analytics measuring (it's such a nice tool, even if with our traffic it becomes a bit sluggish), and how we're (once again) speeding up our update cycle to twice its previous velocity. I think this is now the third time we do it, and likely the trend will continue at least until we've reached a daily upgrade frequency.

Speaking of Analytics, the updated "social networking" version of the Habbo UK front page showed interesting changes in behavior, with some key metrics producing double-digit improvement. Something must be done about those ads, though... Comments on that vs the other Habbo sites' front pages welcome.

Finally, the corporate Sulake site was also updated last week. I may join the group posting notes in its blog as well, but that will happen after the holidays. Fractured wrist or not, I am looking forward to a few weeks offline. Too bad this forces our vacation plans to a more passive mode - but I suppose that will finally let me catch up on a lot of reading.

Wednesday 27 June 2007

Good luck, MySQL!

BusinessWeek reports MySQL continuing with their IPO preparations. As a long-time user (about ten years now), and almost as long-time customer (in many companies, obviously currently and most significantly Sulake and Habbo), I wish you guys the best of luck on that road. Don't lose your sight of the ballgame while doing that -- we need you to continue to do better with the product itself while the distractions of investor communications will be great.

I'm sure we can all name a few nuisances in every software product we use, and I certainly have a few of those of the MySQL database, but what I really admire the guys for is their approach to innovating in the sales and customer relationships, or in the business of software. It's so much easier to deal with an Open Source project and vendor than with proprietary, old world software vendors, that I'm always willing to overlook a few problems in the product itself. It's not like the proprietary products aren't without their share of problems, either -- and ultimately, what counts is how much you have to suffer while trying to work around that. I get to add a new note on both sides of the coin to that experience nearly every day, and it's not common for proprietary vendors to win that game.