Moores Law in Location Based Applications

Have you ever noticed that whatever application people come up with, you are always hungry for the next big thing? Well I am, especially when it comes to mobility and location based applications. I and several of my friends and associates tend to look 5 years into the future on a regular basis and are always looking to innovate with features or technology that either doesn’t exist yet, is still too expensive, or the target market still doesn’t get it. That’s probably where we will always live.

The good thing about that is that as a consequence of our focus, the building blocks for the things we dream about become much more apparent to us when they arrive and we want to share those things with you.

There were 2 standouts for me this week. The first is that Foursquare is launching push at their hackathon which starts tomorrow. You can read more about this on my GeoSmart blog. Basically it means that developers from tomorrow will be able to use an API that sends a push notification for users of their apps. For example a bar could send a notification to you telling you that there are friends of yours in the bar and offer you a deal to come and join them.

The other is in combining Location Based Technology with Game Mechanics, or Gamification. There is a very good 101 presentation about this on Slideshare by Aaron Strout of WCG.

I’ve met with a number of people developing location based games and the game element is a factor that I believe will really pull people in. I have just downloaded TapCity onto my iPhone and iPad after watching a podcast video interview on Untether.tv (one of my favourite location based podcasts) with Dave Bisceglia co founder and CEO of The Tap Lab. I strongly recommend that you watch this video or listen to the audio version if you are interested in location based games or proximity based marketing. These guys have big plans and dreams and I believe they are going to be a huge success. I have to also mention how impressed I was with their response to a couple of questions I had from them.

If you join the game, you will find I have 2 personae, Luigi C and Claes C, mainly because I first set it up on my iPad and then found that it was more suited to my iPhone. Anyway try out the app which you can download in the iTunes Appstore for free, friend me and tell me what you think. I was pretty impressed that for a relative start up, they already have players all over the world, in fact someone already owns my office! I won’t settle for that, but was impressed that it was even there.

The concepts are all very well, but if you want to look at proximity based marketing, location based games etc as part of your marketing plan, the best way is to experience what someone else is doing. As you will learn in the interview or on their website, this is just the beginning for them. They have some very exciting plans. What I don’t know as yet is whether they plan to release API’s or whether all their development is going to be inhouse.

Either way we can learn a lot from these people. I hope they are hugely successful in monetizing their games both for their innovatio and foresight and to show everyone else that this can work. If they can sell virtual items in the same way as Zynga has on Farmville, then imagine what Burgerfuel, Borders, your regional tourism operator, world cup events like rugby organisors could do with real items!

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Farmville and the new Virtual Economy

The computer gaming industry is of course massive and simulation games have been popular for a long time. Traditionally though, game makers made their money by selling games and upgrades for games. The SIMS being one of the best examples. I must admit to having enjoyed some of their games in the past, especially the classic Sim City.

Zynga has taken this to a whole new level of success with Farmville, a sim game which has become incredibly popular on Facebook. People pay real money to buy virtual tractors and other items in the game. This has now gone to such an extreme that Tesco is now about to start to sell real money vouchers in their stores.

In About Us on Zynga, they emphasize that their games are free, which is totally true, but there are elements in many of their games where you pay money to buy virtual things, or for example in the poker game, to buy back in to the weekly tournament if you lose your chips.

This adds an amazing dimension to this free game business. According to industry experts, as reported on Rev2.org, Zynga could be worth as much as US$5 Billion, which they predict could double in the next 5 years. Seems the concept of free and internet based games may have some commercial merit:)