Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

September 28, 2010 -

Earlier this month we mentioned the amicus brief filed by online billing solution provider Vindicia, which backed the videogame industry in the looming Schwarzenegger vs. EMA Supreme Court showdown.

Vindicia CEO Gene Hoffman, Jr. has since penned an article for Xconomy on the case and how a ruling for California could kill the freemium model (a la Electronic Arts' Battlefield Heroes or id Software's Quake Live) of distributing videogames to the masses:

…the freemium model requires unfettered initial access to the game by millions. The only sure way to prevent minors from accessing forbidden games online is to require a credit card validation up front. But that’s also a big deterrent for many adults: virtually no one who uses the Internet believes that giving a card number to a game maker would not eventually result in a charge to that card.

Destroying the frictionless access that adults have to free-to-play games that might be considered violent would drastically decrease innovation in the online games world, as the base of potential users would no longer be large enough to convince developers to take the risk on new games.

In its amicus brief, Vindicia expressed concern over how the California law would impact online videogame sales, noting that, “… the Act makes no mention of how this regulation would be applied to varying digital platforms and distribution, e.g., video game home consoles, smartphone applications and Internet gaming sites.”

Comments

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

At a time when proponents of Sharia law are exercising a heckler's violent veto over the “Everyone draw Mohammed” meme, we can not stand idly by while legislators and lobbyists make value judgments about content that create significant unintended consequences.

Can anyone explain to me why Mr. Hoffman felt the need to throw in a reference to "proponents of Sharia law" and draw an analogy to an issue of, at best, marginal relevance to the issue he discusses? He's not a member of the "Muslims Want to Take Over America" school of thought, is he?

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

Unlikely.  The Supreme Court's been pretty clear on credit card authentication as a means to prove age.  Even if CA wins on this one and violent games are put in the same category as pornography, SCOTUS has already established that the government can't require a credit card check to view pornography.

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

Not so fast! According to a certain ex-lawyer and "First Amendment Expert", credit card authentication is not a legal means to prove age.  This is how he put Take Two out of business...oh wait.

 
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Matthew WilsonOfcourse it does I never said it did not.though over time the death of NN will make backbone providers like Google, level3 and others stronger becouse most isps including the big ones can not provid internet without them. they can peer with smaller isps04/24/2014 - 1:54pm
E. Zachary KnightMatthew, and that still plays in Google's favor over their smaller rivals who don't have the muscle to stand up to ISPs.04/24/2014 - 1:45pm
Matthew Wilsongoogle wont pay becouse they control a large part of the backbone that all isps depend on. if verizon blocks their data, google does the same. the effect is Verizon loses access to 40% of the internet, and can not serve some areas at all.04/24/2014 - 1:14pm
Neenekolack of NN is in google and netflix interest. It is another tool for squeezing out smaller companies since they can afford to 'play'04/24/2014 - 12:57pm
Matthew WilsonI have said it before net nutrality will not be made in to law until Google or Netflix is blocked, or they do what they did for sopa and pull their sites down in protest.04/23/2014 - 8:02pm
Andrew EisenGee, I guess putting a former cable industry lobbyist as the Chairman of the FCC wasn't that great of an idea. http://www.nytimes.com/2014/04/24/technology/fcc-new-net-neutrality-rules.html?_r=204/23/2014 - 7:26pm
Andrew EisenIanC - I assume what he's getting at is the fact that once PS3/360 development ceases, there will be no more "For Everything But Wii U" games.04/23/2014 - 5:49pm
Andrew EisenMatthew - Yes, obviously developers will eventually move on from the PS3 and 360 but the phrase will continue to mean exactly what it means.04/23/2014 - 5:45pm
IanCAnd how does that equal his annoying phrase being meaningless?04/23/2014 - 5:09pm
Matthew Wilson@Andrew Eisen the phrase everything but wiiu will be meaningless afer this year becouse devs will drop 360/ps3 support.04/23/2014 - 4:43pm
Andrew EisenFor Everything But... 360? Huh, not many games can claim that title. Only three others that I know of.04/23/2014 - 3:45pm
MaskedPixelantehttp://www.joystiq.com/2014/04/23/another-world-rated-for-current-consoles-handhelds-in-germany/ Another World fulfills legal obligations of being on every gaming system under the sun.04/23/2014 - 12:34pm
Matthew Wilsonhttp://arstechnica.com/gaming/2014/04/steam-gauge-do-strong-reviews-lead-to-stronger-sales-on-steam/?comments=1 Here is another data driven article using sales data from steam to figure out if reviews effect sales. It is stats heavy like the last one.04/23/2014 - 11:33am
Andrew EisenI love RPGs but I didn't much care for Tales of Symphonia. I didn't bother with its sequel.04/23/2014 - 11:21am
InfophileIt had great RPGs because MS wanted to use them to break into Japan. (Which had the side-effect of screwing NA PS3 owners out of Tales of Vesperia. No, I'm not bitter, why do you ask?)04/23/2014 - 10:52am
RedMageI'm still disappointed the 360 never broke into Japan either. It had a bevy of great RPGs in the late 2000s.04/23/2014 - 9:48am
TheSmokeyhttp://www.huffingtonpost.com/2014/04/22/call-of-duty-swatting-hoax_n_5195659.html?utm_hp_ref=canada&ir=Canada CoD loser calls SWAT on person who beat him04/23/2014 - 7:13am
MaskedPixelantehttp://www.joystiq.com/2014/04/23/xbox-one-reaches-japan-on-september-4/ Just give it up, Microsoft. You're NEVER going to be big in Japan, especially now that the notoriously clunky in Japan Kinect is MANDATORY.04/23/2014 - 7:10am
Cheater87Has this been posted yet? http://www.destructoid.com/blogs/Lord+Spencer/ssv-saudi-arabia-bans-bravely-default-because-it-promotes-pedophilia--272016.phtml04/22/2014 - 9:31pm
ZippyDSMleehttp://www.escapistmagazine.com/news/view/133898-Fatal-Frame-V-Coming-Exclusively-to-Wii-U04/22/2014 - 8:50pm
 

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