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Marin Independent Journal



Wireless Gaming is Just a Phone Call Away

Bel Marin Keys firm develops video games for cell phones

Marin Independent Journal
May 1/ 2005

By Jim Welte
  ij reporter

Gone are the days when video game junkies were forced to find the nearest arcade to get their fix. Video games are all over the Internet, on portable devices and on a multitude of in game consoles, and two Marin entrepreneurs want to take advantage of one of the fastest-growing venues of the bunch: cell phones.
Michael Nelson and Larry Holland of San Rafael co-founded Timelapsemobile to develop games for cell phones, hoping to tap into a market that could grow from $160 million in 2003 to $1.7 billion in 2008, according to research group IDC. Other research groups like Informa Media Group and Ovum Research project 2006 revenue for the market to hit $3.6 billion and $4.4 billion, respectively.

"Wireless gaming has taken off even faster than the traditional gaming business did," said Mike Yuen, the director of the gaming group at San Diego-based wireless technology giant Qualcomm.

At their small office in Bel Marin Keys, Nelson and Holland said that they are aware of that accelerated pace.

"The past 20 years of (computer) gaming is happening in about 3 years on the cell phone," Nelson said. "The evolution of the technology is happening very quickly." But while the pace is fast, the wireless gaming market has one thing going for it that its predecessors on the Internet didn't. Unlike the early days of the internet when companies of all stripes were creating content for it without any way to make money, the cell phone market already has a built-in billing infrastructure.

Cell phone users have contracts with their cell phone carriers and receive monthly bills, and those users have had to pay for almost all wireless content since the beginning, from ring tones to games. "It allows us to know going into this that we have a way to make money," Holland said.

Timelapse is by no means alone. In fact, one cellular gaming company, Los Angeles-based JAMDAT Mobile has already gone public, debuting on the Nasdaq at $16 per share in late September. The company has a market cap of $475 million. JAMDAT had made it name as a licensee of well-known game brands like Tetris. "We're placing our bets a little more on original content," Holland said. Timelapse hopes to create original games that target a more casual gamer than most of its competitors.

To do that, the duo will focus on accessible games like trivia and puzzles on subjects like pop culture and specific decades. The pair convened a group of San Rafael High School students as a focus group earlier this year.
"We wanted to see what language they used, their usage patterns, find out how they would describe the game," Holland said.

The pair are keeping the specifics about their games close to the vest but said they've developed some games that are designed to test the hipness of the game players."compared to them, we definitely seemed like a pair of old fogies, but we're not," Nelson said.

Qualcomm's Yuen likes that approach. "They're not coming into the space and saying, "We're going to become JAMDAT and try to take these other companies head on," Yuen said. "I think they have a pretty good shot at it."
The pair face another hurdle in breaking into the gaming market and getting their games onto the cell phones of a critical mass of consumers.
First, the three major cell phone carriers_Cingular, Verizon, and T-Mobile_ have a chokehold on the content that appears on their phones. Many in the industry call it the "walled garden" effect. A small startup must first convince some of the world's largest corporations that its games are ready for prime time.
"It really comes down to the quality of the game you have," Holland said.

The pair said they've met with all three major cell phone carriers. But they also have tapped into a system that Quallcomm has designed to facilitate the game development process for cell phones. The initiative is called BREW which stands for Binary Runtime Environmnet for Wireless. It is a standard business and development framework for wireless software development.

As Yuen explains, if a game maker taps into the BREW system, it will meet the standards of the cell phone carriers and also have certification of the system behind it. "we're trying to make it easier for folks to take their applications to market," he said. Timelapse is now an official BREW developer.

But Yuen said Timelapse must convince investors to put up some funding this year in order to keep pace, particulary because it is so much cheaper and easier to develop a cellular game than it is to make a video game. "Like any good idea, I wouldn't be surprised if somebody else comes along and copies it," he said. "So it's all about execution and bootstrapping is not the way to go. If they really want to go for it, they're going to have to get funding."

Nelson and Holland said they know they'll need to raise between $4 million and $5 million to be able to work on multiple products at once. "You want to build a series of games," Holland said noting that approimately $400 million in venture capital funding has been invested in cellular gaming in the past two years.

The two have the experience in the industry to get investors' attention.
Nelson, a former executive at Hasbro/Microprose, helped that company bild the popular Tetris game brand. For the past 12 years, Holland has run his own game developer, Totally Games, and has created some of the most popular titles for Lucasfilm, Ltd. games subsidiary LucasArts, including "X-Wing" and "Time fighter".
"What we sell is our track record," Nelson said.
Nelson and Holland have a full plate: develop game content, make friends with the big three cell phone carriers, and convince investors to come along for the ride. If all goes right, they say the results could be good news for Marin's economy.
"If we have even half the sucess that we're capable of, we'll be a top 10 employer in Marin," Nelson said.

# # #

Public Relations Contact:

Shital Mehta
Shanth Interactive
415.623.2036
E-mail: smehta@shanthinteractive.com

 
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