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[ONLINE GAMING] $18.5M Investment Fuels Asian Interest in Online Gaming

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  • madchinaman
    Red 5 Studios raises $18.5 million From Reuters http://www.latimes.com/business/la-fi-red12dec12,1,627645.story - The funding from Benchmark Capital and Sierra
    Message 1 of 1 , Dec 21, 2006
      Red 5 Studios raises $18.5 million
      From Reuters
      http://www.latimes.com/business/la-fi-red12dec12,1,627645.story


      -

      The funding from Benchmark Capital and Sierra Ventures comes as a
      rise in high-speed Internet use in the United States and elsewhere
      fuels interest in online gaming — the standard mode of play in many
      Asian countries.

      -


      Red 5 Studios, an online video game developer led by members of the
      team behind the wildly popular "World of Warcraft" game, said Monday
      that it had raised $18.5 million in venture capital.

      The funding from Benchmark Capital and Sierra Ventures comes as a
      rise in high-speed Internet use in the United States and elsewhere
      fuels interest in online gaming — the standard mode of play in many
      Asian countries.

      "World of Warcraft" from Vivendi's Blizzard Entertainment provides an
      online world in which thousands of players compete simultaneously.

      Revenue comes from game sales of about $20 per unit, subscription
      fees of about $15 a month and downloads of add-on content.

      The game has obliterated former records with a subscriber base of
      more than 6.5 million globally, and forced U.S. video game publishers
      to rethink online gaming as development costs climb.

      In the United States, games for consoles such as Sony Corp.'s
      PlayStation 2 and Microsoft Corp.'s Xbox 360 are dominant. Top titles
      sell for $50 to $60, and play time is often measured in hours rather
      than months.

      Mark Kern, Red 5's chief executive and former team leader on "World
      of Warcraft," said his Aliso Viejo-based studio would create original
      games for online game operators and distributors — much as Pixar
      Animation Studios did in the movie world with its animated films such
      as "Toy Story" and "Finding Nemo
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