Whats next for the Garage?
by Britton LaRoche · 01/10/2009 (9:59 am) · 32 comments
I'm pretty excited about Instant Action. The concept is brilliant. The price of T3D will go up. I'd gladly pay $5,000 for a license. There is some serious muscle behind IAC and Garage Games. I now see the big picture.
T3D will be part a cross platform browser based game plug in. No one not Epic, not valve with steam, not even the latest flash game development tools will be able to touch what Instant Action will do. It will be a fast pipeline from developer to consumer, with full 3d game engine shader support.
The guys behind IAC / GG are the same power houses behind Tri-star entertainment, paramount pictures, columbia, FOX and CBS just to name a few. IAC Management and Barry Diller
I was not really sure what the deal is behind the Instant Action portal. I mean you have to download a huge (several megabyte player) who wants to wait for that?
Well Apparently over a MILLION PEOPLE DO. Read here IAC reported over 4.5 million active users. But that is when the beta is Free. What about when you want to buy a game. Well, I've bought several games through steam and waited patiently.
Why do you thing GG has been working so hard on all the cross platform games?
Dude, its awesome. Think about it. Its a whole new "Instant Action" publishing video game concept. Retail stores are dead.
There is a new twist... the games are free. I think all revenue is generated from advertisements embedded in the website. Read Here New games will be part of an "ActionPass subscription" So when you make a game through Instant Action you'll probably share in the subscription revenue too.
The only Shaky thing in GG's future is the fallout from the battle of the Titans at the IAC HQ, between John Moore and Barry Diller. Barry Diller is considering selling off some of IACs assets. Specifically the companies in the emerging business unit which include Instant Action and Garage Games. My guess is GG wont be sold until the frenzy over instant action is made public and the browser plugins come pre-shipped. The sales portal needs to be finished at Instant Action, unless all revenue is generated through the advertisements on the site.
But other than that the future looks very bright for the garage indeed.
T3D will be part a cross platform browser based game plug in. No one not Epic, not valve with steam, not even the latest flash game development tools will be able to touch what Instant Action will do. It will be a fast pipeline from developer to consumer, with full 3d game engine shader support.
The guys behind IAC / GG are the same power houses behind Tri-star entertainment, paramount pictures, columbia, FOX and CBS just to name a few. IAC Management and Barry Diller
I was not really sure what the deal is behind the Instant Action portal. I mean you have to download a huge (several megabyte player) who wants to wait for that?
Well Apparently over a MILLION PEOPLE DO. Read here IAC reported over 4.5 million active users. But that is when the beta is Free. What about when you want to buy a game. Well, I've bought several games through steam and waited patiently.
Why do you thing GG has been working so hard on all the cross platform games?
Dude, its awesome. Think about it. Its a whole new "Instant Action" publishing video game concept. Retail stores are dead.
There is a new twist... the games are free. I think all revenue is generated from advertisements embedded in the website. Read Here New games will be part of an "ActionPass subscription" So when you make a game through Instant Action you'll probably share in the subscription revenue too.
The only Shaky thing in GG's future is the fallout from the battle of the Titans at the IAC HQ, between John Moore and Barry Diller. Barry Diller is considering selling off some of IACs assets. Specifically the companies in the emerging business unit which include Instant Action and Garage Games. My guess is GG wont be sold until the frenzy over instant action is made public and the browser plugins come pre-shipped. The sales portal needs to be finished at Instant Action, unless all revenue is generated through the advertisements on the site.
But other than that the future looks very bright for the garage indeed.
#2
This gives other developers a fair chance for their .plans to be seen.
01/10/2009 (10:37 am)
@Britton - I appreciate your enthusiasm and like that you are spreading the word of InstantAction. I have to make a request, just as I've done with quite a few other community members, that you keep your blog posting down to 1 a day. This could have easily been moved into your other blog.This gives other developers a fair chance for their .plans to be seen.
#3
01/10/2009 (11:19 am)
@michael, no problem. I'm done for now. Its just that I finally figured out what was going on and felt a strong need to share.
#4
I think the upshot of all of this is that companies like Epic, EA and Vivendi will be taught a lesson in the "new school."
Honestly, I don't think GG could pose a real threat with out the backing of IAC.
01/10/2009 (11:24 am)
@Novak, I don't like a big business does not respect the independent developer. In general I'm queasy around big business. I have the entrepreneurial mind set, so to be honest, I'm a bit conflicted. I feel Something I loved dearly has changed into something else entirely. I still see a strong support for the indie. So even with big business I love business that treats the indie well. I think the upshot of all of this is that companies like Epic, EA and Vivendi will be taught a lesson in the "new school."
Honestly, I don't think GG could pose a real threat with out the backing of IAC.
#5
Edit: Or not. His post in Brett's blog seems very sarcastic. In any case, I don't think it's appropriate.
01/10/2009 (12:03 pm)
Novack, seriously. This happens every other year or so when Britton returns. I'm pretty sure he isn't joking, he's just that enthusiased. This is so old news, however, and two blog posts for this... sigh.Edit: Or not. His post in Brett's blog seems very sarcastic. In any case, I don't think it's appropriate.
#6
You are correct sir. I am knee deep in real work, and only surface occasionally to catch up. Its just me getting a clue.
Which part seems sarcastic? I went from not wanting to pay more for T3D (just a game engine) to understanding what Brett was talking about. I was serious at each point but my whole frame of reference changed.
I went from GG is a small indie shop, who should not lose their vision. To who the heck is IAC anyway? To OMG. Its big business. To wait a sec... this could be good..... Really good for me and for other indies who can finish their game.
01/10/2009 (12:18 pm)
@Stefan,You are correct sir. I am knee deep in real work, and only surface occasionally to catch up. Its just me getting a clue.
Which part seems sarcastic? I went from not wanting to pay more for T3D (just a game engine) to understanding what Brett was talking about. I was serious at each point but my whole frame of reference changed.
I went from GG is a small indie shop, who should not lose their vision. To who the heck is IAC anyway? To OMG. Its big business. To wait a sec... this could be good..... Really good for me and for other indies who can finish their game.
#7
01/11/2009 (3:16 am)
Funny, Britton. I thought you had turned into a tinfoil hat-wearer. Now I see that you're serious, and...I'll just leave it at that. ;)
#8
You mean like this? You may be right.
Yeah... but its true. All the wonderful people at GG have control over what they do as long as IAC lets them. IAC can flip them (sell GG) any time they want.
From Josh's blog
Translation:
IAC holds 51% of GG stock. IAC owns Instant Action and Garage Games.
Thats a fact. All business decisions and direction is now controlled by IAC (as of 2007). So I'm late to the party, so yeah this is old news. So garage games is no longer in control over its own destiny. That is no big deal as long as IAC holds the GG vision and IAC continues to own GG.
I personally don't like the thought of someone else controlling my destiny. But that's just me.
But.... its just the nature of things... everything changes. If you lose the power to control your own direction, in the long run you are lost. I might wear a tin hat, but I might be right.
Lets take a look at the latest news shall we?
Nov 05 2008, Earnings: IAC After The Split: Revs Up But Spin-Off Expenses Push Profits Down
Dec 03 2008, IAC Disolving Programming group
Dec 04 2008, IAC to Sell Smaller Businesses
Dec 09 2008, IAC Shares Jump on Asset Sale
Which Businesses will IAC Sell or Close?
01/11/2009 (10:37 am)
@Joe,You mean like this? You may be right.
Yeah... but its true. All the wonderful people at GG have control over what they do as long as IAC lets them. IAC can flip them (sell GG) any time they want.
From Josh's blog
Quote:
As some of you have read in the announcements by now though, IAC has acquired a majority of the equity at GG. However, we used a very unique structure in our deal with them. While IAC now has the majority of the future economic value of GG, we continue to run the shop right here in good old Eugene, OR.
Translation:
IAC holds 51% of GG stock. IAC owns Instant Action and Garage Games.
Thats a fact. All business decisions and direction is now controlled by IAC (as of 2007). So I'm late to the party, so yeah this is old news. So garage games is no longer in control over its own destiny. That is no big deal as long as IAC holds the GG vision and IAC continues to own GG.
I personally don't like the thought of someone else controlling my destiny. But that's just me.
But.... its just the nature of things... everything changes. If you lose the power to control your own direction, in the long run you are lost. I might wear a tin hat, but I might be right.
Lets take a look at the latest news shall we?
Nov 05 2008, Earnings: IAC After The Split: Revs Up But Spin-Off Expenses Push Profits Down
Dec 03 2008, IAC Disolving Programming group
Dec 04 2008, IAC to Sell Smaller Businesses
Dec 09 2008, IAC Shares Jump on Asset Sale
Which Businesses will IAC Sell or Close?
Quote:
Speaking at the Reuters Media Summit on Thursday, IAC Chief Executive Barry Diller said he expects his company to have around $2.2 billion in cash holdings by March 2009. Diller also said IAC will be disposing of non-core assets to its search, local, online advertising and personals business.
#9
In the 2008 Q3 earnings call, Barry Diller dropped multiple hints about closing down or selling some of what IAC calls its emerging businesses. And he said that it would happen within the next month. On the call:
Full list of emerging businesses after the jump...
imageEmerging Business Unit:
Pronto.com <--- Barry Says he's keeping pronto... but did not mention others
Gifts.com
CollegeHumor
Busted Tees
Very Short List
Vimeo
ConnectedVentures.com (CV)
23/6
Primal Ventures
GarageGames
FiLife.com
Life123.com
Instantaction.com
RushmoreDrive.com
TheDailyBeast.com
ReserveAmerica
Bagsbuy.com
Shoebuy.com
Green.com
01/11/2009 (12:14 pm)
Which Businesses will IAC Sell or Close?In the 2008 Q3 earnings call, Barry Diller dropped multiple hints about closing down or selling some of what IAC calls its emerging businesses. And he said that it would happen within the next month. On the call:
Quote:The emerging unit is heavily skewed towards its digital media companies, some bought and some incubated within the company.
No businesses in the emerging sectors are carrying any big investments. It is an area we not going to emphasize in the future: we think that is a bit defocusing. We don't think emerging businesses are the tomorrow of our business. Some of the things within our emerging businesses: we will sell off and shut down, and we will do that next month.
Full list of emerging businesses after the jump...
imageEmerging Business Unit:
Pronto.com <--- Barry Says he's keeping pronto... but did not mention others
Gifts.com
CollegeHumor
Busted Tees
Very Short List
Vimeo
ConnectedVentures.com (CV)
23/6
Primal Ventures
GarageGames
FiLife.com
Life123.com
Instantaction.com
RushmoreDrive.com
TheDailyBeast.com
ReserveAmerica
Bagsbuy.com
Shoebuy.com
Green.com
#10
Barry Diller / CEO IAC
(The Man in Charge of GG)
The point of the matter is this man Barry Diller will decide the future of GG. How and when to sell GG is up to him. And the buyers we all know, will most likely be the big players in the traditional video game market.
I believe the tinfoil in my hat acts like an antenna. It helps me pick up the radio waves sent back in time through the future. Or maybe (and its a big maybe) its because I have an MBA and have been a professional software consultant since 1996, and I've seen this happen many times before. As they say each time this happens ... "its just business"
What will save GG and Instant action from being sold (with the rest of the assets being sold off this month)? I don't think Diller has a clue a bout games. But all big suits understand advertising revenue.
Lets break that down a bit. "search, local, online advertising and personals" Wait... there it is "advertising" oh boy! Instant Action has plenty of advertisements and it needs GG to keep updating the game plug in for the browser. And GG needs new games... So perhaps it is business as usual for a few more years.
....
or not... Grouped together with the Emerging Businesses Instant Action was part of a 7.4 Million loss for IA.
The real question is, by itself did instant action make or lose money for IAC?
Interesting data here but no details on IA or GG: 2008 Q3 Grids and Metrics
uh oh I found it here. Instant Action did lose money by itself.
Some really enlightening stuff on the web casts Jan 09 2009 here I signed up as a customer.
29:52 seconds he talks about scaling down selling, shutting down the companies in the emerging markets. Not because it costs money (5 to 15 million in capital each), but because it takes time to organize and focus and this keeps IAC from focusing on the profitable ones. Pronto is safe.... but he did not mention any others.
A few minutes later he continued to say that they will be looking for new investments but that he is going to invest in companies that can prove themselves. He is raising the bar for the investment criteria to only include the ones he thinks have a strong chance at achieving success.
01/11/2009 (12:15 pm)
Regardless GG's potential is too high for IAC to sell it now. I see no sale of GG until the Instant Action portal and T3D is complete. It is best to Sell GG when the buzz its at its peak.Barry Diller / CEO IAC (The Man in Charge of GG)
Quote:
We don't think emerging businesses are the tomorrow of our business.
The point of the matter is this man Barry Diller will decide the future of GG. How and when to sell GG is up to him. And the buyers we all know, will most likely be the big players in the traditional video game market.
I believe the tinfoil in my hat acts like an antenna. It helps me pick up the radio waves sent back in time through the future. Or maybe (and its a big maybe) its because I have an MBA and have been a professional software consultant since 1996, and I've seen this happen many times before. As they say each time this happens ... "its just business"
What will save GG and Instant action from being sold (with the rest of the assets being sold off this month)? I don't think Diller has a clue a bout games. But all big suits understand advertising revenue.
Quote:
Diller also said IAC will be disposing of non-core assets to its search, local, online advertising and personals business.
Lets break that down a bit. "search, local, online advertising and personals" Wait... there it is "advertising" oh boy! Instant Action has plenty of advertisements and it needs GG to keep updating the game plug in for the browser. And GG needs new games... So perhaps it is business as usual for a few more years.
....
or not... Grouped together with the Emerging Businesses Instant Action was part of a 7.4 Million loss for IA.
Quote:
Emerging businesses: A narrower loss for the emerging businesses - $7.4 million compared with $9.9 million in Q307. Those businesses include recently launched Daily Beast, VSL, RushmoreDrive.com, Life123.com; Shoebuy, ReserveAmerica, Pronto.com, Gifts.com, InstantAction.com, Connected Ventures, and 23.
The real question is, by itself did instant action make or lose money for IAC?
Interesting data here but no details on IA or GG: 2008 Q3 Grids and Metrics
uh oh I found it here. Instant Action did lose money by itself.
Quote:Operating Income Before Amortization declines are due primarily to increased losses associated with early stage businesses not in the year ago figures as well as InstantAction.com and RushmoreDrive.com.
Some really enlightening stuff on the web casts Jan 09 2009 here I signed up as a customer.
29:52 seconds he talks about scaling down selling, shutting down the companies in the emerging markets. Not because it costs money (5 to 15 million in capital each), but because it takes time to organize and focus and this keeps IAC from focusing on the profitable ones. Pronto is safe.... but he did not mention any others.
A few minutes later he continued to say that they will be looking for new investments but that he is going to invest in companies that can prove themselves. He is raising the bar for the investment criteria to only include the ones he thinks have a strong chance at achieving success.
#11
Well keeping the community feeding the gamefarm is the main problem then.
If people want to make small games for IA the cost of the engine will determine the lifespan of that idea.
Is it going to be indie or professional, or are they going to feed both horses? -The indie community seems like a good playground for wannabes and a good start on the way to becoming professionals.
If things get too big the little ones will get squashed or start other communities, -so less slaves in the farm ;-)
01/11/2009 (2:02 pm)
(where did that post go?)Well keeping the community feeding the gamefarm is the main problem then.
If people want to make small games for IA the cost of the engine will determine the lifespan of that idea.
Is it going to be indie or professional, or are they going to feed both horses? -The indie community seems like a good playground for wannabes and a good start on the way to becoming professionals.
If things get too big the little ones will get squashed or start other communities, -so less slaves in the farm ;-)
#12
That's what I'm worried about. That and the future of all great game developers at GG. And lets not forget the Great game ENGINE developers, the employees at GG. I'd hate to see more of the people I love leave over the next couple of years.
01/11/2009 (2:13 pm)
@peter,Quote:
If things get too big the little ones will get squashed
That's what I'm worried about. That and the future of all great game developers at GG. And lets not forget the Great game ENGINE developers, the employees at GG. I'd hate to see more of the people I love leave over the next couple of years.
#13
01/11/2009 (2:18 pm)
I'll stick around =)
#14
I'm not leaving, either. What I'm worried about is the future of GG. No one can claim that the next owner of GG will hold true to the vision behind what started Garage Games.
I'd like to see GG make plans to buy its self back from IAC. Don't know how much that would cost.
01/11/2009 (2:29 pm)
@Michael,I'm not leaving, either. What I'm worried about is the future of GG. No one can claim that the next owner of GG will hold true to the vision behind what started Garage Games.
I'd like to see GG make plans to buy its self back from IAC. Don't know how much that would cost.
#15
01/11/2009 (2:43 pm)
@Britton - Well, GG has had many offers over the years. Most were turned away. There was a reason IAC's offer was accepted, and so far it has worked to our benefit. Anything beyond that remains speculation. As it was stated when all this was announced last year, you are going to have to trust us when we said it was a good move and we know what we are doing.
#16
01/11/2009 (2:49 pm)
@michael, I trust you and everyone at GG. But you are not in control anymore. IAC is. You may trust IAC, and you would not have done the deal otherwise. But, IAC is hurting and selling off assets at the moment. Its just business. Sooner or later IAC will sell GG. The real question is, will you trust the next owner?
#17
01/11/2009 (2:51 pm)
@Britton - Guess you'll have to wait and see =)
#18
If my tinfoil hat had any magic in it, I'd convince Barry Diller to let you guys buy the stock back.
01/11/2009 (3:05 pm)
Yes, all we can do is wait and see. I wish I could predict the future. Unfortunately its not just a question of whether or not my hat is made out of tin foil. Its all about the economics of publicly traded companies and things way out of our control. If my tinfoil hat had any magic in it, I'd convince Barry Diller to let you guys buy the stock back.
#19
Yes. And that reason is money.
01/11/2009 (5:03 pm)
Quote:"Well, GG has had many offers over the years. Most were turned away. There was a reason IAC's offer was accepted"
Yes. And that reason is money.
#20
"There was a reason IAC's offer was accepted over previous offers."
01/11/2009 (5:16 pm)
@Ian - Thanks for reminding me that I should post complete thoughts."There was a reason IAC's offer was accepted over previous offers."
Torque 3D Owner Novack
CyberianSoftware
A) your last two posts are a whole sarcasm [or joke]
B) you just got de-freezed from the forever-young-fridge
C) just you got too much free time...