Feeds

Electronic Arts sticks into Pogo.com

Games companies play

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Electronic Arts has bought gaming website Pogo.com in for $42m.

In a past life, Pogo was the gaming service provider TEN; in this guise, it helped to form the Professional Gamers League before abandoning the fickle hardcore gaming market for mainstream webgames such as card and board games.

Pogo.com boasts 17 million registered members and is one of the stickiest sites on the Net, with users spending an average of three hours on the site each month.

But if no-one's paying, then all the users in the world will do you no good. The recent collapse in the online advertising market seems to have sunk Pogo, which relied heavily on this revenue stream to subsidise their service and offer cash prizes for players.

Earlier this year a $150m deal with Excite@Home fell through, and this weekend EA picked up the ailing site for some loose change it found down the back of the sofa.

The deal is a risky one though - with the current state of the online advertising market the 800 million ad views a month which Pogo claims to get are not going to earn anything like the $25 per thousand which one rather optimistic analyst said would make the deal pay for itself.

Unlike Pogo, EA.com relies on a mixture of advertising revenue and subscription fees, but it will need to convince upwards of 600,000 Pogo users to subscribe to their service to meet their target of breaking even by next spring.

"Pogo's content and traffic allow for a great revenue line from advertising and is very compatible with EA's plan to convert players into subscription revenue", according to EA's Jeff Brown, but just how many of those 17 million users were actually active, how many will switch over to EA.com and how many will want to pay for monthly access to premium titles remains to be seen.

Certainly EA.com is in need of a boost though, as rumours suggest that the project has swallowed a huge quantity of cash, including financial penalties for delays in implementation charged by AOL (which uses EA.com games on its own online games channel). ®

Copyright © 2001, EuroGamer.net, all rights reserved.

Related stories

Barrysword saved by EB
Vivendi buys Uproar games site

More Reg games industry stories here

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.