Here is a great article on GigaOM about a near to launch ad supported casual game site - NeoEdge. The article is announcing the fact that Nolan Bushnell, the father of video games, has become the newly appointed Chairman of The Board. I highly recommend reading the entire piece.
The Following paragraph really hit home for me.
“The casual game space is wonderful but has had bad economics,” Bushnell said.
As both a supporter and watcher of the casual games market, he’s noticed the disjunct between the audience for games and the platforms on which they ran. “When you looked at the console game market, the domestic market got stuck at about 15 million,” he noted. Meanwhile the audience of players in the casual market, primarily defined as simple web-based games, totals some 80 million in the U.S., comprising 34 percent of all American Internet users, according to Parks Research.
Roughly 98 percent of those casual gamers, however, don’t pay to play, Terry noted. “We’re not saying the purchase of games goes away,” he said, but at least an ad network will make that audience monetizable.
The last gem of wisdom from Nolan is “When you change the economics and allow easy publishing, you unlock the floodgate to creativity….You have the chance of unintended consequences on the positive side.”
My compliments to Wagner James Au on a truly great piece.