Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

September 28, 2010 -

Earlier this month we mentioned the amicus brief filed by online billing solution provider Vindicia, which backed the videogame industry in the looming Schwarzenegger vs. EMA Supreme Court showdown.

Vindicia CEO Gene Hoffman, Jr. has since penned an article for Xconomy on the case and how a ruling for California could kill the freemium model (a la Electronic Arts' Battlefield Heroes or id Software's Quake Live) of distributing videogames to the masses:

…the freemium model requires unfettered initial access to the game by millions. The only sure way to prevent minors from accessing forbidden games online is to require a credit card validation up front. But that’s also a big deterrent for many adults: virtually no one who uses the Internet believes that giving a card number to a game maker would not eventually result in a charge to that card.

Destroying the frictionless access that adults have to free-to-play games that might be considered violent would drastically decrease innovation in the online games world, as the base of potential users would no longer be large enough to convince developers to take the risk on new games.

In its amicus brief, Vindicia expressed concern over how the California law would impact online videogame sales, noting that, “… the Act makes no mention of how this regulation would be applied to varying digital platforms and distribution, e.g., video game home consoles, smartphone applications and Internet gaming sites.”

Comments

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

At a time when proponents of Sharia law are exercising a heckler's violent veto over the “Everyone draw Mohammed” meme, we can not stand idly by while legislators and lobbyists make value judgments about content that create significant unintended consequences.

Can anyone explain to me why Mr. Hoffman felt the need to throw in a reference to "proponents of Sharia law" and draw an analogy to an issue of, at best, marginal relevance to the issue he discusses? He's not a member of the "Muslims Want to Take Over America" school of thought, is he?

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

Unlikely.  The Supreme Court's been pretty clear on credit card authentication as a means to prove age.  Even if CA wins on this one and violent games are put in the same category as pornography, SCOTUS has already established that the government can't require a credit card check to view pornography.

Re: Vindicia CEO: CA SCOTUS Win Could Kill Freemium Market

Not so fast! According to a certain ex-lawyer and "First Amendment Expert", credit card authentication is not a legal means to prove age.  This is how he put Take Two out of business...oh wait.

 
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Andrew EisenNow, having said that, what sites are you reading that are claiming that if "you self-identify as a Gamer, you're immediately the problem" or that gamers are "obligated to stop harassment"? Or was that hyperbole too?09/21/2014 - 1:03am
Andrew EisenFirst of all, ONE person in the Shout box suggested an obligation to call harassers out on their harassing but only after YOU brought it up. Plus, Techno said "when you see it happening." If you don't see it, you're not under any obligation.09/21/2014 - 1:02am
Sleaker@Craig R. - at this point I don't even know what the hashtags are suppsed to be in support of. what does GamerGate actually signify.09/21/2014 - 12:21am
Sleaker@AE - Hyperbole for the first 2, but it seems like some of the comments in the shout are attempting to place blame on fellow gamers because they aren't actively telling people to stop harassing even though they don't necessarily know anyone that has.09/21/2014 - 12:16am
Andrew EisenSleaker - Who the heck are you reading that is claiming "all gamers are bad," we "need to pass laws or judgement on all gamers," that if "you self-identify as a Gamer, you're immediately the problem," or that gamers are "obligated to stop harassment"?09/20/2014 - 9:44pm
erthwjimhe swatted more than just krebs, I think he swatted 30 people http://krebsonsecurity.com/2014/05/teen-arrested-for-30-swattings-bomb-threats/09/20/2014 - 9:31pm
Craig R.Btw, the guy who swatted security expert Brian Krebs? He got picked up recently. It can be done.09/20/2014 - 8:55pm
Craig R.Such things are not done in a vacuum... hence why the 4chan and other logs show what fools you've all been, tricked into doing the trolls' work09/20/2014 - 8:49pm
Sleaker@Technogeek - How do you call someone out that anonymously calls in a SWAT team, or sends threats to people?09/20/2014 - 7:04pm
Technogeek"It also doesn't mean you're obligated to stop harassment from all gamers that are doing so." I'd say you're certainly obligated to call them out when you see it happening.09/20/2014 - 5:17pm
SleakerNow if you disagree with anything in my last 2 posts then we obviously have a difference in world view, and wont come to any sort of agreement. I'm fine with that, maybe some people aren't?09/20/2014 - 5:09pm
SleakerIt also doesn't mean that just because a news outlet says that Gamers are the problem and you self-identify as a Gamer, you're immediately the problem. It also doesn't mean you're obligated to stop harassment from all gamers that are doing so.09/20/2014 - 4:59pm
SleakerJust to re-iterate: People getting harassed is wrong. Just because someone is harassed by so called 'gamers' doesn't mean that all gamers are bad. nor does it mean that you need to pass laws or judgement on all gamers.09/20/2014 - 4:56pm
SleakerAnd furthermore just because someone doesn't 'crusade against the evil' that doesn't make them the problem. You can have discussion with those around you. There's a thing called sphere of influence.09/20/2014 - 4:54pm
Sleaker@Conster - one person getting harassed is a 'problem' only so far as the harassee's are doing it. Just because a select few people choose to act like this doesn't make it widespread. Nor does it immediately make everyone responsible to put an end to it.09/20/2014 - 4:54pm
james_fudgeno worries09/20/2014 - 4:15pm
TechnogeekI misread james' comment as "we can't have a debate without threatening" there at first. Actually wound up posting a shout about death threats and "kill yourself" not technically being the same thing before I realized.09/20/2014 - 3:59pm
james_fudgeDon't hit me *cowers behind Andrew*09/20/2014 - 3:20pm
ConsterYou take that back right now, james, or else. *shakes fist menacingly*09/20/2014 - 3:00pm
james_fudgeOur community is awesome. We can have a debate without threatening to kill each other.09/20/2014 - 2:50pm
 

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