Club-Penguin
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All over the world startups are piling into the space marked “virtual interaction and collaboration”. What if a startup created a sort of “Club Penguin for adults”?
Step forward Cosmos Video, which has a virtual venues platform that allows people to work, hang out and socialize together. It has now raised $2.6 million in seed funding from LocalGlobe, with participation from Entrepreneur First, Andy Chung and Philipp Moehring (AngelList), and Omid Ashtari (former president of Citymapper).
Founders Rahul Goyal and Karan Baweja previously led product teams at Citymapper and TransferWise, respectively.
Cosmos allows users to create virtual venues by combining game mechanics with video chat. The idea is to bring back the kinds of serendipitous interactions we used to have in the real world. You choose an avatar, then meet up with their colleagues or friends inside a browser-based game. As you move your avatars closer to another person you can video chat with them, as you might in real life.
The competition is the incumbent video conferencing platforms such as Zoom and Microsoft Teams, but calls on these platforms have a set agenda, and are timeboxed — they’re rigid and repetitive. On Cosmos you sit on the screen and consume one video call after another as you move around the space, so it is mimicking serendipity, after a fashion.
As well as having a social application, office colleagues can work collaboratively on tools such as whiteboards, Google documents and Figma, play virtual board games or gather around a table to chat.
Cosmos is currently being used in private beta by a select group of companies to host their offices and for social events such as Christmas parties. Others are using it to host events, meetup groups and family gatherings.
Co-founder Rahul Goyal said in a statement: “Once the pandemic hit, we both saw productivity surge in our respective teams but at the same time, people were missing the in-office culture. Video conferencing platforms provide a great service when it comes to meetings, but they lack spontaneity. Cosmos is a way to bring back that human connection we lack when we spend all day online, by providing a virtual world where you can play a game of trivia or pong after work with colleagues or gather round a table to celebrate a friend’s birthday.”
George Henry, partner at LocalGlobe, said: “We were really impressed with the vision and potential of Cosmos. Scaling live experiences online is one of the big internet frontiers where there are still so many opportunities. Now that the video infrastructure is in place, we believe products like Cosmos will enable new forms of live online experiences.”
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Now that the COVID-19 pandemic has forced millions into isolation, video games are seeing a surge in usage as people seek entertainment and social interaction.
When we surveyed gaming-focused VCs in October, Andreessen Horowitz partner Jonathan Lai predicted that “next-generation games will be bigger than anything we’ve seen yet,” eventually reaching “Facebook scale.” This month, when we asked 17 VCs how this era would impact consumer startups, gaming was one of the top verticals they named.
We wanted to learn more about how the venture community thinks about the future of this sector, so we asked five experienced gaming investors about where they do — and don’t — see new opportunities within this trend:
Below are their responses, edited for space and clarity. We’ll follow up with surveys on other gaming categories in the next couple of weeks.
And if you’re interested in understanding the challenges for gaming companies aiming to become next-generation social platforms, be sure to read my eight-part series on virtual worlds.
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There are successful companies that grow fast and garner tons of press. Then there’s Roblox, a company which took at least a decade to hit its stride and has, relative to its current level of success, barely gotten any recognition or attention.
Why has Roblox’s story gone mostly untold? One reason is that it emerged from a whole generation of gaming portals and platforms. Some, like King.com, got lucky or pivoted their business. Others by and large failed.
Once companies like Facebook, Apple and Google got to the gaming scene, it just looked like a bad idea to try to build your own platform — and thus not worth talking about. Added to that, founder and CEO Dave Baszucki seems uninterested in press.
But overall, the problem has been that Roblox just seemed like an insignificant story for many, many years. The company had millions of users, sure. So did any number of popular games. In its early days, Roblox even looked like Minecraft, a game that was released long after Roblox went live, but that grew much, much faster.
Yet here we are today: Roblox now claims that half of all American children aged 9-12 are on its platform. It has jumped to 90 million monthly unique users and is poised to go international, potentially multiplying that number. And it’s unique. Essentially all other distribution services offering games through a portal have eventually fizzled, aside from some distant cousins like Steam.
This is the story of how Roblox not only survived, but built a thriving platform.
(Photo by Steve Jennings/Getty Images for TechCrunch)
Before Roblox, there was Knowledge Revolution, a company that made teaching software. While designed to allow students to simulate physics experiments, perhaps predictably, they also treated it like a game.
“The fun seemed to be in building your own experiment,” says Baszucki. “When people were playing it and we went into schools and labs, they were all making car crashes and buildings fall down, making really funny stuff.” Provided with a sandbox, kids didn’t just make dry experiments about mass or velocity — they made games, or experiences they could show off to friends for a laugh.
Knowledge Revolution was founded in 1989, by Dave Baszucki and his brother Greg (who didn’t later co-found Roblox, but is now on its board). Nearly a decade later, it was acquired for $20 million by MSC Software, which made professional simulation tools. Dave continued there for another four years before leaving to become an angel investor.
Baszucki put money into Friendster, a company that pre-dated Facebook and MySpace in the social networking category. That investment seeded another piece of the idea for Roblox. Taken together, the legacy of Knowledge Revolution and Friendster were the two key components undergirding Roblox: a physics sandbox with strong creation tools, and a social graph.
Baszucki himself is a third piece of the puzzle. Part of an older set of entrepreneurs, which might be called the Steve Jobs generation, Baszucki’s archetype seems closer to Mr. Rogers than Jobs himself: unfailingly polite and enthusiastic, never claiming superior insight, and preferring to pass credit for his accomplishments on to others. In conversation, he shows interests both central and tangential to Roblox, like virtual environments, games, education, digital identity and the future of tech. Somewhere in this heady mix, the idea of Roblox came about.
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Club Penguin Island, the mobile-only replacement for the original Club Penguin (which shut down last night) has launched. Started in 2005, Club Penguin was one of the first successful virtual worlds for children and, as they grew up, teens and adults. At its peak the platform had 200M users, and a few months ago was still seeing upwards of 5M visitors to the Club Penguin website each month.… Read More
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Club Penguin, the Disney-owned social network for kids, announced this morning it’s shutting down. In its place, the company will launch a new product for mobile, Club Penguin Island, which has been in development over the past several years. Club Penguin Island will launch in March, while the Club Penguin game on the desktop and mobile devices will shut down on March 29, 2017. The… Read More
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