Tuesday, May 15, 2012

ProGaming Platforms Corp. (PPTF) Well-Positioned Amid Burgeoning Massive Multiplayer Online Gaming Industry

ProGaming Platforms has developed an ingenious framework for massive multiplayer online gaming that allows authenticated, head-to-head competitive play, with complete scoring, results, and stats. Able to function with almost any online skill game (and be licensed by any online gaming provider), the PPTF platform fuses pay-to-play online gaming with the ability for winners to receive monetary rewards, and all within a sophisticated architecture that prevents cheating and skill-level disparity, so that veterans cannot exploit novices (a common problem).

Complete with a proprietary billing system that is simple and easy to setup with third-party gaming servers (as well as typical commercial billing systems), the PPTF platform brings tight, zero-middleware accounting security together with the flexibility needed to handle multiple game types/billing scenarios (CTF, DM, TDM, etc.). A statistically determined ranking system is aggregated for each player based on accumulated data from play, this data is stored in a server side file, and the ranking system is then used to accurately/quickly pair opponents of similar skill levels, circumventing an age old problem in online gaming, while offering a silver-bullet solution that can supercharge the player base.

The real trick to getting a game viral is to have something players really enjoy and can come back for again and again. Competitive online gaming is already very popular and PPTF has a wonderful solution for easily getting players setup so they can simply pay a fee to compete and then potentially win back their entry fee, plus that of the opponent(s). This is an incredible draw; from bragging rights and the exhilaration of victory to rewards for success, the PPTF platform infuses existing games with functionality that most gamers will find irresistible.

With companies like Zynga (some 227M actively monthly users) looking to potentially get into online gambling (Mar 5 – CEO, Mark Pincus confirmed ZNGA plans to enter online gambling space), and the more recent announcement (Mar 21) of Zynga’s acquisition of extremely popular “Draw Something” (a sort of massively multiplayer Pictionary for the real-time connectivity age) developer, OMGPOP, for a reported $200M, the potential for PPTF is obvious. The $200M OMGPOP acquisition by ZNGA marks the largest move to date for ZYnga, which has dominated emergent mobile territory with leading products like “Words With Friends” (coming in at second largest purchase, with the $53M paid for publisher Newtoy, Inc. back in 2010), pushing serious user numbers thanks in large part to robust leveraging of Facebook and social media.

It’s a new age of gaming, with social networks and massively multiplayer environments drawing larger audiences as each day passes (especially in China where gaming industry growth has exploded alongside mobile usage and Internet availability). PPTF’s capacity to monetize on top of what is an extremely efficient framework for tying it all together, places the company in an ideal position to capture substantial market space should online gambling legalization really take off. The recent move by the Justice Department, reinterpreting the federal law that banned sports betting to more accurately address the new paradigm (since this isn’t sports betting, its head-to-head real-time competition between players), has caused investors eyes to light up, as 20 states move to open up the market by legalizing online gambling.

The domestic and global potential is certainly there for PPTF and with ZNGA (market cap upwards of $11B, with $2B in cash on the sheet) eyeing potential acquisitions, the PPTF platform’s broad appeal to players as a strong benchmark and way to make money playing video games, is very attractive. To a $35B global market ready for carving, the technology PPTF has created is a sharp knife, bringing real-time statistical tracking of scores and rigorous security together with a sophisticated enough software apparatus to seamlessly address the payment/billing required. The $5-6B poker market currently ends up overseas and there is a vast array of existing skill based games already designed to be competitive, they just lack a wagering structure.

Between the more traditional gaming spaces and the sprawling, rapidly evolving mobile space dominated by social media integration, there is plenty of room for PPTF’s technology to be applied for some truly amazing results that have yet to even be considered. Indeed, the technology has the potential to create a whole new standard and the fairness of the environment it creates, as well as the transparency in score keeping, appeals to gamers in ways you’d almost have to be a gamer to fully appreciate. Needless to say however, the enhanced experience for the end users, where the chance at monetary reward for a nominal entrance fee is as close as skill can take them, should be immediately obvious to any investor. Simply by integrating the PPTF platform games become better products that are more appropriately aligned to the target market’s demands.

PPTF isn’t waiting around for larger players to pick up the ball and run with it though. With newer racing games coming down the pipe and more of them in recent years, like publisher EA’s Need for Speed franchise, there is even more room for growth now, and PPTF’s platform is readily extensible to new engines/games that are developed. This extensibility means the platform can grow as the market grows, taking advantage of new territory, whether it is in the more traditional hardware space or the latest tablet/mobile game.

For additional information, visit the company’s websites at www.ProGamingCorp.com and www.ProGamingCorp.info

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