Tuesday, June 19, 2007

Gold farming in China makes the NYT

Cory Doctorow: Julian Dibbell, author of the stellar Play Money (a book about making real money in virtual worlds), has a great NYT feature up about the life of Chinese gold farmers (a subject I tackle in my story Anda's Game). This story keeps on getting weirder and more interesting.
At the end of each shift, Li reports the night's haul to his supervisor, and at the end of the week, he, like his nine co-workers, will be paid in full. For every 100 gold coins he gathers, Li makes 10 yuan, or about $1.25, earning an effective wage of 30 cents an hour, more or less. The boss, in turn, receives $3 or more when he sells those same coins to an online retailer, who will sell them to the final customer (an American or European player) for as much as $20. The small commercial space Li and his colleagues work in — two rooms, one for the workers and another for the supervisor — along with a rudimentary workers' dorm, a half-hour's bus ride away, are the entire physical plant of this modest $80,000-a-year business. It is estimated that there are thousands of businesses like it all over China, neither owned nor operated by the game companies from which they make their money. Collectively they employ an estimated 100,000 workers, who produce the bulk of all the goods in what has become a $1.8 billion worldwide trade in virtual items. The polite name for these operations is youxi gongzuoshi, or gaming workshops, but to gamers throughout the world, they are better known as gold farms. While the Internet has produced some strange new job descriptions over the years, it is hard to think of any more surreal than that of the Chinese gold farmer.
Link

See also: Avatars, and the carbon-based meatbags behind them (that's us)

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Samsung and Seagate finally match Hitachi with 1TB SATA disks

Months after Hitachi announced their big 3.5-inch, 1TB drive, Samsung and Seagate have finally matched that capacity by sheepishly launching their own 3Gbps SATA disks. Sammy does it all with efficiency boy, by spinning 3x 334GB platters to Hitachi's 5x 200GB platters (10 heads) or Seagate's 4 platters (8 heads) of 250GB each. That little trick should keep the weight, decibels, and power draw of their SpinPoint F1 (pictured) to a minimum. Hitachi's Deskstar 7K1000 still packs that impressive 32MB buffer which Samsung and Seagate can only aspire to with their 16MBs of respective cache. Expect both of the newcomers to be priced around $400. Cheap, but we'll be holding our wad for the inevitable head-to-head (to-head) shootout we're sure somebody is cooking up. Read -- Seagate Barracuda 7200.10 Read -- Samsung SpinPoint F1

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Track Every Click with Crazy Egg’s “Confetti”

Crazy Egg LogoOptimizing your website can be tough business since you can’t “see” your customers online. Analytics packages like Google analytics do a good job letting you see how many visitors are coming and going on your site by tracking every page request. However, another breed of analytics focuses on optimizing how they’re using it, by tracking where visitors click. Crazy Egg, one of these optimization services, now has a new feature “Confetti” that lets you easily see where every visitor clicked on your site and what brought them there. We’ve covered their previous overlay and heatmap features here.

Confetti overlays your site, showing each visitor’s click as a colored dot. The colors stand for the categories you sort the clicks by: operating system, browser, window size, time before clicking, and what search term brought them to the page. It even shows you clicks that weren’t on links, so you know if your users are expecting a link where there isn’t one. You can see the results in aggregate as a bar chart or click on individual dots to find out more information about a particular user. For instance, you can use Confetti to see how users from different referrals behave, and settle the debate over exactly how many of those Digg users click on your ads.

crazyconfettismall.pngCrazy Egg has been implemented on over 250,000 sites and is free if you just want to track up to 5,000 clicks on 4 pages at a time each month. But if you upgrade to a paid account, you can track more clicks over more pages with real time data. The limited number of clicks tracked may seem restrictive, but analytics from Crazy Egg are meant to run for a short period of time on a specific url to grab a sample of how your users react to design changes.

There are a couple other optimization services out there: Map Surface, ClickTale, and Click Density. Click Density was one of the first services to show each unique click on your site, but Crazy Egg has added a simpler point-and-click interface for drilling into your data.

Crazy Egg is based in Orange County California and has reportedly been in acquisition talks.

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Monday, June 18, 2007

The Long Tail Is Getting Fatter

longtail.pngThree separate news stories involving numbers this week caught my eye. iLike announced it has now has 6 million registered users and is now adding 300,000 new users a day. Apple’s Safari browser for Windows has now had 1 million downloads. Finally SpaceTime, a 3D browser we reviewed June 5 passed the 100,000 download mark.

All three may not seem obviously related, but there is something they all share: large user numbers.

It wasn’t that long ago that 100,000 users was considered huge for a Web 2.0 related business. Today a small startup such as SpaceTime can gain those numbers in two weeks. 6 million users three years ago would have seemed an impossible dream, and yet iLike joins a long and growing list of Web 2.0 sites with 1 million or more users. Web 2.0 offerings are improving their appeal to a broader audience which in turn is driving growth in the overall market: the Long Tail is getter fatter.

Although this fattening of the Web 2.0 marketplace makes it more difficult to stand out from the crowd, the marginal cost and ROI potential has now improved. Consider the SpaceTime browser. Immediately many would question the need for an alternative browser, yet this isn’t an all or nothing proposition. Every single user of SpaceTime presents a ROI for the company due to search deals. An average SpaceTime user might return $5 per month to the company by clicking on Google ads or surfing eBay; $500,000 per month @ 100,000 users. The figure could be lower or higher, but it’s still a return. Safari will be operating on a similar model for Apple. The need to find appeal has actually decreased as a percentage of the overall market. Conversely the bar to creating a sustainable business hasn’t risen in line with the number of potential users, today startups can achieve with a smaller percentage of the overall market.

From a developers or startups view, the fattening long tail should be seen for what it is: a marketplace that has improved opportunities for smart startups. A bigger marketplace makes today and tomorrow an even better time to build a Web 2.0 business than yesterday. A fatter long tail means that as a whole there will be an increasing number of success stories and sustainable startups, a win-win all round.

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The Rise Of The Prosumer

Mark this word in your mental diaries: Prosumer.

The word is a combination of producer and consumer that perfectly describe the millions of participants in the Web 2.0 revolution.

It’s not a new word, but it’s a word that will become the norm in the coming years. It’s already being used by companies such as Sony to describe users of video cameras.

Earlier in the week, Read/Write Web featured a video from Davide Casaleggio where Prosumer is featured strongly. Video as below, other highlights include world domination by Google in 2050 and Lawrence Lessig becoming US Secretary of Justice in 2020 and declaring copyright illegal. I’ve not been able to get Prosumer out of my head since watching this video so expect it to be dropped regularly in future posts.

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