Entering 2012, there's a feeling the location-based sector has lost some of its momentum.

After cementing its place in the market in 2010 – signified by Facebook's move into the market – little changed during 2011, aside from some players dropping out of the race.

It's this feeling that the genre is still getting to grips with its foundations that makes Ville Vesterinen - CEO of Finnish studio Grey Area - even more determined to deliver something audiences can really engage with.

 

Indeed, that's something he believes location-based titles should excel at, given their ability to link players up in a very real way.

It's also something Grey Area has already found some success at, launching its debut Shadow Cities locally in 2010 and globally in 2011.

We caught up with Vesterinen for his take on how far location-based play has come, and how far it still has to go.

Pocket Gamer: Why you think location-based games have the potential to be a significant part of the industry?

Ville Vesterinen: Location ties in with the surrounding world in a way previously unseen in the games space.

In this way, location gives players a common ground and a shared identity, which enables conversations and stronger social ties.

What are your views on balancing gameplay between single and multiplayer elements?

This comes down to whether we're talking about emergent gameplay, or the strongly curated type.

In the case of the former, it can be a challenge and has been for us when it comes to Shadow Cities. In the latter, the balance can be achieved much more easily. That said, the stronger you curate, the more you loose in social serendipity.

What are your views on a/synchronous play with respect to multiplayer features?

By now, we are all used to the at times clumsy asynchronous multiplayer gameplay. Synchronous multiplayer game play can be so much richer, but designing for great synchronous experience is also more challenging.

You need to understand how latencies play out in different locations with various networks' strength as well as how you by pass the critical mass problem.

What are the biggest challenges that need to be solved in location-based games?

I think location-based games are just in their infancy and we have only seen the first clumsy examples of what they can be.

Probably the biggest challenge is to make the location meaningful for all the players in a way that scales.

What do you think gives Grey Area a competitive advantage?

The play book we have build over the past two years puts us way ahead of everyone else. Experience counts.

Aside from your own titles, are there any other location-based games you enjoy playing?

Not at the moment. Am eager to see what the Red Robot Labs guys are building though.

Do you think the inclusion of GPS and mobile-like social features in the PS Vita will help the market's growth?

I'm doubtful it will make any meaningful impact. The market still needs to be educated when it comes to location.

To reach relevant numbers, you want to look at iOS and Android. That's where the big numbers are.

When's the last time you checked-in with Foursquare?

This morning at a nifty cafe in downtown Helsinki.

Where should check-in tools go next?

I think they can become more predictive and tell you more about what you might like based on the data they have on you. This is a hard problem to crack.

Users don't want hand holding when exploring new venues and too tight curation can do more harm than good. It's as much or more about what's happening around the venues than just about the venue itself.

That said, I love Foursquare in places like New York and San Francisco, or whenever you have lot of friends from all over congregating in a new city. This is also another challenge for location-based services - how to make the venues you already know interesting.

99 percent of the potential use cases are about venues you know super well.

What's Grey Area up to next?

We want to push the genre further and build on the learnings from Shadow Cities. It's super early and there's so much potential. We're already hard at work on our next game and can't wait to get it out and start playing. 
Thanks to Ville for his time.

You can find out more about Grey Area Labs on the studio's website.