Week that was

PG.biz week that was: Clonegate branches out beyond Zynga, Facebook likely to be valued at $100 billion plus, DeNA and GREE line up court battle and EA claims 10.5% share on iOS

The past seven days' news compressed bite-sized

PG.biz week that was: Clonegate branches out beyond Zynga, Facebook likely to be valued at $100 billion plus, DeNA and GREE line up court battle and EA claims 10.5% share on iOS
Rarely does a week seem to go by without us breaking some kind of record or two over on the pages of PocketGamer.biz: the home of news and views on the business of app stores, smartphone platforms, developments in mobile game making and assorted technology.

We're not talking Olympic-style world records here, of course, but rather the continued growth of the site, with the last seven days serving up some more than healthy numbers in terms of stories, page views and visitors like your good self.

Are we celebrating wildly? Of course not. Case in point: this round-up isn't being written while yours truly sips on champagne in some flashy bar, but rather at 1am in the morning in between bouts of cereal snacking. Such is the glamour of PG.biz.

Not that the mobile games biz has felt like a particularly classy industry during the last seven days.

NimbleBits and bobs

Indeed, leading the line this week has been a whole host of corporate mud flinging, with developers aplenty accusing each other of varying degrees of plagiarism.

Like last week, Zynga has been the studio everyone loves to hate, with NimbleBit co-founder Ian Marsh speaking exclusively to PG.biz about the overt similarities between Tiny Tower and Zynga's variant Dream Heights.

"The smartest thing for them to do is wait and hope it all blows over, and Zynga knows it," said Marsh.

Following NimbleBit's example, another developer decided to pen an open letter to Zynga – this time US-based outfit Buffalo Studios - accusing the firm of cloning its bingo-based release Bingo Blitz.

"Please tell your thousands of employees and shareholders that we hope they enjoy playing the games we're cooking up next!" reads the letter.

"As you can see, NimbleBit inspires us too!"

For its part, Zynga's only response was to claim that, while it's not exactly a bursting with original ideas, it's business is moving into new sectors and serving up the best games on offer.

Even if that means borrowing from those already on the market.

First the worst

"Our strategy since the beginning has been to develop the best game – most fun and most social – for every category of play," said CEO Mark Pincus in a memo to the studio's employees.

"We are rarely first since most categories in games go back decades, but we aim to be the best."

Going one step further than all of Zynga's victims/assailants (depending on your point of view, of course) is Seattle-based Spry Fox, which announced at the beginning of the week that it's suing publisher 6waves for allegedly copying Triple Town with its snow-themed Yeti Town.

"We are not enthusiastic about the prospect of spending our time in court as opposed to making games," said Spry Fox co-founder David Edery.

"Unfortunately, it is our opinion that 6waves has behaved in a reprehensible and illegal manner, and we can not, in good conscience, ignore it."

All such talk reminded PG.biz of suggestions in years gone by that Rovio's Angry Birds was rather too heavily inspired by Armor Games' Crush the Castle. Did the publisher ever consider taking the Finnish firm to court?

"I know Rovio's been asked directly what the inspiration for Angry Birds was and those at the firm always skirt around the question and never give a direct answer," Armor Games owner Daniel McNeely told us.

"Not that I'd ever expect anything from Rovio, but when you build your game on someone else's physics engine – Box2D - and don't even credit them in the game, that doesn't sit well with me."

Obvious discontent, then, but no need for lawyers.

Social interaction

That's unlike Japanese social giant DeNA, which finished the week by revealing it has launched a countersuit against rival GREE.

The news comes after GREE previously began legal action against DeNA at the end of 2011, accusing the firm of breaking antitrust laws in Japan by advising developers not to support GREE's social platform.

As well as denying all such claims, DeNA is demanding compensation for the damage GREE's action has done to the firm's reputation, as well as a public apology from GREE founder and CEO Yoshikazu Tanaka.

Now, that'll be the day.

Outside of such legal – and, indeed, not-so-legal - wranglings, this week also saw a host of firm's put out their latest earnings reports.

LG's mobile division made a $251 million loss in 2011, though the fact the unit finally turned an operating profit of $10.7 million in Q4 suggests the firm is recovering from a minor slip up rather than a long term crash.

Amazon had a somewhat more successful 2011 – sales up by 41 percent to $48.1 billion – thanks, in part, to Kindle Fire's strong performance over Christmas.

Estimates suggest as many as 6 million units may have been sold in North America to date, likely making it the second most popular tablet on the market, behind iPad.

Facing the facts

On the software front, Gameloft saw consolidated sales jump 17 percent in 2011 to €164.4 million (around $213 million), while rival EA Mobile saw sales rise by 19 percent during its most recent quarter, with the publisher claiming it now holds 10.5 percent market share on iOS – more than double its nearest competitor.

The biggest money matter of the week, however, was news about Facebook's forthcoming initial public offering - better known as an IPO to those in the know.

As a matter of course, the social network had to reveal a number of previously private details about its operations via an S-1 filing – the most notable being the platform now boasts 845 million monthly active users, currently has little clue as to how to make money from mobile, and is worried how its profits might be hit if it loses the support of social giant Zynga.

The aforementioned studio generated a total of $445 million in revenue for Facebook during 2011 – equal to 12 percent of total sales – though the IPO itself is expected to raise a total of $5 billion, bringing in a company-wide valuation in excess of $100 billion.

Now there's a figure Zuckerberg and co. will most definitely 'like'.

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.