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Online-based game company WildTangent, co-founded by former Microsoft DirectX evangelist Alex St. John, has closed its internal […]
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Online-based game company WildTangent, co-founded by former Microsoft DirectX evangelist Alex St. John, has closed its internal game development operation, WildTangent Game Studios, according to a report by Tech Flash Executive Editor John Cook. The move is accompanied by the layoff of 20 staffers in the process. While in keeping with the current trend of venture capital funded businesses trimming down to weather a down economy, shutting down development of games unique to their service seems an unusual strategy. In the article WildTangent spokesperson Sean Sundwall explained, saying, "Game development has such a long-term ROI (return on investment). In an environment where resources are constrained, you have to look at the businesses that will give you the best return in the shortest period of time."

We contacted Sundwall to see what impact not having new games you could only get on WildTangent might have on the service in the coming months. With regard to what sets them apart from their competition, he said:

We do so on two counts:

1. the breadth of content not just in number of games but in genre. We aren't just casual. We offer enthusiast games and MMO's as well.
2. this is the bigger differentiator: we offer consumers the choice to play premium content (not flash-based dime a dozen stuff) for free if they are willing to watch a 15-30 second ad while the game loads. OR, they can use WildCoins (virtual quarters which they can purchase) and play without any ads at all.

The current top five games listed on the WildTangent site bear out Sundwall's point about the variety of games being played through the service. But it's also impossible to overlook that the top game is the WildTangent developed hack-and-slash RPG Fate: Undiscovered Realms. For the short-term, selection and payment options may well be enough, but ultimately, titles like Fate helped define WildTangent and draw in gamers.

Part of the strategy to fill that void may be to more aggressively seek commitments from outside developers. Only days after announcing the closure and layoffs, WildTangent sent word that St. John would be turning over the CEO reins to Mike Peronto but continuing on as chairman with a greater emphasis on evangelizing the company and PC gaming. In the release, St. John said, "With my increased worldwide travel, Pronto has essentially been the chief executive of this company for quite some time and it just made sense for the board to formally recognize that." That past travel can be attributed to the opening of new offices this past January in London and Singapore, but with those now presumably operating routinely, searching out and developing new business seems a likely explanation for freeing up St. John, and it's a role he's already proven to be a pro at.

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