Richard Garriott is of the belief that there’s a lot of junk out there for the social gaming crowd, however, a few companies are making real money “in a big way so they deserve their high valuation by all means.”
“[Social game companies] are evolving quickly and they’re doing a brilliant job of it,” he said. “I have respect and admiration for my already titanic competitors that are ahead of me.
“That being said, there’s tons of small start-ups who we are seeing take lots of investment and lots of activity and large acquisition costs – who are creating, literally, junk. Stuff that people aren’t playing that much and if you play it, it’s not much fun. But it does show you there are investors desperate to find a foothold in this market.
“There are lots of individual developers who have now finally seen the light and realized they want a piece of the action too. I install and play as many of those game as I can see and find just to see if there’s somebody we want to work with, or acquire, or see as competition. It’s fascinating to watch how everybody is still in over their heads. I do think it’s going to be short-lived, the door will close quickly.”
Garriott’s company is expected to reveal its “Ultima-style game for the social space” in a few weeks time.