Is Shiver Going After Zynga's Market?

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Sept. 9 (Bloomberg) -- John Schappert, CEO of Shiver Entertainment and former COO of Zynga, and Owen Mahoney, CFO of Nexon, talk with Emily Chang about Nexon's investment in Shiver and the shift to free-to-play gaming. They speak on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Shiver ceo.

I just called you schap.

That is what everyone was you.

What holes in the market are you trying to fill?

Shiver was founded with a focus on the world's best free to play games.

Traditional games, but free to play.

We are trying to capitalize on the biggest shift i see happening since the inception of games early years ago.

That is the shift from the dedicated games on proprietary hardware to free-to-play games on everyday hardware everyday hardware, devices that we carry every day, from our laptops to our smartphones to our tablets.

The free-to-play game is a struggling business.

It is difficult to find these hits.

Why are you investing in this?

It is difficult in execution, but we have had a lot of success.

We grew well over 25% in operating margins.

It has been a very favorable business to us.

We want to take this business model that is so successful around asia, our largest market in china and our sixth largest in japan, we want to take that and bring that to the west.

A couple of things happening in the west are very important.

One of them is wrought cast.

It is based on mobile phones -- one of those is broadcast.

It is based on mobile phones.

We can bring the types of game content that work well to the west.

Pardoning -- partnering with john and shiver allows us that opportunity.

It is such a hit-driven business.

You are only as good as your last hit.

How do you make these hits?

What is great about the free- to-play business is it is different than the traditional business we come from.

The gaming business has evolved.

You are sending tens and hundreds of millions of dollars to make the game and you bending and hoping that people will go out and buy it and you will be successful.

If they do not, you have a huge flop on your hands.

The great thing about free-to- play games, it is almost like creating a television series.

You create the first chapter and put it out there.

If you have created something magical, you get it in the hands of players and they tell you what is good or not.

They tell you what they like so you can tailor the future episodes along with their tastes.

You do not have to spend the crazy blockbuster dollars to make it happen.

You are living in miami now.

This is based in miami.

What is it like there?

Florida is not exactly the mecca for tech.

I am a little biased, but i did start my last development company in orlando and that studio was behind the madden series of football games.

They continue to ship madden to this day.

The great thing about miami is not only the sunny and nice cost-of-living, but we are focused on free-to-play gaming.

I get a call every week and someone says, i do not know where i am at.

I am looking for the future.

Where do you think i should go?

That is another factor.

I want to get those great industry veterans, people who are looking for the next chapter in their career, a place to make the best games in the world.

I also want the new upstarts, the teams that are looking for a place to come.

Are you taking anyone from zynga with you?

Zynga is a great company.

There are great people there.

We welcome new talent to come our way.

Lex i want to talk about zynga.

It seems like that put you guys in direct competition.

Are you trying to prove something?

Zynga is focused on free-to- play gaming, but it is more casual.

My passion is immersive, traditional gaming experiences that are predominately on consoles.

We are trying to create those on everyday devices and make them free-to-play.

Do we believe in free-to-play?

Absolutely.

Are we in the same corner?

Not at all.

What do you think?

I agree.

The focus has been on immersive games.

Our largest games are almost a decade old.

That means someone comes into the community and they are playing with thousands of other people around the world and they keep playing that game.

That is very different in the casual games business, where you acquire a customer and have to reacquire the customer over and over again.

Has made for a stable base of revenue.

I have got to ask you, mark pincus stepped down as ceo.

What do you think of don metric -- matrick.

Do you think he can succeed?

I wish them nothing but success.

Zynga is a good company.

They helped bring free-to-play gaming to the mass markets in the west.

I worked with some amazing people.

It was like getting a doctorate degree in free-to-play gaming.

I inserted myself as a paid to play gamer and came out as a free-to-play gamer.

Which is great for us.

Do you think that mark pincus will need the space to do his job and turn the company around?

I think mark and don are great people.

I think mark does not take over handing the ceo reins lightly nor does don.

That said, what i think they are all focused on, it is about free-to-play gaming, the shift from pay-to-play to free-to-play and how that marks the future.

Just how that shift went, i think marks the shift that is happening.

You work at ea as well.

Why is it taking so long for them to find a new ceo?

Come on.

Neither of us are there.

It has been a month.

It is very tough.

The board has a lot of work to do to find the right person.

They are taking a very conservative approach, which is probably the right thing to do.

I agree.

Thank you so much for joining us.

Exciting to hear about shiver.

We will be watching you guys

This text has been automatically generated. It may not be 100% accurate.

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