Irvine’s K2 Network Inc., a distributor of multiplayer online video games, is looking to learn more about the habits of gamers outside the U.S.
The company recently hired a handful of locals in Brazil, Germany, Poland and Turkey.
“Gaming is becoming a worldwide phenomenon,” said Jeff Lujan, senior vice president of global publishing. “There are areas outside the U.S. that are extremely active but difficult to reach and difficult to communicate with, without having someone on the ground.”
K2 runs a network where game players face off with each other on the Web in what’s known by industry insiders as “massive multiplayer online role-playing games.” Thousands of game enthusiasts can play simultaneously and often interact in online forums about strategies and characters.
“Building an online community is the key to these types of games successes,” Lujan said.
Such communities have been around for a long time in the U.S. and Asia.
They are just gaining a foothold in other countries.
“Even in emerging markets there are gamers,” Lujan said. “People don’t think they have active gaming communities, but they are actually thriving.”
K2 Network bills itself as a game publisher, rather than a developer.
The company doesn’t create the games from scratch, like its bigger neighboring competitor, Blizzard Entertainment Inc. of Irvine.
Rather, it seeks out developers in the U.S. and Asia and strikes licensing deals to distribute their games online.
K2 Networks provides customer service and game masters, processes online payments and hosts Web sites.
K2 Networks does partner with local vendors to provide the payment services and manage the forums in the country’s native language, Lujan said.
The company looks for a lot of things when deciding to enter a new market.
“The biggest thing is looking at the way gamers play,” Lujan said. “Do they play at home or at Internet cafes? Are they comfortable paying for things online? Do they play in English?”
K2 Network’s games are free to download and free to play, unlike those of Blizzard, which charges for games themselves and a monthly subscription fee to play them online.
K2 Network gets revenue by selling “premium memberships” ranging from $5 to $30 for each game.
A membership gives players “enhancements” to the game, such as currency, weapons and other tools that have value within the role-playing world.
Players also can buy bundled versions of a game, which include enhancements, at stores such as Best Buy, Game Stop, Target and Wal-Mart. Prices are $20 to $30.
At recent check, K2 Networks counted about 10 million players and five game titles.
The closely held company doesn’t disclose revenue, but has plans to set up small satellite operations in more gaming hot spots around the globe.
“We actively look for what the next emerging market will be,” Lujan said.
Migrating from Microsoft
Newport Beach-based Acacia Technologies Inc., which owns patents and collects royalties on their use, hired its second executive away from Microsoft Corp.
Brad Brunell is set to be Acacia’s senior vice president, after spending 16 years at Microsoft in various positions.
Brunell was general manager of the software kingpin’s intellectual property licensing. He was responsible for all patent licensing and managed a team that developed licensing programs for Microsoft’s customers.
Before that, Brunell focused on digital media and struck big licensing deals for Microsoft with Time Warner Inc. and Walt Disney Co.
In July, the company added Jonathan Taub as vice president of its technologies group.
Taub was Microsoft’s director of strategic alliances for its mobile and embedded devices unit since 2004.
Acacia has about 44 workers,mostly engineers, intellectual property experts and lawyers.
Investigating Telelogic
The European Commission is looking into IBM Corp.’s bid to buy Sweden’s Telelogic AB, which has its U.S. headquarters in Irvine.
Regulators fear the deal could give IBM too much power in the European software market, according to an Associated Press report.
The EU has set a Feb. 20 deadline by which to reject or approve the deal.
In June, IBM announced plans to buy Telelogic for $750 million.
Telelogic makes software that helps businesses speed up their own product and software development. The company’s Telelogic North America Inc. unit is based in the Irvine Spectrum, where it has about 85 workers.
The company has yearly sales of about $200 million. The Irvine office makes up more than half of Telelogic’s sales.
