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In other words, the product is reaching a new group of consumers that previously had shied away from purchasing a full $20 game online. PlayFirst is also finding that more than 50% of SKUs purchased come from sub-$5 items and 57% of purchasers are new buyers that had never purchased from PlayFirst before. So far, PlayFirst claims Hometown Hero has been a success and in its first two months the game has sold more copies than any other product on. There are also all kinds for sub-$5 items available for purchase. After downloading the initial levels users can buy extra levels (restaurants) for $5 each. This is unlike previous games where users were limited to downloading a time-based trial.

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However, users can also download the first seven levels for free. The budget for Hometown Hero was $800,000 and the game starts to blur the line between simple casual games and more complicated virtual world products where users feel like they are part of a community.Дiner Dash: Hometown Hero is still sold as a $20 full product. Most casual games are developed on a shoestring budget of between $150,000 to $300,000.

Hometown Hero represents a major increase in development and most importantly a new focus on virtual item sales and products priced at $5 and less. In late 2007, PlayFirst launched a new Diner Dash product, Diner Dash: Hometown Hero. It is clear that companies like PlayFirst need a better way to monetize a hit product like Diner Dash. Only a handful of games can reach the level of success of Diner Dash and none of PlayFirstвЂ™s other products came anywhere close to that level of success.

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This was very much the classic business model for the casual game industry.ДЄlthough Diner Dash was a success it is also clear that the classic casual game business model of trying to get consumers to pay $20 to download and own a game they can play for free online is limited. If they want to buy the game they pay $20.

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Consumers can download a free trial version that allows them to play for a limited time. The original Diner Dash is available for free online with advertising. While Diner Dash games are available at retail, the core business has been online distribution. In a three year period from 2005-2007, PlayFirst claims the Diner Dash games had over 200 million downloads and generated over $35 million in customer spending. Eidos even published a version of the game for the Nintendo DS and Sony PSP. Diner Dash has been spun off into several sequels, including a version featuring Spongebob Squarepants.

Diner Dash had an emphasis on character and storytelling and it proved a big hit with adult females. In other words, PlayFirst would provide the funding, marketing, sales, and distribution support necessary to build a solid branded product line.ДЄlmost immediately PlayFirst had a hit on its hands when it launched Diner Dash in early 2005. The goal was to work with developers to build brands based on characters, story and, most importantly, original IP. PlayFirstвЂ™s mission was to play the role of a more traditional publisher. The primary revenue stream for developers was the handful of customers willing to pay an average of $20 to download and own games that were available for free online. There were some big hits such as Bejeweled, but many casual game products looked very much like commodity products simply designed to drive traffic and deliver the eyeballs needed to sell advertising. At the time the casual game market was led by the large portal sites that specialized in aggregating games from many different small developers.

PlayFirst is a venture-funded company launched in 2004 as an online casual game publisher with $5 million in initial funding.