Social network hi5 aims its 60 million users at casual games
Social network Hi5 is introducing a casual games section of the site today, complete with its recently-launched virtual currency (called "Gold) and a range of more than 40 arcade, casino, card, sports and strategy games. It’s the latest move in the company’s effort to focus on "social entertainment" - later this year, it plans to introduce instant messaging (which will be wrapped into games, as well), avatars and eventually a full-blown virtual world.
The company is focusing on virtual goods as a way of making money. Although the games are free now, users will be able to buy the currency using their credit cards and pay to buy game upgrades, unlock higher levels and downloads - and eventually use the currency to participate in the virtual world. This feature, and revenue stream, has proven popular with teen and early-20s social network users in China and other Asian countries, as well in other parts of the world. Hi5 has more than 60 million monthly active users in a diverse range of countries, from Mexico to Thailand to Romania, mostly between the ages of 15 and 24 (not lucrative ad markets). To make more money from these users, the company is also working to offer games that are specific to its various geographies, as it has previously done with its virtual gifts. One day, you might be able to buy a top virtual soccer star in a soccer game on hi5, for example.
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