Raph Koster announces his new company, Areae - and we at Charles River Ventures are very excited to be part of this journey. I’ve known Raph since 1994 or so - back when we were MUD developers, and I’m excited to support him in finally realizing the dream he’s had since starting Legend MUD.
Though Areae is still very stealthy, Areae sits at the intersection between Web 2.0 and MMOGs. If you think about it, the Web 2.0 and the Massively Multiplayer Online Gaming communities have largely been pretty siloed - gamer developers go to game industry conferences and Web 2.0 folks go to Web 2.0 conferences, and there has not been enough intermingling between the two communities.
But both industries have been inching closer and closer together. I predict that the successful online communities in the future will continue to more strongly resemble MMOGs. And MMOGs will continue to extend their reach and exposing their data to other Web applications - either formally, by the developers/publishers themselves, or informally by folks like Rupture.
Here’s what the 2 communities can learn from each other: Game designers have been creating rich, fully immersive environments for years. All of the design principles that I thought about when I was designing MUDs are identical to the issues facing Web designers today - how do I create more immersive environments? How do I give participants -equity- in this virtual world? How do I make users feel like real citizens in my social ecosystem? How do I create better scale around world and object creation? How can I expose building tools that were previously available only to Admins and Devs to the end users - and make them dead simple to use? How much content should I pre-seed and what content containers do I think users are going to be more likely to want to customize and make their own?
For Web 2.0 designers, there is a brilliant, must-read presentation that Amy Jo Kim put together about how to intelligently apply game design principles to Web 2.0 services to make them richer, more compelling, and more immersive (read: “sticky.”)
Yet, the Web 2.0 crowd knows a lot that the game devs don’t: how to create massively scalable, low barrier to entry, micro-chunked experiences. How to create appealing, mass market products that are appealing to a diverse demographic. How to iterate quickly and create production processes that give you tremendous economies of scale around innovation.
I’m excited by the possibilities - Raph has brought on an excellent team and advisory board. It’s time the Web 2.0 and Gaming communities begin collaborating for the betterment of all users, everywhere.
Here’s some of the coverage on Areae thus far:
“I would describe what we’re trying to do as marrying together a lot of the philosophy of the web and web 2.0 with virtual worlds,” Koster told GameDaily BIZ. “We’ve been paying a lot of attention to how the Internet is going. If you remember my speech at the Austin Game Conference last year about whether or not the games business is full of giant dinosaurs… a lot of that ties into this.”
Koster is not divulging much about Areae, but the company’s site alludes to its pure, massively-multiplayer online game DNA: “We’re working on some new tech that will literally change how virtual worlds are made. We’ve got a cool world or two incubating on the back burner.”
With what sounds like a firm emphasis on user participation, as well as user customization and content, all central tenants of the Web 2.0 ethos, we make an obvious leap toward the current open virtual world leader, Second Life, which Koster laughingly dismisses. “See, you’re already jumping to conclusions about what we’re making! Honestly, there are as many differences from Second Life as there are from Everquest.” He pauses, but concludes, “I’ll just have to leave you tantalized.”

25 comments
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December 16, 2006 at 12:36 am
Charles
Very exciting, and sounds related to what we’re planning. I look forward to seeing what we can do in this space!
December 16, 2006 at 1:30 am
Dave McClure
hmm. sounds quite interesting. i wish raph & co much luck with the venture
(and i agree, amy jo kim’s presentation is excellent… i got a pointer to those slides after e-tech, and they blew me away)
December 16, 2006 at 2:44 am
inside looking out » Introducing the “Web 2.0 Game”
[...] This is the first part of a series. Susan Wu’s post about Areae motivated me to post our team’s thoughts on successful Web 2.0 and how it relates to games, and the future of Web 2.0. Over this series, I’ll talk about my experiences in my first go in Web 2.0 land with FilmLoop, and what lessons I’ve learned to apply to my own startup project, and what I hope you will too. But like any good demo, here’s the big idea first: [...]
December 16, 2006 at 5:26 am
Jeff Freeman » Blog Archive » Congratulations to Raph and John!
[...] And Susan Wu - Venture Capitol expresses excitement and hope, and explains how beautiful bride Areae’s looks, and how handsome groom Web 2.0 appears, and happily ever after they’ll be. But read Inside Looking Out first if you’ve been avoiding web 2.0 on account of how much it certainly sounds like a buzzword. [...]
December 16, 2006 at 11:47 am
Jeff Clavier
Well done Susan, this is one I want to hear about soon :-).
December 17, 2006 at 3:26 pm
Allen Sligar
Raphs going to do well, and he couldnt have a better group backing him!
Good luck to CRV and Areae, I think there’s going to be a lot of innovation comming very soon!
I think 07 should be exciting, we’re in a similar space but with different goals.
December 17, 2006 at 7:20 pm
Techcrunch » Blog Archive » Areae Aims to Merge MMOG & Web 2.0
[...] The company certainly has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative Officer of Sony Online Entertainment. [...]
December 17, 2006 at 7:36 pm
Areae Aims to Merge MMOG & Web 2.0 at Swiss Podcast Directory and Blog
[...] The company certainly has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative Officer of Sony Online Entertainment. [...]
December 17, 2006 at 7:56 pm
Multimedias.mobi » Areae Aims to Merge MMOG & Web 2.0
[...] The company certainly has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative Officer of Sony Online Entertainment. [...]
December 17, 2006 at 11:25 pm
TechCrunch Japanese アーカイブ » Areae、MMOGとWeb 2.0の融合を目指す
[...] たしかにこの会社にはMMOG(*1)スペースで何か面白いことをするかもしれないと思わせる素養がある。Charles River Venturesからファンディングを受け、ファウンダーのRaph Kosterは、Ultima Onlineのチーフデザイナーで、Sony Online EntertaimentのChief Creative Officerだったのだから。 [...]
December 18, 2006 at 3:08 pm
GigaGamez » Archive » Old School + New Funding = Web 2.0 MMO?
[...] Funding for Areae was set up by Charles River Ventures, and according to the blog of Susan Wu, this new company may be doing something a little more out of the ordinary than it appears: “Though Areae is still very stealthy, Areae sits at the intersection between Web 2.0 and MMOGs. If you think about it, the Web 2.0 and the Massively Multiplayer Online Gaming communities have largely been pretty siloed - gamer developers go to game industry conferences and Web 2.0 folks go to Web 2.0 conferences, and there has not been enough intermingling between the two communities.” [...]
December 18, 2006 at 7:28 pm
suske
good luck to holocron and company. i’m shure they will reinvent online gaming…again!
December 19, 2006 at 11:15 am
Areae, Inc. » Blog Archive » Areae in the blogosphere
[...] Susan Wu, who is at Charles River, one of our investors, wrote a lovely piece for her blog as well, which is worth checking out. [...]
December 19, 2006 at 2:04 pm
eric haller » second life hype
[...] check out this slide show from amy jo kim . i think the next gen MMOs will tie together more and more of the functions of currently disparate web 2.0 apps in a more compelling and cohesive 3D universe. (hat tip to fellow we know guildie susan for the slide show). [...]
December 19, 2006 at 2:21 pm
Greg
Sounds like a very cool concept. Always interesting to see to worlds collide — conference planners beware.
December 21, 2006 at 2:54 pm
Naik’s News » Areae Aims to Merge MMOG & Web 2.0
[...] The company certainly has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative Officer of Sony Online Entertainment. [...]
December 22, 2006 at 9:39 am
Alvin
I’m pretty excited to see what Raph and his team can come out with. To combine Web 2.0 and MMOG is not an easy feat. All the best to the team !
January 8, 2007 at 8:17 pm
Areae Aims to Merge MMOG & Web 2.0
[...] has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative [...]
January 13, 2007 at 2:19 pm
iMicro.mobi » Areae Aims to Merge MMOG & Web 2.0
[...] has the right credentials to do something interesting in the MMOG space. They have funding from Charles River Ventures, and the founder, Raph Koster, was the lead designer of Ultima Online and the Chief Creative [...]
January 13, 2007 at 7:52 pm
jaschu vs. the 7au : links for 2006-12-20
[...] Raph Koster announces Areae - Web 2.0 meets MMOGs « Susan Wu - Venture Capital Connect the dots. (tags: socialsoftware gaming mmorpg virtualworlds cyber-) [...]
January 26, 2007 at 11:22 am
Biziv - The Art of Business - Hot companies: The innovation, The people, The money » Gaming, Web 2.0, Google Maps and Areae.net
[...] Susan Wu’s VC blog and [...]
March 11, 2007 at 9:37 pm
GigaGamez » Archive Avatars: Web 2.0’s Most Undervalued Asset? «
[...] was both the CMO for the Apache Software Foundation and a competitive Quake player), Susan was a leading force in putting together funding for Areae, Raph Koster’s new MMO-meets-Web 2.0 start-up. [...]
September 9, 2007 at 5:18 pm
About the stealth startups « Web 3.0
[...] reminds us about Charles River’s tentpole stealth startups in the area: Raph Koster’s Areae and newcomer Conduit Labs, both of which Susan describes as pieces in the emerging jigsaw of the [...]
April 23, 2008 at 1:10 pm
GrapeVine
Gear up for some fun, kewl site
May 16, 2008 at 4:54 pm
MMO development (slowly) goes Agile « TechArtPhilosophy
[...] Wu talked about this on her blog post announcing CRV’s investment in [...]