GamesIndustry.biz reports on the Lively session at Austin's GDC, in which Google revealed a couple of interesting plans. Google's intention to open up Lively to all game developers, beyond its programme which is currently restricted to 120, was confirmed. Whilst it is currently possible to embed a Google Gadget into a Lively environment, such as a YouTube video, there is very limited scope for interactive development. That is set to change, with creative director Kevin Hanna stating that an API for interactive gadgets is on the way. He gave the example of a virtual arcade, in which a user could stand over the shoulder of another watching them play a game. The game and arcade could be developed entirely by a third party. The intention is for this 2D API to eventually expand to full 3D capabilities, at which point it would become very exciting. One implication is that developers could directly reach an audience, without the need to go through a publisher. Another is that, if done right, ongoing costs would be significantly lower because Lively would handle the infrastructure load.
Hanna also confirmed that Google had no intention of creating a currency for itself, or of monetising Lively directly through microtransactions. They will, however, facilitate peer-to-peer microtransactions between users and developers. That comes as no surprise to me. It seems highly likely that Lively will be almost exclusively an advertising play, in the same way that the majority of Google's other products (and virtually all of their consumer-facing products) are. 3D advertising is going to be huge, and if Google can get people onto its platform, it has a highly scalable, high-margin revenue stream. Microtransactions are a different ball game because they require Google to become a content business, which it isn't. Google would far rather act as a link between the user and a content business, making money from sitting in the middle. Search is a perfect example of Google in this role. That's why they are building the peer-to-peer transaction system – because Lively's success or failure will depend on whether they can get companies to build content for it, and microtransactions will be the business model for many of those companies.
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