Google's Ingress and Augmented Reality Gaming

With the proliferation of the smart phone and the explosion of the App economy, entrepreneurs and investors have been looking for the next Next Big Thing at a near break-neck speed.

  • Social is dominated by Facebook, Twitter, and Path
  • Local is owned by Foursquare and a slew of e-coupon companies
  • E-commerce is under siege by The Fancy, Pinterest, and other aspiring internet shopping gateways

The next, and perhaps toughest, nut to crack is the world of Augmented Reality Gaming.

What originally sounded like a pipe dream may be moving closer to reality now that Google has entered the fray with its Massive Multiplayer Augmented Reality Game, Ingress.

Before we dive into Ingress, some of you are probably wondering. What the hell is Augmented Reality Gaming? And why should I even care?

Augmented Reality Gaming has players use Apps on their smart phone to play virtual games based in the real world. In essence, the smart phone app adds an additional fictional layer on top of the real world for users to interact in.

Generally, people react in one of two ways to this concept. Either they find it laughably stupid or they think it sounds totally awesome. Personally, I go back and forth on the idea. As you all ought to know from my previous posts, I appreciate a good game, but I'm also extremely skeptical of kitschy Apps and web 2.0 flash-in-the-pans (the Zyngas of the world.)

Companies in the Augmented Reality space have taken two different approaches in their attempts to be successful:

  1. Gamification of the Everyday: Companies that use this tactic try to "gamify" the commonplace. Scvnger is a leading company in this space. It mixes Foursquare-style check-ins with challenges you perform to earn points. In some instances earning points leads to rewards with local businesses. For instance, you might check-in at your local burrito place and take a picture of your burrito and chips combo, earning you100 points and a free soda on your next trip.
  2. Mixing Fictional Storylines with Real-World Activities: This is the strategy Google is utilizing in Ingress. Currently available only in Beta and only on Android phones, Ingress places players into a fictional storyline in which they visit specific real-world locations to discover "energy portals" via their smart phone. Google started a viral marketing site called The Niantic Project to promote the game, explain some of the story, and build lots and lots of hype. While Google isn't the first Company to use this tactic, it's gotten the most main-stream press and just might have the clout to make it work. Other companies, like Shadow Cities have been in this space for longer, but appeal to a very niche audience (and reek of Dungeons & Dragons nerdiness that may not appeal to many.)

Do either of these really work? In my view, both are heavily flawed.

The first approach just seems so forced. Why would anyone feel the need to use a "game" like Scvngr when they can just use Foursquare? Checking-in with Foursquare already reaps rewards at tons of local businesses. For instance, my favorite Thai place gives you a free side order every time you check-in, it's hassle-free and a great perk that helps bring me back.

And, let's face it, the "games" that Scvngr has its users "play" just seem incredibly tacked on. Rewarding me with "points" for taking pictures or doing other frivolous tasks doesn't make the tasks more fun. People have been throwing around the gamification term for a while now with the idea that simply adding game mechanics to every-day tasks will make them more fun. News flash, they don't. Things are either fun to do or they aren't, we are not dogs that will roll over for an imaginary treat.

The second approach sounds much more interesting, at least on paper. It tries to create a game for the sake of playing a game, not simply for the sake of earning rewards or points. Having an interesting narrative could be the motivating factor to people playing an Augmented Reality Game.

But, there are two major problems. For one, the things we can actually do in the real world are extremely limited. Beyond taking photos and checking-in at various locations, there's only so much you can really do. Second, people have other shit to do. Namely, go to work, hang out with friends, eat, drink, and whatever else.

For the second strategy to work, both the narrative and the activities would need to be extremely compelling without feeling burdensome, tacked on, or overly and overtly nerdy. I'm not saying that there isn't a niche for this sort of thing, I just don't know that it could ever be a truly huge industry.

The one place where I could see it working is in product promotion. A fun Augmented Reality Game with product tie-ins and related rewards could make a lot of sense, but much would still hinge on whether or not the games themselves are fun.

What does WSO think? Is anyone going to sign up for Google's Ingress? Does anyone think that Augmented Reality gaming could be a big thing? Let me know in the comments.

 
we are not dogs that will roll over for an imaginary treat.
...what about bananas?

Cool post...hadn't heard of Ingress and will check it out. I used to be a big gamer when I was 8 but by about 14 I was pretty much done.

Plus, the massive online multiplayer games like WarCraft scare me because I know I'd get addicted.

 
Best Response
WallStreetOasis.com:
we are not dogs that will roll over for an imaginary treat.
...what about bananas?

Cool post...hadn't heard of Ingress and will check it out. I used to be a big gamer when I was 8 but by about 14 I was pretty much done.

Plus, the massive online multiplayer games like WarCraft scare me because I know I'd get addicted.

Yeah, I was a gaming addict when I was a kid, up until around 15 or 16. I still played games in college, but it was really subdued. Nowadays, I'll probably play through one or two major titles a year, with a little Madden here and there when I've got time.

This might sound REALLY out there, but I think the only way any sort of Augmented Reality Game works is if there is more to the augmented reality layer than simply your cell phone app. Simply going places and taking pictures of imaginary portals (that only appear on your cell phone screen) is silly and I think a lot of people, myself included, would probably feel pretty foolish doing it. If, on the other hand, there were real, physical activities to perform, items to collect, and actual tasks to accomplish, it could have potential. Though, I'm not sure what you'd do or how that'd be scalable.

I guess my point is that Augmented Reality Gaming might just end up being FourSquare with fancy graphics on your phone.

 
WallStreetOasis.com:
we are not dogs that will roll over for an imaginary treat.
...what about bananas?

Cool post...hadn't heard of Ingress and will check it out. I used to be a big gamer when I was 8 but by about 14 I was pretty much done.

Plus, the massive online multiplayer games like WarCraft scare me because I know I'd get addicted.

Lol, a couple of years ago while downloading Warcraft, it was like 70% done and I just thought to myself, "I have to much crap to do for this", and exited the download. I knew I would probably get addicted.

Because when you're in a room full of smart people, smart suddenly doesn't matter—interesting is what matters.
 
ricky212:
WallStreetOasis.com:
we are not dogs that will roll over for an imaginary treat.
...what about bananas?

Cool post...hadn't heard of Ingress and will check it out. I used to be a big gamer when I was 8 but by about 14 I was pretty much done.

Plus, the massive online multiplayer games like WarCraft scare me because I know I'd get addicted.

Lol, a couple of years ago while downloading Warcraft, it was like 70% done and I just thought to myself, "I have to much crap to do for this", and exited the download. I knew I would probably get addicted.

I told myself it can't possibly be that fun, I won't get addicted and that it's too damn expensive. 6 months later... shit.

Augmented gaming sounds interesting, but as far as next big thing, I want to see how far 3D printing will go.

 

Guys check streetquest - run is a game? Its new game on android and no that mainstream like this ingress, you can find here lots new ideas, star collecting when running or painting streets etc. Im now trying it with friends and it gives lots of fun.

 

Praesentium voluptatum rerum rerum architecto. Assumenda iure cupiditate et.

Vero ipsum maxime qui suscipit ea aperiam. Dolores aut totam omnis perspiciatis et porro. Fuga libero voluptatem autem ut quisquam aliquid. Sint maxime doloremque temporibus est temporibus et.

Enim ex culpa aut perspiciatis qui. Molestiae dolores incidunt tempore error. Dolorem qui tempora ut dignissimos et. Perferendis facere aliquam sed est nisi quis.

Accusamus tempora repellat vel et. Aut qui soluta consequatur maxime ipsum. Beatae est labore ipsum similique illum. Eum rerum iusto optio accusamus perspiciatis reiciendis aliquid. Error suscipit itaque aut. Non porro ipsum porro delectus suscipit dolorem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”