Gaming software developer and supplier CryptoLogic is returning to ICEi for the first time in four years in January. Simon Liddle spoke to Justin Thouin, vice president of product management and business development, to find out why

2008 was an eventful year for gaming software developer and supplier CryptoLogic. There were new games launched, new partnerships forged and new markets in which to operate. And according to Justin Thouin, CryptoLogic’s vice president of product management and business development, 2009 marks the start of the next stage in the evolution of the company.

"This really is a new CryptoLogic," he explained. "In the past we offered poker software and casino software into the market to a very limited number of customers.

"We’ve decided to focus our efforts and become specialists within the online casino gaming space," he said.

"We really believe this online gaming market is going to be won by specialists as opposed to generalists, just like any industry. So our focus is on creating the top online casino software in the world and distributing it to as many of the top operators in the world as possible."

Last year the company signed a five-year licensing agreement to supply a suite of branded casino games with PartyGaming, as well as similar deals with 888 and Sky Betting & Gaming, part of BSkyB Group. It also made inroads into the Asian market by investing in online mahjong software provider Mahjong Time and agreeing deals with Indian online gaming firm Khel Galli and mobile game developer and publisher Mobilebus in South Korea.

CryptoLogic is now embarking upon a new growth strategy that calls for it to sell its casino products more aggressively and this year’s ICEi an opportunity for the company to do just that.

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Describing the UK as the centre of online gaming, Thouin said the majority of the company’s existing and prospective customers are based in the UK and will be at Earls Court in January. The expo, he said, also offers the added attraction of the many land-based companies that are likely to be in attendance.

And what awaits them at CryptoLogic’s booth is sure to catch their eye. Featuring giant statues of King Kong and the Marvel characters that star in its line of branded games, the company’s stand is intended to make a lasting impression upon visitors.

"It’s going to be a bit of an interactive stand. It’s going to be a fun place to visit. It’s going to be visually striking," Thouin enthused.

"There’s going to be an opportunity for potential customers to try all of our fantastic games. What we really hope is that operators in the space will say ‘we really need to add the CryptoLogic casino games to our portfolio because they’re so entertaining. We think it’s going to be a fantastic show."

Branded games, such as those graced by Spider-Man and The Hulk, continue to be central to CryptoLogic’s offering and are a way of building player confidence in online gaming products.

"Branding is important, no question, because trust is the biggest barrier to entry in online gaming and when you associate yourself with a brand like Marvel, a player is more likely to trust playing your games as opposed to if it’s just a random game," commented Thouin.

"Not all brands translate equally well into online games, but we’ve found fantastic success with Marvel, Streetfighter and King Kong, and our casual games like Bejeweled and Cubis."

Although initially targeted at people who read Marvel’s comic books when they were younger, many of CryptoLogic’s games are now benefiting from the mass-market appeal afforded by the recent plethora of superhero movies, helping operators to attract a whole range of new players.

However, companies potentially risk diluting their margins by offering too many branded games and simply including a well-known character or brand in a game is not a sure-fire way to make it a successful product, Thouin warned.

"A lot of companies think that if you slap a brand on something then the game is going to be a runaway success, but that’s not the case," he explained. "What’s actually more important is the game mechanic behind it.

"We have a number of non-branded games that perform far better than branded games because players have loved the game mechanic.

"So while we’re focused on partnering with the leading entertainment brands in the world, I would say a larger focus is creating game mechanics that are unique and innovative, and that players love."

Expanding its portfolio of games is high on CryptoLogic’s agenda for 2009, with 20 new titles in the pipeline. It is also planning to unveil a number of new branded partnerships over the next few months, as well as taking steps to extend its distribution network.

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Thouin said one way the company is seeking to attract the largest operators within the industry is by changing the way it offers its games. Where as in the past the company required its partners to take its entire casino portfolio, now it is offering those with their own software an à la carte approach by integrating a smaller selection of games into their site.

"That combination of selling full casinos and selling just a top 10 of our games is very successful for us," he said.

But given the current economic climate and the threat of a recession taking hold, one of the biggest challenges facing gaming companies is coping with players depositing less than they have in the past, meaning 2009 could be a bumpy ride for many gaming companies.

"It’s going to be important to try to expand the number of people that actually feel comfortable gaming online," said Thouin.

"So to battle against the fact that people do not have as much disposable income to gamble online, companies are going to need to try to extend the distribution of their gaming products and try to bring more people into the market. That’s definitely going to be a challenge."