What did you see as the problem with the DVD format?
Peters: Getting on XboxLIVE would solve a number of problems we were facing. 1) We could bypass the “cost to entry.” Getting a DVD product in a retail chain is a very costly. It requires producing and shipping tens of thousands of physical goods at a minimum. 2) It would put us directly in front of consumers. What better way to show gamers our video content than through the actual video game system they’re playing. 3) It gave us instant credibility.
But the twist is that putting video on the XboxLIVE didn’t translate into revenue, but it did get our foot in the door. We truly overcame this challenge when we decided to take advantage of another opportunity on their service, gamer pics. Once we noticed the gamer pics were being well received, we phased out our video efforts and focused on what was actually generating real revenue.
Is that how the company generates revenue now?
Peters: We generate revenue by releasing new virtual goods for our customers to consume every month. Our company has two business models, a B-to-C and B-to-B. Our B-to-C is the standard B-to-C where we produce a product and market it to the consumer. Our B-to-B model is one of a PR firm/agency.
What projects are in the pipeline that will help the company attain its projected revenue goal for 2011?
Matthews: We’re [released] our first iPhone game release, Kandi Koated Spades featuring Kandi Burruss from the Real Housewives of Atlanta that should generate revenue in the low six figures. In addition, we’re in current negotiations with Microsoft to expand our celebrity-based, virtual content offering to their Avatar Marketplace on XboxLIVE that should also generate revenue somewhere in the low six figures.
What makes Konsole Kingz unique compared to similar online sites?
Peters: What makes Konsole Kingz unique is that we’re a brand and not just a website. Our website is only one small part of what Konsole Kingz is and does. When Marcus [Matthews] and I first mapped out the vision for Konsole Kingz it had four verticals—content, online events, developing games, and being an urban PR agency for games. After being in business for eight years, those verticals have transformed into virtual goods, influencer PR services, and Web branding. At the core, we’re content guys. Being a content guy, you find ways to put your content into any vehicle that makes sense to get from point A to point B. Being simply a website doesn’t work for our core strengths.
What do you consider to be the most important contribution you have made to the gaming industry?
Peters: I think one of our important contributions to the gaming industry will be proving that the hip-hop/urban gamer demographic is real and very influential. Konsole Kingz is the manifestation of what their market research shows, but often goes neglected.
Another major contribution will be one that comes indirectly. I believe Konsole Kingz is blazing a trail for minorities of color to follow into the gaming industry. As we deal with our corporate clients and engage our consumers, I think we will open doors for others to legitimately look at the gaming industry as a real business opportunity. As we continue to be successful in this industry, I hope we inspire and ignite the passions of others who aspire to be in the gaming space as an owner, publisher or developer.