NEWPORT BEACH, Calif., July 11, 2001 (PRIMEZONE) -- GameColony.com, an Internet provider of competitive multi-player games, announced today that player demand exceeded Company expectations at the launch of its online world-class gaming destination where, just as in land-based tournaments, players can compete for cash prizes in pay-to-play games of skill. During the first two days of availability, over 650 players registered to play and more than 900 tournament games were hosted for cash awards.
GameColony.com President and CEO Leonard Shneyderman stated, "While the popularity of our games has been long established, we were pleasantly surprised with the initial demand for our money-based gaming content -- especially considering the fact that we have not advertised."
Shneyderman continued: "We had experienced strong consumer demand for the opportunity to play for money and we are now able to satisfy this demand online. By adding a cash element to our popular classic games of skill, we are greatly enhancing our players' enthusiasm and creating a viable, high-margin business model."
GameColony.com is utilizing the Internet's global reach to bring players together from all over the world and create competitive online events that are universally popular, rewarding and secure. With no lengthy downloads, no subscriber fees and the allure of instant cash prizes, GameColony has created an enthusiastic online community, filled with healthy competitive rivalry, passion and fun. Prior to the launch of cash tournaments, the site hosted over 23,000 daily games of skill and had more than 325,000 registered members.
The growing popularity of online games serves as an essential counter-balance to our stressed society. According to International Data Corporation, a market research firm, gaming constitutes one of the most popular activities on the Internet and is expected to grow from 39 million players in 2000 to almost 75 million in 2004.
Shneyderman commented, "High profile entrants into the skill-based gaming market such as Skillgames, a Walt Disney (NYSE:DIS) partnership venture, are spending millions to build and promote its money-based gaming sites, further validating our efforts. Similar to Skillgames, GameColony.com games do not constitute gambling because they involve predominantly skill, as opposed to chance, and we also keep players from getting in over their heads financially by limiting their monthly losses."
The following real-time, peer-to-peer games (with instant messaging) are currently available at GameColony.com: Chess; Checkers; Gin Rummy; and Backgammon. Cribbage and Dominoes will be added to the game line-up in the next 60 days. The types of tournaments to be offered are Swiss, Mini-tourneys and Double/Single-elimination. GameColony.com has replicated the real-world tournament-playing environment by utilizing a standard ELO rating system, reflecting players' skill level. All money-based tournament games are recorded and players' rating statistics are kept current.
The Company's multi-player gaming technology has undergone rigorous 11-month beta testing during the development and quality assurance stages in preparation for this summer's launch. Shneyderman commented, "We employ a number of proprietary algorithms to significantly enhance the overall skill component of our classic games and provide the highest level of security available on the Internet. Our games were developed with the latest Java technology, which allows players to launch them from most Internet browsers in just a few seconds."
At GameColony.com, skill-based games provide players with certainty of outcome and credibility. The company acts solely as an independent tournament host and leaves the outcome of every game in the players' hands. Participants never play against "the house" and there is always a winner based on one's skilled performance.
Players enter online competitions by contributing entry fees ranging from 50 cents to $15 USD via a credit card. The winner collects a cash prize of 90% of the tournament prize-pot, comprised from entry fees. Players may cash-out their winnings or use them to play in future online tournaments.
"Our fee-based tournaments are designed as online entertainment for adults," added Shneyderman, "and are restricted to individuals of legal age in their respective jurisdiction. Players must also meet criteria for location eligibility in order to participate. As outlined in our Terms & Conditions, skill-based games with cash prizes are legal in 31 specified U.S. states and in most of Europe and Asia."
About GameColony.com, Inc.
Established in 1999, California-based GameColony.com is an Internet provider of universally popular, competitive multi-player games of skill. The company offers a world-class online gaming destination where, just as in land-based tournaments, players pay an entry fee to compete for cash prizes. GameColony's multi-player gaming technology has been designed to take advantage of multiple distribution platforms, such as interactive television, wireless devices and broadband access.
For more information on GameColony.com, please visit the Web site at www.gamecolony.com
The statements contained herein regarding GameColony.com are forward-looking and may involve risks and uncertainty. Company's actual results could differ materially from the events reflected in this News Release.