Digital Media

Zynga’s CityVille reaches 100M MAU in 41 days. However, the stickiness factor (DAU/MAU) is 33% lower than Farmville.

eMarketer released social gaming market size estimates. Virtual goods will grow from $510M in 2011 to $653M in 2011. Total social gaming revenues, including ads and offers will increase from $856M to $1,093M in 2011.

Video game sales decreased 6% in 2010 falling to $18.6B according to NPD. 2010 marked 13% ($9.36B) fall in console sales but a 13% increase ($2.93B) in accessories fueled by the Kinect. Since 2005, Microsoft has sold an estimated 51 million Xbox 360 consoles, Sony has sold 46 million PS 3 consoles, and Nintendo has sold 84 million Wiis, on a worldwide basis. 

Google removes H.264 support from Chrome, in a move widely viewed as benefiting Flash instead of increasing support for open source WebM.

Google and Bing increased search market share to 66.6% and 12.0% in December. All other competitors lost share.

Minecraft, an indie game whose world is created by users, has sold 1M copies at 15 Euros each in 18 months. Having forgone publishers, the game developer used forums and communities to spread the game.

SamsungTV announces 2M application downloads with 20,000 apps downloaded every day. 

Goldman Sachs declared only foreign nationals will be investing in Facebook through the recently created special purpose vehicle.

Steve Jobs takes medical leave of absence from Apple. He will remain CEO as COO Tim Cook runs the company.


Verizon will launch a CDMA iPhone in February, to be followed by a CDMA iPad. 

YouTube announces 200M daily mobile views, a 300% y/y increase.

Beta releases of iOS 4.3 indicate Apple will release group texting and find my friends features. The group texting feature may compete directly with apps like GroupMe, Fast Society and others, while the Find My Friends feature may compete with FourSquare, Loopt and Latitude.

FourSquare receives 1M uploaded photos from its 5M users in 3 weeks. FourSquare has partnered with Instagram, PicPlz and Foodspotting as photo partners so it isn’t clear how many photos are from the FourSquare app. 

Amazon has released Daily Mobile Deals on its mobile apps.

Venture Capital News

VC fundraising fell 12% to $11.6B in 2010, a seven year low, according to VentureSource.

CB Insights said 2010 funding reached $23.7 billion invested in 2,792 deals, a 14 percent jump in funding and 13 percent increase in deals over 2009. In Q4, California companies raised in $2.63 billion (0% change); Massachusetts VC investments fell 3% to $630 million. New York investments tallied $466M (+90%).

Frank Slootman, Data Domain CEO, joins Greylock as a partner.

Financings and M&A

Boingo Wireless files for $75M IPO. Boingo may be the largest WiFi hotspot provider with 211,000 locations in 100 countries. 800M sessions were logged and 1.3M users purchased sessions in 2009, generating $65.7M in revenue. 

USV has raised a $165M Opportunities fund with the intention to pursue follow on rounds for early growth companies. USV will invest up to $25M from this fund. 

PeixeUrbano, a Brazilian GroupOn headed by Facebook’s Brazilian country manager, with 5M users raised a Series A from Benchmark and Monashees.

AdKnowledge the operator of the world’s largest privately held Internet advertising network, has $200M to fund acquisitions. The company generates more than $300M in revenue.

Bump raises $16.5M from Andreessen Horowitz in a Series B.

Google acquires eBook Technologies to provide reading experiences across many devices. 

Intel announced an $11.5B Q4 (+8%), best ever quarter for the company.  For the year, Intel posted $11.7B in profit on $43.6B in revenue.