A wide variety of companies are testing out the concepts. Pearson (PSO), for example, is building an interactive network that add incentives such as progress and long-term goals. These skills and obstacles are similar to the fundamentals of traditional role-playing games -- only now with skills such as algebra instead of sword-wielding -- according to project head and marketing vice president Gerard LaFond. Companies like Hasbro (HAS) and Samsung, meanwhile, have contracted with specialized firms BunchBall and Badgeville that offer tools to help test out the concepts. The two leading firms count USA Network, SAP (SAP) and the Discovery Channel (DISCA) among their clients. Last week, PayPal and eBay (EBAY) jumped into the fray, creating a program for developers on its X.commerce site using game mechanics tools from its new partner, Badgeville.
The industry is still very much in its early stages, though. Some, like Badgeville, face a perception problem of being too reliant on superficial interaction with consumers -- some digital levels and badges lose their meaning quickly. Others failed to deliver on their promises. Gowalla, a once much-hyped, location-based service with a heavy dose of gamification was ultimately forced to retool itself and now focuses on travel guides. (For more on location-based platforms tapping into gamification, click here.) Despite the millions in venture capital flowing into the concept, some firms have simply disappeared.
Still, Olson's gold appears to be out there. At least for companies providing gamification expertise for sale. According to a fall 2011 industry survey by M2 Research, game mechanics vendors project average growth of 197% for 2012, up from 155% expected this year. The survey results also project industry-wide revenue growth to accelerate over the next several years, from a projected $97 million this year to $247 million in 2012, $494 million in 2013, $938 million in 2014, and $1.5 billion in 2015 -- a 1,546% increase over the five years. Getting at it may boil down to strategy. Says Badgeville's Duggan, "There's a difference between the people going after the gold and the people who provide the picks and the shovels."