Outspark

About Outspark

Outspark was a San Francisco-based video game publisher that operated as a key player in the North American free-to-play online games market. Founded in 2006 by Susan Choe, a former Yahoo! executive, the company was established to capitalize on the burgeoning trend of bringing popular free-to-play massively multiplayer online role-playing games (MMORPGs) from Asia to the Western audience. Choe identified the potential in this business model during her time at Yahoo, recognizing that online gaming communities could generate substantial revenue through microtransactions instead of relying solely on advertising. The company successfully secured $23.3 million in funding over three rounds from investors including DCM Ventures, Tencent, and Altos Ventures Management.

The core of Outspark's business model was the freemium approach. Players could access and play the games for free, with revenue generated from a dedicated user base that purchased in-game items, virtual goods, and character enhancements. This model proved effective, with reports indicating that a paying user could spend between $45 to $50 a month. Beyond just publishing games, Outspark aimed to build an encompassing entertainment portal and social playground where its community, which grew to over 8 million registered users, could connect, share content, and interact outside of the games themselves.

The company's flagship product was *Fiesta Online*, an anime-style 3D MMORPG that became its most successful and largest franchise. Outspark managed a portfolio of other titles as well, including *Secret of the Solstice*. However, after a period of operation, Outspark ceased its publishing operations in early 2013. In a strategic exit, the company was acqui-hired by German publisher Gamigo, which acquired the rights to *Fiesta Online* and took on a significant portion of the Outspark team to manage the game from a new San Francisco office. This acquisition marked the end of Outspark's journey as an independent publisher, with its main asset, *Fiesta Online*, continuing to operate under new ownership.