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  • Downloadable Content Just Got Easier

    Downloadable Content Just Got Easier

    Digital River and Playxpert on Monday announced a partnership to bring e-commerce in-game.

    And this isn’t just the typical downloadable content specific to the game being played. E-commerce company Digital River will be including a one-stop shop of sorts in Playxpert's in-game toolbar.

    Playxpert’s nifty widget allows gamers access to features such as a web browser, universal messaging service, and music player without having to alt-tab out of the game. Digital River hopes to help publishers capitalize on this convenience by offering an extra icon on the toolbar, which would open up an in-game storefront.

    “This is actually bringing merchandising opportunities to the community front,” Playxpert CEO Charles Manning said. “[The toolbar] allows users to see what games their friends have and what games they’re playing.”

    He said the partnership with Digital River will open up the toolbar to allow gamers to buy other games in addition to the standard downloadable content and microtransactions. This allows players to look at what friends are playing and interested in, enabling purchases of games without having to leave a game.

    While the toolbar is just an optional widget that gamers can download, the companies see this as another push on the digital distribution front.

    “Business is evolving in terms of business models,” said Jeff Hemenway, Group Vice President of Games for Digital River. “In order to help our customers drive their revenues, we have to come up with new ways to reach out to gamers.”

    Publishers can take charge to reach out to gamers as well. The toolbar, which can also be used outside of a game on a person’s desktop, can be re-skinned into a branded storefront.

    From here, publishers can also create custom widgets to add to it. Users have already created widgets for applications such as Gmail and Pandora which can be launched in-game.

    The toolbar is available for download from Playxpert’s web site.

    via Red Herring

  • PCGA reports PC gaming worth $11bn in 2008

    PCGA reports PC gaming worth $11bn in 2008

    A little more than expected..

    PCGA reports PC gaming worth $11bn in 2008 Image 1

    The PC Gaming Alliance (PCGA) has released its State of the PC Gaming Industry in 2008 report, written by DFC Intelligence, and the results are startling. That is to say, the PC gaming industry made about $11 billion worldwide last year, a number certainly comparable with console software sales, also at $11 billion (we deduce this is for North America only especially as UK software sales were $2.8bn).

    Three of the biggest trends listed off for last year are the growth of digital distribution, growth of free games with a microtransaction model, and the increased presence of game cards at major retailers such as 7-Eleven.

    “The biggest story in PC games is the expansion beyond retail,” said Randy Stude, president of PCGA. “PC games have successfully pioneered online subscription and distribution models that have resulted in a global boom that shows no signs of slowing. Despite the advances of the likes of Xbox LIVE and the PlayStation Network, the online platform that remains the most accessible and robust worldwide is the PC.”

    Revenue shifts are highlighted also, including, of course, MMOs, being the leading products for revenue and profits. Asian MMOs made over $100 million last year, while World of Warcraft made $1 billion, with Wrath of the Lich King outselling its predecessor. Age of Conan and Warhammer Online did respectably well, selling over 1 million units at retail.

    Here are the complete highlights of the report:

    • The PC is the largest single platform for games with annual worldwide revenue of about $11 billion. This is more than any of the console and portable systems from Sony, Microsoft and Nintendo.
    • In emerging markets such as Asia and Eastern Europe the PC has become the de facto platform of choice for games as console systems have not had major penetration in most countries.
    • Even in North America and Western Europe the PC is the leading single platform for games with over $6 billion in combined revenue from those markets.
    • Broadband penetration has been a key driver of growth and revenue growth for PC games, and is directly tied to growth in broadband penetration.
    • The three biggest trends in 2008 were 1) the growth of online digital distribution via services like Valve’s Steam; 2) the growth of free games with a virtual item purchase model and 3) the growing presence of game cards at major retailers like 7-Eleven.
    • Top PC games regularly generate over $50 million at retail revenue but can generate substantially more in subscription and/or add-on revenue.
    • Massively Multiplayer Online Games (MMOGs) are the leading products for both revenue and proļ¬ ts. Several Asian MMOGs are generating over $100 million in annual revenue after 5+ years on the market. World of Warcraft is generating over $1 billion in annual revenue. The Lich King expansion to World of Warcraft outsold its predecessor.
    • In 2008, two major new subscription MMOGs (Warhammer Online and Age of Conan) sold over 1 million units at retail.
    • Digital distribution, free-to-play models and retail game cards are well-established in Asia, but just starting to emerge in North America and Europe.
    • Leading emerging markets for PC games include Russia/Eastern Europe, India, Brazil and Southeast Asia. These markets generally have very low (often less than 5%) broadband penetration, but are expected to grow substantially as the infrastructure improves.
    • Low-cost PCs often have trouble playing high-end games, but they are helping drive growth in the mass market and emerging markets that can not yet afford high-end systems. These PCs are helping drive the casual game market.
    • The trend in Western markets is toward portability and connectivity, with laptops outselling desktops, In addition, the major growth segment in laptops is under-$500 netbooks that are better suited for online casual games.
    • Casual games have developed into an entire sub-segment led by large industry portals such as Electronic Arts’ Pogo, Yahoo, MSN, Big Fish, Real Networks and others. These top portals can now generate well over $100 million in annual revenue from casual PC games.

    Source: Press release

    Alternate Source: PCGA

  • While the broader market falls off a cliff, e-commerce stocks merely slide

    While the broader market falls off a cliff, e-commerce stocks merely slide

    Investors remain convinced that retailers that sell on the web will do better than those that sell in stores, analysts say. And that's being reflected in the relatively strong showing of e-commerce stocks in the early part of 2009.

    Relatively strong, that is, compared to the broader market, which has been woeful. The two major barometers of stock market performance, the Dow Jones Industrial Average and the Standard & Poor's 500 Index, each are down more than 24% since Jan. 1. By contrast, the Internet Retailer Online Retail Index of 25 e-commerce companies is down just a hair under 7% this year.

    Since Internet Retailer began its weekly tracking of the Online Retail Index early in February, the e-commerce companies have consistently outperformed the Dow and the S&P 500. Last week was no exception, as the Online Retail Index declined by 2.5% for the week ended Friday, March 6, much less than the Dow, which was down 6.2%, or the S&P 500 index, which fell 7.0%.

    Nine of the 25 e-commerce stocks gained in price last week, while 16 declined. Leading the way was Systemax Inc., operator of TigerDirect.com and other e-retail sites, which was up 12.1%. Systemax is No. 22 in the Internet Retailer Top 500 Guide.

    Here are the best-performing stocks last week in the Online Retail Index and the percentage price increase for the week:

    • Systemax, 12.1%
    • DemandTec, 6.8%
    • Digital River, 6.7%
    • Netflix, 5.4%
    • CyberSource, 2.3%

    Here are the Online Retail Index stocks that fell in price the most last week and the percentage price decline for the week:

    • United Online (owner of FTD.com), -12.9%
    • RealNetworks, -12.2%
    • Omniture, -11.2%
    • Blue Nile, -9.8%
    • Akamai, -9.6%.

    The 25 companies in the Internet Retailer Online Retail Index are: Akamai Technologies, Amazon.com Inc., American Greetings Corp., Art Technology Group Inc., Bidz.com Inc., Blue Nile Inc., CyberSource Corp., DemandTec Inc., Digital River Inc., Drugstore.com Inc., eBay Inc., GSI Commerce Inc., Interwoven Inc., Keynote Systems Inc., LivePerson Inc., Netflix Inc., NutriSystem Inc., Omniture Inc., Overstock.com Inc., PetMed Express Inc., RealNetworks Inc., Shutterfly Inc., Systemax Inc., United Online Inc. (owner of FTD.com) and VistaPrint Ltd.via internet retailer

  • Overstock.com Joins the Commission Junction Affiliate Marketing Network

    Overstock.com Joins the Commission Junction Affiliate Marketing Network

    SANTA BARBARA, Calif., Mar 11, 2009 (BUSINESS WIRE) ----Commission Junction, a division of ValueClick, Inc. (Nasdaq: VCLK) and the leading global provider of affiliate marketing solutions, today announced that Overstock.com, one of the most popular online retailers of discounted name-brand merchandise, has chosen Commission Junction as a provider of affiliate marketing solutions.

    "We are looking forward to a broad, long-term relationship with Commission Junction because of their demonstrated success in growing large performance marketing programs," said Stormy Simon, Senior Vice President of Marketing and Customer Care. "Commission Junction's dedicated account management team has quickly gained our confidence in their ability to develop strategies that will fuel the growth and incremental revenue we expect from the affiliate channel."

    Overstock has one of the most well-established and successful affiliate marketing programs in the online retail industry.

    "Commission Junction is proud that we were chosen to help an industry leader like Overstock continue to strategically grow its affiliate marketing program," said Kerri Pollard, General Manager of Commission Junction. "We are uniquely poised to meet Overstock's need for real-time reporting, incorporating a search strategy that complements rather than competes with its affiliate channel, and the ability to offer variable publisher compensation tied to specific products."

    For more information on the benefits of affiliate marketing, go to www.cj.com/affiliatemarketingbenefits.

    About Overstock.com

    Overstock.com, Inc. is an online retailer offering brand-name merchandise at discount prices. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com. Overstock.com regularly posts information about the company and other related matters on its website under the heading "Investor Relations."

    Overstock.com(R) is a registered trademark of Overstock.com, Inc.

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding forecasts of a long-term relationship with Commission Junction, the results of such the use of affiliate marketing solutions, or the duration of their use, or growth that may result therefrom. Our Form 10-K/A for the year ended December 31, 2007, our subsequent quarterly reports on Form 10-Q, or any amendments thereto, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements.

    About Commission Junction

    Commission Junction (www.cj.com) provides advanced performance marketing solutions that help marketers increase online leads and sales. By facilitating strategic relationships between advertisers and publishers, Commission Junction leverages its proven expertise in affiliate marketing and search marketing to drive measurable results for clients.

    About ValueClick, Inc.

    ValueClick, Inc. (Nasdaq: VCLK) is one of the world's largest online marketing services companies, offering comprehensive and scalable solutions to deliver cost-effective customer acquisition for advertisers and robust revenue streams for publishers. ValueClick's performance- based solutions allow customers to reach their potential through multiple online marketing channels, including affiliate and search marketing, display advertising, lead generation, ad serving and e-mail technology, and comparison shopping. ValueClick brands include Commission Junction, ValueClick Media, Mediaplex, PriceRunner and Smarter.com. For more information, visit www.valueclick.com.

    This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, the risk that market demand for online advertising in general, and performance based online advertising in particular, will decline or will not grow as rapidly as predicted, and the risk that legislation and governmental regulation could negatively impact the Company's performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including, but not limited to: its annual report on Form 10-K filed on March 2, 2009; recent quarterly reports on Form 10-Q; and other current reports on Form 8-K. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

    SOURCE: Fox Business

  • Capcom Admits Digital Distribution Is More Important than Retail

    Capcom Admits Digital Distribution Is More Important than Retail

    Going digital
    Enlarge picture
    Capcom is one of the most talked about companies in the recent few weeks. Following the very successful launch of Street Fighter IV, which is breaking records left and right, the publisher has also announced that it plans to create and release a Lost Planet 2 and one of its main designers talked about how the shift towards the Xbox 360 gaming console from Microsoft helped Capcom become relevant on the Western games market
    Now, the strategic planning vice president of Capcom is saying that digital distribution has become more important than selling at retail for all the companies that are creating games for the PC. Talking to Rock, Paper, Shotgun, Christian Svensson said that “Digital distribution on PC ties directly into our strategy. We’re ready on the console side, and we were the first Japanese publisher to do anything on Steam.”

    He pointed out that Capcom is one of the most important companies when it comes to revenue drawn from the Xbox Live service from Microsoft, the PlayStation Network and the WiiWare for the Nintendo Wii. Capcom has also joined the PC Gaming Alliance, becoming its sole Japanese partner and declaring its intentions to make sure that it gets all its big releases on the PC.

    The PC Gaming Alliance and the various digital distribution services, the most known being Steam, are the tools that can help developers and publishers make more money on the PC by promoting standardized hardware and by making games easy to buy, download and play without the need for a walk to the nearest game store.

    Capcom released the remake of Street Fighter II Turbo Remix HD via Xbox Live Arcade and the game became of the most successful releases ever on the service. The title has not become available on Steam, but Capcom would probably prove its commitment to PC gaming by offering this remake via digital distribution. Street Fighter IV is also coming to the PC in June.via softpedia
  • Apple's App Store Tops 25,000 Programs

    Apple's App Store Tops 25,000 Programs

    With games leading the way, Apple's App Store has been able to surpass the catalog of Microsoft's Windows Mobile.

    Apple's App Store has more applications to download than Microsoft (NSDQ: MSFT)'s Windows Mobile, according to the mobile analytic company Mobclix.

    The company said that as of Monday there were 27,131 applications in the store that can be downloaded for an iPhone 3G or iPod Touch. The number of mobile programs is staggering considering the App Store has been open for about a year. By contrast, Microsoft's mobile operating system has been out for a lot longer than the iPhone, but analysts estimate there are about 20,000 applications.

    Apple has the advantage of having an integrated way for customers to easily browse, purchase, download, and install apps directly on the handset. While there are virtual stores like Handango to buy apps over the air for Windows Mobile smartphones, the experience is generally not as smooth as Apple's solution.

    Games were the most popular category in the App Store, as Mobclix said there were 6,276 titles. Other reports suggest the iPhone and the App Store have galvanized the mobile gaming industry, and it was a big factor in the market hitting $5.4 billion in 2008.

    The success of the App Store has not gone unnoticed by Apple's rivals. Google (NSDQ: GOOG)'s Android, Research In Motion (NSDQ: RIMM)'s BlackBerry, Nokia (NYSE: NOK), Samsung, and Windows Mobile already or will soon have an online store for distributing mobile programs over the air. These companies will take some cues from Apple, but they will add elements to differentiate their products. For example, Nokia's application store will implement location and social networking to offer suggestions based on what programs friends and contacts are using.

    While many developers are working hard to get into the App Store, some believe Apple has too much control over content and distribution. This is leading to multiple unauthorized alternative online markets for iPhone applications.

    InformationWeek has published an in-depth report on rich Internet applications. Download the report here (registration required). via informationweek

  • Cydia Store: a true rival to iPhone AppStore?

    Cydia Store: a true rival to iPhone AppStore?

    Until now Apple’s iTunes AppStore was the monopolist of iPhone apps distribution. And while monopoly is rarely a good thing, Apple has almost done it right, making the entire apps distribution process easy, at least for the endusers.

    But many iPhone apps developers (and users alike) are not happy with Apple’s AppStore acceptance policies due to the fact that Apple does not accept a lot of very useful apps into the AppStore for one reason or another. As a result the programs that were not accepted usually end up being available as “unauthorized” applications, requiring the users to have a jailbreaked iPhone. And jailbreaking your iPhone is probably not a big price for users to pay to be able to get such features as MMS and copy/paste support on their device — something that regular iPhone owners have yet to wish for.

    The only thing that was lacking for unauthorized iPhone apps is a centralized distribution method that would allow developers to sell their apps to the public. Now, however, there is one such distribution method coming in the form of recently launched Cydia Store.

    cydia store

    Cydia, of course, is the installer program that allows you to install countless unauthorized (and free) third party apps on your iPhone. Now, the latest update to Cydia includes a fully featured apps store that supports payment processing, putting it in direct competition with the AppStore. Well, more or less.

    The way Cydia Store works, is that you download and install Cydia on your iPhone, and the store is waiting for you there. In order to purchase an app you must login into either your Facebook or Google account. After that, you can select any app you like and buy it. Sounds pretty promising, doesn’t it?

    Well, while it sure does, there are still multiple “coming soon” features that are required for the store to live up to its full potential, and several interesting caveats, due to which the Cydia Store is not yet ready to offer real competition to the AppStore. Below is a listing of reasons for that:

    1) Of course, the number one caveat, which will never change, is that you need to jailbreak your iPhone to be able to use the Cyda Store. Some folks are simply not willing to do that. Although, Cydia already has more than 1.5 million users, so as it is there is a solid distribution base.
    2) Currently the only way to pay for an app in Cydia Store is by using an Amazon Payment account. Paypal payments support is promised, but not available as of yet. This clearly limits the number of users that are able to use the Cyda Store at the moment.
    3) A major caveat for developers, is the fact that Cydia Store doesn’t have a whole department of people to accept new apps submissions like the Apple AppStore does. As a result, Cydia Store can only accept a limited number of submissions at a time. In fact, its developers state that as of today, only a day after Cydia Store’s official launch, they won’t be receiving any new submissions for a few more weeks since they’re already overloaded.
    4) A minor caveat for Cydia Store developers, is that it currently does not offer Digital Rights Management

    . Which means that any application submitted into the Cydia Store can be easily pirated.
    5) Unlike the AppStore, Cydia Store still does not offer apps ratings or user comments. So it’s somewhat difficult for the customers to decide which app is for them and which isn’t.
    6) There are still multiple bugs and crashes that plague the application.

    Nevertheless, the Cyda Store does offer some interesting features: for example, it keeps track of the apps you’ve purchased so they could be reinstalled even if you lose your iPhone. And its developers are hard at work on it, promising to soon accept feature requests from endusers. So while not yet being on the level of the Apple AppStore, the Cydia Store is certainly worth keeping an eye on.

    via iphoneworld.ca


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