• by Laurie Sullivan  @lauriesullivan, February 11, 2009

Merscom will produce at least four casual video games based on original programming from the Lifetime television network in a multi-year agreement.

The initial agreement entails developing a game for Apple's iPhone, two hidden object adventure PC casual games, and a downloadable PC simulation game. Coding and production has already begun.

Lifetime plans to build at least one game on "Wisegal," a Lifetime television crime drama about a woman who works for the mob in New York. The building simulation both for the PC and iPhone will rely on multiple Lifetime properties and will be based on the company's recent Roiworld.com acquisition.

This is not the first time the two companies have partnered to develop casual video games tied to a movie or a TV show. Basing the success of the deal on the game built for Lifetime's original series "Blood Times," Merscom Chief Customer Officer Lloyd Melnick said fans can start downloading the iPhone game in April, and the PC games will follow either in June or July. The game sold more than 100,000 copies in 2008 and generated about a $500,000 return on investment, he said--adding that many new fans to TV shows and movies have come from the gaming industry.

This vampire-themed TV series drew a strong following online through streamed episodes, and built an even stronger base of players with its hidden object game of the same title.

In 2008, U.S. consumers spent $491 million on premium casual games and services, according to Parks Associates. The research firm estimates that revenue in 2013 will reach about $1 billion.

Merscom, Chapel Hill, N.C., has also worked with the Liberty Entertainment subsidiary Starz Media, developing a game based on the movie "Righteous Kill," and TV series "Party Down" scheduled to launch in March. Other projects include a game for National Geographic's "Herod's Lost Tomb," and the "Nanny 911" television show.

The causal game space that targets females age 30 and up has been growing, Melnick said. The games tied to movies and television shows sell between $6.99 and $9.99 retail. In a down economy when people are looking to cut expenses, casual games are a less expensive form of entertainment, he said.

About 53% of all American adults play video games, whether on computers' gaming consoles, cell phones, a portable gaming device, or online, according to a Pew Internet & American Life Project. Citing stats from comScore Media Metrix, research firm eMarketer notes more females play online games these days, too. In fact, participation grew 27% in August 2008, compared with the previous year, to nearly 43 million visitors.

And while Merscom splits the video game profits 50/50 with studios or TV networks, they also share development costs--about $50,000 per game, Melnick said. "The industry is growing, largely because the risks are low and the costs are good," he said. "We work with four companies now, but our goal is to work with all the major networks and film companies by the end of 2010."