I remember playing Flash games as a youngster. Flash games weren’t as common as now, and I had discovered miniclip and others to be a good aggregator. Now there are thousands of Flash games, most of which are played online. With the growth of Facebook and other social networks which allow applications, Flash games are back on mainstream gaming. Facebook applications host games by the thousands, and most game makers are looking for more innovative methods to ensure player-retention and more revenue generation. Now, at the Casual Connect Summit, Mochi Media has introduced Virtual Currency - Mochi Coins! The importance is obviously not lost on players of MMORPG, but using virtual currency for Flash Games is probably a first.

These small games, though very popular have only advertisements as their source of income. And gamers are losing patience. It’s very irritating to have to watch a 10-30 second video before playing the game each time. Hence, this venture by Mochi Ads might have interesting outcomes. Using Mochi Micro-transactions, you can customise your game to buy power-ups, new avatars, and unlock more levels which should definitely add to the gaming experience. This marks an important step in the evolution of the small-gaming industry. Rivals to Mochi Media have also launched their virtual currency (eg. Heyzap)

Today Mochi Media monitors more than 15,000 Flash games which reach more than 100 million unique visitors a month. Run by 25 employees, Mochi Media began in 2005 as a gaming analytics agency. In 2007, it launched a game distribution and ad network. Providing ads to game hosting sites for revenue and further sharing the analytics collected via ads with developers, it has helped turn the Flash Game industry into a potential economy.

While ad-based games generate maybe 50 cents per 1,000 players, the new currency can generate $6 to $7 per 1,000 players. The average revenue per paying user is about $4 per month, Hsu said. That comes to around % 400 million a month - a booming model indeed.

Mochi coins are available via different modes - Facebook Connect, PayPal, SuperRewards etc. A really shrewd method to get the user to spend is allowing him to respawn and continue gaming after his death for a small cost of 1200 coins or $1.5. Power-ups and more levels are the perks of spending.

The concept - microfinance. The benefit - Mochi Media and the Game developer - currently sharing a 40-60 percentage of generated revenue. This will surely give impetus to the Flash industry, and might see bigger players venturing into the space.