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The encyclopedia · Product & Design · Product decision · 2002–2005

Flickr was a side feature of a failed game — the game was shelved, the photo tool won

Ludicorp spent years building a massive online game. A photo-sharing side feature became Flickr, sold to Yahoo for $25M. The game was never finished.

Ludicorp · Flickr · Yahoo · 2004-02-10

What happened

In 2002, Stewart Butterfield and Caterina Fake founded Ludicorp in Vancouver, British Columbia, to build a web-based massively multiplayer online game called Game Neverending. The game was an ambitious virtual world where players could interact, trade, and explore. Development consumed most of the company's resources for years.

As a side feature for the game, the team built a photo-sharing tool that let players exchange images. The tool was originally a minor part of the game experience — a way for players to share in-game moments. But as the game's development dragged on, users outside the game started showing interest in the photo tool itself.

Ludicorp launched Flickr as a standalone product on February 10, 2004. The photo-sharing site grew rapidly, attracting users who had no interest in Game Neverending. The game, still unfinished, was quietly shelved. Yahoo acquired Ludicorp and Flickr on March 20, 2005, for an estimated $22 million to $25 million.

Stewart Butterfield would later repeat the pattern: he founded Tiny Speck to build a game called Glitch, which also failed. But a side feature — a team chat tool — became Slack. Twice, Butterfield built a game that failed, and the side feature became the real product.

Why it happened

  • Ludicorp spent years designing Game Neverending, a massive online multiplayer world — but the project was too ambitious to ever finish, and the game was shelved
  • Flickr began as a side feature built for the game. Nobody took it seriously until users started treating it as the main product
  • Butterfield and Fake founded Ludicorp to build a game. They ended up selling a photo site to Yahoo for $25M. The game was never finished, and the company had succeeded before it noticed
What it costYears of development on a game that was never finishedlucky mistake

The lesson

Ludicorp's plan was a game too ambitious to finish. The side feature — a photo-sharing tool — became Flickr. The lesson: the market decides what the product is, not the founder.

Sources

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