Friend or Foe?

Social media behemoths Facebook and Zynga seem to be on a collision course and the fate of the social networking and online gaming world hangs in the balance….really.

Articles and analysis by:

TechCrunch ” During negotiations Facebook has taken some steps to punish Zynga, such as shutting off notifications for Farmville and other games, and Facebook has threatened, say multiple sources, to simply shut some of Zynga’s games down permanently”

Follow up coverage about ZLive Social Game Network from TechCrunch

PC World : ” The credit concern comes from Facebook requiring Zynga and other developers to use “Facebook Credits” as the only payment platform. Facebook takes a whopping 30 percent fee for the use of Facebook Credits.”

GigaOM ” It seemed as if Facebook used Zynga to get to its current scale — remember, before the Facebook platform launch in 2007, the network had only 24 million active users! — and now has little reason to give it favorable treatment. But even so, Zynga is not going to go independent anytime soon. Dropping Facebook would be dropping its whole business. This is about diversifying.”

Barron’s ” Facebook Credits has faced some unpopularity among game developers, who are used to managing their own in-game virtual currencies and taking a larger cut of the revenues.”

CNET ” The theory here is that Zynga and Facebook are clashing over the percentage that the social gaming giant might have to pay to use Facebook Credits, the social network’s nascent currency platform.”

ZDNet ” As for the business model, I’d like Zynga to pull out to see if another company fills the void. A Zynga departure would also give us an indicator on the health of Facebook’s app economy. It would also be interesting to see how Zynga does without Facebook.”

Search Engine Watch ” The question is: how many of the current Facebook users who flock and stay for long periods at a time every day on the site would leave when Zynga departs? How would Facebook make up for the revenue loss?”

Plenty more news about the explosive social games industry at

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Filed under Facebook Credits, Uncategorized, Zynga

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