Tag Archives: revenue

Bad Credit?

Inside Facebook has an excellent article about how Facebook Credits may actually drain more that 30% profit from every game developer during virtual goods transactions. From the article:

” The concern here is that Credits, if somehow mandatory, would replace the currency that users buy but don’t spend, thereby removing this revenue from developers’ balance sheets”

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Filed under Facebook, Facebook Credits, social games, virtual currency, virtual goods

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 SocialGameNews.com

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Filed under Facebook Credits, Uncategorized, Zynga

Playspan reveals global ARPPU stats

Playspan releases statistics concerning virtual goods ARPPU (Average Revenue Per Paying User). Article and analysis by: TechWhack

” According to the data, Australian gamers generate the highest ARPPU at $24.38. United States gamers place a close second with an ARPPU of $22.76.”

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Filed under Playspan, Uncategorized

China’s vast Virtual Economy

CNN reports that China has a more advanced virtual economy than the US. From the article:

” China has many more developers of online games and services than in the United States, a factor industry watchers say has encouraged competition and innovation. The crowded field, however, have fought to turn profits. Selling virtual goods, so far, has yielded the most success.”

Informa Telecom & Media conducted an excellent report that examines  growth rates and types of activities on mobile social networks in China.

” Social networking is expected to drive the data business and Chinese operators are learning fast about how much consumers are willing to pay.”

Additional analysis of the report from a social gaming perspective from ZDNet Asia

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Countdown to Facebook Credits launch

According to a Facebook blog post, It’s now not a matter of “IF” but “WHEN” Facebook will officially launch its own Virtual Currency called Facebook Credits. Articles and analysis by:

Daily Finance (AOL) “Virtual currencies are going to move more and more into a mainstream environment and attract more attention,” says Beth Robertson, director of payments research at Javelin Strategy & Research, a financial services and security consultancy.

CNET

ReadWriteWeb

eCreditDaily

The Next Web

AllFacebook

Mashable

IndyPosted

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