When it comes to monetization on Facebook, there is of course a bevy of advertising space, but what's more interesting is the uprise in Facebook games. According to a presentation at today's Game Developers Conference, more than $1.4 billion was paid to game developers on the social platform last year.
Zynga has launched a beta game portal via its own domain at Zynga.com. This is a significant move for the company, which has so far been delivering games only through social networking sites, in particularly Facebook. The new Zynga.com portal will be the first time the company hosts its games independently and the platform will also host games created by third-party developers.
Hopefully those virtual crops you've been building up in Farmville are ready to be turned into partially hydrogenated soybean oil, because snack food giant Frito-Lay is about to invade your land. Okay, so the promotion won't be that obtrusive, but the two companies are set to roll out a massive promotional campaign.
Happy Valentine's Day everyone! Although, based on the fact that it's the evening and you're reading this, perhaps it isn't such a joyous occasion for you. Luckily, we have a tip for you - start playing Words With Friends. Yeah, apparently 1 in 10 Words With Friends players end up hooking up with someone they've played against on the popular social game. So get out there and start practicing your mad word skills.
Whether you're a master wordsmith or you're the kind of person who thinks about punching in random words on the popular social game Words With Friends, there's one word that is combining more players than you might think - sex. In honor of Valentine's Day, Zynga surveyed 100,000 active Words With Friends players and asked them if and how the game has become part of their love life.
Mattel made a huge killing in its partnership with Rovio and its merchandise like the Angry Birds board game. So rival toy conglomerate Hasbro is saying, "Gee, I'd like a piece of that." It has forged a deal with fellow newly minted gaming giant Zynga to bring a line of games and toys based on some of the most popular social game franchises in the industry. Among the licenses it now has access to are Mafia Wars and Farmville.
The big story this week has been the Facebook IPO filing that is set to make a bunch of early employees at the social network millionaires. The Facebook IPO filing also showed how important game developer Zynga was to the money Facebook earns. The filing showed that Zynga accounted for 12% of Facebook's 2011 revenue. That means that to some extent profits for Facebook and profits at Zynga are intertwined.
Facebook officially filed its IPO today and the documents reveal that the social network's $3.71 billion revenue in 2011 has been dependent largely on its successful partnership with Zynga. Although Facebook generates a majority of its revenue from advertising, Zynga is responsible for almost all of the network's "Payments" revenue, worth 12% of total revenue.
I can't say I approve of what's going on in the gaming industry today when I read something as nasty as what you're about to experience. What follows is an internal memo sent out by Zynga CEO Mark Pincus to his developers, engineers, and the like, congratulating them on their hard work in the face of accusations that they've copied the idea for developer Niblebit's game Tiny Tower with their own game Dream Heights. Pincus has been known to speak on points like this in similar ways before, but his famous "just copy what they do and do it until you get their numbers" remark has never fully been substantiated with proof - until now.
When it comes to Facebook gaming, one of the largest developers is Zynga. Zynga games are offered on smartphones and on social networking sites like Facebook; this company was behind the crazy popular Farmville game on Facebook. Zynga has now confirmed the purchased four smaller mobile gaming to Reuters.