Facebook has had a good first quarter when it comes to revenue, especially when it came to games. The company reported a total revenue of $1.458 billion, which indicated a 12% rise over the past year. It attributed the rise to the growth of games released in the past year and also to their increased efforts in game distribution, payments conversion, and usage.
Sadly, the same cannot be said for Zynga, which has reportedly suffered a 37% decline in terms of revenue.
Mark Zuckerberg, the social network’s CEO, addressed the issue, noting that Zynga’s growth “hasn’t been as awesome as everyone had hoped” but that the rest of the developers and studios have been growing quite healthily. He also pointed out that the company is connected to 81 and 70 of the top-grossing iOS and Android apps, respectively.
Social gaming has become, without a doubt, one of the major forces in the industry over the past few years. Mushfiq Zaman traces the popularity of these games, hoping to understand what makes them tick, and if they have any drawbacks. This marks the beginning of our social gaming category.
The last decade has seen the rise of several social networking websites such as Facebook, MySpace, Orkut, and most recently, Google Plus. It’s not surprising that along with this came the growing popularity of the games being played on these websites. With online micro-transactions and multitudes of followers, this segment has now turned into a billion dollar industry. The question that comes to mind the most is why and how has this happened?