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Facebook gamers

Companies Face with Challenges as Facebook Gaming Boom Ends

February 27, 2012

It appears that the grasses are no longer green at the Facebook gaming market.

According to IHS Screen Digest Media Research Insight report from information and analysis provider IHS, Facebook gaming boom is over.

Even though Facebook has continued to grow, the number of monthly active gamers on the social network has not changed appreciably over the past year.

In 2010, almost half of all Facebookers were active gamers, but the figure dropped to 25 percent by the end of 2011.

Facebook’s leading game developer Zynga, for example, lost an average of almost 5.5 million MAUs a month over the past year, particularly between the third and fourth quarters.

Research Zynga MAUs 2011 Companies Face with Challenges as Facebook Gaming Boom Ends

The report illustrates some major challenges gaming companies faces:

  • With stagnant user base, acquiring new player or even retaining older ones has become more difficult and expensive.
  • Facebook gaming scene has also seen a shift away from casual gaming, with gamers seeking deeper, more challenging games, giving raise to increasing number of strategy titles on Facebook.
  • Introduction of Facebook Credits as the compulsory payment platform has placed further pressure on revenues.
  • Facebook is also becoming a major player of the emerging multichannel, cross-platform approach to connected gaming, with the rise in smartphone users. IHS believes that, though Facebook is addressing many of these problems and will continue to do so, it is not likely they will be fully dispelled by the end of 2012.

The report concludes that despite these challenges, small independent game teams with a compelling offering can still find traction, if they can publishing partners to help overcome the hurdles.

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12 Million Users Pay For Facebook Virtual Goods

August 2, 2011

According to a report of digital payment vendor PayPal, 12 million Monthly Facebook gamers in U.S. pay for virtual goods.

It is estimated that out of this figure, 19% accounts for spending under$10, 54% accounts for spending amount from $10 to $50 while remaining 27% accounts for purchasing over$50 on games like FarmVille.In social games, 33 percent of purchases are under $10. About 58 percent are $10 to $50. And 9 percent are $50 and more. In casual web site games, 29 percent of purchases are under $10. About 49 percent are $10 to $50. And 22 percent are for $50 and more.

Facebook games are a global industry and if we are to take the number of paying players worldwide on Facebook then the figure would be much larger.

Social game sector has been growing at a fast pace over the years, as also an increase Facebook gamers. eMarket estimates that the U.S. virtual goods market will be $1 billion in 2011, while Inside Network estimates it to be $2.1 billion. Internationally, virtual goods market is valued at around $6 billion, with huge growth potential in Asia.

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