In its recent SCE filing, Facebook stated, “We currently generate significant revenue as a result of our relationship with Zynga, and, if we are unable to successfully maintain this relationship, our financial results could be harmed.”
According to Facebook, Zynga accounted for 12 per cent of revenue in 2011, either from microtransactions or Zynga ads running on Facebook. What’s more, there are millions of eyes on Zynga browser game pages, which translate to millions looking at ads from other companies on Facebook.
“If the use of Zynga games on our Platform declines,” Facebook stated, “if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.”
And while Facebook expects users and revenue to decline over time, it needs developers like Zynga with proven track records. So you may hate Zynga and its stupid farms, but Facebook sure doesn’t — those microtransactions make the world go round. No wonder Facebook is thinking of charging for non-gaming apps.
For more coverage of Facebook’s IPO, check out sister site Gawker‘s coverage.
Edward
Thursday, February 2, 2012 at 9:38 PMand this is news how?
Facebook wouldn’t allow these types of products if they didn’t allow profit.
Joshy206
Thursday, February 2, 2012 at 11:24 PM12% of Facebook’s profit comes from a different company. That’s news.
Edward
Friday, February 3, 2012 at 12:08 AMall of facebook’s profit comes from different companies. It’s all advertising.
Arky
Friday, February 3, 2012 at 1:08 AM12% of revenue, not 12% of profit. Big difference.
12% of your entire income from one client is pretty big, especially when it would be more considering the knock-on effects from people using Facebook more and seeing more of other companies’ ads because they’re addicted to Zynga games. It means that when Facebook makes design decisions, the effect on people playing Farmville etc is going to be a big factor because they don’t want to risk hurting that revenue stream.
Pariah
Friday, February 3, 2012 at 12:09 AMNow, if only Zynga could make entirely Original games.. I’d consider playing one of theirs.
Chazz
Friday, February 3, 2012 at 2:00 AMI was thinking more if Facebook and Zynga could disappear from the face of the earth.
Caroma
Friday, February 3, 2012 at 5:20 AMDoes the existence of Facebook really affect your life?
Ynefel
Friday, February 3, 2012 at 12:36 PMThe fact that everyone else’s lives seem to revolve around Facebook indirectly affects mine, so yes.
Ahtaps
Friday, February 3, 2012 at 8:31 PMI know you’re just being sarcastic, but while it used to be easy for me to ignore Facebook, the fact that every game, blog, website, company, whatever pushes for you to join their Facebook page just to be able to use their service, have access to information or participate in promotions makes it quite intrusive on one’s life. I imagine it’s going to get a lot harder to stay away from it soon.
monkeyd_93
Friday, February 3, 2012 at 3:28 AMit’s all fun and games till Zynga rips off on Facebook too.
RandomSimsy
Friday, February 3, 2012 at 8:20 AMZynga should try their hand at developing real games… The same formula thrown into every other games has gotten really old…
Tebby
Friday, February 3, 2012 at 1:08 PMBut it makes them a crap load of money.