Zuckerberg Isn't Pleased With The State Of Facebook Gaming, But Its Getting Better

With Facebook's major gaming revenue source faltering and social gaming in general struggling to find new ways to engage and earn without annoying, it's no wonder Facebook founder Mark Zuckerberg isn't happy with the state of gaming on his massive social network.

During yesterday's earnings call as reported by TechCrunch, Zuckerberg came right out and said it: "Gaming on Facebook isn't doing as well as I'd like." The main reason behind the statement was the troubled Zynga. Last year the company was responsible for 62 per cent of Facebook's payments revenue -- 12 per cent of Facebook's overall revenue. This year the numbers have dropped to 40 per cent and 7 per cent respectively. That's a rather massive drop.

As Zynga struggles, other social game developers are stepping up their game, with companies like Kixeye, King.com and Wooga moving in to make up for Zynga's losses.

He went on, "But the reality is that there are actually two different stories playing out here. On the one hand, our payments revenue [from Zynga] decreased by 20% this quarter compared to last year. But the interesting thing is that the rest of the games ecosystem has actually been growing. Our monthly payments revenue from the rest of the ecosystem increased 40% over the past year, since payments has been adopted. This evolution is pretty encouraging."

It's another sign that social gaming as a whole is evolving beyond the template Zynga established. Hopefully the FarmVille company can keep up. If not, there's plenty of competition ready to take its place.

Zuckerberg: "Gaming On Facebook Isn't Doing As Well As I'd Like" [TechCrunch]

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Comments

    I still don't entirely understand the people who pay real money for bonuses in games. But I'm a kid who grew up with cheat codes in the backs of magazines.

      If you got them from magazines, you technically paid for those codes, though :)

        The game magazines I grew up with were bought by or for my oldest brother, so they still felt free

        Hahaha. Well played. Although I think my parents were the ones paying for them at the time. Maybe I should call my parents now and ask for some space coins.

    Its very simple to understand, do you watch all the Movies out there? some are romantic, some are more serious, some are more documentary. gaming medium has grown to allow more people to be interested, especially women which are majority of social gamers on FB. A lot people who can accept to pay for a few dollars inside a free game, especially they are new to games in general and this is the way it is presented. It is only old gamers who are not use to this model that feel a bit cheated.

    Facebook gaming is a parasite. We need fine grained privacy controls, not "share everything or don't play". It's like mobile gaming was overpriced and undervalued until the App Store and iOS showed the world the proper way to do it.

    The game magazines I grew up with were bought by or for my oldest brother, so they still felt free.
    EDIT: Wrong spot, please ignore.

    Last edited 25/10/12 3:03 pm

    Facebook is terrible. Not just for games, it's a good concept but it's getting worse.

    The problem with a lot of the games, zynga's in particular, is that it costs SO much real cash to complete things.

    If you look at Pioneer Trail (frontierville) - I worked out how much it would cost me to complete a couple of the buildings, and it would have been something like $300 per building. And there are over 50 buildings. I think I have about 30 I am in the middle of building and it takes freakin' forever to do it when you are just asking for parts from "neighbours" so the temptation to pay is great, but not worth the cost.

    And then there are the quests, that you also need parts to complete. So you might be looking a few hundred $$ per quest too. No one is that rich. I have over 100 quests I haven't completed because they just take so long.

    Add to that, the limitations that facebook itself places on games (placing limits to the number of wall posts and requests) and you can't get anywhere with the games.

    Its at the point where people are giving up on the games all together, instead of paying for the parts they need because its just too expensive and frustrating. Its no wonder they are having issues with revenue.

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