Social gaming relies heavily on Facebook or toward recession, analysts say

Source: Internet
Author: User
Keywords Facebook facebook Games
Introduction: Foreign media September 19 published an analysis of the article said that Facebook's social media games charging high fees, will lead to a sharp deterioration of the living environment, to get rid of the reliance on Facebook is a top priority. The following is the full text of the article: after Facebook realized that early social media gaming was free to use its network, it closed the free promotion channels on which these games depended for the audience, began charging advertising fees at market prices, and asked to be divided into all commercial transactions. This dramatically changes the way social gaming survives. The development of social media games can no longer be easily and freely available to a large number of audiences. Open-Download casual games if posted via Facebook channel channels, game developers can get 25% to 30% of the game's online revenue.  And after a 30% dividend on Facebook and a fee for advertising, the marketing costs of social media games will be concentrated in the mature open and downloadable leisure gaming business. Social game developers now have to compete with other large multiplayer players in the online gaming market after free viral marketing (the initiator sends the initial message of the product to the user, relying on the marketing model of the user's spontaneous Word-of-mouth campaign) is closed. Interestingly, these vendors are not known as "social media games" because they do not publish their products through social networks, they promote games themselves, do not need funding, and do not rely on Facebook's huge user base. This leads to a very interesting situation: once the "normal" market value of product promotion is introduced into Facebook, games that lack players and rely solely on social networks will compete with large multiplayer games, which have a much greater ability to realize and communicate more efficiently than social media games.  The only advantage of social media gaming today is that Silicon Valley thinks they are "hot" and willing to invest a lot of money. Next we will see that the tragedy of the casual gaming arena between 2004 and 2006 will happen again. At that time, a lot of capital poured into casual gaming companies, allowing them to buy audiences and distribution channels at a price beyond the game's liquidity. Cash-strapped casual gaming companies are spending a lot of money on audience access, creating the illusion of user and revenue growth. But the payoff from each user is less than the cost of getting a single user. As long as money keeps flowing in, casual gaming publishing is looking to grow. But when the bubble burst at the end of 2008, it became clear which companies had established sustainable publishing businesses and which companies were not working.  RealNetworks, who once became the largest and fastest-growing casual gaming publisher in a antitrust lawsuit against Microsoft, has fallen into recession. Social media is repeating itself. After Facebook changed its rules, the industry's early leaders faced two very bad facts: one is that, unlike casual games, their promotion rights do not allow direct access to Facebook audiences;Paying advertising fees will bring them great financial pressure. In the face of this challenge, social game developers have been actively taking self-help measures, such as 1, to find buyers as quickly as possible before they realize their growth and business lack of sustainability, 2, use abundant capital to get their own users, or buy other gaming companies that do not rely on Facebook,  To get rid of Facebook's dependence; 3. Invest a lot of money in marketing to maintain a superficial growth. Social gaming company Zynga abruptly canceled the Farmville of social games on MSN, probably because the company, after paying a large distribution fee, found the game underperforming enough to balance its spending.  In addition to the Facebook platform, Farmville is less capable of bejeweled than gems (bejeweled) and Scrabble (Scrabble), which limit the advertising market value of the platform. Just check out the home page of the open download casual gaming website to see which games dominate the competitive market where the fees are to be charged. If Farmville's online revenue performance is excellent, it will replace those games.  But before that, the most powerful game on MSN was Cubis, and Zynga needed to buy a place on the home page to promote Farmville. "Social games" will soon be obsolete and forgotten. Social networking itself is also a game, social Atlas is a very effective way to promote the game, and "micro-Money" (microcurrency) business model and advertising, can greatly promote the online. Everything else will be swallowed up by the highly competitive, already established open downloads and multiplayer online gaming market. The surviving social media game makers must be using plenty of money to get out of Facebook. (Yan Fei)
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