SNS game into the industry Nuggets hot profit model about future development

Source: Internet
Author: User
Keywords Social games profit models social networks

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With the popularity of the Internet, as well as the flourishing social network, SNS game market is booming. Market consultancy estimates that in the 5 years of 2010-2015, the social gaming market will grow by 4 times times, to $5 billion trillion. However, SNS games are also difficult to escape development bottlenecks, facing the challenges from market segments, profit patterns and so on. In the future, how the social game market completes the breakthrough from product form to business model is still worth looking forward to.

Global social Games wind up

With the popularity of the Internet, as well as Facebook, MySpace and other social networks flourish, SNS game into the ordinary people's online life, a time of wind and wind. Social games are considered the fastest growing category in the gaming industry, and there is no sign of slowing down. According to a report by Parks Associates, a US market research firm, the social gaming market will gain 4 times to 5 billion dollars more in 2010-2015 than 1 billion dollars in 2010.

The analysis points out that at present, more than 250 million people each month to play "FarmVille" and "CityVille" and so on the game, this phenomenon arouses the attention, the game developer, the marketing business, the investor and the operator and so on this market is eyeing. It is reported that McDonald's and outlets and other major brands have been in the existing social games on the cross promotion activities.

From VC companies to digital chocolate, Zynga and other social game manufacturers in pursuit can be seen, the current capital market for SNS game is very positive and recognized. The digital chocolate (Digital chocolate), one of Facebook's top five game publishers, completed a new round of $12 million trillion in financing this February, bringing its total financing to $54 million trillion. The round of funding was led by Intel Capital, with participants including existing investors Sutter Hill Ventures and Bridgescale Partners. Zyngaa, the most famous social networking game developer in the United States, recently completed the latest round of financing, at around $500 million trillion. In addition to the existing venture capitalists, the investors include Morgan Stanley, T.roweprice and Fidelityinvestments, a new shareholder.

At the same time, from the development trajectory of Zynga company, more and more third-party application developers borrow SNS and other new internet industry, the strong rise, and constantly realize the dream of creating wealth. As one of the most successful gaming companies today, Zynga is valued at $10 billion trillion, far exceeding its 6.47 billion dollar old gaming company EA, the world's second-largest gaming company after its 13.3 billion dollar-worth of blizzard. The company, founded in 2007, has been the King of social gaming for several years, and Zynga has expanded even faster than Facebook in the heyday of 2009.

SNS game is difficult to escape development bottleneck

Although social gaming is experiencing a period of golden growth and changing the gaming industry, its development faces some resistance.

First of all, like the social network facing the dilemma, the SNS game market homogeneity phenomenon is also quite serious and lacks the innovation. With Facebook's hottest game app, CityVille, for example, CityVille is successful, such as the virtual city Management genre theme game is greatly imitated by SNS platform: Kaixin launched "Happy City", Renren launched "Happy City"; Tencent is also expected to work with Zynga to introduce CityVille.

Because of the lack of innovation in the game, the user's interest will be reduced after a period of experience. Data show that CityVille after a period of barbaric growth, the last one months began to cool down, monthly active users have been reduced to 89.4 million, from the peak has lost more than 10% of users, but not by other games of the strong impact.

The ability of social game makers to have continued game development has caused market anxiety. For example, for Zynga, New York venture capital manager Rick Heitzmann expressed concern that Zynga already has pets, farms, restaurants and other categories of games, with limited space for future expansion.

Secondly, the user experience in the mobile domain is still full of obstacles. About 200 million per 500 million of Facebook users are mobile users, who are more active in social networking activities. However, the mobile phone this platform's social network has a lot of limitations, restricting the SNS game manufacturers to expand the field. Zynga's chief designer, Reynolds, points out that the social networks of mobile platforms still lack the magical social experience Facebook offers, such as connecting you to distant friends. Visible, mobile domain sharing content is the key to limit user experience, mobile phone field can provide more convenient and accessibility user experience, become SNS game into this area of obstruction.

Third, the development of SNS Games is trapped in the profit model. First, SNS games rely on social networks. For gamers, SNS is clearly a parasitic game on Facebook, MySpace and other social networking sites or smartphones. Although the small game is very easy to start, but all emphasized cooperates with the friend. Social gaming company Zynga has built up hundreds of millions of users in just two or three years, a big reason for this is the good platform of Facebook. Second, advertising fees and virtual props sales are currently the main channel of profit SNS game. Parks Associates, a market consultancy, reported that in 2010 alone these two gains were more than $1 billion trillion. However, this has led to a duplication of replication in the industry and the game products homogeneity serious phenomenon. Have to admit that SNS game in the profit model is still relatively single, other more mature profit model needs to explore and innovate.

It is noteworthy that the SNS game has been plagued by social observers of the moral trial, the encounter questioned. Some people obsessed with SNS games often expose some of the moral misconduct of the behavior, a lot of public opinion unavoidably angry to SNS game.

SNS Game manufacturers must strive to break through

Social games to keep pace and avoid bubbles in the economy, social game makers must go out of their way to break through.

First, the future of SNS gaming firms such as Zynga depends on innovative capabilities, including content and profitability. Industry insiders point out that despite the great success of social games such as Cafeworld and FrontierVille, players will soon be tired of accepting new games and must constantly offer new experiences. Pitro Machileira, an analyst, argues that advertising innovations such as branded games, sponsored goods, communities and advertising entertainment enhance the player experience and create new revenue streams for game publishers.

Second, the market segment is likely to be the next step in social game development. Different social platforms have diversified market needs, but also for SNS games in addition to Internet sites beyond the field of game expansion. Today, mobile phone and microblogging platform for social game developers are eyeing the treasure, but limited by the platform and cooperation mechanism are not clear, both in the product and the model needs to be constantly adjusted. However, industry insiders believe that the combination of micro-blogging and mobile phones must be the next step in social networking game developers focus.

Analysys International believes that social games, with the help of social networks and the development of the Internet 2.0, are entering a stage of rational competition after experiencing rapid growth of patterns and the blowout of users. It is worth looking forward to, the future of social gaming market from product form to business model will be a breakthrough.

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