SEG attended the Inside Social Apps conference on 1/25/2011 and came away with the following observations:
The Future of Social Gaming:
- The market is maturing and the volume and brand advantage of the big players is becoming more apparent. Meanwhile, Facebook credits take a 30% revenue cut from game developers is making it tough for new entries in market to build viable business.
- As Facebook has concentrated on the improved quality of traffic it has negatively impacted the virality of game adoption
- Crowdster plans to acquire companies that will expand their mobile footprint and presence in Asia – specifically, China and Japan
- Zynga – acquired 9 companies in the last year and will be doing same ahead – looking for highly cohesive small game developer teams (buying technical staff)
- EA/Disney – will raise the bar in brand awareness and concentrate on better targeting to attract new DAU’s and raise ARPU’s by working with large reputable brands and bringing them into the gaming domains
- The move to mobile is tough as the technical port requires distinct offerings to IOS, Android. As compared to Facebook where they port once and get millions of users.
- Facebook reduced spam by 95% in 2010
- Facebook has 200M users running on mobile phones and those users are twice as active as PC users
- Out of the 200M, 125 million are running on IOS and Android
- To roll out apps today they have 7 alternative configurations that must be supported to work in all mobile and traditional facebook presentation formats