For Facebook and social games, 2010 was a good, not a great, year. Facebook became the pre-dominant distribution channel for games worldwide with 40%+ of its 500 million usersplaying games and social game companies such as Playdom selling to Disney for $700 million and Zynga on the path to generate $1 billion on revenues based mostly on Facebook distribution. Yet, Facebook arbitrarily changed its notification rules many times over the year bringing uncertainty to the market and drove many social game companies to the brink of bankruptcy (note: if Zynga or Playdom buys you for next to nothing because you were about to go out of business, you are lucky, not a genius). In 2011, I predict that Facebook will get its groove back and become a dominant place to play and make money on games worldwide. However, it will not be the number one games distribution channel in the world.
According to AllThingsD, Facebook has finally filled its Head of Game Partnerships position. And the winner is . . . Sean Ryan, the now-former EVP and GM of Games at News Corp. Sean Ryan is a very interesting, and dare I say, good appointment for this position.
If you were a doubter that 2011 will be the year of social mobile, two announcements today should relieve you of any doubt. First of all, Pocket Gems, makers of the Tap series of social games on the iPhone announced they have raised $5 million in funding led by Sequoia Capital. Pocket Gems games include Tap Zoo, Tap Farm, Tap Jungle and have been downloaded more than 15 million times. $5 million and 15 million downloads…those are big numbers!
Mark Pincus, CEO of Zynga, proclaimed at Web 2.0 that he wants to dog-activate the world. No, he is not talking about placing a Zynga microchip to tag every dog in the world. But what he is saying is no less ambitious. The plan next year is that whenever someone sees the cute Zynga dog logo, people will know that users are playing a social game. This, of course, is Zynga Live, and is going to Zynga's social gaming network, competitive with the social gaming offerings of Facebook, Google, DeNA, and the like.
Go West, young social game developer. And East, and North, and South if you truly want to diversify beyond Facebook and generate more revenues for your social game. That's the gist of Paul Hyman's article in Gamasutra, Beyond Facebook: Global Social Game Opportunities.
In the words of Joe Osborne of Games.com, let's hope not. Facebook added to it's Games Dashboard. One, is Games Stories, a section where you can view a scrollable feed of your friend's games related activities. If Bob is sending you seeds in FarmVille, now you have one place to view this exciting development, instead of on your main profile feed. The second change is that when you get a game related invite, the button you will view says "Accept and Play" instead of just "Accept."
According to TechCrunch, Facebook is merely weeks away from launching a new gaming portal to make it easier to find and play social games within Facebook.
In yesterday's blog post about Facebook's latest privacy flap, I focused on the fact that Facebook turned off and back on LOLapps games over the weekend for sharing private information with third party marketers. According to the Wall Street Journal report, all the top 10 game applications on Facebook shared private information with marketing companies, including Zynga (see related stories on Wired). This begs the question: If many game companies were at fault, why was LOLapps singled out?