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May 12, 2010

Zynga to leave Facebook?

Lately, there have been speculations that because of the spat between Facebook and Zynga, the latter is secretly contemplating on leaving the leading social networking site and putting up its own social gaming site, Zynga Live!

This came about when Facebook started to require all 3rd-party applications to use its own payment system (Facebook Credits is the native virtual currency). As such, all transactions that go thru their system, Facebook gets a 30% cut.

That 30% is a huge cut. Zynga is said to be making about $300 million a year and only 1/3 of it is thru lead generation. That means Facebook could be getting 30% of the other 2/3 (or $200 million) which is $60 million.

That’s 60 million reasons for Zynga to re-think its Facebook partnership. In one end, Zynga relies a lot on the Facebook network to acquire traffic but at the same time Zynga is the top advertiser on FB. The two clearly needed each other. It’s interesting to note that the owner of Zynga, Mark Pincus, is also an early investor in Facebook.

If the breakup does happen, users will have to choose between Facebook and Farmville (not really, actually, since users can still go to both but that would mean less time spent on FB). In any case, gamers can also go to FarmVille.com and log in using the FB accounts to continue to play.

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15 Responses to “Zynga to leave Facebook?”

  1. wh@â„¢
    Twitter: CallMeWHA
    says:

    how sad if they will leave the FB site. less time will be spent on fb..

  2. Carlo says:

    I don’t think Zynga will make it without Facebook. Facebook is full of social games that are waiting to replace Zynga if and when it leaves.

  3. Calvin says:

    as long as player’s don’t have to create a separate account to play but can still use their fb account. then ok lang siguro. usually you have two windows naman eh, one for the game and the other for fb.

  4. simplynice93
    Twitter: simplynice93
    says:

    Zynga is a big loss to Facebook. But if they indeed leave, FB lovers will surely find another game to enjoy.

  5. daddy joey says:

    zynga is one of the reasons behind FB’s success

  6. lolipown says:

    ^
    isn’t it the other way around?

  7. Onynz says:

    Well, its a two way street, I believe they both need each other to survive or else.. we’ll again see fs’s resurgence…

  8. astig says:

    nakakainis na rin yan farmville, lagi nagloloko yun server. minsan magtanim ka tapos pag binalikan mo after you log out, wala naman natanim back to zero ulet. hay.

  9. Anony says:

    Don’t you know how many games zynga created that got FB users addicted? hmmmm FB will lost it shares probably just another friendster in the future if zynga leaves.

  10. loadex says:

    they complement each other… or zynga can go to friendster and souped up the competition. I guess friendster will accept any amount lower than the 30% FB is asking.

    for any social networking site any $ generated is very much welcome i guess.

  11. ligrev
    Twitter: Ligrev
    says:

    That would mean a BIG shift in the balance of power. Lol.

    -Sent via YugaTech Mobile App

  12. Jon
    Twitter: rand0m_insanity
    says:

    I think if Zynga leaves Facebook, it won’t be long before another game developer fills in that void.

    Therefore Zynga needs Facebook. Yeah, a lot of their games are popular right now, but when people get tired of those, Zynga would need a platform to promote new or other games easily.

    Facebook can put games into their system, but Zynga may not be able to successfully put a social network into their system.

    On another note, 30 percent is a lot!! Greedy jerks.

  13. Hatching A New Social Media Marketing Book…

  14. Deric says:

    Facebook will live without Zynga. The question is, can Zynga do it without Facebook? I don’t think so.

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