Facebook And Zynga Partnership Days Numbered?

March 2nd, 2012 at 1:06 pm

Social gaming has become quite a popular distraction among those who frequently go online. By far, the pack is being led by the partnership between social game maker Zynga and social network behemoth Facebook. It has been one of those partnerships that has introduced and popularized social gaming into a giant that it is today. But some changes may be in the air as Zynga has announced that it is putting up its own social gaming site.

Zynga recently announced that it is coming up with its own social gaming site where online players may be able to access. The social games maker is planning it to be a new destination for social gamers to visit. It will be rolled out in beta release where aside from Zynga games, other social games from third party game developers will eventually also be made available. What would this mean to the Zynga and Facebook partnership?

Zynga is making what may be considered as a strategic move on its part by having another option available aside from its own partnership with Facebook. But for the most part, the current partnership will in no way be affected, at least for now. But companies may still need each other in terms of revenue. According to online sources, Facebook makes around 12 percent of its revenue from social gaming or its partnership with Zynga. On the other hand, Zynga depends 90 percent of its income from its partnership with Facebook. Given the numbers, breaking up its partnership with Facebook would be disastrous for Zynga.

Not only that, Facebook may still offer Zynga the opportunity to reach out to future social gamers. So far, Zynga only has around less than 25 percent of Facebook’s over a billion users to date. There are still around three fourths of Facebook users who may still become Zynga’s regular social gamers in the future. That is an untapped market that any sane company would not want to let go just yet.

While Zynga may have built its own social gaming platform, it is still careful not to draw the ire of its current bedfellow Facebook with its move. That’s is one of the reasons why the Zynga.com site will still be using Facebook Credits for its underlying payment system from which the social network will be able to get around 30 percent revenue share for each transaction made.

When it comes to how the partnership will develop between Facebook and Zynga in the future is entirely up to both of them. But it has been a common understanding in any business circle or industry that no partnerships can last forever. And for Facebook and Zynga, the same thing might apply. It might not be soon or at any time in the near future, but such a time will come. That is may be why both companies are readying themselves for such an eventuality.


Tags: , , , ,