Crowdstar Raises $11.5 Million for Mobile Gaming, Slowly Moves Away from Facebook

May 4th, 2012 at 11:15 am
 


Over seven months ago, casual games maker Crowdstar announced that it will no longer develop games for Facebook. The company behind girl-oriented titles such as It Girl, Happy Pets, and Top Girl revealed that it has raised a fresh batch of investment to the tune of $11.5 million, which would help Crowdstar double-down on its transition into mobile gaming. This brings the company’s total funding to $35 million.

Crowdstar CEO Peter Relan does not regret turning its back on Facebook and instead provide its games for Android and iOS devices. “We see the mobile market as five to six times larger than the Facebook social games market,” he said in an interview.

Mobile versions of Crowdstar’s games have been downloaded by over 25 million users. About 80 percent of its revenues come from iOS, while 20 percent from Android. Apart from iTunes and Android app market, its games are also available on Amazon app store and Google Play, which contribute to their total monthly revenue.

The past months have been “stifling” for third-party game developers on Facebook. The popular social network has clamped down on viral channels, not to mention how Facebook is eating 30 percent of their revenue and mandates game developers to use Facebook credits for in-app purchases.

Although Apple also takes the same revenue share, it has over 250 million iTunes accounts who swipe their credit cards for exclusive game boosts and privileges. Compare that to Facebook’s 845 million total users, but only 15 million of them use Facebook credits.

Crowdstar is also laying of about 25 people from its Facebook department, which Relan claims he is finding them jobs with other companies in his network.

Source: TechCrunch

 

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