Zynga and Farmville Leaving Facebook?

Date: Dec 19 2010 07:09:20 Source: Views:
KeyWord: Zynga, Farmville, eaving, Facebook

Many Facebook users are aware, if not extremely annoyed, by those of their friends raising virtual farms using Farmville, developed by online game creator Zynga. According to a report, Zynga is going to launch its own social gaming network, Zynga Live, in part due to a feud the company is currently embroiled in with Facebook.

Zynga apps are among the most popular on Facebook with four in the top 10; Farmville (#1), Cafe' World (#6), Mafia Wars (#8) and Petville (#9), on a site with 400 million-plus users in Dallas and around the world. That means a great deal of revenue for Zynga and increased marketing opportunities related to its games to a tremendously large and diverse market.

The report bases its faith in the creation of Zynga Live on an announcement made Thursday by Zynga CEO Mark Pincus, which also confirmed the Zynga-Facebook feud:

"Pincus announced at a 5pm meeting yesterday at Zynga that Zynga was going to launch a social game network called Zynga Live. The Zynga Live initiative was a social gaming network. Facebook and Zynga has been negotiating on Facebook Credits and the talks turned for the worst. In the negotiation process, Facebook shut off Zynga’s feeds and threatened to shut down games. Zynga in the process threatened to completely leave Facebook and prepared to do so in the previous upcoming weeks."

Facebook requires Zynga and other developers to use "Facebook Credits" as the platform payment method with Facebook keeping 30% of the revenue made from the sale of credits by developers. Another area of contention between the two is the thought that Facebook is trying to get Zynga to enter into an exclusivity deal requiring Zynga to use Facebook as the primary platform for their games.

Do you think Zynga will spurn Facebook, and if so will going out on their own harm or hurt their longterm success?



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