Everyone knows that mobile gaming is huge and growing even bigger every day. Facebook could finally tap into the mobile gaming industry and generate direct revenue from it.
What better place for mobile games to reach consumers then on Facebook. The company is talking with some developers that work with a few small mobile games. The plan is Facebook will let the developers run distribution through the mobile ads if the developers will give the company a cut of their revenues. Facebook has not confirmed or denied this, but summed everything up by stating they are working on some tests that involve mobile game distribution.
In just one quarter Facebook earns a little more then $200 million from fees and payments. Most of the earnings is coming from social games that offer virtual currency transactions. So far the business has not been replicated for mobile devices. The reason is because the major stores for Smartphone apps are controlled by Google and Apple. These two companies get a 30% kick back on all digital transactions. Facebook however is earning a chunk of their revenue from developers for mobile games through buying mobile ads, which made Facebook $373 million in only one quarter.
Why Small ?
With big names dominating the playing field it does not give a chance for the smaller companies to be seen. By Facebook working with the small companies it gives them the opportunity to be seen by millions of players that otherwise would never know about the games being offered.
In other parts of the world like China, South Korea, and Asia there are some amazing things being done using the normal platforms of Android by Google and Apple’s iOS.
Some of the feedback that is going around deals with developers and how they can make a game and just add it to one of the app stores. Many do not understand how it can be lucrative pairing with Facebook. The bottom line is when a game is not a hit then everyone loses on any funds being made. On the other hand though when a game is a huge success then there is friction with the developer because now they are questioning why there is a need for the other party involved to get the kickback. Some have even took things a step farther and made a game similar to the original hit and led the users to the new game.