Social Game Revenue Will Outgrow Facebook By 2014

Despite its 800 million-plus members, Facebook is not the only game in town when it comes to social gaming, especially when venturing outside the confines of North America.

Despite its 800 million-plus members, Facebook is not the only game in town when it comes to social gaming, especially when venturing outside the confines of North America.

In fact, a study by SuperData Research, on behalf of social games platform Viximo, projected that the non-Facebook portion of the social gaming revenue pie will jump from $3.2 billion in 2011 to $5.6 billion in 2014, with the overall total (including Facebook) reaching $8.6 billion.

Viximo cites three primary factors creating opportunities for platforms other than Facebook.

1. Consolidation

Seven of the top 25 Facebook games in terms of monthly active users are from one developer, Zynga, which also boasts a multiyear agreement with the social network, giving the game company an advantage over smaller developers.

2. Facebook Credits

The use of Facebook Credits as a payment platform became mandatory for all game developers July 1, offering developers less flexibility. Having to share 30 percent of revenues is a big sore point.

3. Messaging Restrictions

Many game developers feel that the potential for viral growth was dampened by Facebook restrictions on the types of messages companies can post on users’ walls.

In fact, the social network recently went as far as to shut down several applications without warning.

Key Markets

Viximo and SuperData cited the Netherlands, Spain, Turkey, Germany, Brazil, and Russia as key growth markets, and the white paper includes profiles of the following non-U.S. social networks:

  • Hyves (Netherlands)
  • Tuenti (Spain)
  • VKontakte (Russia)
  • VZnet (Germany)
  • Yonja (Turkey)
  • Quepasa (Latin America)
  • Orkut (mostly Brazil)

Readers, do you think it is smart for social game developers to target social networks other than Facebook?