Breaking Into Social Gaming — A Must-Read Guide To Entering the Facebook Game Space

Mike Turner is a managing partner for Bitfold Online Games, an independent social game developer that focuses on original social game IP for Facebook, international social networks, and mobile devices. Read more about Bitfold after the article.

The social gaming market is without doubt the new buzz in the world of gaming. The top companies in the social market have launched games which have millions of users and million in monthly revenue. However, most of the successful companies in the space are either totally new companies like Zynga or casual gaming companies like Popcap games or King.com. Only a small handful of developers & publishers established on other gaming platforms (consoles, MMO, etc.) have had any success in the social market.
Why is this?

In our opinion it’s because these casual gaming companies & new upstarts have gone into the space with the exclusive intention to take risks & experiment within the space. Through extensive experimentation, these companies have learned how to make good games that social networking users want to play. Developers established in other platforms such as consoles or MMOs do not possess similar experience. They therefore have had a much harder figuring out how to make games users want to play their games and have experienced many failures in the space.

In our view however, this doesn’t have to be the case. We believe that if any new entrant is able to create games that social networking users love to play and learn how to incentivize these users to keep playing & spend money, they can be successful.

This article attempts to explain the keys to creating a successful long-term presence in the social gaming market. It is targeted at any developer or publisher who has had success in other markets and wants to get into social gaming.

 

Part 1 – The social gaming market for large game companies

 

Before entering a new space, it’s first important to determine what return is likely in the market and decide whether this return is enough to justify the risk and cost of entering it. This section tries to provide the information required to make that decision by providing the following information:

  1. Definition of the social gaming market
  2. Performance of successful social game developers and where new entrants can realistically hope to place among them
  3. The key trends among successful social game developers that make them successful The cost of entering the social market
  4. The performance of brands in social games

 

How do you define the social gaming market?

 

Social games sometimes mean different things to different people. Most often though, it is used to describe games that are played primarily on social networking sites or games that can be played with a person’s real world social graph. The primary platforms on which these games are played are described below.

Facebook
With nearly 700 million registrations and 350-400 million active users monthly, it is undoubtedly the most popular social networking platform in the world. According to ALLFacebook.com, 53% of these users play Facebook games. Because of this highly active userbase and a high percentage of users in “rich” countries, it presents a great platform for gaining lots of high-monetizing users. However, in the last year, the cost of acquiring users on Facebook has risen sharply. Adparlor estimates that purchasing installs can cost anywhere from $.50 – $3 per install. Thus launching a game on Facebook often requires heavy marketing investment to gain a large number of users.


Facebook – The 400 million pound gorilla in the social gaming space

Other Social Networks
There are many other social networks outside of Facebook. These networks fall into several categories.

  1. Regionally popular general social networks such as Orkut (Brazil), StudiVZ (Germany), Vkontakte (Russia), and more.
  2. Secondary English speaking networks (Bebo, Blackplanet, Tagged, etc.)
  3. Specialty networks focused around specialized themes such as gaming (IMVU) or Journaling (Livejournal).

Individually, each network only has around 2 million (IMVU) to 50+ million (Orkut) monthly active users a piece. Added together however, the combined active userbases add up to hundreds of millions of active users. Therefore, games that target a large number of social networks at once have the possibility to gain several tens of thousands or millions of extra active users. Among those who have ported their games to outside social networks are leading Facebook developers LOLapps, Wooga, OMGPOP, and Kixeye.