SGN Acquires Way to the Top

Last week I interviewed Mark Pincus of Zynga gaming network. At the time, Zynga was the largest gaming network on the social networks. This week the tides have turned with Social Gaming Network’s acquisition of Free Gifts, Nicknames, Oregon Trail and Friend Block. While these aren’t necessarily games they are some of the most active applications on Facebook.

Just like Zynga, Social Gaming Network has built their own toolbar which sits at the top of their games and helps distribute users across their network. The platform enables any developer to become part of their network and benefit from some of the traffic being generated by the network as a whole. Currently Zynga and Social Gaming network sit at the top of the food chain but there are a number of other competitors that are joining the race.

While it will be extremely challenging for new entrants to compete thanks to the decrease in application virality, an evolution of gaming technologies could easily bring about new competitors. Social Gaming network is also rumored to be raising another round of funding. It will be interesting to see how this space pans out.