samedi 18 février 2012

Facebook And Gaming - What We Can Reveal From S-1 IPO Filing - Part 2

By Thomas Neanderthal


"Apps built by developers of social games, particularly Zynga, are currently responsible for substantially all of our revenue derived from Payments"

Social online games are the only applications recently creating incomes from virtual currency and digital wares trades. This is in all likelihood to modify as "gamification" triggers to take hold and different kinds of Facebook apps begin to develop digital wares and currency into their packages. The model of retention points conventionally offered by international airlines, credit card companies, and much more might possibly be a fantastic pursue market place for Facebook. Facebook furthermore needs to force its digital money aside of the US and particularly in Asian countries in case it wishes to back aggressive financial expansion projections.

"If Facebook-integrated websites draw users away from our website, it may reduce or slow the growth of our user activity that generates advertising opportunities, which could negatively affect our advertising revenue.

Although we believe that there are significant long-term benefits to Facebook resulting from increased engagement on Facebook-integrated websites, these benefits may not offset the possible loss of advertising revenue, in which case our business could be harmed."

What really is Facebook indicating right here? Lately internet sites together with internet gaming sites have opted that they do not need to go through the endeavor of structuring Facebook designated products. Alternatively, they are moving customers right from Facebook to their world-wide-web apps by embedding a shift in Facebook. Facebook recognizes this and worries that this will result in Facebook internet consumers noticing that there is certainly a realm aside of Facebook. Facebook intends to sustain you all the way through Facebook. They have currently taken means to shut down the capability to take Facebook end users out from Facebook by method of the fake Facebook application technique.

"We currently generate significant revenue as a result of our relationship with Zynga, and, if we are unable to successfully maintain this relationship, our financial results could be harmed." In 2011, Zynga accounted for approximately 12% of our revenue, which amount was comprised of revenue derived from payments processing fees related to Zynga's sales of virtual goods and from direct advertising purchased by Zynga. Additionally, Zynga's apps generate a significant number of pages on which we display ads from other advertisers. If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected. "

Obviously Zynga's impact on Facebook is huge. It furthermore signifies that social internet gaming provides an effect on advertising profits on top of everything else. Skeptical if the twelve % takes into account the advertising profits that Zynga triggers and the amount of money of the whole earning Zynga creates to Facebook. We should probably dig into Zynga's own S-1 to determine that. Furthermore, Facebook doesn't point out the full finances effects of all social online games in Facebook right from a online currency and also advertising campaigns standpoint. Very likely observers were not clever enough to ask specific quiz. In case you ought to make investments in Facebook you will need to get to know the explanation to these challenges. There are actually a bunch of sizable game publishers in Facebook and collectively they have a huge impact on Facebook's economical outcomes.

To be continued ...




About the Author:



Aucun commentaire:

Enregistrer un commentaire