Zynga payments to Facebook down 20%

As platform enjoys 40% boom from other social gaming companies

Zynga's payments to the Facebook platform have dropped 20 per cent in the last quarter, while payments from other gaming companies have increased by 40 per cent

The numbers were revealed by Facebook CEO Mark Zuckerberg in a call to investors last night, following a devastating day for social gaming, with Zynga confirming the axing of multiple jobs, the closure of its Boston studio and the potential shuttering of teams in the UK and Japan.

"Overall, gaming on Facebook isn't doing as well as I'd like, but the reality is that there are actually two different stories playing out here," said Zuckerberg.

"On the one hand, our payments revenue from Zynga decreased by 20 per cent this quarter compared to last year. But the interesting thing is that the rest of the games ecosystem has actually been growing.

"Our monthly payments revenue from the rest of the ecosystem increased 40 per cent over the past year since payments has been adopted. This evolution is pretty encouraging," he added.

Facebook revealed last night that revenues were up 32 per cent for the third quarter, but the company posted a net loss of $59 million.

Related stories

1979 Revolution: Black Friday wins Facebook Game of the Year

AdVenture Capitalist, June's Journey and Star Wars: Commander also among winners

By James Batchelor

Facebook releases Spaces for HTC Vive

Oculus parent officially supports rival VR hardware with social chat app

By Brendan Sinclair

Latest comments (2)

The long term question is will Facebook be a major platform for games on mobile/tablet/pc vs companies setting up stalls and portals of their own thus by passing the FB ecosystem
0Sign inorRegisterto rate and reply
Tim Tryzbiak Founder, ootii5 years ago
Fair question.

Facebook's two biggest draws is it's existing user base and accessibility. We're seeing that different types of gamers are accepting it as a gaming platform and this kind of news helps to support that. With the browser being able to tap into the graphics card, I think we'll see Facebook games evolve and become more acceptable.

My 2-cents, we'll see it change, but not go away. I think there's room in the market for a couple of large portals and Facebook will make sure they're one of them.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.