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TheStreet Open House

4 Major Facebook Growth Challenges

Forge a New Developer Strategy

"They need to take care of developers better," P.J. McNealy, founder of Digital World Research told TheStreet, citing a Facebook bias towards Zynga (ZNGA). "We have talked to a wide range of developers and they are frustrated because they perceive that Facebook devotes its resources and its promotions to Zynga, giving little incentive for developers to engage with Facebook."

Zynga, the company behind the popular Farmville and Mafia Wars games, accounted for 12% of Facebook's revenue in 2011 and 11% of the company's sales in the first quarter of 2012.

McNealy, the author of Early Days: The Market for Social Gaming and Facebook's Potential Achilles Heel, feels that, with its reliance on Zynga, Facebook is missing a huge opportunity to tap a new pool of gaming talent.

"The upside is that you get Angry Birds or Halo or some other ground-breaking game first on your platform," he said. "To take care of developers better, that means staffing up, being responsive, and maybe not going after every last dollar from them."

Facebook, which has signed a deal with Zynga until 2015, retains up to 30% of the revenue from Zynga game sales on its platform.

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