This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Facebook, the Gaming Network

NEW YORK ( TheStreet) -- Facebook (FB - Get Report) claims to be a social network, but it's increasingly a gaming network. That's where the money is.

Gaming takes time, so the market is something of a zero-sum game. Gaming is a bit like music in that tastes differ. My daughter, for instance, is a social gamer, while my son is into console strategy games. The time they take from games is mostly taken from TV. I have the set to myself these days.

The big news in gaming over the last few years has been the rise of social gaming, which started with games like Farmville from Zynga (ZNGA - Get Report), which my daughter played for months. Notice I wrote "played." In social gaming, trends rise and fall like pop songs.

Social games don't require much bandwidth and they are relatively simple. By seizing this ground, Facebook has become the dominant gaming platform.

During a speech at this week's GameDev Conference in San Francisco this week Sean Ryan, the Facebook head of game partnerships who came over from News Corp. (NWS - Get Report) in 2011, delivered some big numbers on the success of this strategy.

There are now 250 million gaming users on Facebook, the company paid $2 billion to developers over the last year, and over 100 developers took home over $1 million of that money, as reported by WebMediaBrand's site Inside Facebook. Facebook's big news at the conference was that it's ready to pay developers in local currency.

Ryan acknowledged that Facebook's niche is in casual games, like Farmville. The latest in this line is Candy Crush Saga from, of London, England. But by being the home of such games Facebook is at the center of a $3 billion business, he said.

WebMediaBrand's Appdata site tracks Facebook game usage. Its numbers are revealing.

The top developers are mainly the names you know including Zynga , Microsoft (MSFT - Get Report) and Yahoo! (YHOO - Get Report) along with some new European-based game makers such as

Ryan wants to grow Facebook with what he calls "core" games, which are deeper, more similar to console games, adding that a number of such titles will come out on Facebook soon.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZNGA $2.60 1.76%
AAPL $118.03 -0.71%
FB $105.41 -0.31%
NWS $14.60 0.00%
MSFT $53.69 -1.03%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs