Social Gaming Network
by Michael Arrington on July 24, 2009

Another data point that profitable businesses can be built on the back of the iPhone/iPod Touch app store: Social Gaming Network’s F.A.S.T. dogfight game, which launched in early June and lets users try to shoot down other human players, pulled in over $1 million in download fees alone in the first six weeks it was available.

SGN is clearly trying to find the revenue-maximizing price for the game – it has varied from $9.99 (the price I paid in June), to just $1.99 today. The game will eventually allow paid-for upgrades to weapons and jets when the new version comes out as well, which will bring in more dollars from addicted users.

This is an extraordinary game and certainly not representative of the average revenue from other paid apps in the App Store. But it also isn’t even currently on the top list of paid apps, and it continues to pull in substantial dollars, spiking, we hear, to as much as $60,000 per day.

by Robin Wauters on June 8, 2009

Social Gaming Network (SGN) keeps on pushing out great entertainment applications for the iPhone, and we can’t help continuing to put those in the spotlight. Not only because SGN produces some damn good games that we love to play – check out its suite of Wii-like games for starters – but also because we’d really like to see more developers leverage the network capabilities of the famed Apple device like SGN and other savvy developers are doing.

by Michael Arrington on May 5, 2009

People say the iPhone is really a gaming device with a mobile phone bolted on. And given how much time I spend playing games on my iPhone, I tend to agree. The touchscreen, accelerometer and (mostly still untapped) ability to play games against others over Wifi or 3G make gameplay compelling.

Social Gaming Network (among the first to exploit the iPhone accelerometer to create Wii-like games), is coming out with a new jet fighter dogfight game. The graphics are stunning, and you can fight against computer opponents or other people playing the game.

This isn’t the first iPhone dogfight game (Flying Aces and Top Gun are popular), but the graphics are way beyond what I’ve seen with the other games, the social fighting aspect is a first and unlike those games, SGN’s will be free. I had a chance to play it this morning in our offices, a video of that demo is below.

by Michael Arrington on December 30, 2008

The ongoing litigation between Mob Wars creator David Maestri and SGN is over. On December 16 the two sides reached a settlement. The Mob Wars game goes to Maestri, but SGN will have rights to create similar style games itself. SGN also received an undisclosed financial settlement.

The history of this powerful little app is dramatic. It was first created by Maestri while still employed at SGN’s former iteration, FreeWebs, under the pseudonym Jason Gilbert. That alone is evidence that the game actually belonged to his employer. Maestri left SGN in February 2008, and SGN sued Maestri for control over the game. For more background, see here.

Mob Wars, which is a game that lets players act as criminals and rise through the mob ranks by committing crimes, fighting other players, etc., brings in a lot of money. Players use real currency to buy weapons and other virtual goods on the site. Some estimates suggest revenue may have peaked at $1 million/month, and there are nearly 2.5 million active users of the application on Facebook today.

It has also spawned a number of copycats, including Zynga’s Mafia Wars, with 2.7 million active users.

by Michael Arrington on December 24, 2008

Social Gaming Network is launching new versions of its Wii-like iPhone sports games that let users play against others who’ve installed the apps.

In August I was disappointed that so few iPhone applications leveraged the network effect to spread virally. I used the chess apps as an example – there were lots of them, but none at the time that let you play against other people.

The chess problem has since been solved. But I am still amazed at how few applications let iPhone users interact with each other (other than the nascent mobile social networks, which continue to gain users quickly).

But SGN, which launched a bunch of sports-themed games that turn the iPhone into a Wii-like controller (and are experimenting with the iPhone as a PC game controller, too), is starting to experiment with multi-user games where players can compete against others who have the application installed.

by Michael Arrington on November 17, 2008

We’ve had a blast playing SGN’s suite of Wii-like games over the last few months – iGolf, iBowl and iBaseball (basketball, tennis and boxing are coming soon). The apps are being downloaded like crazy on the App store, and no wonder – you get to swing your iPhone all over the place while you play the games.

Now SGN is rolling out something a little different. iFun turns the iPhone into a Wii-like controller, but the actual games are played on normal desktop and laptop computers.

The first title to launch is golf. If you don’t quite get it, see the video below:

by Nick Gonzalez on October 28, 2008

playfishOver the past year video games have begun invading every computing platform, from social networks to mobile devices. They’ve also been picked up in the portfolios of a number of firms.

London based Playfish has just raised a $17 million series B round led by Accel Partners and Index Ventures. Kevin Comolli, from Accel Partners and Ben Holmes from Index Ventures, will both join its board of directors. The company plans on putting the funds toward hiring for their 4 international offices and expanding their reach to other platforms.

The new round combined with a $3 million seed and $1 million bridge financing, makes Playfish one of three social gaming startups to take in $20 million or more in financing (Zynga – $39M, SGN – $20M). Playfish differs most from these competitors in its highly polished in-house game development. I’d call it the Wii of social gaming companies.

by Michael Arrington on October 15, 2008

SGN is definitely on to something with these Wii-like iPhone games. They’ve had over 2 million downloads of iGolf and iBowl. And tonight they’ve released the next game in the series, iBaseball (iTunes link).

Like the other games it’s free, and you use the accelerometer in your iPhone to control game play. The application includes applause and game sounds, vibrates when a hit is made, and supports left handed game play. You can also challenge your friends to play, asynchronously for now but with direct head-to-head play coming soon says CEO Shervin Pishevar.

by Michael Arrington on October 3, 2008

No surprise that SGN’s iPhone games are doing so well – they’re fun to play and they’re free. iGolf is at no. 7 on the top ten apps list and has, the company says, more than 1 million downloads. The newly launched iBowl is at no. 8.

Both games extensively use the accelerometer to control game action, resulting in a Wii-like experience. The only problem is the high chance of throwing the iPhone through the nearest window.

by Erick Schonfeld on October 2, 2008

Who needs a Nintendo Wii when you’ve got an iPhone? The Social Gaming Network, which released a Wii-like golfing game for the iPhone two weeks ago, has now followed up with a bowling game. As with iGolf (which has already been downloaded more than 900,000 times), iBowl uses the iPhone’s accelerometer to detect a player’s swing. You can twist your wrist to give the ball spin or direct it to the pins.

SGN is better known for its games on social networks like Facebook and MySpace. iBowl is free and you can challenge your friends to games. But there does not seem to be much of a social component besides that. Not that it needs one. Becoming the Wii of the iPhone is probably a big enough opportunity in its own right. But it would be cool if you could somehow challenge your friends Facebook or other platforms to play the same game, much like like Mytopia does with casual games. Although, it probably wouldn’t be the same without the accelerometer.

by Michael Arrington on September 29, 2008

SGN founder Shervin Pishevar, jetlagged and sleep deprived on a “secret mision” trip to Eastern Europe, wrote a long and partially lucid email to friends last night. I reprint it here because it captures much of the entrepreneurial spirit that drives so many of the men and women who we write about.

The full email, along with a YouTube clip, are reprinted below with Pishevar’s permission.

by Michael Arrington on September 17, 2008

Once you’re done turning your iPhone photos into works of art that Monet would be envious of, check out iGolf, a minutes-old app created by Palo Alto-based Social Gaming Network.

The application uses the iPhone’s accelerometer to detect a golf-swing like motion with the phone. Choose a club and swing the iPhone just like a golf club. Save your high scores and challenge your friends to beat your distance. Our best score with the driver so far is 406 yards.

The app is free, which will be appreciated by those of us who’ve spent untold numbers of quarters playing Golden Tee at the local bar. TechCrunch writer Jason Kincaid tests the app – see the video below.

Try not to throw your iPhone through the window while playing. But if you do throw your iPhone through a window, please send us a video of you doing it.

by Don Reisinger on September 16, 2008

Social Gaming Network

Social Gaming Network Tuesday announced that it has completed its acquisition of (fluff)Friends, a Facebook game that lets people adopt virtual furry friends and interact with friends who also have virtual pets.

(fluff)Friends users can choose from a group of “fluff” pets that can be personalized to match the user’s personality. Once created, the pet can interact with other users and the game’s currency exchange system (which is probably the main reason why Social Gaming Network wanted this title, considering it turns into revenue for the game) has grown by an astounding 192 percent since January per spender.

The acquisition price was undisclosed, but the Social Gaming Network did say that current (fluff)Friends users won’t see any difference in gameplay after the acquisition.

Put Your Game Face On And Plant Some Trees With SGN
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by Jason Kincaid on August 1, 2008

Social Gaming Network, a startup behind a number of popular social network games, has partnered with the Arbor Day Foundation to create a Facebook game to raise money for, of all things, planting trees. SGN has created a game called “Space Movers: The Bloom Initiative”, and will donate up to $50,000 of the game’s advertising revenue to the cause. You can check out the app by going here.

The game itself plays almost exactly like Bejeweled, with a few goofy characters and icons that all fit under a vague “nature” theme. And while the gameplay may not be too original, the game has high production values, with a full soundtrack and animations.

The partnership is the latest in a string of unconventional promotions we’ve seen from developers on social networks, who are going to great lengths to increase exposure and help their games “go viral”. Last month Slide partnered with VH1 to to promote its application alongside a marathon of reality shows.

SGN focuses on games that include social interaction, and claims 1.1 million daily active users across Facebook, Bebo, MySpace, and hi5, with a reported 54 million application installs. The company has raised some serious cash, with over $20 million in funding and investors including Jeff Bezos. Zynga, its closest competitor, recently closed a $29 million Series B funding round led by Kleiner Perkins, and has raised a total of nearly $40 million.

Lightspeed Funding Turns Facebook Application Into “Serious Business”
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by Nick Gonzalez on April 25, 2008

serious-business.pngLess than a year ago Alex Le and Siqi Chen were working at one of the web’s most ambitious startups, semantic search engine PowerSet (Due out soon). But last December they made the tough choice to quit it all and go full time for their own side project, a quickly growing little Facebook application called “Friends For Sale”. That project has grown into a full blown venture backed startup ironically named “Serious Business“, which just raised $4 million from Lightspeed Venture Partners (double digit pre) and currently draws over 600,000 daily active users on Facebook. Steve Newcomb, formerly of PowerSet, will be taking a seat on their board.

True to its name, “Friends for Sale” is an application that lets you virtually buy and sell your friends. The game is an ego driven form of “poking” (virtual nudges) that makes it abundantly clear who the most desirable players are, by listing a leader board of your most expensive friends. Every one of your friends, whether they have the app or not, can be purchased as a “pet”. Everyone starts at a base price that rises with every resale. You get more cash when you log in, are sold, or have one of your pets bought away from you. Users can spend that cash on kicking their pets, give them funny tag lines, or even virtual gifts.

picture-91.pngThat one game has also been supporting the growing company’s resources (20 Ruby on Rails servers and growing) through a mix of banner advertisements and sponsorships. While the company declined to state their earnings, they estimated the company could grow to 12 engineers without raising any financing. The financing allows the company to significantly ramp up their expansion plans.

But Lightspeed didn’t invest in Serious Business just for a single game. Founder Alex Le cites “Friends for Sale” as the first in a series of of games built directly around your relationships with friends. The idea is to create games for all social networks (Facebook, OpenSocial) that rely on leveraging social skills to win, instead of your twitch reflex or poker proficiency. While they’ll have some games to announce in the next 30 days, the founders briefly threw out the example of a battle game where your friends are the soldiers and success depended on your social skills.

Serious Business is not without competition. Zynga and SGN are well funded social gaming startups. However, Serious Business has a much larger hit than either, so far. “Friends for Sale” has also already been cloned as “Owned”, which draws about the same level of traffic some days. “Friends for Sale” itself is a variation on an earlier game “Human Gifts”. These startups are also in competition with the cycle that most applications follow on Facebook, amongst other potential difficulties. Applications tend to explode for a brief period (if at all) before settling at a lower activity level or completely dying.

Serious business indeed.

Social Gaming Network Buys Facebook Market Share
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by Erick Schonfeld on April 16, 2008

sgn-logo-splash.pngConsolidation is already beginning in the overcrowded Facebook application market (with 21,800 apps and counting). One of the first sectors to see buyouts of popular apps is in the social gaming sector. Earlier this year, Zynga bought CLZ Concepts and the Superheroes group of apps. Today, competitor Social Gaming Network (SGN) is responding with its own roll-up of Esgut (which created Suplerlatives, Entourage, and Text Twirl), Free Gifts, Nicknames, Oregon Trail and Friend Block. This moves SGN up the rankings in terms of total Facebook users (48.5 million) that have installed one of its apps, which puts it right behind Slide (97.7 million) and RockYou (72.6 million) and one spot ahead of Zynga (34.7 million). Of course, some of the biggest apps that SGN bought aren’t really games (Superlatives and Entourage), and in terms of daily active users, which is a more meaningful measure, Zynga is still ahead with 1.9 million versus 1.1 million.

Still, SGN is obviously serious about scaling up its business by hiring, acquiring, or partnering with the best Facebook app developers out there. The developers behind Free Gifts, Esgut, and Nicknames have now joined SGN as co-founders. “We are building a brain-trust of leading app talent,” says CEO Shervin Pishevar. He recently spun off SGN from Webs.com and moved his entire team from the East Coast to Palo Alto. And this morning it just released the sequal to its popular Warbook game on Facebook—Warbook:Rise of the Infernals.

The company has also launched its own cross-promotional advertising network for other gaming apps and is in the process of raising $10 million (says an outside source). (Update: That turned out to be $15 million). There are now 70 games and other apps on its Gaming Hub.

One of them, Free Gifts, is now part of SGN. More than 70 million virtual gifts have been exchanged between Facebook members so far. Brands sponsor the gifts, and there is a potential for direct consumer purchase of gifts as well within a gaming context. Pishevar is almost as excited about the prospect of virtual gifts as he is about social games:

It is real, it is happening, it is underground. I think it has a potential to become as important or more important than the advertising revenue.

The race between SGN and Zynga to become the biggest social gaming network is a race for talent, a race for active users, and most importantly, a race to see who can make money first. But while they keep elbowing each other for position, they shouldn’t forget that newer entrants with social-gaming platform ambitions are always trying to close in behind them.

At Launch, Mytopia Shows Social Networks How To Play Nicely Together
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by Erick Schonfeld on March 21, 2008

logomed.pngThere is a new casual gaming network in town that’s got some serious cross-platform chops. Don’t be fooled by the cutesy graphics. Today, Mytopia is simultaneously launching across Facebook, Bebo, MySpace (currently pending approval) and its own Website with eight games (Chess, Backgammon, Sudoku, Dominoes, Bingo, Spades, Hearts, Video Poker). On Monday, it will release the same games across the major Web and desktop widgets: iGoogle Gadgets, Apple Dashboard Widgets, Yahoo Widgets and Windows Vista Toolbar Widgets.

mytopia-bebo-2.pngHere’s the thing: the games work across all of these platforms. You can be on Facebook playing cards with one friend on MySpace and another on Bebo. And you can control what people on each network see about you. For instance, you can present your real profile to your friends on Facebook, and a different Mytopia avatar to everyone else. These are the sort of apps that could one day break Facebook’s, or any social network’s, hold on its members.

Mytopia was founded by a young Israeli American, Guy Ben-Artzi, and his sister Galia Ben-Artzi. They grew up in Silicon Valley, but now split their time between the U.S. and Israel. Nearly all the company’s engineers are in Israel. Guy wants to bring the computing architecture and game-play behind massively multiplayer online (MMO) games like World of Warcraft to casual games with broader appeal. Guy explains:

mytopia-fb-2.png

What we have done over the past year is look at all the massive multiplayers and tried to analyze what makes those sticky and social. What is great about all of these massive multiplayers is you have people playing in guilds and trading with each other. We are building the MMO backend minus the 3D perspective and hard core genre.

Mytopia games include the ability to join teams, compete in matches, send in-game messages, win points for different skill levels, collect virtual currency and trade in-game items with other players. The company plans to explore different ways to make money including in-game sponsorships, premium subscriptions, and micro-transactions linked to game items and the in-game economy.

In May, the startup plans to open up its casual gaming platform to other developers. By delivering this write-once, deploy-anywhere capability, it hopes to challenge other social gaming networks with platform ambitions such as Zynga and SGN. This should be fun to watch.

mytopia-backgammon.pngmytopia-spades.pngmytopia-chess.png

SGN Starts to Look Like a “Real Company.” Adds Jetman To Its Gaming Platform, About to Raise $10 Million
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by Erick Schonfeld on February 19, 2008

sgn-logo-new.png
(Update: SGN raised $15 million on May 13, 2008). It was only last week that the Social Gaming Network (SGN) and Zynga announced their respective developer platforms for games on Facebook and other social networks. I said the game is on between these two companies to win the hearts and minds of social gaming developers. The folks at Zynga took exception to this characterization. If you put all of its games together, Zynga is the 10th largest app company on Facebook as measured by number of installs. SGN is No. 51.

Venture capitalist and Zynga investor Fred Wilson accused me of not doing my homework in a post that set off a minor debate over the holiday weekend. After I commented on his post that the jury is still out on which of these young companies will succeed, Wilson responded:

Its not even debateable who is a real company and who is not.

Zynga CEO Mark Pincus also clearly feels that the comparison is not warranted. He told me of SGN:

It is just a thorn in my side. It is some bad ex-girlfriend who will not leave me alone. I think we are very clearly the leader in the space.

That thorn is about to get pricklier. Sources outside of SGN confirm that the company is about to raise as much as $10 million in a venture round. Multiple term sheets are on the table. None have yet been signed as the company studies its options. Says one competing VC who has done his due diligence and is eager to lead SGN’s round:

When all is said and done they will have as big a network as Zynga. Fred Wilson doesn’t understand what is going on.

Sounds like a debate to me.

If size is the determinant of a “real company” (which I don’t think it is), then SGN’s platform is already a whole lot bigger than just a week ago. In less than a week it has signed 10 Facebook games to its budding social gaming hub, including Jetman—one of the most popular games on Facebook—Pirates, and The Dot Game. It has also signed Free Gifts, a virtual gift-giving application on Facebook that includes the other seven of the ten games.

All told, the new apps will triple SGN’s daily active users from 200,000 to more than 600,000 on Facebook alone, bringing it substantially closer to Zynga’s 900,000. And in terms of the number of installs, the SGN network is getting much closer to Zynga’s 11.8 million (18.4 million including recently acquired CLZ Concepts and four other Zynga games not reflected in the stats), depending on how you count. Jetman alone has 3.8 million installs and 200,000 daily active users, SGN currently has 3.3 million installs, and Free Gifts has 10 million installs—but that is mostly for its gift giving app, which other gaming developers on the SGN gaming hub will be able to incorporate into their games.

Responding to Pincus’ quip, SGN CEO Shervin Pishevar says: “We are like an old girlfriend that got famous.” Noting that many of Zynga’s games are copycat versions of other games (Zynga’s Diveman is very similar to Jetman, for instance), he adds:

If you want to be a developer platform, you probably shouldn’t be copying developers’ games. If you want to compete with them, fine. That is why they are joining us.

So is it game over? Hardly. The games have just begun. But is SGN a real business? It is as real as any business built on Facebook.

Update: In an e-mail Pincus responds:

Wow erick.

A) you give them credit for traffic they don’t even own
And
B) you won’t give us credit for traffic (clz apps) we do actually own.

Do you even care how hypocritical sherwin is to accuse me of copycat games when he copied free gifts on bebo and risk on fb? Getting the irony? He is partnering with an app he literally copied in december while accusing me of this?

Erick, with all due respect I’m wondering if you work for sgn now?

I’ve updated the post to include the CLZ numbers, which are still counted separately by Adonomics, the data source I linked to. As for who owns what traffic, Pincus is right to point out that games Zynga owns and operates are probably worth more than games simply affiliated to any particular gaming network. But SGN’s deal with Jetman and Free Gifts is as tight as it gets without buying them outright. SGN will be hosting their apps, and Jetman’s developer will be creating more games for the SGN network. The battle here is over who will build the most powerful network and attract other developers, not who will buy up the most traffic.

Update 2: CLZ actually has 11.5 million installs, instead of the 5.3 million that Adonomics reports (it only counts 2 of CLZ’s 18 apps). But not all otehse are games (You’re Naughty, You’re a Hottie). I am beginning to really question how reliable Adonomics is. The SGN numbers are probably off as well. Also, all of these numbers come from Facebook, which currently has a bug with how it reports total installs. Daily active users is the better metric to use. Zynga has over one million daily active users, about double SGN’s (including Jetman and Free Gifts). Dead installs (i.e. inactive users) are only good for spamming.

Fred Wilson – Hypocritical, Wrong and Conflicted
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by Michael Arrington on February 17, 2008

Fred Wilson lit a fire today suggesting that certain bloggers need to step it up a notch to improve quality and be more like mainstream journalists.

A fair point if spoken generally, although I’d argue that the quality of reporting done by many bloggers today, at least in the tech space, is equal to or better than most mainstream journalism. I think this is particularly true when we’re talking about breaking, non-embargoed news, where contacts and inside sources matter more than having all the time in the world to think about, research, write and edit an article. His point, therefore, should have been that all news writers need to step it up a notch and aim for better quality, which is sort of like saying nothing at all.

Normally I wouldn’t take issue with the statement, except that it was partially aimed at us. Wilson specifically called out our Erick Schonfeld for his post on social gaming platforms, as well as Matt Marshall at VentureBeat for a post he wrote about Like.

Wilson’s first gripe is that Matt, in his post about Like, didn’t give enough credit to competitor ThisNext. His second – that Erick, in his post on Zynga and SGN, suggested that the “two companies are neck and neck like Hillary and Obama,” when “Zynga is almost an order of magnitude bigger.”

Wilson fully discloses his conflicts of interest in the post – that he is a friend to the founder of ThisNext and an investor in Zynga. At that point, of course, a lot of the credibility behind his opinions comes into question. The two bloggers he is attacking have no conflicts with these startups.

He fails to realize that both Matt (San Jose Mercury News) and Erick (Fortune, Business 2.0) are seasoned mainstream journalists who’ve made the crossover to blogging. So his whole argument about blogging v. mainstream media loses yet more steam.

In reading the articles, it seems to me that Matt did an excellent job of highlighting a recent surge by Like while still noting relevant competitors. Erick’s post, which I am more familiar with, is in my opinion above reproach. Erick notes the strengths and weaknesses of both platforms and suggests that developers will ultimately make a decision as to which, or both, they will join. Erick also interviewed Wilson for the post and quoted him in it.

So what this really comes down to is this. Wilson didn’t like the coverage. But instead of simply disagreeing with and rebutting the points made in the posts, he went after the reputation of the writers themselves. That would be inappropriate even if he was right. But the fact that he was both conflicted and wrong makes it inexcusable.

Wilson failed to uphold the very standards of integrity that he demands from others. He failed to contact Erick or Matt before writing, and didn’t seem to have the facts to back up his argument. In a twitter exchange between us on this issue, he defended his sloppiness on the fact that he’s a blogger, saying “if you are a blogger you can say what you think, once you become a journalist, you have a different standard.”

Now, frankly, I’m confused. Bloggers can say what they think, but journalists can’t? I think what he’s trying to say is that Erick and Matt are no longer bloggers and now need to hold themselves to a higher standard – one that Wilson explicitly doesn’t hold himself to. That sounds like hypocrisy 101 to me.

Also, in a comment to his original post, he says “Erick didn’t get it wrong…but i think he missed the opportunity to get it right.”

How can you be both wrong and right at the same time?

Wilson partially retracted his post in a follow up, saying that he was sorry for singling out Erick and Matt, and saying that he “didn’t mean to take a shot at either of them.” But he then goes on to say that the whole exercise was a good one, since it started this great conversation on the issue.

That’s no apology, Fred. An apology would include you admitting that both posts were well researched and well written pieces. And that it was wrong to attack the reputation of these writers just because the conclusions reached by them were different than your own.

One last note. In the comments Fred says it isn’t even debatable that SGN is not a real company. From what we hear on the street, some very high profile venture capitalists are willing to bet some serious money that he’s wrong.

Update: Mathew Ingram says I went a little too hard at Fred here. I don’t necessarily disagree. Fred tends to come at people pretty hard, so I went hard back. But some readers won’t know that, so it’s worth pointing out.

Game On: Zynga and SGN Battle For Social Gaming Developers
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by Erick Schonfeld on February 14, 2008

sgn-logo.pngThe social networking game is all about scale. There are so many apps now on Facebook alone, nearly 16,000, that it is nearly impossible to get noticed unless you are already part of one of the bigger app companies. Cross promotion between apps is the key. Some of the largest app companies like Slide or RockYou, for instance, typically charge 50 cents per install to distribute apps from smaller developers across their users. But now we are beginning to see networks starting to form across specific application genres.

zynga-logo.pngIn the social gaming category alone, a battle is brewing between the Social Gaming Network (SGN) and Zynga. Tomorrow, both will launch separate developer platforms for other gaming applications. (Info here for SGN developers, here for Zynga developers). The appeal to smaller social game developers is similar: join one of the gaming networks and see your game promoted on the toolbar or gaming page when people are playing other games in the network. Fred Wilson, the partner at Union Square Ventures, who invested in Zynga, explains to me:

It is the exact same value proposition why you would want to build your app on Facebook as opposed to the Web. You can rapidly develop an audience. It is access to audience and monetization.

Both companies have varying claims as to how large their audiences actually are. SGN CEO Shervin Pishevar says, “We are able to promote the developers’ games across millions of users and 700 million pageviews a month.” SGN’s most popular games on Facebook and its own site are Warbook, Street Race, and Fight Club. Zynga, for its part claims 1.3 million daily active users across Facebook, Bebo, Meebo, and Friendster. It’s most popular game is Texas Hold’Em poker (with 609,000 daily active users in Facebook alone), followed by Blackjack, Attack!, Scramble, and Sea Wars. At least on Facebook, it appears that Zynga has more daily active users. (See Zynga Facebook stats here and SGN Facebook stats here).

Zynga, I have learned, has also recently acquired two smaller gaming developers: one is behind the CLZ group of apps, which have 365,000 daily active users, and the developers behind the Superheros app (34,000 daily active users). The company is also trying to avoid the as-yet-unresolved fate of Scrabulous, a Facebook game that is being threatened to be shut down because it is a copy of Scrabble. Zynga recently renamed one of its games Sea Wars from Battleship. (Guess what game it is based on?). Attack! is similar to Risk, and Scramble is a digital version of Boggle. So there still might be some issues there.

Later tonight, SGN will launch a set of APIs for developers and its Gaming Hub application on Facebook, which will attempt to create a “gaming graph” that connects you to other games in the hub, particularly the ones your friends are playing. Joining the hub will let Facebook members keep track of what their friends are playing, their high scores, and will move all game-related feeds from their profile pages to the hub. Explains Pishevar:

What is annoying is there is a lot of noise on people’s profiles. That gaming graph belongs inside the gaming hub. It is a portal to all your games.

The gaming hub will also eventually become a mini ad network for games, although not at launch. Zynga, on the other hand, will have advertising baked into its hub, splitting any ad revenues with game developers. But the ads will be secondary to the cross-promotion.

So game developers will have to decide whether to go it alone, join one of the gaming hubs, or join both. May the best hub win.

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