Press Release

Social Gaming on Track to Become $5 Billion Industry by 2015


April 19th, 2011

Global Information Inc. would like to present a new market research report, "Social Gaming: Market Updates" by Parks Associates.

Parks Associates, an internationally recognized market research and consulting company specializing in emerging consumer technology products and services, forecasts revenues in the social gaming market will increase by five times from 2010 to 2015, due in large part to advertising revenues and sales of virtual items. These factors already pushed revenues over $1 billion in 2010.

"Gaming on social networks has quickly become the most visible category of online games," said Pietro Macchiarella, Research Analyst at Parks Associates. "Right now more than 250 million people play games like Zyngas CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonalds and 7-Eleven have carried out cross-promotions with existing social games." Macchiarella adds the social gaming industry has improved user monetization. While early entrants often missed revenue opportunities, new gameplay innovations incentivize players to buy virtual items such as virtual tractors, seed, or rare swords to build status, improve the gaming experience, or gain a competitive edge.

"The most powerful asset of social game developers is the quantity of behavioral data that they can obtain from their games," notes Macchiarella. "The abilities to measure the efficacy of different gameplay mechanisms, to tweak game design in near-real time, and to test new models are advantages that traditional gaming companies will never have. Zyngas huge market share is the best proof of the competitive advantage made possible by properly leveraging consumer data."

Advertising innovations such as branded games, sponsored items, communities, and "advertainment" that enhance, rather than interrupt, a gamers experience will also generate new sources of revenues for game publishers.

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