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Why the economics of social gaming are so attractive to investors December 1, 2009

Posted by jeremyliew in games, games 2.0, gaming, social games, social gaming.
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In 2009 social gaming exploded onto the scene. EA bought Playfish for $300M+ just a couple of weeks ago, and Zynga and Playdom* both raised large rounds of financing this year. Traditional computer gaming has been showing steady growth for a long time, but not the tremendous growth that the leading social games companies have shown. What is it about social games that has enabled such a difference in trajectory over the last year? And why has it been startups and not the big established publishers that have led the charge. There are three key factors:

DRAMATICALLY FASTER AND CHEAPER DEVELOPMENT

FRICTIONLESS DISTRIBUTION

FREE DISCOVERY

Read more about these three factors at my guest post over at Paid Content.

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*Lightspeed Venture Partners is an investor in Playdom

Comments»

1. Brian 'Psychochild' Green - December 2, 2009

I believe your link goes to the wrong page. I only see an article about Susan Boyle trying to sell music in the U.S.

jeremyliew - December 3, 2009

Oops. Thanks Brian. Now fixed

2. Arnold Waldstein - December 13, 2009

Great post Jeremy.

I took your thinking a bit further into use of social design for all app on my blog @ http://arnoldwaldstein.com

3. FaceGames, MyGames and GamesIn « excapite - December 27, 2009

[…] has changed. Today VC’s believe there is big money to be made in going back to the future by investing in online games and wouldn’t you know it Girls love playing these online games too! “Next to sending messages, […]

4. Top 50 » Top 50 Venture Capital Blog Posts of 2009 - May 9, 2010

[…] Why the Economics of Social Gaming are So Attractive to Investors […]


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