Why the economics of social gaming are so attractive to investors December 1, 2009Posted by jeremyliew in games, games 2.0, gaming, social games, social gaming.
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
Read more about these three factors at my guest post over at Paid Content.
*Lightspeed Venture Partners is an investor in Playdom