The Rise of Online Social Gaming

Recently, online gaming through social networking sites has experienced significant growth. According to Facebook, more than 80 million Facebook users actively participate in social gaming, and more than 118 million users have installed Farmville, a popular social game by developer Zynga .

To attract users, social games are usually free, with perhaps costs for additional points or helpful objects within the game. Social games don’t have rich graphics or sounds, and they are much easier and cheaper to develop than PC games, averaging only a couple of months for a few designers to launch a game. Due to the type of game development, developers can continue to make changes to the game after its launch, even when users are playing.

Unlike other gaming sectors, women participate in social gaming more frequently than men, according to a survey by PopCap Games (55 percent vs. 45 percent). The survey also found:

• Female social gamers are more likely to play social games multiple times a day (38 percent vs. 29 percent)
• Female social gamers are more likely to play with people they know (68 percent vs. 56 percent)
• Male social gamers are more likely to play with strangers (41 percent vs. 33 percent)
• 28 percent of social gamers have purchased game points/currency for real-world money
• Average social gamers play six different games
• More than 50 percent of social gamers began playing because of a friend's gaming or recommendation

Companies like Zynga earn revenue from two main sources: credit card payments for game-related items and partnerships with other businesses.

According to Zynga, only 3-5 percent of players spend money in a social game (for example, on specialized tools or weapons). Players can also purchase game points or credits directly, say $5 for 21 games. Recently, Zynga has started selling prepaid cards for virtual currency at more than 12,000 stores across the U.S.

However, the majority of revenue comes from advertisements and special offers from partner businesses. The game developer profits from the sale of the advertisement or offer, and the business profits from gamers who want more game points or credits. For example, players may earn game credits when they accept a credit card offer, register for a video rental service or take a survey.

Social games are played online, and so you do not need to install any software on your computer in order to play. If you receive a prompt asking for permission to install something, deny it. If you mistakenly install software, update your anti-virus definitions and scan your computer for threats, especially if your computer begins running slowly or you observe other abnormal activity. Then, report the activity to the social networking site hosting the game.

You should also report social games that display frequent advertisements and pop-up windows when playing. Zynga’s recent Facebook game FishVille was temporarily removed by Facebook after claims of advertising violations.

Finally, be careful if providing your credit card number to buy game credits or items. Check for automatic transactions, which automatically buy additional game credits if you fall below a certain threshold by deducting money from your account. When you select game preferences, do not choose these types of options.

References

• The Facebook games that millions love (and hate)  (CNN)
• Who's playing social games?  (Mashable)
• Legal risks with virtual currencies in online games  (Network World)
• Zynga  (Wikipedia)

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