Facebook To Make Facebook Credits Mandatory For Games
An anonymous reader sends this excerpt from TechCrunch:
"Facebook has confirmed that it is indeed making Facebook Credits mandatory for Games, with the rule going into effect on July 1 2011. Facebook says that Credits will be the exclusive way for users to get their 'real money' into a game, but developers are still allowed to keep their own in-game currencies (FarmBucks, FishPoints, whatever). For example, Zynga can charge you 90 Facebook Credits for 75 CityCash in CityVille. ... The company acknowledges that some developers may not be pleased with the news, explaining this is why it is announcing the news five months in advance, so it can 'have an open conversation with developers.' The rule only applies to Canvas games (games that use Facebook Connect aren't affected), and while it's games only at this part, Facebook says that it eventually would like to see all apps using Facebook Credits. It's a move that's been a long time coming — there has been speculation that Facebook would do this for a year now, spurring plenty of angst in the developer community."
The company acknowledges that some developers may not be pleased with the news
Hmmm, why would that be? Perhaps because:
Of course, Facebook gets something out of it: they take an industry-standard 30% cut whenever users purchase anything with Facebook Credits. That can add up to a lot of money -- we’ve heard elsewhere that Zynga is paying Facebook around $30 million a month for its Credits tax.
If anyone came up to me and said that five months from now they'd be harvesting thirty percent of my revenue, I don't think that conversation would last very long. My understanding is that a lot (if not all) of these game models is to get the user into the game for free and then urge them to pay small sums to improve their abilities in the game. I understand this move by Facebook avoids user lock-in to one developer but you'd think some credit card model could be implemented by a third party that would take far less than a thirty percent cut.
Also you're overlooking the interest. When an entity makes currency or "prints money" that is yet to be a realized transfer to the individual as goods or services, that money has the ability to accrue in value through interest or investing or whatever. The old model might have seen someone buying $50 of city cash and parceling it out over the course of the year. That cash flow will change subtly but importantly now as Facebook will be holding that $50 as it is parceled out to the possible game services. Facebook's cash reserves grow even if it eventually will be transferring that cash to game developers.
I understand these games would not have had the success they are enjoying without Facebook but surely there is some symbiotic relationship now that Zynga and other casual games have increased Facebook's crack-like effects.
My work here is dung.
Given that companies like Zynga already have a bunch of user information - probably including email or whatever - I wonder if they'll leave Facebook and offer the same services on a different base - using facebook only for advertising?
Plausable?
From the Facebook Developers blog announcement: "All developers keep 70% of the revenue from virtual goods transactions using Facebook Credits."
This means Facebook are charging a huge 30% commission on transactions via their "Credits" system.
What a rip off!
They seem quite desperate to make a buck these days. I wonder if they are really worth 50 billion $. My guess is that they aren't and that we might see a beautiful collapse in the coming years.
...Farmville farms you!
30% is NOTHING. Really, it is a trivial amount. It is not uncommon for affiliate systems to have an even split on any revenue generated through an affiliate and Facebook is one HELL of an affiliate. Yes boys and girls, that is all it is. Nothing different from porn or game sites that link to payed content except Facebook already gets people to surrender a lot of privacy before ever clicking through to the real content. Facebook is not in the business of making a social website anymore then google is about search results. It gets its cash from people clicking on ads displayed on its site. It has done this advertising thing so well, that now people are even willing to pay for the advertisement.
Smart.
If you read the article, the big boys have no problem with this, it is advertisement cost to them and in the online world the costs of aquiring paying customers is very high. A "normal" business cannot afford to spend up to 50% of its revenue on advertising... or can it? Think of the massive sponsorship deals done by Coca Cola or Nike? You don't think that the price for sugar water in a can is really what you pay for a Coke do you? Same with Farmville. You, the paying customer, pay for getting more players to play the game.
Zynga isn't going to leave facebook, not only do they consider the cost more then fair and part of how their business operate, but where would they go next? Farmville IS facebook, it wouldn't survive a second in the cold hard banner world. Facebook has created the eco system in which Farmville can survive.
Read up on affiliate systems, they are the back bone of much of the internet.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
Ok, so suddenly they decide that Zinga's profit is just too big to win by themselves. Probably someone at Facebook said: "Let's have a bite of all those cows, birds, fishes and any other animated animal".
Wow, as if i didn't have a million reasons not to play those games on facebook, they just keep adding more!
Isn't it then possible for the developers to set their rate of exchange very high and offer their currency directly for much less?
So this is how Facebook falls. I wonder if Zynga themselves will start a new social networking site or if they'll just buy some up and hope they picked the next one.
--- Do you believe in the day?
Is "Facebook Credit" really the name with which they blessed their "currency"?
I'll sell them some better names if they lack the wit to invent some.
Actually they can have them for free: Face Value, Book Stamps, Zuckerbucks.
Of my penis lodged in their anus! I ONLY play the parts of their games (if at all) that are FREE! I don't buy anything to improve my "gaming experience" or the lethality of my Strike Force unit. The day they implement this bullshit policy is the day that I quit playing their fucking games. If anything they should adopt a cash-making model where-in they give me a cut of the dough they make off of selling any information they glean about me via my use of their service!!! I AM NOT A DAIRY COW, THEREFORE I DO NOT EXIST SIMPLY FOR SOME ASSHOLE TO MAKE MONEY OFF OF ME! If in turn they want to give me the option of utilizing that cut in-game, I'd be tempted to do so, but would most likely ask them to cut me a check at the end of the month and call it good.
-Oz
Does anyone care?
I again predict the demise of Facebook. They have less than 5 years. The path they are on is well traveled. Facebook is building a cliff of customer hate. The second there is anything on the net that can even remotely compete they're going to get shoved right off that click... just like AOL.
So now I need to trust the every-so-trustworthy FB with my credit card info??? With their wonderful security they won't get hacked or "accidentally" share my CC info with some unknown (to me ) "Partner"
Not in my lifetime
I am just waiting for ISPs to want their cut, too, and require that all on-line purchases be made in ISPbux.
Then people will have to use ISPbux to buy FB Credits, and use FB Credits to buy ZyngaSheckles.
Then Microsoft will get in on the act... And they already have their own currency.
"It is our blasphemy which has made us great, and will sustain us, and which the gods secretly admire in us." - Zelazny
Totalling like 1/3 of the population of the planet or some other crazy number, facebook currency could end up rivalling the US dollar lol probably not but that WOULD be hilarious.
When you dislike the human race as much as I do, Karma:Bad is inevitable lol.
Some of the smaller games not making all that much aren't going to look too kindly at a 30% cut. I'd imagine the larger ones won't either, but I don't think the larger ones will leave because of it.
What do I know, I'm just an idiot, right?
The company acknowledges that some developers may not be pleased with the news
Darth Vader: Calrissian. Take the princess and the Wookie to my ship.
Lando: You said they'd be left at the city under my supervision!
Darth Vader: I am altering the deal. Pray I don't alter it any further.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
I just don't understand why any gamer, casual or otherwise, would choose a gaming platform that requires so much personal information. I didn't give it to Microsoft, and I'm not giving it to Facebook. plenty of flash games elsewhere!
Browsing with classic discussion, noscript, at -1 and nested
no hidden comments and I only mod UP
I actually appreciate them announcing this now.
I was due to start integrating the Facebook API to my current game project next week. That's a bit of work saved.
kartune85 : Incapable of reason, observation or learning. A kind of dim, drab, flightless parrot.
A jew, acting as a middleman, employing strong-armed tactics, to hijack an inflated portion of the transaction, when more reasonable alternatives are everywhere ... that's a new concept!
What's next ? Bank of Facebook ? Facebook-buys-your-old-gold ? Facebook Off-track betting featuring Wacky Waving Inflatable Arm Flailing Tube Man ?
Fuck that jewboy. He's a crook to the bone.
Were this a market and were the government enforcing similar, or were this an industry and a regulator enforcing similar, or were this the internet and an ISP enforcing similar, I'd complain as you are. But this is Facebook's platform. Yes, it's unnecessarily grasping, or so one would think if Facebook are really as profitable as they're telling us. Yes, this will panic the stock monkeys. But this is not an entire market, this is not an entire industry, this is not an entire content platform, this is one service. Besides, perhaps this will even out competition with the minor developer exodus it'll probably end up causing.
... for games that are currently free to play?
File under 'M' for 'Manic ranting'
They are hosted on the companies' own sites and shown via an iFrame so it appears to be "in Facebook".
"excessive government intervention" These sound like weasel words that are logically useless. Isn't Excessive by definition, more than the required amount? Or did you mean that no government intervention is preferable?
I'm not following you.
I could have said: "without the need for government intervention," but that's not what I was trying to say. Sometimes government intervention _is_ necessary. That's why we have the SEC and the legal system. It's all about balance. I would say, though, that "weasel words" is in fact "logically useless," or at least unnecessary to make your point.
So in essence, you are saying that the correct amount of government intervention is the correct amount. I'll agree with you on that, it just seemed like you were trying to say that government intervention is unnecessary while leaving a loophole that may or may not have been on purpose.
I suppose. I would prefer, though, to word it as "there exists a correct amount of government intervention such that less is more."