A look into the social gaming industry

If you are still clueless about the social gaming industry, I can attempt to offer some insight into what it is all about.  This is not meant to be all inclusive, but will help get you started.  Also, the facts/figures come from different sources and, unfortunately, I did not keep track of all the links to the original sources.  If you find data that looks familiar, send me the link and I’ll be sure to cite appropriately.

Alright, here we go!

  • MAU = monthly active users
  • DAU = daily active users
  • DAU/MAU = stickiness of the social game, the higher the better
  • a successful social game on facebook has 15% stickiness
  • a really successful social game on facebook has 30% stickiness
  • a good social game converts 1-2% of its MAU to paid users who spend an average about $20/mth
  • differences between social gaming companies
    • advertising strategy
    • willingness to exploit facebook’s virality features
    • ability to cross-promote within games
    • quality of internal metrics
  • best performing social games are able to get 41% of users to make a repeat purchase
  • US and European users spend more on social games than Asian users
  • Latin American users are likely to make more than one purchase
  • average game on facebook estimated to cost less than $300K to produce
  • major-branded social games is going to be the next big thing
  • Zynga spends beaucoup bucks to recruit users and do all they can to reward return visits
  • (as of 10/4/2010) top 3 companies – Zynga, CrowdStar, Electronic Arts (in order)

Leave a Reply

Your email address will not be published.