The famous online game czars at Zynga, have recently made an aggressive move to drive Facebook users to play the games on their own website. How will Facebook react to this bold move by Zynga which will at least initially, come at a cost to their bottom line. According to a recent article by the Chicago Tribune, Facebook reported that 12% of its revenue is generated from Zynga. On the flip side 93% of the revenue generated by Zynga comes from its relationship with Facebook. This symbiotic-like relationship has worked very well for both companies resulting in huge profits. It appears that Zynga is making a strategic decision to gain a bigger piece of the pie and increase its profit margins. Zynga has been careful about not removing Facebook from the equation, although it is clear that they are looking to increase their online presence away from the social media giant. Users will still log-in using ther Facebook credentials and the two sites will still be socially connected through an innovative social media bar. The new site is said to still include all the usual suspects; “CityVille,” “CastleVille,” “Words with Friends,” and more.
“Best of all, while you might like gaming and playing with people who like social games, they don’t have to be part of your Facebook friends list,” Zynga Chief Operating Officer John Schappert said in an interview.
Check out the full article released recently by the Chicago Tribune. Zynga to launch game service outside of Facebook – chicagotribune.com. Is Zynga making a mistake? This move undoubtedly comes with inherent risks. How will Facebook react in the long run if it drives down revenues, which it appears is a very likely possibility. How will Facebook users react playing these games from the Zynga website? Will they embrace the move or prefer to stay on Facebook to play the games? Time will only tell how this move by Zynga will affect their relationship with Facebook in the coming months.