Market research agency Parks Associates has released a report that spells out very good news for the social game industry. The report, Social Gaming: Market Updates, indicates that the business of social games will quintuple by 2015 to as much as $5 billion in value, over the $1 billion in revenue generated in 2010. Advertising revenue and virtual goods sales are estimated to be the main driver of growth.
“As more than 200 million people play games on Facebook every month, social gaming has exploded to become the most visible category of online gaming,” said Pietro Macchiarella, Research Analyst at Parks Associates.
Macchiarella said improved monetization and particularly metrics is helping to give leading social game developers a competitive edge over traditional game developers.
“The abilities to measure the efficacy of different gameplay mechanisms, to tweak game design in near-real time, and to test new models are advantages that traditional gaming companies will never have. Zynga’s huge market share is the best proof of the competitive advantage made possible by properly leveraging consumer data,” he said.
In addition, cutting edge advertising methods, including sponsored items and communities, can add value to the gamer’s experience — and the publisher’s bottom line.
[Source: Gamasutra]
