Facebook Introduces Mobile Games Publishing Pilot

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 30 (Bloomberg) -- Facebook says in blog post it is introducing Facebook Mobile Games Publishing, a new pilot program for small and medium-sized developers. Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Jon erlichman is in l.a. with more.

What does this mean for zynga?

A little more distance between zynga and facebook.

The idea of $2.5 million ads on facebook seems like a moneymaking opportunity.

With this development, it's not as clear.

Here's the context why facebook is indirectly getting into the games business.

The games revenue they generate are a much smaller piece of the overall pie than the advertising dollars.

Here's a way to drum up potential revenue from some of the early gains from facebook going forward.

It does play into the things facebook has been focused on since social games are meant for mobile users.

With the stock trading right about where it was when it went public, this is a potential excitement story tied to mobile.

But the challenge facebook could face with this has to do with what the young game developers will be hitting out of this relationship.

If you are buying virtual goods and social gains -- social games, facebook takes a cut of up to 30%. so you say we've had taken the big cut and we've gone into business with you and that might mean taking a bigger cut.

Potentially a big cash grab if the developers are on board with the idea.

Let's talk about the developers.

They are smaller, up and coming, established game developers.

Why target those kinds of developers?

If you think of how quickly the game industry is changing with social games, whether it's companies like electronic arts or young companies that got a very quickly, we talk about king and super cell, these have been effective by developing apps for ios and android and rolling them out that way as opposed to being tied directly to the facebook form.

Facebook is trying to make the argument that sometimes you don't get as much love if you are in a sea of apps on the phone and maybe there's an opportunity of being closer to us.

Do you want to be tied so closely to facebook?

We saw what happened to zynga and where it is trying to play this catch-up game in mobile.

Jon erlichman, thank you.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change