New Study: Social Gaming Beyond Facebook to Reach $5.6 Billion in Revenue by 2014
The non-Facebook category of social gaming will represent the bulk of worldwide revenue generated in the social gaming market, exploding from $3.2 billion to $5.6 billion in 2014, according to a new white paper released by social games and apps platform Viximo. The study, conducted by SuperData Research, found that while Asia is the largest social games market, non-Facebook platforms in Western markets will be responsible for nearly one-quarter of worldwide social gaming revenue within the next three years.
Despite Facebook’s apparent dominance, especially within the United States, Facebook currently represents only about a third of worldwide traffic for social networks, the study states. The white paper’s findings show that beyond the borders of North America, where Facebook is the clear market leader, the majority of social gaming revenue is made on other platforms, with more focused and locally incumbent social networks dominating new growth. Key markets including Brazil, Germany, Russia and Turkey are currently experiencing a rapid trajectory in increased non-Facebook social gaming traffic and present significant, incremental distribution with strong monetization and lower customer acquisition costs for social game developers.
“The social web beyond Facebook is often overlooked when it comes to games and applications. As it turns out, social networks beyond Facebook represent a non-trivial – in fact, significant – and fertile ground for games and apps,” said Dale Strang, CEO, Viximo.
The white paper also finds that the social gaming market (including Facebook and non-Facebook social networks) is projected to continue to grow, reaching $8.6 billion in worldwide revenue by the end of 2014. Asia remains the largest market for social games and has an estimated $2 billion in total revenue for 2011. Other research findings show that Russia and Brazil are the two Western countries with the largest social gaming audiences, with 35 million and 32.6 million respectively and that Germany is the Western country currently generating the most social gaming revenue with more than $173 million; this is predicted to reach $250 million in 2014.
The findings are presented at a surprising time. At the last f8 conference end of September Facebook further strengthened its market position and announced significant growth outside the US. Despite the strong growth of Asia’s fragmented social network market, current trends indicate that Facebook is gaining a lot of ground in Europe and emerging markets like Brazil and India. The white paper is also very bullish on the Google Plus games section. This prediction is also hard to confirm as Google Plus is going through a decisive phase. Right now Google Plus is only actively used by a crowd of early adopters and does not seriously threaten Facebook’s revenues from the games channel.







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[...] currently represents only about a third of worldwide traffic for social networks, according to a recent white paper released by social games and apps platform Viximo and Superdata Research. The non-Facebook category [...]