Facebook to make $1 billion from social gaming this year

Facebook to make $1 billion from social gaming this year

Summary: Facebook will make an estimated $1 billion from social gaming this year, most of which will come from advertising.

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Facebook will generate an estimated $1 billion in revenue from social gaming this year. The majority of this revenue will come from advertising, but some will come from Facebook Credits, the social network's currency for purchasing content on the site. Unsurprisingly, Facebook is declining to comment.

Kevin Ryan, a leading Internet entrepreneur and former chief executive of online advertising giant DoubleClick, made the prediction in an interview with Reuters this week. Ryan's brother, Sean Ryan, became director of gaming partnerships at Facebook in early 2011, and the two likely share information on a regular basis.

Facebook is a private company and so it doesn't have to disclose financial information. The company is going public next year, possibly as soon as Q1 2012. The website's initial public offering (IPO) could be very high, given that its valuation has been predicted to top $100 billion.

Zynga, the dominant developer of social games on Facebook, just filed for an IPO today, and the number is (coincidentally?) $1 billion. Zynga reported that its 2010 revenue was $597 million, compared to $121 million for 2009, and 19 million for 2008.

Topics: Legal, Banking, Social Enterprise

Emil Protalinski

About Emil Protalinski

Emil is a freelance journalist writing for CNET and ZDNet. Over the years,
he has covered the tech industry for multiple publications, including Ars
Technica, Neowin, and TechSpot.

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2 comments
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  • HINT: Virtual money is not real money

    It has the same currency value as Monopoly money.
    wackoae
    • RE: Facebook to make $1 billion from social gaming this year

      @wackoae

      Weird as it may seem, virtual money is often not monopoly money at all.

      Most of the MMOs have markets (usually against the TOS) where virtual money and real money change hands. Like real currency, there is usually a going exchange rate between real and virtual currency which fluctuates over time.

      I would agree that is is somewhat silly that is has real value, but I can't overlook the strange economies that get built around virtual money.
      SlithyTove