Zuckerberg: Facebook gaming not going as well as planned
24th Oct 2012 | 12:18
Facebook CEO Mark Zuckerberg has admitted the social network's gaming economy isn't as industrious as he'd like it to be.
Speaking in a Q3 earnings call, the Facebook founder revealed revenue generated from Zynga's social games have declined 20 percent in comparison to 2011, but qualified the statement by adding that payments from other game publishers have increased by 40 percent.
"Overall, gaming on Facebook isn't doing as well as I'd like," said Zuckerberg.
"But the reality is that there are actually two different stories playing out here. On the one hand our payments revenue from Zynga decreased by 20 per cent this quarter compared to last year. But the interesting thing is that the rest of the games ecosystem has actually been growing.
"Our monthly payments revenue from the rest of the ecosystem increased 40 per cent over the past year since payments has been adopted. This evolution is pretty encouraging,"
Incorporating gaming, Facebook revenues are up 32 per cent for the third quarter, but the firm posted a net loss of $59 million (£37m). Payments revenue for Q3 increased from $156 million to $176 million, reaching a year on year increase of 13 percent.
Although income rose to $1.26 billion between July and September, the social network's loss of $157 million in the previous quarter and a 50% decline in its stock market listing leaves it in less than ideal conditions.
Zuckerberg continued on to provide some insight into user habits, saying that 604 million of its 1.01 billion users are on mobile devices: "People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform."
Yesterday, Zynga boss Mark Pincus issued a statement confirming cuts affecting approximately five per cent of its full-time workforce, the Boston studio closure, the 'sunsetting' of 13 games and the "proposed" closures of UK and Japan-based studios.
The moves were made to "streamline our operations, focus our resources on our most strategic opportunities".