updated 02:12 pm EDT, Tue July 30, 2013
Social network seeks to increase mobile revenues via app sales, advertising
Facebook will be publishing mobile games, in a new program it announced today at the Casual Connect conference. The new pilot program will "help small and medium-sized developers take their mobile games global," with the company blog post suggesting it is aimed at indie developers that need help in marketing and tailoring their games to more lucrative customer markets.
Having been in testing for a few weeks already, according to TechCrunch, the program has already got its first ten developers, with a mix of newer developers, such as the Sequoia-funded Brainbow, and veteran developers in the form of Space Ape. Despite the "small and medium developer" statement, Gameloft is listed as one of the teams on the scheme, a company with over 5,000 employees and said to be worth $652 million.
The program is said to be designed to "reach people who already play games on Facebook with new games that may interest them," giving the example of offering strategy games to fans of that genre, and likewise for casual games and other subjects. Facebook will also be supplying various analytical tools and its expertise to the developers, in exchange for a share of game revenues.
By collecting a part of revenues gained via in-app purchases, advertising, or customers buying the game outright, this allows Facebook to build upon the mobile revenues reported in its latest financial results. Mobile advertising revenues made up approximately 41 percent of the company's $1.6 billion advertising revenues in the last quarter, a lucrative segment that could only increase once it gets its advertisements in games.