It should come as no surprise that Google recently launched a social gaming platform on their Google+ network. It’s also not surprising that they are attempting to pose a serious threat to Facebook’s social gaming platform with big names like Electronic Arts and PopCap games on their developer roster. Indeed, Google has long been a frontrunner in the age of digital technology, with the world’s most efficient search engine and their line of Android smartphones being only the most notable among their many accomplishments. So, maybe it’s no surprise that the online monolith is willing to take a considerably smaller share of revenues on in-game transactions than Facebook.
According to a recent article by Dean Takahashi of VentureBeat, Google+ will give developers 95% of the revenues from in-game transactions, 25% more than Facebook offers the developers on its open platform, though he goes on to say that this low commission is promotional, according to Google+ games product manager Punit Soni. While the general feel is that these rates are subject to change in the future, it’s still a clever, if not bold tactic for Google to implement; it’s safe to say they have the attention of the game developers, for the moment.
Of course, the question is, do they have the attention of Facebook? Google+ certainly offers several appealing approaches to social networking, including the ability to share information and status updates with select “circles,” as well as a much appreciated reprieve from the clutter created by social apps, something that Facebook has tried to accomplish yet has not with any great efficiency.
Gamasutra reports that Facebook’s director of games partnerships Sean Ryan addressed the issue with what may be interpreted as an air of negligence, claiming the following: “We don’t spend a lot of time worrying about [Google+], we worry about us.” He goes on to say that the difference in commission is simply a result of Facebook being worth more than Google+ due to the higher number of users. Perhaps it's safe to boast when you generate 200 million monthly users, but it still seems a little too cavalier to write-off such an established company with such disregard.
I think that it might be wise for Facebook to be a little intimidated. We are talking about Google, not a start up company without the funds to market themselves to whomever they'd like. Yes Facebook has more followers than all current social network sites combined, but that doesn't mean that will always be so. Google has taken into consideration some of the many complaints users have and created a social networking experience that gives the exact opposite. Google has a long way to go to catch up to Facebook in terms of users and money generated from their social platforms, but they have the ability to do so. The moment Google+ goes live, I would expect Facebook executive to sweat, even if it is just a little bit.
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