Zynga Branching Out with Plan to Promote Apps by Other Developers

By Karla Robinson
February 21, 2012

Facebook accounts for more than 90 percent of Zynga’s sales, but the online-game company is trying to change that.
According to inside sources, the company is creating a new publishing program for other game developers to promote wares in Zynga titles and on a separate portal. Zynga would get a portion of the sales, thereby diversifying their revenue, branching away from Facebook.
“Promoting apps made by other developers is likely to carry fewer risks than Zynga’s main business of developing games itself. The company’s profitability has been crimped by the cost of creating new blockbuster titles,” Bloomberg reports.
The project relies on partnerships but could make millions if Zynga can control a good part of the market.
Facebook takes 30 percent of the sales of virtual goods sold in Zynga games and this most likely won’t change in the new network. “Because Facebook Credits are used by all developers selling virtual goods on the social network and games promoted by Zynga, participating developers will still pay Facebook a cut of sales,” says Bloomberg.

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