Facebook plans to Make 'Facebook Credits' Mandatory for Games from July 1

In an attempt to develop revenue streams beyond advertising, Facebook plans to begin "requiring all game developers on the popular social-networking service to use its in-house Facebook Credits payment system".

Often criticized for doing a poor job with respect to ‘Facebook Credits', which can be used to buy virtual goods and pay for other services in games that people play; this is a major step by the social giant in a direction which if done well, can open a source of substantial revenue for it.

The company takes a 30% cut on sales of Facebook Credits.

Facebook Game developers will be required to use Credits exclusively as of July 1, said Deborah Liu, a platform product-marketing manager at Facebook, reports WSJ. Although Facebook defends its taking a 30 percent cut, still it’s open to talks with the developers till the new arrangement is launched on July 1.

History of Facebook Credits:

Facebook began testing Credits as a form of currency with some developers in 2009. As per facebook, its credits are now used in more than 350 applications from 150 developers, representing more than 70% of virtual goods transactions volume on Facebook.

More than 40 percent or More than 200 million of Facebook's more than 500 million members use services based on Facebook's app platform each month. These 40 percent users are the ones Facebook tries to target with Credits mandatory for games.

Facebook doesn’t reveal the exact number of its users, who spend money on Credits. Also not revealed is the question of How much.

How Facebook Credits work at present:

Users can buy Facebook Credits—which cost $1 for a set of 10—that is 10 cents per credit. The purchase can be made with a credit card, from mobile phones, through gift cards sold at grocery and convenience stores, as well as by using eBay Inc.'s PayPal payment service.

Users use these credits to buy pumpkin seeds so they can grow virtual crops at their Farm in Farmville etc. --------

No comments