Since taking off in 2009, the social gaming phenomenon has drawn hundreds of millions of players, but it has also found more than its fair share of critics. Many claim that social games are too shallow and simplistic to attract a sustainable audience, while others assert that a free-to-play business model leaves too much money on the table to support the development of social games that compare favorably to traditional games. Some believe that the biggest threat to social games is the force that gave life to them in the first place -- the fate of the industry seems inextricably linked to the ebb and flow of the Facebook platform, and Facebook’s wavering commitment to developers does little to inspire confidence.
All this has led social gaming’s biggest critics to suggest that social games are a flash in the pan that will eventually be subsumed into the rest of the online game industry. But social games are far more than a fleeting fad or a watered down version of “real” games. Just as social distribution has led to new forms of written media (i.e. the tweet) and new forms of video media (i.e. YouTube video), it has led to a disruptive form of gaming that plays an essential role in the way that people engage with the web.
Social gaming is here to stay, and it’s here to stay for two fundamental reasons: 1.) The format of social games is a perfect match to the daily pattern and rhythm of how people use the social web, and 2.) Social games are the only form of interactive entertainment that are natively woven into and distributed via social networks -- the Internet’s new gateway.
Form Follows Function
Throughout the history of entertainment media, content has been developed in short and long formats. Five hundred page novels, full-length feature films and television mini-series coexist harmoniously with blogs, 30-minute sitcoms and two-minute YouTube videos. Why? Because each format serves a different purpose and, without subsuming the other formats, manages to engage users in unique ways and for different reasons.
Short-format show Seinfeld ran for nine seasons and generated hundreds more viewing hours than the typical 90-minute comedy movie, while the 56-second "Charlie Bit My Finger" video on YouTube has been viewed for the equivalent of nearly 4 million hours since it went viral in 2007. In many ways, the social game is to gaming what YouTube is to video: A shorter format that has been enabled by new, social forms of distribution and is no less compelling or permanent than longer-form content. This type of gaming simply enables different behaviors and attracts different users than subscription MMOs, free-to-play MMOs and casual games; but this deviation from the traditional model does not guarantee its demise. Instead, social gaming represents an adaptation to new social norms; a typical social networker’s day is punctuated by periodic visits, and social games are designed to fit perfectly into these short bursts of activity where a user may spend just a few minutes catching up on the latest wall posts, browsing tweets, and tending to his or her digital farm.
In addition, it’s worth noting that long-format content and short-format content have very different price sensitivities. People who are willing to pay $10 to watch a two-hour Steve Carell movie in the theater aren't necessarily willing to spend $2.99 to buy a 30-minute episode of The Office. Social games leverage the perfect combination of cheap, viral distribution with a free-to-play model that allows 1 to 3% of the most active users to subsidize the game experience for the other users. This is a great mass-market model that requires fundamentally different content than traditional games.
Social Games are Woven Into the New Web
Every month, 75% of worldwide Internet users log into social networks or visit blogs. For many users, Facebook has replaced Google as their point of entry to the web. Although keyword search was once the dominant way that users discovered news, information, products and entertainment, users are increasingly turning to social media channels to find the content that has the most personal relevance. Social games are the only form of gaming that are natively tied into and distributed via social media, and social games have been brilliantly adapted to leverage the viral distribution opportunities afforded by social networks.
This disruption in distribution is evident both in the massive uptake of social games on sites such as Facebook, as well as the decline of casual content portals, such as MSN Games, which don’t have the benefit of social distribution. Users are increasingly gravitating away from content portals to social networks. Entertainment activities are always more enjoyable in groups (that’s why we like to watch movies with friends), so when players have the option to go to one site, get a game recommendation from and play with a friend on that site –- while also exchanging status updates and photos -- the single player format on content portals begins to rapidly lose its appeal. Content sites lack the social context and tools necessary to drive revenue and usage from virtual goods and social games. The numbers support this; earlier in the year, Yahoo Games, MSN Games and AOL Games saw a combined 14% drop in monthly traffic worldwide, and an 11% drop in U.S. visitors during that same period (Source: Comscore, January vs. May 2010). This might explain Zynga’s decision to pull FarmVille from MSN.
However, social distribution is not without its challenges. Facebook walks a fine line between its desires to preserve the core social networking experience while addressing the viral distribution needs of game developers. Although this dependence on the whim of Facebook may seem like the Achilles Heel of the social gaming industry, significant opportunity exists beyond Facebook’s blue and white walls.
Today, Facebook generates a majority of social gaming revenue and gets much of the press, but the site only represents 30% of the global social networking audience. The social networks that comprise the other 70% of users have found that social gaming is an intrinsically valuable part of the social networking experience, not a feature particular to Facebook. Networks such as hi5, Orkut, Tuenti, and StudiVZ are fostering the virality, discoverability, adoption, and monetization necessary for social games. If game developers tap into this audience and broaden their distribution beyond Facebook, they have the opportunity to go where no casual game has gone before –- plugging into sites with a native social graph where gaming is a more meaningful activity, but without fierce Facebook-level competition, high user acquisition costs and limitations on viral growth. If Facebook continues to take steps to curb the proliferation of social games, those games and their players will sprout up on more fertile ground.
The Takeaway
Darwinian evolution suggests that the species that survives isn’t the strongest or most intelligent -- it’s that which is most adaptable to change. Although social gaming has thus far taken the form of basic simulation games, changes are coming and a new generation of games is already beginning to take shape. Social gaming 2.0 will move beyond the same formula perpetuated over a variety of themes from farm, pet and fish, to café, bakery and bar.
Newer titles are drawing more from the history of gaming and showcasing more creative gameplay, stronger social features and potential for higher monetization. For example, Nightclub City has incorporated high quality music into the game, which engages a crowd in a different way, while Car Town is incorporating licensed brands that connect gameplay to real-world touchstones. These new games, combined with new modes of social distribution, are clear indicators that social gaming has the strength to innovate, adapt to change, and become a permanent fixture in the diverse cosmos of the game industry.
More Gaming Resources from Mashable:
- 6 Emerging Social Games Taking the Web by Storm
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- 5 Great Games for Learning Stock Market Strategy
- 3 Innovative iPad Games That Use the iPhone as a Controller