Zynga’s FarmVille at loggerheads with Facebook in row over money

Jan 29, 2009
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It was a union between two of the web’s coolest young things: FarmVille, among the world’s most popular online games, and Facebook, which has rapidly grown into the largest social network, in large part because users play FarmVille on the site.

The pair have grown up together in what seemed to be the most mutually beneficial of relationships. But FarmVille may now be evicted from Facebook in a bitter row over money.

Facebook has made changes recently to its agreement with companies and developers who build features for the website and will take 30 per cent commission on all financial transactions made through the site. The move has upset many, including Zynga, the Californian start-up company that created FarmVille.

The social network has also allegedly tried to force Zynga to keep its game primarily on the Facebook site. In response, Zynga is rumoured to have threatened to leave Facebook, although The Times has learnt that the company has tried to row back from that position in recent days. Now it is understood that Facebook may be ready to evict Zynga and its popular games, which include titles such as Mafia Wars, FishVille and Cafe World.

FarmVille, a cartoon-like universe in which players build and maintain their own farms, rear livestock and tend crops, is played by about 83million people a month. According to Hitwise, the market research firm, games such as FarmVille are one of the main factors driving the growth of social networking sites, particularly Facebook, where 90 per cent of all “social” games are played.

Although FarmVille can be played free, it has become a significant money-spinner for its creator, with players buying virtual items for their farms with real cash. Zynga, which launched the game in 2007, has estimated annual revenues of $150million (£100million).

The relationship between Zynga and Facebook is believed to near breaking point. At the centre of the row is the social network’s introduction of Facebook credits, a virtual currency that it insists is the only type of cash that can be used on Facebook. The site takes a 30 per cent commission every time the currency is used. Zynga believes this is prohibitive. Last year it launched its own site for the game, farmville.com, and is weighing up whether to launch its own rival social networking site.

Sources at Facebook described Zynga as a bad actor, which is putting profits before its users, and suggested that if the situation persisted it would be best if Zynga’s games left Facebook altogether. Spokeswomen for both Zynga and Facebook declined to comment.

The departure would be a bitter disappointment to the millions of FarmVille players. “A lot of computer games are fighty or war games,” said Ellie Stanway, 27, an avid fan from London. “You can dip in and out of this easily. You can write stupid notes to people about how untidy their farms are and organise meeting up for drinks.”
 
FB probably wants a cut and Zynga doesn't want to give in.

Zynga already bought cloud storage and server space and announced their own social networking site.

As tension between Facebook and game developers like Zynga rises, Data Center Knowledge reports that Zynga has taken out a new lease on additional data center space.

Although, Zynga is known to be a fan of cloud computing which requires massive amounts of data storage and server capabilities, it is not clear what Zynga intends to do with their leased space at ACC5 in Ashburn, Virginia.

Could this be another step to Zynga securing their independence from Facebook by creating their own social gaming network platform? Ironically, even if Zynga were to break ties with Facebook, “their infrastructure will remain close [as] Facebook is a major tenant at ACC5, and will have thousands of servers in the same location as Zynga’s new data center space.” (Source: Data Center Knowledge)
 
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/poop