/// Game Companies Deploy Facebook Credits at the Final Hour

July 1, 2011  |  All Things Digital


Seven months ago, Facebook warned developers it would require all social games to start processing payments using Facebook Credits starting July 1. Despite the heads-up, a few slackers were still busily updating their games this week in time for today’s deadline. Facebook Credits is a currency used to buy virtual goods inside many games on Facebook. Users can pay with a credit card, PayPal or by using their mobile phone. Going forward, that means a player must purchase virtual goods with Credits, instead of paying for them directly using a credit card or other payment service, like PayPal. Once Credits have been purchased they can be used in any application on Facebook. Many developers started implementing Credits more than a year ago, and by the time the announcement was made in January , many were already on board. At that time, Facebook said 350 applications, from 150 developers, were already using the payment system, representing more than 70 percent of virtual-goods transactions. But this week, I talked to two companies — RockYou and RealNetwork’s GameHouse — that were scrambling to get their final implementations done in time. Other big players, such as Zynga, Playfish, CrowdStar, Digital Chocolate, Lolapps and PopCap, jumped on board early and have been up and running for a while. Facebook said the primary purpose behind Credits was to make payment more straightforward for the consumer. But it would be an oversight not to mention that the company is also generating big bucks from implementing the program, since Facebook takes a 30 percent cut of all sales. ( See Liz Gannes’ interview with Dan Rose for the latest on the program .) In fact, Facebook Credits is a lot like Apple’s iTunes, which keeps 30 percent of the revenues and shares 70 percent with application developers. When first introduced, the program met a lot of criticism from game developers, but over time they’ve been pleasantly surprised at how easy Facebook Credits is to implement and how well it monetizes. Take GameHouse, for example. The Seattle-based game developer has some 15 games on the social network, and was working up until yesterday to get all of its games on board. Ian Fliflet, RealNetwork’s senior director of corporate strategy, said some of them weren’t worth the time to convert. So some games won’t be monetized going forward, but will be kept up to generate traffic.

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Game Companies Deploy Facebook Credits at the Final Hour



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