The big news in the social gaming space this week is that Facebook and Zynga have significantly changed their relationship. Two years ago, Zynga entered into a “special” agreement with Facebook that gave both companies exclusive privileges in exchange for special treatment. While Zynga’s stock has taken a much bigger hit than Facebook’s after this announcement, this new relationship will impact the changing social game ecosystem and the risks Facebook faces.
The Impact on Zynga
The key change that will negatively impact Zynga is that Zynga now must abide by Facebook’s Terms of Service (ToS). In the original agreement, Facebook gave Zynga the ability to bypass certain Facebook requirements, primarily related to cross-promotion and viral calls. Zynga will now have to follow the same policies other Facebook game developers face, primarily stopping its ability to promote games on Zynga.com or mobile from within its Facebook games. Continue reading “What does the change in Zynga’s agreement with Facebook mean to other game companies”