How Facebook Games Make Money

John Pleasants, CEO of social gaming developer Playdom, dropped some great facts about the economics of his industry in his speech at SXSW last week.

The money points, via SocialTimes’s Nick O’Neill:

  • The average Facebook game costs between $100,000 and $300,000 to develop, not including marketing spending.
  • What Playdom spends on marketing varies widely from game to game. Including marketing, the cost per install for an average game is around $0.50, but can shoot up to over $3 when the company is really pushing a game.
  • Playdom relies less on in-game advertising than some developers, making 90% of its money on micro-transactions, predominantly virtual good sales. Just 2% of pay for anything, but for a successful game, the average paying customer is spending around $20 a month for 3-6 months.

Read more at SocialTimes >

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