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Social Network Game Development Soars

Social Network Game Development Soars [Update]

Posted On
February 10
By
SurePayroll
You may have noticed over the weekend the online craze that was “Flappy Bird.”

A little-known game designer out of Vietnam named Dong Nguyen created the app for iPhone and Android – a game that involves no more than flying a bird through a series of obstacles by tapping on your phone – and suddenly it was generating $50,000 a day in ad revenue.

While the story has gone viral, it’s really a continuation of a trend already taking place. Social game development is a hot industry.

Are you the type of person who enjoys playing social network games like Candy Crush or Farmville? Did Flappy Bird take over your life? Is this something that consumes your mind, day in and day out? No matter if you play regularly or only during your downtime, the fact of the matter remains the same: you do so because you are having a good time.

Over the past five to 10 years, the tech sector has helped push a variety of industries to new heights. According to Forbes.com, you can add social network game development to that list.

This industry was named to the Forbes.com 11 Hottest Industries for Start-Ups list, thanks to growth that is showing no signs of slowing down anytime soon.

As you can imagine, more companies than ever before are popping up in this industry. They know that social networking games are hot right now, and are hoping to take full advantage of the opportunity. After a major breakout hit like Flappy Bird, imitators quickly pop up, such as Flippie Birdie and Floppy Bee.

Not every game is a bit hit, but those that reach the pinnacle of the industry often times bring in millions of dollars for the founder. For example, Forbes.com stated that Zynga “turned $700,000 in revenues into $1.3
billion in just four short years.”

Take a closer look at those numbers. It only took Zynga four years to go from $700,000 in revenue to more than $1 billion.

Whether or not this industry can sustain its growth for another 10 years and beyond is yet to be seen, however, the following statistics are interesting:

Annual Revenue Growth (2011-2016): 24.4%

Annual Enterprise Growth (2011-2016): 24.6%

Capital Intensity: Medium

2011 Profit Margin: 15.8%

In addition to these numbers, there is one other thing to realize: the barrier of entry into the social network gaming industry is very low. Never was this more apparent than Flappy Bird’s arrival as a social phenomenon.

Anybody who has previous development experience has a chance to create the next Flappy Bird.

Social network game development is hot. Which company and game is going to be next to take the world by storm?

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