Comments on: Playdom: “Upwards of $50 Million” in Annual Revenue, and Growing

By: Social Games are making it really Big!!! / Foetron : My Journey is My Destination

Sat, 02 Jan 2010 20:07:02 +0000

[...] Estimated $60M [...]

By: 巨大化するソーシャル・ゲーム―ただしダークサイドにご注意

巨大化するソーシャル・ゲーム―ただしダークサイドにご注意 — Mon, 26 Oct 2009 22:33:57 +0000

[...] 推定 $60M [...]

By: Social Games: How The Big Three Make Millions

Social Games: How The Big Three Make Millions — Mon, 26 Oct 2009 10:14:12 +0000

[...] Estimated $60M [...]

By: App Developers Repeat After Me: The Platform is Not Your Friend « @ the intersection

Tue, 20 Oct 2009 16:34:59 +0000

[...] is left for the remaining 350,000 applications once you get past the success of Zynga, Playfish and Playdom, the leading developers on Facebook and OpenSocial platforms. A similarly distorted distribution of [...]

By: Playdom fueling up to take on social gaming market | nextATOM

Playdom fueling up to take on social gaming market | nextATOM — Tue, 06 Oct 2009 18:05:06 +0000

[...] the company is expected to generate more than $50 million in revenue this year, according to Inside Social Games. Playdom generates its revenue through virtual goods, like selling weapons on Mobsters [...]

By: Givity Patel

Givity Patel — Fri, 02 Oct 2009 22:12:54 +0000

@Eric – the numbers for Playdom absolutely make sense. Myspace is primarily US traffic, while FB is only 20% US traffic. Quantcast only reports income levels for *US users*. Overall, across all users, an average MS user has a lot higher income than an gamblaverage FB user.

The other thing to note is that in-game spending (just like many other categories of soft-entertainment – e.g. gambling ) may well be inversely correlated with income-level.

By: Finance Geek » Time Inc. Pitches A "Hulu For Magazines"

Finance Geek » Time Inc. Pitches A "Hulu For Magazines" — Fri, 02 Oct 2009 14:57:36 +0000

[...] Social games maker Playdom revenues “upwards of $50 million” [ISG] [...]

By: Calcuating How Playdom is Making $50M from 28M Users

Calcuating How Playdom is Making $50M from 28M Users — Thu, 01 Oct 2009 23:16:45 +0000

[...] note: Earlier today, we reported that social gaming company Playdom is making $50 million in annualized revenue through virtual goods. Marketing and gaming veteran Eric von Coelln responded, wondering how the [...]

By: EVCin » Claim That Playdom is Making $50 Million Seems Overstated

EVCin » Claim That Playdom is Making $50 Million Seems Overstated — Thu, 01 Oct 2009 17:42:54 +0000

[...] InsideSocialGames.com reported Playdom was making upwards of $50 million, but taking look at the numbers, they just don’t seem to make [...]

By: Eric von Coelln

Eric von Coelln — Thu, 01 Oct 2009 17:18:40 +0000

These numbers just don’t hold water with me for the following reasons:
1) The numbers you present infer that Playdom is making more money per MAU than Zynga:

Playdom $50 million annual from 28 mil MAU = $0.149 per user per month

Zynga $200 million annual from 129 mil MAU = $0.129 per user per month

2) I would argue that to generate revenue from users, a game has to be sticky. As a proxy of stickiness, I would use the Daily Active User divided by Monthly Active User metric — if its stickier, a larger percentage of your monthly users are going to be on it every day. Based on that measure (looking only at Facebook that has this data available), Zynga is nearly 2x sticky as Playdom:

Playdom on FB: 1.78m DAU/28.0 m MAU = 14.8%
Zynga on FB: 36.4m DAU/127.7 m MAU = 28.5%

3) I realize that Playdom has a large base from MySpace, but the number of users are not that much larger:

From the top 25 applications on MySpace (the other post from you today), Playdom has 51.9 million users vs. Zynga’s 39.2 million.

You may suggest that MySpace users offer a bigger propensity to pay, but demographically the average income (from Quantcast) on MySpace is between 0-30K where on Facebook it is $60K plus

I have to believe that either the $50K is over-stated. Interested in your thoughts.