Offerpal Responds to Facebook Credits With Employee Layoffs

In-game offer and monetization company Offerpal Media has laid off an unknown number of employees today. Posting on the company blog, CEO George Garrick blamed the layoffs on Facebook Credits, the in-house game currency that Facebook is asking developers to use exclusively instead of using other payment services.

Facebook has been testing its own advertising offers for Credits, in partnership with TrialPay and RockYou/Peanut Labs, through a selection process that has left out companies like Offerpal and competitor Super Rewards. That didn’t present a problem as long as game developers held onto their own in-game currencies, but there has been more movement toward adopting Credits of late — including large developers signing exclusive deals to use the virtual currency, even as many worry about costs. Writes Garrick:

But like any good business, we must balance our costs with our revenues by business area.  This means that we must downsize our Facebook operations in order to adjust to an anticipated lower scale of Facebook user traffic. At the same time, we will re-focus our resources on our growth areas including other gaming platforms, open web gaming, new Internet verticals, and most importantly mobile through our Tapjoy subsidiary.

Offerpal is not left totally defenseless — in May, the company finalized its own proprietary currency system, called Game Points, which can be used across hundreds of games on Facebook and elsewhere. Everywhere but Facebook is now more of a focus.

But Facebook is still by far the largest social gaming portal, so Offerpal is in the uncomfortable position of having to hope that other ecosystems will grow quickly enough to make up for the developer exodus toward Credits. It recently signed a deal with Yahoo, it is already working with many other gaming sites, and we expect it to continue expanding outwards.

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2 Responses to “Offerpal Responds to Facebook Credits With Employee Layoffs”

  1. Offerpal Launches SocialKast to Help Games Migrate Off Facebook says:

    [...] Media. Having been forced to shift its focus away from Facebook with the focus of Credits and its workforce layoff, the offers and payments company is now trying to figure out whether there’s a future off the [...]

  2. With a Focus on Monetizing Mobile Apps, Tapjoy Leaves its Scamville Past Behind says:

    [...] the company shifted its attention, laid off 15 people, moved north to the city and rechristened itself with the baggage-free Tapjoy [...]

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