Social games, games that are playable within social websites such as Facebook and MySpace, are on a path to revolutionize the gaming industry, a similar feat attempted by downloadable casual games that seems to be hindered by the aforementioned titan. They spread like pandemics and can actually be fun.

It´s no surprise then that this industry has attracted much investment dollars, 98 million to be exact. The good thing is that the social gaming industry is still young and ripe and offers new comers somewhat of an equal opportunity provided they are dedicated to making their games a success.

Social games are instant, direct-to-consumer and about social status, attributes that are hard to replicate and copy. The great thing about making games on social platforms is that you get access to users and their social data, allowing developers to create compelling experiences that are in essence an extension of their social network usage and expressions.

New Ways To Make Money
The key driver behind social game development, of course, isn´t philanthropic. Although there are applications which contribute a part of their earnings to charity, enticing business models and emergent payment platforms are offering developers new and exciting ways to monetize their games, allowing them to fully utilize the relationships they cultivate.

Low Barriers to Entry
This is probably the biggest reason we see people trying to create social games. A one-man shop is still possible wiith low entry costs and the ability to gain massive amounts of users through proper utilization of Facebook´s viral channels. The reach is there as Facebook´s number of users continue to climb. Compare this to the past where a game developer would need a studio and spend hundreds of thousands to millions in development and then distribute their games in boxes that would sit on physical shelves.

Success already seen
In the earlier days, SGN´s game Warbook used to average ~$100,000 a month and Facebook grossed 50-70 mill a year from its virtual gift sales.

What the heck are social games?
It´s not necessarily a segment like "casual games". Most games are social, with communities built around them (i.e. world of warcraft etc.) What really differentiates them? Social games conditions include:

* Utilization of the social graph and social connections (games such as PackRat and Parking Wars)
* Gameplay revolving around socializing or social activities such as chat, exchanges and flirting. (YoVille, Pet Society)
* Asyncronous or syncronous turn-based gaming played with friends or strangers (scrabble, poker)
* Competitive Casual Games with strong focus on status amongst friends (Word Challenge and GeoChallenge)

Social games tend to be variants of casual games, sometimes molded into a social context (restaurant city is an asyncronous, social status-based game that takes Diner Dash and puts it in a social context where you can hire your friends, and adds a Sim based element where you level up, save money and improve your restaurant).

Next we´ll explore further elements of a social game and and the role social experiences play. It is important to keep all these elements in mind as you venture into the social gaming industry.

http://www.facebookster.com/blog/an-overview-of-social-games_86