Instant Play on Facebook May Help Zynga & Others Attract More Users

by Trefis Team
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Facebook (NASDAQ:FB) is apparently looking to make it easier for game developers like Zynga (NASDAQ:ZNGA), EA (NASDAQ:EA) and others to attract additional users by removing the biggest hurdle for them — the permissions dialog which forces the user to grant permissions to the app or game before they can start using it. [1]

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The Permission Dialog popup has been the most crucial drop-off point for companies looking to acquire additional users. Users are getting increasingly skeptical of allowing apps and games access to their private information. With its new arrangement with Facebook, Zynga, EA and other partners will be able to access a user’s basic information directly and enable users to start playing immediately.

Instead of opting-in, users can opt-out of sharing their information with games and apps by clicking a blue bar above the game. Additional permissions can be requested by the developer later, after the user has already tried the game which makes them more likely to accept permission requests for more private data.

Check out our complete analysis of Zynga

Attracting more users would help Zynga boost its chances of monetizing them and generating additional ad and virtual goods revenue. Even Facebook would benefit from higher usage and engagement rates, as it gets to capture a significant portion of the revenue generated from users on its platform.

We currently have a $14 Trefis price estimate for Zynga and a $33 Trefis price estimate for Facebook. Both companies have a mutually beneficial, symbiotic relationship and generate money from advertising and virtual transactions.

Notes:
  1. Zynga, Kixeye and EA work with Facebook to allow users to begin playing games without requiring permissions dialog, Inside Social Games []
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