Let’s face it, with 246 Million Monthly Active Users, Zynga is the largest developer and partner Facebook has. But the relationship between them is getting quite sour due to Facebook’s new restrictions. Recently, Facebook announced that Facebook Credits will be the sole mode of payment that can be used by developers and Facebook will take a 30% cut of it.
Now some developers don’t mind that but with the size of revenue Zynga has, it will have to pay tens of millions of dollars to Facebook each year in fees. Zynga, of course, doesn’t like that and discussions with Facebook over this have not gone pretty well. As a result, Zynga may be planning to launch an independent social gaming network called Zynga Live that will host all Zynga games and let users interact with each other. Ideally, users should still be able to log-in using their Facebook or Twitter accounts and share their scores on Facebook using the Open Graph. However, no details have emerged as of yet on the structure of Zynga Live.
Another demand by Facebook that didn’t help was of agreeing to make Zynga games exclusive to the Facebook platform. There is no confirm news of when this might happen but once it does, Facebook’s PR team will have a field day. After all the privacy issues and recently negative reputation, severing ties with its largest partner is the last thing Facebook needs right now. Facebook will also have a busy day explaining things to its investors, few of whom are also stake holders at Zynga.