Facebook Ending Virtual Gift Shop, A $100 Million Business

Facebook is ending their company virtual gift shop on August 1st. This business generated about $100 million in revenues for Facebook. However social gaming companies such as Zynga and Playdom make a lot of its revenues from in-game purchases, which Facebook also gets a cut from. The market for virtual goods as a whole is expanding rapidly with a projected $10 billion globally this year alone. By removing their own Gifts market, it is possible that more developers will be encouraged to join the Facebook ecosystem, thus generating additional revenue for the social network. [AllFacebook]

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