Zynga May Separate Games From Facebook By Launching Zynga Live

Posted May 9, 2010

Zynga and Facebook’s relationship with each other may be at a tumultuous point. The level of stress associated with both companies is said to be “intense.”

Facebook placed limitations on messaging users and forcing Zynga users to only use Facebook Credits. The commission that Facebook takes from Facebook Credits may be too high for Zynga to accept. Facebook’s commission is 30% for Facebook Credits.

Rumor has it that Facebook is trying to force Zynga to sign a long-term contract for exclusivity on their social network too. Another rumor is that Facebook is threatening to shut off some of Zynga’s games permanently.

To alleviate some of their dependence on Facebook, Zynga launched Farmville on Farmville.com and is trying hard to extract e-mail addresses from Facebook so they can be in touch with their users directly. Zynga CEO Mark Pincus sent out the following e-mail recently:

Pincus announced at a 5pm meeting yesterday at Zynga that Zynga was going to launch a social game network called Zynga Live. The Zynga Live initiative was a social gaming network. Facebook and Zynga has been negotiating on Facebook Credits and the talks turned for the worst. In the negotiation process, Facebook shut off Zynga\?s feeds and threatened to shut down games. Zynga in the process threatened to completely leave Facebook and prepared to do so in the previous upcoming weeks.