The future of social networking games is bright, not just in the US, but worldwide, Mark Pincus, CEO of Zinga told CNBC Wednesday.
Zynga, which offers popular titles like “FarmVille” and “Mafia Wars,” is the biggest application developer for Facebook.
With revenue estimated at $460 million for this year, Pincus said the company doesn’t currently have plans to go public.
Instead, the company has been relying on the revenue it generates from selling “virtual goods,” or items that are used within the games, and it doesn’t expect to add advertising within its games, Pincus said.
“We don’t want to distract our users from the games and we’re profitable just letting them have fun and find the items they want to buy in the games,” Pincus said.
About 90 percent of its revenue comes from the sale of virtual goods.
“We make money by providing free games that have virtual goods that some of the users can purchase in the games,” Pincus said.
The strong connection to Facebook is because of its large distribution channel, said Pincus. However, Pincus said he expects several different kinds of platforms to develop in places like Japan, China and Russia and all across the Web.
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