Zynga splitting from Facebook, launching own social gaming network--reports

Apparently, Zynga wants to function as an independent business and is looking to cut its relationship with the social-networking giant.

Coming up: Zynga Live
The popular game developer also makes games for several other major platforms including MySpace, Yahoo, MSN, and iPhone. But now it is planning to launch the games on its personal social gaming network called Zynga Live.

According to TechCrunch editor Michael Arrington, Zynga CEO Mark Pincus called a meeting with his employees on Thursday afternoon to suggest that their popular games might soon make it to their own gaming network.

Things between Facebook and Zygna have turned rough as the social networking giant has been insisting that Zynga users apply Facebook Credits (of which it gets a 30 percent cut), which is the growing currency platform on the social network

Zynga-Facebook rift
Things between Facebook and Zygna have turned rough since the social networking giant has been insisting that Zynga users apply Facebook Credits (of which it gets a 30 percent cut), the potential currency platform on the social network.

“Facebook and Zynga [have] been negotiating on Facebook Credits and the talks turned for the worst,” reported TechCrunch, quoting an e-mail from an anonymous insider. “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.”

Will users switch to the new Zynga network?
Though the relation between Zynga and Facebook has been remarkably successful, industry insiders feel a split between the two will probably result in a bigger loss for Facebook. Zynga, on the other hand, could be better off with its own gaming network as it will not have to pay anything to the gaming giant for using its virtual currency.

As VentureBeat puts it: “It won't have to use Facebook Credits, and thus it won't have to pay the 30 percent fee to Facebook. And when Zynga advertises the Zynga Live site, the money won't go directly into Facebook's pocket.”

Four of Zynga apps are currently in the top ten on Facebook. While Farmville is number one, Café World, Mafia Wars, and Petville stand at number six, eight, and nine respectively.

Users, who are already addicted to the games, are expected to shift over to the new gaming network without much trouble.

Reportedly, Zynga is already working seriously on its independent platform and has already started collecting e-mail addresses of users to communicate with them off Facebook.