Disney Pays $763 Million for Social Games
Posted by Steve Fravel on Wednesday, July 28, 2010 · 
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According to observers, the social gaming business is booming. Disney’s initial payment of $563.2 million places the Walt Disney Co. squarely into social gaming as the largest Hollywood operator. The deal is reportedly structured to include additional payments of nearly $200 million should Playdom achieve significant undisclosed growth benchmarks.
The concept uses simple games that include ”virtual retail” opportunities for players to purchase everything from clothing and spa visits to refreshments for their game characters. Playdom is one of a group of game developers that are part of the rapid expansion of social game growth in network environments like Facebook.
Playdom will be developing social games based on Disney characters, providing an additional entertainment and interactive experiences for fans who are devoted to networks like Facebook.
According to reports, Disney officials look at the Playdom purchase as additional diversification in their extensive digital media portfolio. The investment places them well into casual social gaming while at the same time allowing for participation in the more complex gaming platforms like XBox, Wii and Playstation.
This is an interesting business where a revenue stream opens that involves “virtual goods and services.” Players are able to outfit characters with all manner of products. According to industry reports, virtual goods and services sold in social games may reach more than $800 million this year.
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