Amazon.com, Inc. (NASDAQ:AMZN) now will now be competing against the likes of Zynga Inc (NASDAQ:ZNGA) and Facebook Inc (NASDAQ:FB) in creating and hosting social games. Amazon.com, Inc. (NASDAQ:AMZN) recently launched its Amazon Game Studios, which highlights the facts about the reach and connections the Seattle based company enjoys in US.
An important question that comes up, as to “Why Amazon is entering the social gaming market?”, is answered through a blog by the Game Studios team. The blog reads, “We know that many Amazon.com, Inc. (NASDAQ:AMZN) customers enjoy playing games, including free-to-play social games,” the message continues, “We believe we can deliver a great, accessible gaming experience that gamers and our customers can play any time.”
This Tuesday Amazon launched a game titled ” Living Classics” on the social network giant Facebook. Zynga Inc (NASDAQ:ZNGA), a rival in gaming for Amazon also used Facebook Inc. (NASDAQ:FB) to boost its popularity. Amazon’s debut game was a tribute to its core services as a seller of digital books. Informing users about the inaugural game, the blog said, “Players help to reunite the foxes by exploring beautifully illustrated scenes and spotting moving objects.”
According to an analyst, the Seattle-based firm has the capital and more importantly, the online clout, to dominate the online gaming market. With the 2C’s (Capital & Clout), Amazon.com, Inc. (NASDAQ:AMZN) is not only a threat to Zynga, but also to established players like Electronic Arts (NASDAQ:EA). Douglas McIntyre, of the investment website 247Wallst.com told, “Amazon has the kind of fire power that allows it to dominate a market quickly,” he continued “Zynga has reason to be worried about Amazon Game Studios, but so does an entire industry that is still in its infancy.”
Currently, because of its popularity, Facebook Inc (NASDAQ:FB) leads the online gaming market. Zynga is still trying to establish itself as an independent platform away from Facebook Inc (NASDAQ:FB). It will be a tough fight, given the names involved. One advantage that Amazon has, is an amazing Internet-server infrastructure that can turn any web business into a cloud-based service.
It will be interesting to watch who will eventually be a winner among Amazon, Facebook, and Zynga, or will there be another player, but one thing is for sure with the entry of Amazon in the social-gaming market, margins will surely be tested.