Social gaming on the way out — Silicon Knights boss

While the industry continues to invest into the realm of social gaming, creating more polished games for Facebook and other services, some figureheads don’t believe it will last. One such head is Denis Dyack, the Silicon Knights boss with a reputation for saying things that make headlines.

Today is no different; Dyack has said that he fully expects social gaming to “crash very hard” in the future. He told IndustryGamers: “The trend that I see is it’s probably going to be one of the biggest bubbles and explosions that our industry’s seen in a long time and I think when it crashes it’s going to crash very hard. I don’t think there’s an economy there.”

Despite Dyack’s claims, big companies like EA continue to buy into the market while developers like Insomniac are also joining in. Meanwhile, dedicated companies like Zynga continue to thrive.

“I don’t know about Zynga,” Dyack added, “I think that’s a big micro, but I think that the amount of venture that’s being poured in, in general, that’s most of the video game industry investment.

“It looks like marketing to me. It doesn’t look like real gaming. And maybe it’ll change, I don’t know. It looks very, very dangerous.”

Even the current successes of the industry do little to convince the Knights chief: “I think Zynga’s valuated more than some traditional publishers right now that have been in the industry for decades,” he continued. “I’m sorry, but I just don’t see it. It seems imaginary to me… it doesn’t look long term healthy to me,” he said.

“And right now you’re seeing a lot of influx in venture and you’re seeing a lot of excitement and a lot of pie in the sky ideas, but when games actually have to start showing pure revenue and real ‘here’s how much we made and here’s how much it cost’… I think that industry is going to not last very long.

“I think there are a lot of publishers out there that don’t agree with it and they just haven’t spoken about it. I don’t see Nintendo going into that space, as an example. There are a lot of publishers that I don’t see going into that space.”

It’s an interesting angle, though not necessarily one we agree with. While Facebook continues to thrive however, we’re sure that there will still be a place for social gaming.

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