Jeff Bezos and Amazon Are Banking on the Games People Play (on Social Networks)

iPhone, schmy-Phone. While games and other applications developed for Apple’s iPhone have been all the rage for the last few days, there’s another sector worth keeping an eye on: social-network gaming, or games made for online platforms like Facebook, MySpace, and Bebo, which typically need to be played on a desktop or laptop. VentureBeat is reporting today that Amazon founder and CEO Jeff Bezos has invested an undisclosed amount in one of these companies: Palo Alto, CA-based Social Gaming Network, which claims 1.1 million users (mostly on Facebook).

The news comes on the heels of Seattle-based Atomic Moguls—a small company backed by Amazon, Second Avenue Partners, and others—raising an additional $1 million last week. As reported in the Seattle P-I, Atomic Moguls’ games have already been installed by some 1.5 million social-network users, and the company is planning to launch about a thousand new fantasy-sports gaming applications by the end of the summer— variations on the theme of assembling football or soccer players for a team and competing against other teams based on real-world stats.

Meanwhile, Social Gaming Network just raised $15 million in May, and is looking to make money by selling ads, as well as encouraging users to buy virtual goods in its games. Online “casual gaming” is a huge market ($2.25 billion a year in the U.S. alone, according to the Casual Games Association), and it will be interesting to see whether the new crop of games for the iPhone and other mobile devices will pull players away from the more traditional Web-based and social-networking platforms. Or perhaps some sort of hybrid will emerge. I just wish there was more time in the day to try these games… or not.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.