DeNA wants to deal with Facebook or Zynga

What will a deal between major players mean for your social gaming company?

DeNA Co., one of the biggest developers of social games for mobile phones in Japan, is looking to partner with either Facebook or Zynga. The deal would be part of DeNA's attempts to expand further into the US market, which could be good or bad news for smaller social gaming companies. Today, lets look at what might happen to those companies if the proposed deals actually happen.

DeNA and Facebook

This scenario isn't so bad for other developers. Sure, a flood of new, free games will pop up on the Facebook scene, with a fairly large advertising budget, but if you are already competing with Zynga, you're already used to being the small fish in the pond. You're game probably won't be changed too much.

DeNA and Zynga

This one could be a problem. We are talking about some of the biggest social game companies coming together, and a significant amount of fiscal power.  DeNA boasts $336.4 million in revenue from the second quarter this year, and Zynga was estimated to have made $240 million in 2009 and to be worth up to $5 billion. That is some serious revenue to come up against, and a wide network of advertising, and cross promotional opportunities in-game. Admittedly, the average amount of time spent playing video games comes in at a per-person total of eight hours a week, but that time is spread across a wide range of gaming options, including Web, mobile and console-based games.

Your Possible Survival Strategies

1. Create a unique game. Drawing in new players will not be a matter of advertising. You are going to have to rely on word of mouth. This can be as simple as a concept that no one has thought of yet, or as complex as creating a 3D gaming system.

2. Make use of a variety of distribution channels. Yes, Facebook is a great way to get your game out, but it is not the only way. While you are at it, diversify your methods of monetization.

3. Use tools like Facebook Connect to reach a wider variety of users.  With access to 300 million active global users, you will be able to reach out to the masses, and at least have a shot at getting a user base for your game.

4. Make your own deal with Facebook, if you can. Several companies have recently made  exclusive deals with Facebook. If you can offer something unique, on the scale of what we discussed in number one, you may be able to make your own bargain, for a larger portion of revenue sharing.

5. Raise your funds now, if you need them. For now, smaller gaming companies, such as Rocket Ninja, which recently raised $3.5 million, Migg33, which raised $8.9 million, or Aurora Feint, which got $3 million, are getting their cash. If a Zynga/DeNA deal changes the lay of the land, social gaming startups may seem like a less preferable investment.