Facebook Closing Virtual Gift Shop August 1st

Sat, Jul 10, 2010

Facebook, Social

Facebook has made the tough call to shut down its virtual goods store so that it can focus on expanding the Facebook Credits payments system. Jared Morgenstern, product manager for Facebook’s new games and credits team, says, “Closing the Gift Shop may disappoint many of the people who have given millions of gifts, but we made the decision after careful thought about where we need to focus our product development efforts.”

The gift shop has been up and running for three years and has brought in a solid revenue stream estimated at $10 million a year. Why axe it when it’s still earning money? Well, Facebook Credits may hit $1.6 billion in revenue this year. In comparison, revenue generated by the gift shop is a drop in the bucket. According to SocialBeat, Facebook gets 30 percent of Credits transactions, and Credits are currently being utilized in around 150 games with a long term plan of further expansion. The gift shop will officially shut its doors August 1st, with already sent gifts remaining visible.

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- who has written 290 posts on Frisky Mongoose.

Sarah Gray is a Weekend Editor at Frisky Mongoose focusing on video games and the social media that surrounds them.

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