Jambool started up in 2006 and a year later shifted its focus toward social networking sites by creating a virtual currency platform called Social Gold. "Along with success, we found fun and lucrative ways to monetize our apps -- specifically virtual currency and goods. That led us to create a platform to help developers create, host, manage and monetize their virtual economies," its founders write.
Jambool's main competitor is , Facebook's own virtual currency platform. Facebook Credits of earned revenue, whereas . It is mandatory for Facebook developers to use Facebook Credits for monetization.
Jambool CEO Vikas Gupta recently had some harsh words for Facebook Credits in . Gupta listed many problems with Credits, including its hefty revenue cut, its implementation failures (only 1 to 2 percent of people spend money on social games, where as Gupta believes it should be closer to 50 or 60 percent), and its similarities to pre-paid credit cards, which have had "limited success." An example of Facebook's failures with Credits is .
Social gaming has begun a multibillion-dollar industry. , and say that social gaming will reap more than $1 billion in revenue this year. and discovered:
Meanwhile, Google has kept quiet about the Jambool acquisition and is being especially elusive about the company's plans to build a social networking site. Google's CEO Eric Schmidt , but did say that "the world doesn't need a copy of the same thing," which likely means Google Me won't be an exact replica of Facebook.
Google has now , many of which are potential components of its . Before buying Jambool for , Google for between $180 million and $230 million. is a media company that develops games, widgets, and applications designed specifically to be used in social media, and are responsible for Facebook apps such as SuperPoke. Google also , the company responsible for FarmVille and Mafia Wars, among others.
No matter what Google is or is not saying, it's readily apparent the company is preparing to battle Facebook on its own territory. Let's hope Google Me isn't another social networking failure for the company; Google , a collaborative Web site, and experienced with Google Buzz.