Analysts EEDAR warn that the days of social gaming may be over, with Cloud Gaming set to take its place.
EEDAR CEO Greg Short told the attendees at GDC Europe today, that "he doesn't know why people are spending half a billion" on social gaming companies.
"Cloud gaming could completely change how the video games industry works," he said. "Why would you play FarmVille when you can play World of Warcraft on the same machine?"
He said that according to research, gamers are now playing social games for three weeks before stopping. And that the novely of social gaming is wearing off.
"Social gaming is under pressure. We can't evolve social games fast enough," said Short. "People are now looking for a richer gaming experience." "It's early days, but as [Gaikai and OnLive] roll-out, it will create opportunities that will ripple throughout the industry."