“Facebook Inc unveiled a new hub for consumers to find games and other apps on the social network, including its first storefront for selling paid apps, in the company’s latest effort to expand the ways its makes money from its massive audience,” Alexei Oreskovic reports for Reuters. “The new App Center, which Facebook said will launch in the next few weeks, comes as the company is preparing an initial public offering that would value the company between $77 billion and $96 billion. A key concern for investors is Facebook’s slowing revenue growth, due in part to the widening trend of consumers accessing its service on smartphones, where Facebook provides limited ads.”
Oreskovic reports, “The App Center will, for the first time, allow software developers to sell apps to consumers directly on Facebook. Consumers will need to use Facebook Credits, the company’s payment system, to purchase the apps and Facebook will take a 30 percent cut of the revenue as it does with in-app purchases, said Facebook spokeswoman Malorie Lucich.”
“The App Center will feature apps that designed for PCs as well as for mobile devices such as Apple Inc iPhones and Android smartphones. If a mobile app requires installation for the mobile device, Facebook said it will direct users to Apple’s App Store or Google Inc’s Play store to download the app,” Oreskovic reports. “The App Center will showcase apps based on the quality scores that users give apps and other data Facebook collects, such as how often and how long people use apps. Each user will see a different, customized version of the App Center, rather than one standard version of the App Center.”
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