Case-in-point? Zynga, the social game and application developer, reached a big milestone this week, surpassing 10 million daily active users across its portfolio of social games. Having that many simultaneous players every day is an impressive feat, and this is just one application company.
Zynga develops games primarily for Facebook, other social networks, and the iPhone. Some of its most popular interactive applications include Scramble, Mafia Wars, and Texas Hold'Em Poker. They have become big hits not only because of their gameplay, but also because of the ability to do things like challenge and compete with Facebook friends.
This is the social media in action - it's simply a more relevant and meaningful experience when you're playing against your best friend.
There are plenty of other companies in the space doing big things as well, including Playfish and Social Gaming Network (SGN). Combined, these companies and their games have experienced strong growth and raised some serious money. The growth of the iPhone as a gaming platform has only been a boon to these companies as well.