Facebook is all set to close down the operations of its ‘Facebook Gifts’ from 1 August, CNN reports.

This application was termed to be one of the earliest apps that was offered by the social networking giant and thus, helped send virtual gifts to friends and family with the help of Facebook Credits.

Jared Morgenstern through his blog post explained: “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."

It is in regard with declining popularity over the years and increased competition from applications including Pieces of Flair and Birthday Calendar in the social networking site, which has dipped the usage figure of Facebook Gifts, developed by Morgenstern in 2007.

However Facebook Credits, continue to be used on the Gift shop, and can be employed for purchasing items on third party gaming applications like Farmville.