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August 27, 2012

Trouble at Zynga : Is the Start of Social Web Meltdown?

Has the The Social Network Bubble starting to show signs of imploding .Social Gaming Zynga seems to be the latest start that shows signs of " being just another company that  rose to new heights but died with a whimper

Apart from Grappling with a  a low marketshare, and share price  four Zynga Inc managers have departed this month as the online game maker grapples with slowing growth and a slumping share price that lessens the value of compensation,

After  after two years of rapid growth the number of people playing games on Facebook leveled off in 2011. As of the end of 2010, about 50% of Facebook’s monthly active users were engaged in games on the site. By the end of 2011, the absolute number was little changed – and the number of active users engaged in games had dropped to 25%.

1)Facebook's huge  platform has allowed Zynga to reach the heights it has attained to date, but the social network's own troubles are perceived to have rippled out and negatively affected ZyngaWith Facebook No Longer Promoting  Games on Players' Walls Zynga's traffic has been hit, as revenue decline

2)Zynga has been trying to branch out on its own—starting up its own platform and partnering with AT&T—but the bulk of its revenue still comes from Facebook usage. 

3)Zynga’s one big chance to excel in mobile has failed miserably. Being bigger won’t help Zynga as more eyeballs migrate to smartphones and tablets. Being small and nimble is often an advantage in the mobile game market, where some 250,000 games compete for attention.

 4)Zynga acquired the company that developed the mobile diversion Draw Something in April for $180 million, right when it peaked at 14.5 million daily users. Since then, Draw Something has steadily fallen in both popularity and potential.
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