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Showing posts with label social gaming. Show all posts
Showing posts with label social gaming. Show all posts

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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July 9, 2012

Why Social Gaming Company Zynga is loosing Users

Post 6 months after Zynga’s IPO and its stock price has halved,  to under $5 currently . That’s because many of its high profile gaming products are tanking.

  Zynga’s fortunes  of  social gaming was heavily dependent on facebook users  and it was among the  biggest risk it faced as a business. Its over-reliance on Facebook, with most of its revenue and users coming from the social network.

Why Zynga is Shedding Users: “Social gaming company Zynga had an outstanding 2011, leading to a well-hyped IPO in December. But Zynga’s biggest risk was always an over-reliance on Facebook, with most of its revenue and users coming from the social network.

At the time of its IPO in mid-December, Zynga had the top five games on Facebook by daily active users. But, according to app tracking website AppData, three of those five apps have declined dramatically in Daily Active Users (DAI) since then.

The fact is that Zynga’s fortunes are still ultimately tied to Facebook – and vice versa. Social gaming is moving onto smartphones and tablets, which is also where Facebook wants to expand its social networking platform. The reality is that both Facebook and Zynga need to aggressively expand onto smartphones and tablets, in order to get their stock prices moving upwards again.

All of Zynga’s key  products have lost a lot of users over the past six months. Among them is  Cityville, which was  a leader in Facebook’s gaming category,  which echoed Zynga’s share price drop to fall from over 10 million to below 5 million daily active users”