Zynga is expected to report its quarterly results on Wednesday.Zynga is looking to bring icons to its virtual world as Martha Stewart hosts Easter egg hunt.Ĭelebrities are finding their way into more than just the use of social media, they are also becoming characters in the games we play too. Even to the point where EA (Electronic Arts), one of the biggest game publishers in the world, now has a social gaming platform, as well. Many developers have been successful in creating online games that do, in fact, generate more money than the standard game publisher's offerings. Social games traditionally function differently than a console or disc-based game in that they are typically free to install or download, yet often require the use of microtransactions to generate revenue for the developer. This projected loss indicates a potential drop in revenue generated by Zynga. Zynga has had its share of financial difficulties in the past, but this reduction in users is particularly impactful.
This could spell harsh financial times for the company, as advertising revenue, as well as transactions conducted in-game are no longer happening. About 3.5 million users are considered a critical threshold for social gaming, Doug Creutz, an analyst at Cowen and Company, told Gamasutra.Įight out of 10 of Zynga's top games have dipped below the 3.5 million user number. Zynga's online games have seen a 3.5 million user drop in recent months, leading some to speculate that the bubble has burst in terms of social gaming's dominance on the market. This news comes just days after Dave Pottinger, former lead designer on CastleVille, left Zynga to form his own, smaller game development studio, BonusXP. The company, in recent months, has seen a massive dip in its user-base, according to gaming site Gamasutra. Zynga has maintained its hold on the social gaming (and to an extent, mobile gaming) by acquiring OMGPop, makers of Draw Something. The company, known for games like CastleVille, FarmVille, and Mafia Wars, has staked a claim on the social gaming market through its own website (), as well as through Facebook and originally, Myspace. Social games developer Zynga is preparing to report second-quarter earnings, even though the company has seen massive dips in its user-base. Social games developer and creators of "CastleVille" Zynga is preparing to report its’ second-quarter earnings, even though the company has seen massive dips in its user-base.
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