Mobile games may not be causing developer exodus from Facebook
Rumors have been circulating recently suggesting that game developers are caught in a mass exodus from Facebook. These rumors claim that these developers are fleeing exodus in favor of mobile platforms in the hopes of taking advantage of the explosive growth being seen in mobile games. Facebook, which has long been a hub for social games, claims that these rumors are unfounded and suggests that game developers are not abandoning the social media platform for better opportunities that may exist in mobile games.
Fall of Zynga sparks rumors concerning social gaming
Many of the rumors concerning the developer exodus were sparked over a year ago when Facebook’s favored game developer Zynga began to collapse. Last year, Facebook cut ties with Zynga and the developer has begun to focus more heavily on mobile games as part of its restructuring efforts. With Zynga out of the picture, Facebook’s gaming scene has begun to experience some turbulence. Facebook claims that the challenges its social games are seeing are due to market corrections being made and the often volatile nature of gaming in general.
EA moving into mobile games
Electronic Arts, one of the largest game publishers in the world, has been moving away from social games recently, adding further momentum to rumors surrounding Facebook’s social gaming space. The publisher has also adopted a strong interest in mobile games, claiming that this sector holds more promise than social gaming.
Facebook remains popular with many developers
While some developers and publishers may be moving into mobile games, Facebook has shown little concern over the supposed fall of social gaming. Developers moving into the mobile space have not been taking down their social games and these games continue to attract a great deal of activity for Facebook. The social network also continues to be the favored platform for many game developers and those looking to establish themselves in the competitive game industry
Zynga’s future in mobile games may be turbulent
Zynga is in the midst of transitioning from social games to mobile games, but this shift has proven somewhat turbulent for the once popular developer. The company has targeted the mobile space as the ideal environment, wherein it can once again establish dominance in the gaming field. This comes after its fall from grace with Facebook and the subsequent crash of its status in the social gaming field. Mobile games do hold strong potential for the developer, but mounting financial problems could derail Zynga’s plans for the future.
Zynga posts decline in revenue
Zynga’s revenues for the first quarter of this year have declined by 18% year-over-year. During the first quarter, the company pulled in $264 million in revenue, but managed to report net income gains due to the continued performance of FarmVille 2, one of Zynga’s most played social games. Nonetheless, declining revenue presents a problem for Zynga, especially as some analysts suggests that the company will continue to report declines in revenue through the remainder of the year. Falling revenues could have an impact on Zynga’s ability to enter into the realm of mobile games.
Developer not likely to see gains through 2013
According to Zynga CEO Mark Pincus, 2013 is a transition year for the company. Pincus does not predict that Zynga will post promising results throughout 2013 until the company can establish a strong presence on the mobile gaming front. Currently, the developer does not anticipate any significant problems entering into mobile games, but development is rarely an inexpensive venture and producing games that do not end up a hit with consumers could lead the company into troubled financial waters.
Consumers wary of mobile games produced by Zynga
Zynga has the long term in mind when it comes to mobile games. The company is currently developing several titles for various mobile platforms, hoping to find the same success with mobile consumers that it had seen through social networks. Consumers remain wary of Zynga, however, as the developer has often been accused of blatantly copying other, more popular games in order to appeal to the interests of gamers.
