Bitcoin could be used to pay for mobile games
Bitcoin is gaining ground as more companies take this form of digital currency more seriously. Mobile games developer Zynga is one of the companies that has recently announced its interest in Bitcoin. The company has announced that it will be conducting a payment test with Bitcoin as the major focus. The developer has teamed with BitPay, a Bitcoin service provider, and the two companies will be working to examine the possible uses of Bitcoin in mobile games.
Bitcoin popularity continues to rise
The current market value of Bitcoin stands at approximately $1,000. The value of the digital currency spiked after Zynga made its announcement. Bitcoin is notoriously volatile, however, as it is not regulated by any government or financial organization. As such, the value of Bitcoin can drop dramatically at any given time, or skyrocket depending on certain factors. A company like Zynga announcing its support for the digital currency, for example, can help the currency become more valuable.
In-game payments remain a focus of Zynga
The payment test will focus on Zynga’s mobile games, many of which are already quite popular with consumers. These games tend to include microtransactions, small payments that can be made to unlock additional content or new features in a mobile game. In-game purchases are quite common in mobile gaming, but relatively unpopular among consumers. Indeed, Zynga’s aggressive use of in-game purchases caused many people to abandon the company’s games, seeking out less expensive and more inclusive mobile games.
Volatility of Bitcoin may make it unpopular in gaming
Zynga is requesting that gamers provide feedback for its payment test. This feedback will be used to formulate a more cohesive payment strategy for the developer’s current and future games. Zynga has issued its support for Bitcoin because of the currency’s dramatic rise in popularity. The volatility of the currency may not win it any fans among consumers, however.
Zynga shifts focus to mobile games
Zynga has been experiencing a significant amount of turbulence in the social gaming space recently. The company made its fortune through Facebook with its vast portfolio of social games. Last year, however, Zynga suffered a proverbial fall from grace as consumers abandoned the company’s games and Facebook stopped showing exclusive favor to the developer. Zynga has adopted a new approach to gaming in an effort to reclaim its throne and has shifted focus to mobile games.
Social gaming takes a back seat
According to the company’s latest financial earnings report, Zynga saw revenues of $311 million in the fourth quarter of 2012. The company experienced a net loss of $48.6 million during the same period. Revenues have been stagnant for the company for several years, but in-game sales have dropped by 15% throughout 2012. For the company to reclaim its place in the game industry, it will have to make a big splash in the mobile games sector.
Zynga working to break into the mobile space
Zynga has already aligned itself with a mobile-centric focus. The company has a workforce of approximately 20 developers working exclusively on mobile games. The rest of the company is focusing on the business aspects of entering into the mobile space, such as marketing, developing better in-game monetization schemes, and working to build new mobile deployment platforms for its upcoming games. Though the company has adopted a very strong focus on mobile games, it is unlikely that Zynga will abandon its social games any time soon.
Social games not likely to be abandoned by the company
Though Zynga may have lost a great deal of favor with consumers over the past year, the company still boasts of more than 298 million monthly active users for its games. Most of these users come from Facebook, where the company’s most popular games are still featured. For its mobile games, Zynga will have to find a new publisher, as Facebook has shown wariness of supporting the company’s titles and the fact that the social network has a very limited presence in the mobile gaming sector.
