Zynga sees a future in mobile games
Zynga, the once-titan of social and mobile games, has been suffering from recent internal turmoil and consumer fallout. Last year, the company saw the exodus of several executives and the shockingly poor performance of its latest games. This poor performance came with feedback from consumers that suggested that the company was blatantly copying other popular games in order to attract more players. Zynga has survived several episodes of shedding employees over the past year and has managed to refocus itself on mobile games, hoping to reclaim its throne in the industry.
Tablets may be Zynga’s ideal platform
Zynga made its name with social games through its tight partnership with Facebook. In 2012, that partnership dissolved. Since then, Zynga has been working to take a new approach to its games in order to win favor with consumers once again. The company has set its sights on mobile games, noting the rising popularity of mobile devices and the willingness of mobile consumers to play such games. Zynga President Steve Chiang believes that tablets, in particular, is where Zynga will reclaim its success.
Tablets considered to be ultimate game platform for Steve Chiang
Zynga suggests that tablets are the ultimate game platform. Tablets are typically equipped with better hardware than smartphones, allowing for better performance in mobile games. Larger, more responsive screens also mean more detail in these games and better controls. Chiang suggests that FarmVille 2, the second rendition of the game that made Zynga a phenomenon, offers a better experience on a tablet device. The game, as well as other titles from Zynga, will make its way to tablet devices as Zynga focuses more on the mobile space.
Mobile games expected to become flagship brand for Zynga
Mobile games currently account for 30% of Zynga’s revenue. Much of the company’s resources are still devoted to social games, as many of its titles are still very popular on social networks like Facebook. By the end of 2013, however, mobile games are expected to become the prominent focus for the company and will begin to overshadow the social games that the developer has been created for several years.
In-app purchases are becoming a prominent trend in mobile games
In-app purchases have become very common in the world of applications, especially where mobile games are involved. Many mobile games are using in-app purchases in order to generate revenue. These games offer virtual currencies and in-game items that make the gaming experience either more fun or less of a challenge. Many consumers have shown willingness to make in-app purchases because it allows them to skirt the otherwise unappealing aspects of certain mobile games. The value of these in-app purchases has been a debated issue, especially as some consumers begin to consider the practice somewhat dubious.
Developers leverage in-app purchase to generate revenue
Mobile games developers are in a somewhat precarious position when it comes to selling their products to mobile consumers. It is considered a nearly impossible feat to sell these consumers mobile games that cost more than $5, as mobile games typically offer significantly less content than those designed for consoles, which tend to be sold for $50 or more. The appeal of mobile games is that they offer entertainment at a very low price, with many of these games being completely free. Developers, however, have to generate a profit in order to stay in business. Apart from advertising, in-app purchases are considered the best way to produce revenue.
Mobile games may be more expensive than they appear
In-app purchases allow developers the opportunity to generate more money as they are not considered a one-time affair. With conventional games, such as those for consoles, the consumer pays for the game itself but may never make another purchase in the future. In-app purchases can encourage consumers to continuously pay for features they find engaging, and purchases can be made with little more than a few taps of the finger. While this may be a good way for developers to generate revenue, in-app purchases in mobile games have been causing some problems for consumers in recent months.
In-app purchases lead to young consumers spending money
Mobile games are enjoyed by consumers of all ages, but the primary demographic for most of these games falls in the 12-17 age range. Children that play mobile games are not typically concerned with spending money while they are enthralled in their gaming experience. As such, they are more likely to conduct in-app purchases without permission, just so they can access certain features of a game more quickly. In 2011, Garen Meguerian’s 9-year-old daughter spent more than $200 playing a simple mobile game, which lead Meguerian to file a lawsuit against Apple claiming that the company had made it too easy to conduct in-app purchases.
