Tag: mobile games

Zynga confronts crisis with major overhaul

| December 29, 2012

zyngaZynga aims to recover from trouble through re-structuring

Once mammoth mobile and web game developer Zynga has hit a very rough patch recently. The company, which is behind some of the most popular online games in the world, such as Farmville, saw its stocks crash in recent months, falling 85% from its all-time high. Zynga has been a formidable name in the mobile gaming space for years, but has been confronted with problems that may be forcing the company to re-structure and re-consider its focus on social gaming.

Developer cuts 150 jobs as part of overhaul

Over the past several months, Zynga has seen lackluster performance with many of its games. This month, the company cut 150 jobs in an effort to save itself from financial ruin and to prepare itself for a major overhaul. The overhaul is being loosely dubbed as Zynga 2.0, but it is unlikely that the game development company will stray far from its mobile gaming roots or risk breaking new ground by developing games that may not find success. Ironically, this is part of the problem that lead Zynga to its current crisis.

Developer targeted by EA in copyright lawsuit

Zynga has long been criticized in the game industry, as well as others, for its focus on quick-to-market mobile and social games that are almost identical to well-established, successful games that come from major developers like Electronic Arts. The similarities between these games are so striking that Zynga has found itself in the midst of a copyright lawsuit from Electronic Arts, which claims that the company blatantly stole and used concepts from one of its popular games. While Zynga may have etched out some early success with its approach to gaming, this success garnered the company with a great deal of attention that it may have wanted to avoid.

Overhaul may bring Zynga back to the top

Despite the myriad problems that Zynga is facing, the company’s popular games still boast of a massive following. Farmville 2, for instance, claims some 45 million monthly active unique users. Zynga has seen less success in its mobile gaming ventures and the launch of other titles, but the company may be able to pull itself back from serious crisis if it can adopt a more quality-centric development formula.

Kapitall documents the rise of mobile gaming

| December 27, 2012

Mobile Gaming growthKapitall analysis highlights the growth of mobile gaming over the years

Mobile gaming may soon become the dominating force in the game industry. Kapitall, an online investment platform, has been tracking the decline of traditional console gaming and the sale of physical gaming products. As sales continue to drop, they are being replaced by sales made through digital platforms, such a Steam and Gamestop. Game developers that focus solely on mobile gaming, such as Glue Mobile and Zynga, are also seeing significant gains as traditional platforms begin to wane.

Retails sales dropping off for consoles and games

According to Kapitall, retail game sales have dropped by 25% year-to-date, while console sales have plummeted by 30% year over year. A volatile economic climate is to blame to some degree, but so too is the retail price of most video games, which can range from $30 to $60, depending on the publisher of the game. Mobile gaming is faring much better, largely due to the fact that most mobile games are very inexpensive, with many being completely free.

Mobile gaming accounts for only a fraction of the entire market

Despite the strong advent of mobile gaming, however, mobile games account for only a fraction of the overall market. Digital downloads of games developed for consoles and PCs are strong and continue to gain momentum as more consumers show favor for online shopping over traditional forms of commerce. For these people, online shopping is simply more convenient and does not actually mean they are spending less on games, only that they do not have to pick them up from a physical store.

Gamers still willing to shell out money for console and PC games

Kapitall notes that gamers are not likely to abandon consoles in favor of mobile gaming. Mobile games typically offer a very shallow, linear experience that is designed around repetition rather than in-depth gameplay. As such, titles from companies like Electronic Arts, THQ, and Ubisoft are likely to continue selling well, even if those sales are not actually physical.