Investors taking a bold move on mobile gaming
For the past several months, investors around the world have been leery of mobile gaming and mobile ventures of all kinds. Many mobile-centric companies have been unable to deliver on their ambitious promises, which has translated into significant losses for several investors. These failures have done little to bolster the confidence investors have in the mobile space, but some of these investors are beginning to show a change of heart. Several parties have begun focusing on the battered mobile gaming and social gaming companies that saw turbulence throughout 2012.
Zynga continues to produce despite fall from grace
Zynga, the former champion of social mobile gaming, fell from grace in 2012.The company’s focus on creating addicting social games that borrowed heavily — at times too heavily — from other popular titles in the game industry eventually lost the favor of consumers. As people began to criticize Zynga, Facebook began to pull back its support of the developer. An exodus of investors had added insult to injury to the former gaming titan, but the developer continued its work.
Investors throw lifeline to Zynga and Glu Mobile
Zynga’s tenacity seems to be attracting the attention of new investors. Shares in the company have risen by 12.5% on Monday, the heaviest day of trading the developer has seen since November. This may be due to the developer’s rekindled focus on producing unique games of high quality for mobile consumers. Zynga is not the only developer that is seeing renewed investor interest. Glu Mobile, a developer that had been seeing trouble akin to that of Zynga, saw its shares spike by 16.5% on Monday.
Mobile gaming continues to be attractive market
Despite the problems some companies have been facing, mobile gaming is still considered a very powerful and lucrative market. Investors, though cautious, have shown that they are willing to take risks on developers that had proven their ability to establish a strong presence in this market in the past. If investor support for Zynga and Glu Mobile continues to grow, the two companies may soon find themselves back on top of the proverbial totem pole of mobile gaming.