Tag: zynga mobile gaming

Financial woes for Zynga mount as shift toward mobile games continues

zynga mobile gamesZynga’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.

Mobile games off to a rocky start at Zynga

Zynga mobile gamesZynga has some trouble getting traction in mobile games

Zynga had once been a formidable force in the social games sector. The company is responsible for some of the most popular social games in the history of gaming, with much of its success coming from a close-knit relationship with Facebook. Over the past two years, however, Zynga has experienced a proverbial fall from grace among consumers, largely due to allegations regarding copying certain features of other very popular games. Zynga has since been struggling to restructure itself in order to reclaim its throne, adopting a strong focus on mobile games.

Mobile may be the future, but it is not without challenges

Zynga believes that mobile games, especially those designed for tablet devices, could help it reassert its dominance in the game industry. Mobile games have certainly been very successful for a variety of other development studios and continue to be well loved by consumers, but Zynga has had trouble finding the traction it needs to be successful. Last year, Zynga purchased mobile games startup OMGPOP, which is responsible for the highly popular “Draw Something” game. Since the acquisition, however, Zynga has seen lackluster performance in the market.

Dan Porter bows out of Zynga

This week, Zynga has announced that Dan Porter, former CEO of OMGPOP and the head of Zynga, has left the company. Porter is well known as a colorful and outspoken individual in the game industry, two traits that have made his integration into Zynga somewhat difficult. Last month, Porter was quoted as claiming that Zynga deliberately copies the games produced by its competitors, a comment that he later apologized for. Porter’s tenure with Zynga is marked with turbulence, mostly represented by the poor performance of the company’s mobile games.

Sean Kelly to take the helm

Porter did help draw attention to Zynga’s new focus on mobile games, helping generate hype behind the shift away from social gaming. The former executive will be replaced by Sean Kelly, who was formerlly the head of one of Zynga’s most popular games “CityVille.” Kelly is expected to keep Zynga focused on the development of mobile games while also helping the company recover from some of the damage that has been done to its stocks over the past year.