Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Mobile Tech
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
What Zynga Has To Lose By Folding its Online Gambling Hand

What Zynga Has To Lose By Folding its Online Gambling Hand
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Just because Zynga is one of the larger companies in the casual gaming space doesn't necessarily mean it is better positioned for success in mobile or other areas. And now that the company has folded its position on U.S. online gaming it could make it more difficult to find an edge amid nimbler players, said independent video game analyst Billy Pidgeon.
 


Zynga made big headlines recently when it named Don Mattrick as its CEO. Mattrick was positioned as a savior for the ailing casual games brand. But with Zynga scrapping its plans to enter the online gambling business in the U.S., its fortunes may be turning downward again.

Although Mattrick didn't have time to make much of an impact on the company, Zynga nevertheless beat Wall Street estimates even if it did post a loss. Zynga's second quarter revenue was $231 million, down 31 percent year-over-year. The company's bookings were $188 million. That's down 38 percent year-over-year.

Mattrick, who came to Zynga from Microsoft and officially took the reigns on July 8, put his spin on the earnings. He said the next few years will be a time of phenomenal growth in Zynga's space and the company has incredible assets to take advantage of the market opportunity.

"To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company," he said. "We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I'm privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders."

A Volatile Market

Still, Billy Pidgeon, an independent video game analyst, is not bullish on the company. He told us just because Zynga is one of the larger companies in the casual gaming space doesn't necessarily mean it is better positioned for success in mobile or other areas. And now that the company has folded its position on U.S. online gaming it could make it more difficult to find an edge amid nimbler players.

"It's kind of a crapshoot. It's like the lottery. If you ask anyone in mobile who's been successful and they will tell you there's a great deal of luck involved," Pidgeon said. "There's definitely a glut of games and you can pay your way to get onto top 10 lists, but once you get there there's no guarantee that you are going to get people to fork over cash. It's a volatile market."

Zynga's Wins

Zynga released six new titles during the second quarter of 2013, including Hidden Shadows on web-based platforms, and War of the Fallen, Draw Something 2, Battlestone, Solstice Arena and Running With Friends on mobile platforms. As of June 30, 2013, Zynga had three of the top 10 games on Facebook, based on DAUs as reported by the Facebook API, including titles from its most established franchises, Words With Friends, Zynga Poker and FarmVille 2.

For the second quarter of 2013, Zynga.com, Zynga's own gaming destination, had 4.2 million monthly average users. This was the first full quarter subsequent to its relaunch to include standalone player logins for users seeking a more dedicated gaming experience.

FarmVille and FarmVille 2 combined bookings grew 29% year-over-year, continuing to demonstrate the power of Zynga's franchises. FarmVille 2 showed the value of bold beats such as County Fair, which drove a 15 percent increase in engagement of players level 20 and up.

For the first time ever, two Zynga developed games -- Running With Friends and Solstice Arena -- received Apple's "Editor's Choice" honors, demonstrating Zynga's commitment to developing quality mobile social games.
 

Tell Us What You Think
Comment:

Name:

RMG Games:

Posted: 2013-07-27 @ 4:54pm PT
Abandoning RMG in the US an obvious huge mistake that makes no sense now, clearly virtual suicide, and sad for the shareholders. Anyone even buying the "explanation"?



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Glass Adds Voice Access to Contacts
2.   Samsung, B&N Partner on Nook Tablet
3.   Acer Desktop Box Rides Chrome Wave
4.   Apple Stock Soars Ahead of iPhone 6
5.   HTC One M8 Windows Phone Unveiled


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.