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. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Personal Tech
24/7/365 Network Uptime!
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
July 26, 2013 1:32PM

    Bookmark and Share
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"?



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Personal Tech
1.   Cortana Fills Windows Phone Gap
2.   Galaxy S5 Phone: Less Can Be More
3.   Beware: Facebook Shares Your Locale
4.   Easter Egg! Microsoft's Clippy Is Back
5.   Zynga Launches Mobile FarmVille


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:
Cortana Fills Windows Phone Gap
Siri-like virtual assistant has promise.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

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 | Small Business | 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 | XML/RSS Feed

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.