Is Zynga On The Decline?

News Casual

Zynga is the powerhouse when it comes to Facebook gaming. The creators of Farmville and Mafia Wars hit a gold mine with middle aged mothers and teenagers, the same way Rovio did with Angry Birds. However, that gold mine is running out as they are losing daily users. In fact, This is very worrisome as they plan to go public in November.

There is new evidence showing that three of the five new games aren’t really latching on for the company, losing 40% of their daily users for Empires & Allies, Pioneer Trail and Adventure Peak. Doug Creutz, analyst for Cowen and Company, has expressed fears over the company.

“We view the user trends at Zynga as extremely troubling given the apparent lack of organic growth, particularly in front of an IPO that continues to be talked about at rich valuations in the $10 billion range. At least as disturbing has been the degree to which new launches have begun rolling over almost immediately after the initial launch.”

He also measures up on the drop of users on the three new titles, believing that the games are “largely cannibalising users from old titles, and failing to attract new users to Zynga’s portfolio”.

What does this mean for Zynga? Is it back to the drawing board? I would say it is. If they want to regain their lost audience, amybe provide something that is not the same as every other game they release. Offer something brand new to wow your followers.

Josh is the name, writing is my game... well my degree will say that. But, when uni gets me down (and it does), there is no better way that to grab a chair, sit back and slicing up some Darkspawn I started my gaming interest back in the good old 16 bit era with the Sega Mega Drive and Sonic The Hedgehog 2. I was roughly five years old. To this day I still try to fire up the dusty companion and speed through the wacky and bright levels, jumping on some Badniks, collecting those damn Chaos Emeralds. Then I moved onto Sony's disk based console the Playstation (thanks to my uncle). Since then I have picked up each of Sony's consoles from the 5th to current generation that has been released in Australia (with more to come). In terms of writing about games, I am quite new to the field. I started out late last year with my own blog before deciding to move to greener pastures. I have written a few reviews for the Playstation 3 and Playstation Portable. Features as well. I hope I can flex my muscles while writing with Capsule Computers. If I'm not gaming, however, I'm writing narratives. I am currently trying to kickstart a high fantasy novel (which, hopefully, turns into a complex RPG) that I want done in five years or so. My passion of writing has been there for a long time and has flourished as I grew. I'm into the fantasy genre, both games and novels, and thoroughly enjoy a deep and complex RPG, whether it comes from the East or West. Oh and anime is awesome!

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