Zynga losing money. Beginning of the end for F2P

Ziegler

http://techcrunch.com/2013/07/26/after-losing-nearly-half-its-users-in-a-year-investors-dock-zyngas-valuation-by-400-million/

 

It is not a good day to be Zynga, or one of its investors if you held stock in the firm yesterday. Following a decidedly negative earnings report, investors have unloaded the firm’s shares, sending them down around 15 percent in regular trading.

That loss comes after Zynga’s stock price rose in the wake of a very strong quarterly performance by Facebook. Investors had hoped that the strength of Facebook’s earnings indicated that Zynga, too, would have reported a good set of financial and user-based metrics.

It was perhaps a decent gambit, but it was utterly wrong. A small picture of the company’s decline: Zynga’s daily active user count for the quarter totaled 39 million. However, in the preceding sequential quarter, Zynga had 52 million daily active users. A year ago, that figure was 72 million.

 

Zynga...that company that brought you Mafia Wars and Farmville are starting to see huge losses in playerbase and revenue. Could this be an indicator that gamers are getting their collective  heads on right again and realizing that F2P is a cash grab nuisance instead of a vehicle for making good games to play long term?

This gives me hope  as much as seeing WoW losing customers steadily.

 

 

Loktofeit

Or maybe just a change in one company.

Or maybe just a shift in market.

Or maybe they haven't really made anything notable in a while.

 

OR MAYBE IT'S DOOM,

RAGING HELLFIRES

AND THE END IS NIGH!!!!

 

 

Mdpats

Originally posted by Ziegler

http://techcrunch.com/2013/07/26/after-losing-nearly-half-its-users-in-a-year-investors-dock-zyngas-valuation-by-400-million/ It is not a good day to be Zynga, or one of its investors if you held stock in the firm yesterday. Following a decidedly negative earnings report, investors have unloaded the firm’s shares, sending them down around 15 percent in regular trading.That loss comes after Zynga’s stock price rose in the wake of a very strong quarterly performance by Facebook. Investors had hoped that the strength of Facebook’s earnings indicated that Zynga, too, would have reported a good set of financial and user-based metrics.It was perhaps a decent gambit, but it was utterly wrong. A small picture of the company’s decline: Zynga’s daily active user count for the quarter totaled 39 million. However, in the preceding sequential quarter, Zynga had 52 million daily active users. A year ago, that figure was 72 million. Zynga...that company that brought you Mafia Wars and Farmville are starting to see huge losses in playerbase and revenue. Could this be an indicator that gamers are getting their collective  heads on right again and realizing that F2P is a cash grab nuisance instead of a vehicle for making good games to play long term?This gives me hope  as much as seeing WoW losing customers steadily.  

 

I stopped reading when you mentioned WoW

vandal5627

Originally posted by Mdpats

Originally posted by Ziegler

http://techcrunch.com/2013/07/26/after-losing-nearly-half-its-users-in-a-year-investors-dock-zyngas-valuation-by-400-million/

 

It is not a good day to be Zynga, or one of its investors if you held stock in the firm yesterday. Following a decidedly negative earnings report, investors have unloaded the firm’s shares, sending them down around 15 percent in regular trading.

That loss comes after Zynga’s stock price rose in the wake of a very strong quarterly performance by Facebook. Investors had hoped that the strength of Facebook’s earnings indicated that Zynga, too, would have reported a good set of financial and user-based metrics.

It was perhaps a decent gambit, but it was utterly wrong. A small picture of the company’s decline: Zynga’s daily active user count for the quarter totaled 39 million. However, in the preceding sequential quarter, Zynga had 52 million daily active users. A year ago, that figure was 72 million.

 

Zynga...that company that brought you Mafia Wars and Farmville are starting to see huge losses in playerbase and revenue. Could this be an indicator that gamers are getting their collective  heads on right again and realizing that F2P is a cash grab nuisance instead of a vehicle for making good games to play long term?

This gives me hope  as much as seeing WoW losing customers steadily.

 

 

 

I stopped reading when you mentioned WoW

Looks like you read the whole thing

Ichmen

Originally posted by Loktofeit

Or maybe just a change in one company.

Or maybe just a shift in market.

Or maybe they haven't really made anything notable in a while.

 

OR MAYBE IT'S DOOM,

RAGING HELLFIRES

AND THE END IS NIGH!!!!

 

 

i agree with what he said ... as well as the fact zynga just sucks outright their "games" if you can call them that.. are stupidly dumbdowned that a 1yr can play them while being so mondain that ugh you would need to have a lobotomy to even fathom playing them long term as any sort of actual gamer  

that isnt to say people dont enjoy them.. as they are nice graphically but ugh majority of them are simply login X days and do Y quest that requires Z days of farming the same stupid item in the hopes of getting ABCDE of items needed for crafting of 1 item for 10 points out of 1000 needed points.... 

or spend 99.99 and unlock it all instantly...  oh and there is a time limit of X for that quest

karmath

Everyone with half a brain knew this would come sooner rather than later.

If your entire business model evolves around casuals who play for a few weeks or a month your going to run out of people at some point.

The best model has always been the old school one. Get players and keep them with games that foster tight communities by design.

MadDemon64

Originally posted by Loktofeit

Or maybe just a change in one company.

Or maybe just a shift in market.

Or maybe they haven't really made anything notable in a while.

 

OR MAYBE IT'S DOOM,

RAGING HELLFIRES

AND THE END IS NIGH!!!!

 

 

Or maybe Zynga, as so many people seem to claim, sucks.

neobahamut20

Originally posted by Mdpats

Originally posted by Ziegler

http://techcrunch.com/2013/07/26/after-losing-nearly-half-its-users-in-a-year-investors-dock-zyngas-valuation-by-400-million/

 

It is not a good day to be Zynga, or one of its investors if you held stock in the firm yesterday. Following a decidedly negative earnings report, investors have unloaded the firm’s shares, sending them down around 15 percent in regular trading.

That loss comes after Zynga’s stock price rose in the wake of a very strong quarterly performance by Facebook. Investors had hoped that the strength of Facebook’s earnings indicated that Zynga, too, would have reported a good set of financial and user-based metrics.

It was perhaps a decent gambit, but it was utterly wrong. A small picture of the company’s decline: Zynga’s daily active user count for the quarter totaled 39 million. However, in the preceding sequential quarter, Zynga had 52 million daily active users. A year ago, that figure was 72 million.

 

Zynga...that company that brought you Mafia Wars and Farmville are starting to see huge losses in playerbase and revenue. Could this be an indicator that gamers are getting their collective  heads on right again and realizing that F2P is a cash grab nuisance instead of a vehicle for making good games to play long term?

This gives me hope  as much as seeing WoW losing customers steadily.

 

 

 

I stopped reading when you mentioned WoW

Liar, you took the time to reply. People who actually stop don't continue long enough to hit the reply button.

kasta

Originally posted by Ziegler

http://techcrunch.com/2013/07/26/after-losing-nearly-half-its-users-in-a-year-investors-dock-zyngas-valuation-by-400-million/

 

It is not a good day to be Zynga, or one of its investors if you held stock in the firm yesterday. Following a decidedly negative earnings report, investors have unloaded the firm’s shares, sending them down around 15 percent in regular trading.

That loss comes after Zynga’s stock price rose in the wake of a very strong quarterly performance by Facebook. Investors had hoped that the strength of Facebook’s earnings indicated that Zynga, too, would have reported a good set of financial and user-based metrics.

It was perhaps a decent gambit, but it was utterly wrong. A small picture of the company’s decline: Zynga’s daily active user count for the quarter totaled 39 million. However, in the preceding sequential quarter, Zynga had 52 million daily active users. A year ago, that figure was 72 million.

 

Zynga...that company that brought you Mafia Wars and Farmville are starting to see huge losses in playerbase and revenue. Could this be an indicator that gamers are getting their collective  heads on right again and realizing that F2P is a cash grab nuisance instead of a vehicle for making good games to play long term?

This gives me hope  as much as seeing WoW losing customers steadily.

 

 

Zynga just changes the artwork and the names and publishes the same game over and over and over.  People finally are realizing this and have stopped playing their crap.  It's not the end of FTP but it is hopefully the end of all those -ville clones.

Vorch

Zynga failed to adapt quickly to mobile, much like Facebook did (which is why Facebook's stock had a down-turn initially)

 

There are plenty of other F2P games on facebook that have now adapted quite well to mobile and are doing very well. Games developed by King for instance are doing very very well. I myself play candy crush saga on occasion.

CrazKanuk

Zynga lost their "special deal" with Facebook this year so of course they took a massive hit. 

 

If you actually looked at any statistic for F2P you'd see that it's representing a huge amount of revenue for the gaming industry now. The growth of use and revenue is in the hundreds of percent range. I saw one that said that revenues for f2p games grew by like 300% over 2012. F2P isn't going anywhere.