Social game giant Zynga is worth about $20 billion trillion over Sony

FarmVille of Zynga's famous social game, the San Jose Messenger, wrote last week that the US social-game giant Zynga will be officially traded in the coming weeks, which is expected to become the largest IPO in the Internet industry after Google,　　But the company's profit model remains a subject of concern for analysts and investors. The following is the full article: the market capitalisation or super Sony social game developers Zynga will be officially listed in the next few weeks. Some experts believe Zynga will reach $20 billion trillion in market capitalisation once it has been listed successfully.　　But can a company that sells virtual products surpass Sony? Jeff Tseng, kontagent president of the online Gaming market Research Institute, said the possibility was not non-existent. Zynga, he argues, is actually a analytics firm, not a game developer.　　"Kontagent helps online game developers to better understand the interaction between users and products.　　Zynga has developed popular games such as mob wars and FarmVille, with a monthly active audience of 230 million, not only to buy virtual products such as rifles and tractors, but also to provide Zynga with a wealth of data on its online activities. Zynga declined to comment on the basis of the pre-IPO quiet period. But according to an application submitted to the Securities and Exchange Commission (SEC), Zynga says it will get more than 15TB of data per day from users-enough to fill the hard disk space of 45 laptops.　　Zynga then uses the data to test new game features, targeting ads and determining which players are likely to spend the most. "Secret weapons," says Justin Smith, founder of Inside Receptacle, a marketing research agency that focuses on social media and mobile apps, said: "Wal-Mart's approach is extremely advanced and tends to place the products most likely to be sold near the checkout aisle." Like Wal-Mart, Zynga has developed very advanced computing formulas. "This" secret weapon ", the Zynga formula, can help Zynga regain the attention of players tired of a game, lure them into buying new games and share them with friends. "Their role is the equivalent of thousands of nodes hidden in countless data points," said Dwight Merriman, co-founder of DoubleClick, current open source database company 10gen CEO Dwight Meriman. Merriman points out that internet companies have had such a wide range of analytical capabilities in the last two or three years, thanks to soaring storage costs and the advent of faster and more powerful computer processors.　　In fact, not only the internet companies want to tap the vast numbers of users to dig valuable information, profit from it. Analyst Software Developer QuantivoAmrit Williams, chief technology officer, says the company's clients are diverse, with both video-game sites and physical retail outlets like party Amlit Williams.　　He noted that, according to the latest estimates from IDC, a market research institute, as data volumes grow exponentially, the amount of digital information created only in 2011, if it is all stored on a DVD, will be the height of the DVD stack equivalent to a round-trip from Earth to the moon. Through this data, enterprises can have a deep understanding of user habits. Experts say how to maximize user habits is particularly important for Zynga, after all, less than 5% of players buy virtual products.　　Zynga was founded in 2007 and its name is named after a bulldog that was killed by Mark Pincus, the current CEO of Mark Ping.　　Expanded product line Zynga quoted data from the Market analysis agency ISUPPLI in a paper submitted to the SEC: isuppli data showed that the global virtual goods market (including social game trading) reached $7.3 billion trillion last year, a figure expected to grow by as much as 2014.　　While many non-player professionals have questioned the amount of time and money invested in virtual products, Smith and other analysts have likened online gaming to the film industry, where if can enjoy hours of leisure time, and people don't care about spending 10 of dollars. Like film companies, game developers need to constantly launch blockbuster games to keep and attract users.　　To achieve this goal, Zynga has acquired 13 companies over the past 9 months, expanding online gaming and mobile gaming products. Ad revenue growth because of concerns that ads will reduce the user experience, Zynga last year reduced the placement of ads, but according to the latest S1 files submitted by Zynga, the company is now stepping up its advertising campaign for players.　　In the 9 months to 2011, Zynga's revenues were 828 million dollars, and while advertising revenue accounted for only a tiny fraction of that, sales growth in the past year was twice times faster than virtual product sales. In this way, the analyst says, Zynga can meet the challenges posed by its rivals to its vast user base and net cash.　　In addition, Zynga is struggling to reduce its reliance on Facebook, where most players visit Zynga's games via the social networking platform, but Facebook is divided into 30% of Zynga's Virtual goods sales. Next year, according to analysts, Zynga will launch more ads, making full use of its analytical skills to advertise to specific customers.　　Industry insiders believe that Zynga's branded virtual products will increase, such as Best Buy smartphone ads recently implanted in the CityVille game. Justin Molavi, IBISWorld analyst at Market Research, said: "After the IPO, to promote game advertisingThe experience of the film will become more common.　　"According to his estimate, the social gaming industry will earn 3.8 billion dollars this year, with Zynga as the dominant share." "Even if some people may think it will degrade the user experience, every decision they make on the market should take into account shareholders ' interests," Molavi said of the game ads. "(Holy Oak)