Zynga strategy shifts to mobile games: How to Profit is key

Beijing Time August 6 News

The following is the full text of the article:

To reverse the weakness of the business, Zynga is moving up the stakes in the game and is preparing an interactive network for mobile gamers.

However, how to achieve this transition is still hotly debated.

Last month at Zynga's San Francisco headquarters, chief mobile figuratively mobile officer David with a group of engineers and designers about plans to launch a mobile game this fall. During the hour-long meeting, the discussion focused on offering free games like the one on Facebook or a paid game.

Finally, the meeting was fruitless, in part because Zynga was determined to build a huge mobile gaming user base. "If we can't socialize games on mobile devices, this plan may fail," David told attendees. ”

At present, Zynga's growth is weak, and to seek further development in mobile games, how to socialize mobile games is a problem that has been a headache.

The predicament of the present stage

Founded in 2008, Zynga offers free games such as "Farmville" on Facebook and earns money by buying virtual products in games. The business model allowed Zynga to value $20 billion trillion and successfully implemented its IPO in 2011 (initial public Offering).

But the number of gamers on Facebook is shrinking. Zynga says Facebook's active gaming users slipped 16% to 141 million in the second quarter.

The number of Facebook gamers has fallen because users are turning to mobile devices to play games rather than personal computers. Zynga says gamers are three times times more likely to grow on mobile devices than online players.

As a result of this trend, the gaming industry on Facebook is weak and Zynga's core business is under attack. At the end of last month, Zynga released its second-quarter results for fiscal year 2012. The report showed Zynga's net loss in the second quarter was $22.8 million trillion. In addition, Zynga has lowered its full-year performance Outlook. The company's share price continued to shake, based on the bad news. In Friday, Zynga's shares closed at $2.72 trillion, down 73% from December 2011 's IPO price of $10.