Zynga Blames Facebook for Drop in Share Price

Thursday, 26 July 2012 03:19

Games - Games

Developer Zynga, has taken quite a hit share-wise and has, in response, lashed out at Facebook, pointing to the social media site as the main culprit.

The purveyor of social games such as Farmville and Mafia Wars experienced a sharp drop in its price share, which fell 40 per cent in after-hours trading. Zynga also made a $22.9 million loss for the quarter, after a $1.4 million profit during the same period the year before. While revenues were actually up 19 per cent to $332.5 million, Zynga dealt with costs partially as a result of purchasing Draw Something developer OMGPOP. As a result, Zynga delayed new titles and lowered expectations, citing, "a more challenging environment on the Facebook web platform and reduced expectations for Draw Something."

More pointedly, Zynga chief operating officer John Schappert said during a conference call to investors, "Facebook made a number of changes in the quarter," adding, "These changes favoured new games. Our users did not remain as engaged and did not come back as often."

Zynga head Marc Pincus said the developer will attempt to recapture some success on mobile devices and will be entering the real-money gambling market in 2013.

While some analysts are not confident in Zynga's prospects at present, Pincus is looking to branch out from the social media website and get a footing on other platforms.

"Getting beyond the Facebook web footprint through mobile is going to give us more growth opportunities for games," Pincus said.

Via: Eurogamer

Image: Flickr/Graham Stanley

Source: Gameranx

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Zynga Blames Facebook for Drop in Share Price
Developer Zynga, has taken quite a hit share-wise and has, in response, lashed out at Facebook, pointing to the social media site as the main culprit. The purveyor of social games such as...

© 2013 - Screen Rave

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