Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
November 23, 2014
arrowPress Releases
November 23, 2014
PR Newswire
View All

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

'Zynga's core Facebook game business is likely in decline' - analyst
'Zynga's core Facebook game business is likely in decline' - analyst
July 24, 2012 | By Mike Rose

July 24, 2012 | By Mike Rose
    Post A Comment
More: Social/Online, Business/Marketing

Newsbrief: Analyst firm Cowen and Company warns that, as social games giant Zynga gears up to report its second quarter earnings this week, a number of the company's key titles are about to hit negative inflection points.

Using the previous declines of FrontierVille and Mafia Wars as a case in point, Cowen analyst Doug Creutz noted that both games saw a decline in book value after they had dropped below 3.5 million daily active users -- a figure that Creutz claims has proven to be "a critical threshold" for overall social gaming users.

Worryingly for the company, eight of its top ten grossing titles, including CityVille and FarmVille, have dropped below this figure, meaning that Zynga may well soon experience notable revenue declines as a result.

Creutz also noted, "While we do think that initiatives like and online gambling have the potential to drive long-term upside, that view is balanced off by our belief that Zynga's core Facebook game business is likely in decline." Zynga will report its second quarter earnings on July 25.

Related Jobs

Disruptor Beam, Inc.
Disruptor Beam, Inc. — Framingham, Massachusetts, United States

Lead 3D Artist
Infinity Ward / Activision
Infinity Ward / Activision — Woodland Hills, California, United States

Lead Game Designer - Infinity Ward
GREE International
GREE International — Vancouver, British Columbia, Canada

Sr. Game Designer
Cloud Imperium Games
Cloud Imperium Games — Santa Monica, California, United States

Technical Artist

Loading Comments

loader image