Thursday, June 28, 2012

Zynga Introduces Gamers' Hub; There is A Fidelity Problem

Zynga Logo
( Tampa, Fl) --Thanks to Facebook, Mark Pincus's Zynga brand became a well known name around the Internet regions as the casual gaming site who delivered Farmville and other different clones of the line of Farmville.

Recently according to the Wall Street Journal, the shares of the gaming company have been dropping down because the inability of Mark Pincus to impress the company investors in order to produce fresh and interesting games. The problem even goes further because as many Internet millionaires as soon the capital drops that's it for them and Zynga it's experiencing that inconvenience on first hand. There is nothing really that could position Zynga on the same level as Nintendo, Microsoft, Blizzard Entertainment or Sony regarding the developing of interactive games even with Steam, because Zynga doesn't offer anything new or exciting.

Every single of Zynga's game are exactly the same, no more no less and they are aimed to people who want to enjoy the experience of playing but without any challenge. So technically there are 250 million people that per month had played a game of the company, and invest a small amount of their money on the game dynamics, but it's Zynga economic model reliable.? The answer is no, why? Because it relies on advertisement and direct card payments from the users to keep the business afloat, that is a major problem, why?. Because as it was explained before as the market trends changes with everyday so the demand on creations of new products. Yet with the creation of new products, Zynga launched a gamer's hub where players can compete against each other even if they aren't connected through their Facebook list of friends.

The hub for being technically a beta product it's plagued by different problems such as incompatibility between platforms as well the distrust of the investor to see any potential in the product because Zynga doesn't offer a variety of games beyond the casino-type and point-n-click games as the Cityville franchises. The CEO and founder Mr. Pincus said that he is focused on making games that reach the largest set of user not by diversifying at the moment but by reaching the largest amount of users. Bad idea and wrong words said by the CEO for the reason that a company can't survive on a single product, especially when it's an electronic-entertainment company because the portfolio and diversity in the games is going to get noticed by any possible investor as well any potential customer.

This could be the beginning of the end of Zynga? Yes, the CEO and his staff had taken bad decisions regarding their portfolio over the last couple of years, maybe they should look at the Microsoft model where that company expanded beyond the computer oriented games and developed a successful franchise such as Halo otherwise in a couple of years from now there is not going to be more Farmville.