Monday, April 26, 2010

Zynga’s Success through Facebook Uncertain



For those of you who don’t know who Zynga is – it’s the company that creates all the games that Facebook offers including FarmVille, Mafia Wars, and other titles. Although all their games are free they are projected to surpass $450 million this year in revenue due to gamers buying virtual machine guns for games like Mafia Wars, and garden hoes in Farmville. Over 120 million people play Zynga’s games online and it has seen a great deal of success within its three year existence.

But their biggest problem right now is moving forward in uncertain times. It seems pretty obvious that Zynga’s success is directly related to the ability to stay in the good graces of Facebook. If their relationship were to become strained, their business would suffer greatly. Even new Facebook regulations that have decreased the games ability to spam on people’s news feed has cost them revenue. So the question Zynga's CEO Mark Pincus needs to ask himself is - what can we do?

Although when interviewed he seemed very at ease with the situation professing how great his relationship is with Mark Zuckerberg, Facebook’s founder, one never really knows. This just goes to show, once again the power the Facebook universe possesses. Even as we speak, Facebook is devising a Paypal / Ebay type of money transaction site that is said to rival the two companies. Which makes us all wonder, what will be left for the rest of us once Facebook takes over the world?

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