If you’re like me, then you probably hate those obnoxious game-related messages from your friends that clutter up your Facebook feed. “Sam just found this pointless virtual object!” “Gary needs your help in this silly game!” Well, I won’t go so far as to call it Karma, but Zynga – the company behind a lot of that spam – just took a big stock hit after announcing a Q3 loss this week.
Zynga shares dropped 19% after the company announced a net loss of 103 million in the third quarter, falling short of market expectations.
Zynga is the company behind Farmville and Cityville and (shockingly) “The Ville.” The company blames the falling revenue on softer-than-expected interest in their library of Facebook games. Zynga’s acquisition of online multiplayer gaming site OMGPOP also factors into the story. Maybe Zynga would generate more interest if they stopped slapping the word “Ville” on the end of every carbon-copied game they released. Just sayin’.
Zynga is optimistic about the future, touting their base of 311 million active users and the potential wellspring that is mobile gaming. From the other side of their mouth, Zynga is lowering their financial projections due to softer game adoption and lengthy game development. Profitability through Facebook is a tough prospect (just ask Facebook), and Zynga can’t hang all of their hopes on token collecting social games. Since going public in 2011, Zynga has lost more than 70% of its market value.
Maybe I can help. I have an idea for a new game called MarketVille. Every player starts a virtual company and the objective is to keep that company profitable despite volatile market swings, unexpected technology changes, and preoccupied consumers. To add that ever-important social aspect to the game, every time your virtual company’s marketshare changes, it spams all of your Facebook friends!
Hey, sounds super fun! Right!?