Zynga's Profits Continue To Drop

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Zynga's Profits Continue To Drop

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For the first nine months of 2011, only 4.4 percent of Zynga's users were paying for its games. As a result, it's made huge amounts of cash, but much smaller profits than last year.

It sounds like the casual gaming bubble is officially starting to shrink. Zynga, the company behind everything "Ville", has revealed that it's continuing to make money, but it's still a lot less than last year.

In a new SEC filing, Zynga revealed that the last financial quarter's $306 million in earnings were record-breaking, but net profits were down from last year by almost 54 percent to $12.5 million. Granted, that's still better than the 95 percent profit drop that the company revealed earlier this year, but when you're trying to launch an IPO, it never looks good to reveal that your profits are down.

Meanwhile, Zynga is reporting that of its 152 million unique monthly users, only 6.7 million of them provided its revenue during the first nine months of 2011. That means that only 4.4 percent of Zynga's users are actually paying for the company's games; if I worked there, I'd find that statistic a little terrifying.

The company is also claiming that its third financial quarter will show drastic improvements, thanks to the launches of Adventure World and the new Facebook version of Words With Friends.

Source: Gamasutra

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This pleases me.

Did they honestly think the 'fans' of their games would hang around forever and then move on to play another Ville title?

Well you can only make shitty games for so long casual or otherwise but then again its not like there going to have to down grade there toilet rolls or anything

People are catching on that everything is the same but then with just a different skin and the rake is swapped for a paintbrush?

Or that the users have spend enough money and realise they are not getting anywhere? I tend to get tired of these games around the 15th level. I sit down and wonder what the hell I am doing, then boot up another game like Arkham City or whatev and forget about Zynga.

I won't miss it anyway.

So many crops..... dieing.... It's sad really. Really sad.

-'4.4 percent of Zynga's users are actually paying for the company's games'-

Ouch. Layoff's in the future... I wonder if the Zynga haters are glad.

Ah, so there is good news for once. :)

When they released their games there were a lot of potential players, once they filled the market there was only one way to go.

Hopefully this is an early sign that the more predatory F2P schemes won't make it in the long term. Of course, it could just be that Zynga makes horrible games...

Like the other comments posted, I too find this to be good riddance to bad rubbish. Zynga is guilty of pretty much blatant idea theft, and they should be punished for their lack of creativity in their bank account. Also, I'm happy to hear it, so that we can all stop worrying about the games of the future being published by Zynga, and instead start worrying about them only being available on the iPad.

Good news for anyone that hates Skinner boxes making games look bad.

Couldn't be happening to a more deserving company, I mean obviously I don't like the idea of anyone losing their jobs (unless they're arseholes) but I'm sure the truly talented ones will land themselves in more reputable companies.

Also I wonder what kind of 'ville they'll throw at the mass of idiots who follow them when the third quarter rolls in?

The market isn't shrinking folks, the supply of these games is growing, and people are finding their casual niche.

DVS BSTrD *liked* this news.

Excuse me, To properly express my feelings on this issue I must find a cat and a swively chair...

... Ok, I'm back, *Ahem* MUHAHAHA HAHAHAHA HAHAHAHA

I know it seems cold-hearted to be laughing at a story that could mean people losing jobs, but Zynga probably bankrupted more indie developers than ever employed people, which they did under pretty horrible circumstances, and their CEO makes Tim "Sue-guru" Langdell look like Ghandi.

If that company dies it will be to the benefit of humanity.

About f**ing time!

What more is there to say? If you're going to re-skin the same thing every year at least have a decent storyline like CoD

The_root_of_all_evil:
Ah, so there is good news for once. :)

It's even actual news! :D

*is shot*

Sober Thal:
So many crops..... dieing.... It's sad really. Really sad.

-'4.4 percent of Zynga's users are actually paying for the company's games'-

Ouch. Layoff's in the future... I wonder if the Zynga haters are glad.

This is pretty much how I feel, whilst i hate Zynga and all their games I would hate to be working there right now. Perhaps as a new guy been there about 18 months, joined a fast growing mega company and now its all going to hell.

Pity

This calls for a celebration, everybodeh dance!!

Early celebrations and over confident declarations of victory aside. The only reason I'd be sad to see Zynga go under is because I know it would cause the lower people in the company to lose their jobs. Still, should it collapse it would just go to show that a business model based on your product being the latest and greatest fad (along with some unscrupulous business practices) cannot work in the long term. What you need is something people will want for a long time AND unscrupulous business practices.

With the idea of people loosing a lot of jobs, a lot of investors shitting quite expensive pants, and a board director that's probably going to jump off a building... I can't help but feel really, really smug about all this. Hehe.

Daystar Clarion:
This pleases me.

and this was my thought exactly

good riddance i say, may it continue till nothing is left, as they won't be missed

Well they could only put out so many versions of the same game but in different areas before it went stale. Time for Farmville 2: farm defense. A tactical farming experience where you battle bugs in a tower defense format.

The ad for the new fantasy adventure annoys me and seems to hunt me down on youtube.

Bubbles always pop just ask those websites that appeared around the birth of the Internet. Oh right. They are dead.

But the Internet is doing just fine.

"Hell it's about time".

The day Zynga goes bankrupt will be filled with festive balloons. At least it will be at my dorm.

Oh yeah there was such a company wasn't there.

Double post.

I'm really quite surprised at all of the vitriol directed towards Zynga. It's true that it doesn't make games to the tastes of many Escapist readers, but I went to school down in that area and know some people who went on to work for the company. I can tell you firsthand that many Zynga employees are hardcore gamers, just like you, and their goal is just to expand their favorite hobby to a brand new audience. I don't like the idea of my friends losing their jobs just because they make games that you personally don't enjoy - do you?

Now, to be fair, there are some very legitimate concerns about Zynga's business model. I think it's perfectly reasonable to wonder if Zynga's success (however short-lived) has changed the gaming industry in some negative ways. As far as the games themselves go, if you don't like them, that's your prerogative. I personally don't. Go on and let everyone know your opinion. Review the games, and comprehensively break down where each one goes wrong. That's all expressive, constructive behavior.

Celebrating a company's decline and potential job losses just because you think your gaming habits are somehow better than another person's? That's just petty.

Marshall Honorof:
I'm really quite surprised at all of the vitriol directed towards Zynga.

You note it being slightly understandable because zynga has changed the gaming industry in some negative ways, but that ignores the blatant idea theft zynga has played, where their first steps into the industry was basically reskinning other games and selling it as their own; cheating users with dubious deals http://techcrunch.com/2009/11/06/zynga-scamville-mark-pinkus-faceboo/

Look, I'm sorry for your friends working there, but they themselves decided to work for a company with a dubious work ethic. Sure, we all got a mortgage to pay, but I think despite that people should take some responsibility on which company they sell their workservices to.

And I'm glad for anything negative to happen to a compnany that surely doesn't deserve the success it has had.

Sober Thal:

Ouch. Layoff's in the future... I wonder if the Zynga haters are glad.

I know I am :)

I think I would like to take a moment to quote Jim Sterling:

Now tell me, who is smarter? Bear in mind, of course, that the Farmville player is having just as much fun as you are, regardless of the experience's respective depths.

And in light of this revelation, to respond to said quote with another quote from Jim Stering.

"WRonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnng-guh."

HA! TEACH YOU TO SCREW WITH MARCH MAYHEM! SUCK IT!!!

*Ahem*

On a calmer note, I believe this simply proves the fact that most gaming such as this has little lasting appeal.

Marshall Honorof:
I'm really quite surprised at all of the vitriol directed towards Zynga. It's true that it doesn't make games to the tastes of many Escapist readers, but I went to school down in that area and know some people who went on to work for the company. I can tell you firsthand that many Zynga employees are hardcore gamers, just like you, and their goal is just to expand their favorite hobby to a brand new audience. I don't like the idea of my friends losing their jobs just because they make games that you personally don't enjoy - do you?

Now, to be fair, there are some very legitimate concerns about Zynga's business model. I think it's perfectly reasonable to wonder if Zynga's success (however short-lived) has changed the gaming industry in some negative ways. As far as the games themselves go, if you don't like them, that's your prerogative. I personally don't. Go on and let everyone know your opinion. Review the games, and comprehensively break down where each one goes wrong. That's all expressive, constructive behavior.

Celebrating a company's decline and potential job losses just because you think your gaming habits are somehow better than another person's? That's just petty.

Many Escapist users have clinging grudges with Zynga.

I take it that you weren't here for March Mayhem 2010? THE BLOOD WAS EVERYWHERE, KNEE DEEP. (Zynga offered prizes to their users if they won, resulting in mass-spamming. Valve won by an inch, and no one really forgave Zynga for it.)

Add things like the fact that they're indie killers and their CEO has been a total ass in the past, and you get the reactions in this thread.

And nothing of value was lost.

Mostly because nothing was lost at all, Zynga still has a license to print money, just not as much as before.

Happy about the "less part". Not so happy about the "made huge amounts of cash" part >.<

Good to hear, honestly.

Zynga is one of those companies in the industry that embodies some of the more tasteless business practices and ethics that frequently make their rounds of the corporate world. Heck, I even prefer Apple apps over them, and I dislike Apple products greatly. I would rather, personally, Apple just sucks up Zynga's customer base with their own Iphone/Pad games, and sends Zynga to an early grave. Not that people losing their jobs as a result isn't regrettable, but they made the mistake of working for Zynga in the first place..

Also, their CEO is an outright scam artist, and has admitted so in the past. He holds no love from me.

Good to hear. Glad to see they're getting what's coming to them for suckering so many people into playing "MICROPAYMENTS: THE GAME".

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