The Extent Of Zynga’s User Base Drop
Zynga’s user base has dropped significantly according to a chart put together by ReadWriteWeb. Zynga had an amazing 2011, which led to an IPO in December. However Zynga’s biggest risk was their complete dependence on Facebook. Most of Zynga’s revenues came from Facebook. Yesterday Zynga’s stock price dropped below $5 after falling 13%. CityVille, CastleVille, and FarmVille took the biggest hits.
Out of the four apps in the top ten, only one game has shown strong growth. The new arcade-style game Bubble Safari has quickly hit 6 million active users since launching in May. Bubble Safari is currently the top growing app on Facebook by total users.
When Zynga acquired OMGPOP for $183 million, they gained ownership of the popular iPhone game “Draw Something.” Unfortunately “Draw Something” has seen their number of users drop from 9 million to slightly over 5 million. Zynga attempted to stop the decline by adding 12 languages to “Draw Something” this week.
Zynga’s stock price plummeted yesterday because of a report created by financial analyst company Cowen and Company titled “Facebook Gaming in Accelerating User Tailspin.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry