Monday, July 29, 2013

Zynga announces $15.8 million dollar loss, 45 percent drop in daily users

Social game service provider Zynga, which is best known for coming up with Farmville and a slew of other Facebook games, has now announced a $15.8 million loss in the second quarter of 2013, according to Gamespot. The loss has been attributed to a mammoth drop in the daily users of its social games, which has fallen by 45 percent over the last twelve months.

According to the data, around 39 million users now play Zynga titles on a daily basis, as opposed to the 72 million users who were registered in the same period last year. Apart from the drop in daily usage, there has also been a drop in the number of people who play a Zynga game at least once a month. There is a registered 39 percent drop year-on-year in that number, which is now down to 187 million, as opposed to the 306 million users who were seen playing at least once a month in the second quarter of 2012.

Overall, the social gaming giant has registered revenues of $231 million for the three month period this year, which ended on June 30, which is low when compared to the $332 million revenue that Zynga saw in the same period the year before.
Making money in a Zynga recession
Farmville maker Zynga registered $15.8 million loss due to dropping user number

Some of the new titles that Zynga released in the last quarter include Hidden Shadows, War of the Fallen, Draw Something 2, Battlestone, Solstice Arena, and Running With Friends. Earlier reports have indicated that the social gaming giant has been facing rough times for a while now, and has been forced to restructure its company, which will result in 520 jobs being removed from the company. The company had previously registered a profit of $4.1 million for the first quarter of the year.

While talking about this, former Xbox and now Zynga head honcho Don Mattrick said, "The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity. To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company. We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I'm privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders."

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