Actually, since their quarterly income from games seems to be stable over the last year and their income from in-game advertising is increasing, the only way they're losing market share is from the market getting larger. Their own user-base isn't leaving them.Mygaffer said:I really despise Zynga and their whole model of stealing their way to the top but I almost think we should let the market sort it out, as it seems to be doing. Zygna is fast losing market and mind share.
Financially, if Zynga's doing anything wrong, it's buying companies like Omgpop (the developers of Draw Something) and not recognizing that Omgpop is probably a one-hit wonder that will never monetize the amount that Zynga paid for it. Yes, Draw Something had millions of users a day prior to Zynga's purchase, and that's dropped substantially, but I'd say the reasoning, by and large, has nothing to do with Zynga. It's because users of free games are a capricious lot who will drop one game for another in a heartbeat, because they don't feel the human need to get their money's worth, because there was no money involved in the first place.
That said, the model under which Zynga works is similar to that of a crack dealer, in which you get something for free, but if you want more of it, you're going to have to pay them. It's a flawed analogy, but I'm in a hurry. I once saw a lady in line at a Target buying three Farmville cards, mumbling something along the lines of, "My lettuce is wilting, I need to get home."
My point is, Zynga's got these people locked up. The market isn't going to solve anything. If you let the market solve this issue, Zynga will continue to be a multi-billion dollar company for years to come, because its players really don't care what the company does to make its games; they just want more games.