Friday, September 14, 2012

Zynga Inc(NASDAQ:ZNGA) Gets Aggressive on Mobile

Game developer Zynga Inc(NASDAQ:ZNGA) is now moving to the mobile space where it is seeing a lot of opportunities, especially with the release of the new iPhone.

Zynga, that came into existence as an online gaming company got a fillip when Facebook got the company to make games for its social networking platform. With users of the platform getting hooked on to games such as Farmville, Zynga had no need to look further.

However all that is changing. Users of social networks are moving to mobile devices. A separate ecosystem is coming into play there.

Zynga has realised that it has to put its money where its mouth is. In other words it has to go where the money is.

Google's Android with a 52 percent market share is the undisputed leader in the smartphone segment while Apple has a 33 percent market share. However Android phones are cheaper compared to Apple phones.

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The company has reasoned that Apple users are likely to spend more on downloading apps compared to Android users, because of their separate profiles.

With this in mind the company has designed at least 20 new mobile games for iPhones and about half that number for Android phones.

With both Dell and Hewlett-Packard reporting losses in their recent reported quarters, [personal computers seem to be on the wane. Apart from work purposes, users are tending to take to their mobile devices for their other needs such as communication and entertainment.

For Zynga the writing is on the wall. Its ally Facebook is itself struggling with its daily active users seeing a drop to 141 million, down 16 percent on year. This is not good news for Zynga which had hinged its fortunes on the social media platform.

While there are numerous problems associated with migrating to the mobile platform, as Facebook fonder Mark Zuckerberg said recently, that is where the future is.

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