Former social gaming giant Zynga was on top of the world just a few years ago. But now it faces tough times ahead after a loss of over $600 million since the year 2008. The decline and fall of Zynga may just have begun.
The pages of Facebook used to teem with Zynga-based social games that titillated and stimulated appetites for novel experiences among gamers. Farmville and Mafia Wars are just two examples of marvels of manipulation that kept the social Net freaks entertained for hours on end. But those days have gone the way of the prehistoric dinosaurs.
The times when Zynga was a big hit have taken a downward spiral and now it is facing the firing squad of economic failure. Since half a decade or so, the losses have continued and they amount to a hefty sum of $600 million. While success used to be the norm at Zynga, fate took it down a nasty road straight into the arms of misery.
Zynga stocks fell huge. Its IPO amount set in December 2011 was $9.50 per share which saw its highest offering of $14.69 on March 2, 2012. sine then, a steady decline is seen in Zynga stock price. Now it's "stock price is hovering around $3.00 per share," according to ArsTechnica. Compnay is also loosing its Monthly Average Users (MAUs). Just in a single quarter in 2013, Zynga lost quarter amount of its total MAUs. Its monthly average user base have now fallen below 127 million. These statistics reveal that Zynga is not a social gaming giant anymore.
Micromanagement, lack of timely decision-making and a dearth of philosophy led Zynga into a vertiginous fall. Initially, its over-reliance on Facebook caused problems. Then there were clashes with developers who wanted to add a dash of non-seriousness to the games that Zynga produced.
While there are some tactics that the top brass may yet employ to pull Zynga through this existential crisis, it will probably be a case of too little too late. The business model that the company followed has failed badly and today Zynga has the lowest self-esteem among social gaming setups.