Zynga vs facebook
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A presentation we put together and I delivered in IT Management a few months before Zynga underwent its major overhaul
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Zynga vs facebook
- 1. The BIG Business of Online Gaming Pacific Heights Team 11 Sherman Lewis Aurelia Ciseran Thao Nguyen David Garcia Gutierrez Sangju Lee Sivaram Udayasurian
- 2. Zynga’s Business Model is Primarily Utilizing Facebook’s Users Zynga currently is doing two things well: - Freemium - Advertising It’s also moving in to Apps
- 3. How Big Is Online in General??? Source: http://xkcd.com/802/
- 4. The Facebook Social Networking Game Blue Ocean Is Insufficient for Future Growth…
- 5. A Serious Problem Is Differentiation and IP Cafe World (Zynga) v.s Restaurant City (Playfish)
- 6. …and It Is Not an Unique Problem to Zynga Crush the Castle Angry Birds
- 7. What is the way to
- 9. ……and small
- 10. Something New Focuses on Their Strengths
Editor's Notes
- Zynga derives most of its income from its relationship w/FB. FB, however only gets 12% of its revenue from Zynga. While a hardly trivial amount, it shows how unbalanced their relationship is, and points to general problems with Zynga’sbusines model. While Zynga has fairly steady income from its relationship w/FB, it’s really the mercy of its larger partner.
- Sure, Farmville is big, but Facebook is much, much larger. Farmville isn’t the world’s largest browser-based farming game with a social networking focus. It’s the second.Zynga gets 80 % of its revenues from its relationship w/Facebook.Facebook gets about 15% of its revenues from its relationship w/Zynga
- Zynga is in an unusual position, having found a blue ocean in the browser-based social networking games accessed through Facebook. Unfortunately, this ocean is shrinking, forcing them to start competing in fields where they’re being challenged by sharks both larger and nimbler than they are.(I’d like to have these logos fade in…..)
- Mobile Successful, but with much criticism of the games and accusations of plagiarism. (I need the titles to swap in animation)Source: http://www.forbes.com/sites/insertcoin/2012/08/08/a-photo-retrospective-of-the-games-developers-claim-zynga-has-cloned/
- . Not a problem unique to Zynga. Angry Birds vs. Crush the Castle as an obvious example.
- What does Zynga need to do? Create original games. Farmville will only get you so far. They’ve grown big largely copying the success of others.
- [slide 5] – MMORGsBig – WoW discuss how big WoW is. Mention Eve Online. Icelandic company!Small – Kingdom of Loathing
- Zynga understands simply games, freemium upsells, and advertising. The thing they understand the most, is how important the social aspect of gaming is. That’s what’s bringing people back. But going forward, what they need to do is create new interesting IP that doesn’t rely on FB, or preferably any specific platform. Without these, zynga will always remain at best a niche player.