Zynga Inc (NASDAQ:ZNGA)’s farms can’t compete with EA’s zombies and plants
Zynga Inc (NASDAQ:ZNGA) has always been pitted against EA by analysts and market watchers. The former is largely considered to be a mobile developer. On the other hand, through Pop Games, its subsidiary, EA is considered to be in a stronger position. Electronic Arts’ franchise, “Plants Vs Zombies” is all set to take the mobile gaming space by storm and the cloud of uncertainty hangs low over ZNGA.
Smartphones and tablets are seen in almost every hand and to a great extent people are moving away from computer games to mobile ones. Today, mobile gaming is considered to be the technology market that has the highest growth. When it comes to utilizing different applications, smartphone users spend 43 percent of their time on gaming. In the case of tablets that is 67%. In addition to this, games also monetize 4 times more than other kinds of apps. The market for mobile gaming is an ever-growing one.
Stuck in Farmville
Sadly, Zynga is one company that has not been successful in leveraging this trend to its benefit. At the moment even King, the Candy Crush creator rakes in more than $600,000 on a daily basis which amounts to more than a staggering $200m per year, in revenue from the app. That only accounts for players in the United States. The Angry Birds creator, Rovio, took away $200M in 2012, which was more than double the revenue that was taken in 2011. It’s definitely time for Zynga to wake up, act and move out of Farmville mode.
In Tuesday’s trading session Zynga stock dropped by 3.45%. the opening price of the shares was $2.82, which touched an intraday high of $2.89 and closed at $2.80. more than 8.93 million shares were traded in Tuesday’s session while the average volume of shares traded over 30 days was 22.96. The company has a market cap of $2.25 billion.