Boston, MA 10/04/2013 (wallstreetpr) – It seems that Zynga Inc (NASDAQ:ZNGA) is losing favor everywhere. First it was the online gamers who lost interest in Zynga’s monotonous games. Then Facebook with its focus on timelines shifted Zynga games to shadows. This was followed by loss of more than 70% in market capitalization in stock markets. And now, it is founders turn. Founder Mark Pincus, while addressing a local startup community in Israel said that he himself has lost interest in Zynga’s games.
And to top it all, when the crowd gave him an option to correct his views, Pincus decided not to. He just said that he was addicted to games like FarmVille when they were released. But as of now, he is looking to find other addictions.
So does founder’s word have a hidden clue for investors of Zynga? Answer to this question is up for speculation, but fact remains that Zynga is definitely losing its plot day by day. Now it is very much possible that founder’s statement may be born out of hard feelings for having let go CEO’s post earlier this year. But with falling revenues and rising loses, it seems that writing is indeed on the wall.
Very recently, Zynga was in news for having decided to withdraw its application for a gambling license in Nevada. This move was eyed very negatively by the market and it had given it thumbs down. In another development, the company settled a lawsuit alleging infringement of Zynga’s trademark for its portfolio of “with friends” games, against makers of the game titled “Bang With Friends,” which is a casual sex Internet application,.
Now there is no denying that Zynga did pioneer the F2P model based on stimulating addiction in gaming fraternity. Perhaps what Zynga should now do is to explore various other addiction mechanics to win back its gamers.