Monthly Archives: February 2015
Zynga and Facebook are having marital issues and could soon be heading for divorce. With relationship between the online game master and social site dictator coming to a possible end, what would this mean for Zynga’s future and that of Zynga Poker?
Zynga, the social gaming company that makes off selling virtual items such as zynga poker chips and in game gold is playing around with the idea of becoming an online gambling company as opposed to a social gaming company. As Zynga and Facebook relations have weakened as a result of contract revisions by Facebook, the online gaming giant has a greater need to explore new options. The company has seen much misfortune in the last year with losing its CFO to Facebook along with their treasurer to Twitter. The most recent blow came with the loss of their Director of Engineering to iFeelGoods. To pick up the pieces of these losses Zynga is now trying to embark on the expansion to the online gambling market in which it hopes to mirror the success it has had with games such as zynga texas holdem poker which use virtual currency called zynga poker chips.
The need for this has grown even greater with competition brewing from King.com’s new game Candy Crush Saga. Zynga has failed to deliver large online users with some of their most recently released games, such as CoasterVille. Since December 2012, the game has only been able to generate 1 million monthly average users, far less than current competing games.With little option left to stay afloat as the top social online game company, the expansion into legalized online gambling with real money seems to be the best future option. In the UK the steps are already in play for online gaming to begin. Zynga has partnered up with BPTY, a digital entertainment company. The expansion into the US market will come soon enough.
Will this be the save Zynga is looking for? Will players who previously spent millions to buy zynga poker chips make the transition to real money games? So far, with the announcement of the gambling expansion, Zynga shares are up by 7%. The company has already applied with Nevada to begin the process of opening up the online gambling within the state. With US laws however, the online gaming will be limited to Nevada only. It has not yet become legalized to gamble online in other states. It may take a few years to branch out in the full US market. In the meantime, Zynga is bringing online gaming to nations where online gambling is already legal. For the time being, those in countries that have not yet legalized online gambling will have to settle for playing with their facebook poker chips and zynga poker chips.
To keep a competitive edge, the creator of Zynga Poker has also taken measures to further expand their mobile gaming capabilities to continue to stay appealing to their user base. With this effort they have brought in Sean Kelly, an veteran to mobile gaming. Already the development of new online gambling games are on the way, with Elite Slots and Sports Casino hitting the market in the future. It is more than likely, with the changes being set into play by Zynga executives, the company remains to have a bright future. Zynga’s recent actions have motivated share holders to continue to keep stakes in the company. The company may very well be valued lower than its true worth. The hope is that Zynga will be able to withstand the crumbling of its relationship with Facebook and still come out on top with real money poker games while continuing to sell millions in zynga poker chips to the game’s loyal fanbase. Whether Facebook will ever allow real money gaming on their website is another issue altogether.