Zynga scraps real money gaming plans in favor of zynga poker chips

Zynga scraps real money gaming plans in favor of zynga poker chips

Written by : Posted on December 28, 2014 : Comments Off on Zynga scraps real money gaming plans in favor of zynga poker chips

Social gaming giant Zynga has recently announced that they will be giving up on efforts to pursue real money poker licences in the United States in order to refocus on their core games such as Zynga Poker and Farmville, from which they earn money off the sale of in game items like zynga poker chips and other virtual items. Analysts and investors had viewed Zynga’s real money pursuits as the company’s savior and potential future catalyst for the company and sent shares down in after hours to show their dissapointment with the decision. CEO Don Mattrick, who recently took the helm from Mark Pincus, feels that the chances of the real money option materializing are simply not enough to turn the company around and what is needed is a re-focus on creating unique social games with mass appeal as well as updating and growing existing games such as Zynga Texas Holdem Poker.

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Other analysts have applauded Zynga’s decision to dedicate their resources to new and existing social games rather than on a long shot. They’re of the oppinion that reliable revenue streams from in game currencies like zynga poker chips and facebook poker chips need to be grown by investing in existing games. Zynga earns hundreds of millions of dollars each year from these types of virtual items such as zynga chips. In addition to getting small amounts of free zynga poker chips in the game, players also buy zynga poker chips when they want to move up to the high-roller tables.

“We think this is probably a wise move, focusing on business verticals they actually have experience in,” wrote Creutz, who rates the shares “market perform.” “With real-money gaming now largely off the table, and expense reductions not quite keeping up with bookings declines, the bull case is essentially reduced to hoping for some hit games

chips for zynga texas holdem pokerKing, the gaming powerhouse responsible for hits like Candy Crush, has recently surpassed Zynga in terms of daily and monthly players. In order to combat such a threat, Zynga must invest heavily into existing games to keep loyal gamers as well as possible new hits that could catapult them back to the number one spot. While player numbers in games like Zynga Poker have dropped over the years have led to a corresponding drop in players who buy zynga poker chips, revenue from the game and others like it have been a cornerstone of Zynga’s yearly profit numbers.

Anxious investors and gamers are waiting to see what Don Mattrick, the new CEO who previously headed the XBOX division of Microsoft has in store of the social gaming company. Will he return Zynga to it’s roots as the company that made millions from selling zynga poker chips? “In short, we can do better,” said Mattrick in a conference call with analysts. “Getting a business back on track isn’t easy and it isn’t quick. We have a lot of hard work in front of us, but I believe we can succeed as a team and Zynga can do this.


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