Zynga is Now Betting on Gambling
Zynga will be trying to exit its financial troubles with "real money" games in 2013.
Zynga reported, as expected, a disappointing Q3 that brought sales of $316.6 million, up from $306.9 million in the third quarter of 2011, and a loss of $52.7 million, down from a profit of $12.5 million in the year-ago-period.
FarmVille 2 and ChefVille remain the cash cows of the company, and The Ville, which was launched with high hopes, will be scaled back and other new games will be canceled. Instead, Zynga is betting on "a full suite of 180 Casino games in the first half of 2013", which the company will launch in a partnership with bwin.party in the UK. The suite will include table games such as slots, roulette and blackjack, Zynga said.
Expect Zynga and bwin.party to leverage their most successful brands to co-market the new games. Zynga said it will be offering "the first-ever, online Farmville-branded real money slots game", and new Zynga poker players will join the bwin.party dotcom player liquidity pool.
The free-to-play concept is not completely out the door, but Zynga has to look at other options, especially since even Mark Zuckerberg has complained that Zynga's payments to Facebook are down by about 20 percent and other social game companies such as King.com are picking up the slack.