Zynga's Newest Games Flop - Analysts Grow Concerned

Posted Thu Jan 19, 2012 at 07:30 AM PST by Dick Ward

'Hidden Chronicles' has just 14% of the user base that 'CastleVille' had after launch.

Ever since Zynga stock went public, the company has been under very close watch by analysts. After all, Zynga is the biggest company of its kind and could very well determine the future of social gaming with its success or failure. So far in 2012, things are leaning towards the latter.

In 2011, Zynga launched 'CastleVille' and 'Empires & Allies' which both accrued over 5 million daily active users (DAUs) within just two weeks. By comparison, the company's most recent title, 'Hidden Chronicles,' sits at just 710,000 DAUs.

Cowen and Company analyst Doug Creutz explains that there's a regular dropoff rate of around 18% in DAUs on new titles. That means to keep the same amount of people involved, the new games have to do at least as well as the old ones. "The company must add 9-10 million DAUs per quarter from new games just to keep total DAUs constant."

Source: Gamasutra

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Tags: Zynga, Facebook, Social Games, Industry Trends (all tags)