![]() ![]() Though many core gamers dismiss Zynga's "freemium" games model, publishers like EA and Valve have already begun offering their own freemium games, which are free to play, and attempt to hook players into playing for months or years, baiting them with small, cheap microtransactions.Social gaming has been huge this year, from Facebook launching new game features to Google+ adding gaming to their social network. "Of all the companies we’re looking at, it’s the one we’re most excited about because it’s a real company with real revenues," said Hargil. Nitsan Hargil, an analyst at GreenCrest Capital Management estimates that Zynga's sales will reach $1.5 billion in 2011, with a third of that ($500 million) being profit. It is actually profitable-extremely profitable. However, it may not be entirely fair to lump Zynga in with all other social networks. Facebook, the real crown jewel of the social network pile, is likely planning its IPO for 2012. ![]() LinkedIn and Pandora recently went public with Groupon in the process as well. ![]() Still, investors are hungry to invest in social networks. Many claim that the the social "free" games publisher is overvalued, arguing that its reliance on Facebook is a liability and that social gaming itself may be more of a fad than a lasting trend. Zynga is expecting to be valued between $15 and $20 billion, which would put it well above the huge publishers like EA, which is valued at only about $5 billion. If there's money to be made, the big guys want in. Morgan Chase & Co., Barclays Capital, and Bank of America Merrill Lynch will also be involved in the IPO somehow. Zynga hopes to raise as much as $2 billion and has picked Morgan Stanley to lead the offering. The move has been expected for some time, as a wave of new tech companies have begun seeking public funding. Zynga, publisher of Facebook games like FarmVille and CityVille, will file for an initial public offering (IPO) as early as tomorrow, according to WSJ. Zynga turns its privacy policy into a game can you guess what it’s called? Zynga profits drop 90-percent, further threatening its IPO status Zynga announces new games, and gaming platform “project Z” The games are so successful that Zynga was recently valued higher than Electronic Arts, one of the world’s largest game publishers.Īre you into FarmVille, Mafia Wars, or FrontierVille? Plan to play CityVille? Seeing what could be a new Sim City-like game is quite exciting, even though it will likely disappoint fans of the classic game.Ĭasual games bring in far less cash than you’d expect FarmVille alone has more than 80 million users. According to the publisher, 225 million people play its games each month on sites like Facebook and Yahoo. Do you want a Chrysler building in your city? It may cost you a few bucks. There will likely be buildings players will have to purchase as well. If the building comes with benefits, all the better. It’s good advertising for Burger King and if players like the restaurant, they’d be apt to add it to their city and share it with friends. Maybe Burger King wants to open up shop in your city. However, Zynga’s real moneymaking plan may come from businesses that want to plant a franchise in your town. CityVille players can create their own restaurant franchises and expand them to cities their friends have built. Perhaps the roads will decay and the population will go down? Zynga points toward city hunger as an issue, though that’s a bit odd. If you fail to provide for them, your city will suffer in some way. The gameplay works like this: you’re a city planner and you must build roads, houses, police stations, schools, businesses, and even farms to grow your city and provide for your residents. ![]()
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