What remains to be seen is if such a strategy is going to bolster Zynga's financial prospects. People purchase bags of virtual gems in War of the Fallen so that they can buy energy or packs of cards containing creatures to enlist in their armies.Īs a general rule, players battling one another in multiplayer games tend to pay more for virtual goods to advance in the games than in more casual games. Players can make in-game purchases to give them abilities that help them advance.
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The free multiplayer game allows people to collect animated cards with powers that can be used to battle other people's armies of cards.
So far, War of the Fallen - what's known as a card battler - has garnered positive reviews for the iOS app. "You're just starting to see the result from a couple of these titles as a result of the strategy shift," Pincus says. Zynga launched Running With Friends last month, and it hit No. The company still remains focused on its more casual titles as well, launching Draw Something 2 in April. War of the Fallen came out in mid-April in what will be a closely watched as the first sign of a turnaround. Zynga has begun unleashing the first of a barrage of planned midcore titles. Also of concern, Zynga's monthly active users slipped 13% from a year ago, while Zynga guidance for the second-quarter projected a net loss ranging from $26.5 million to $36.5 million. Underscoring Zynga's problems, in April, it reported a first-quarter revenue slide to $264 million from $321 million in the same period a year before. Such games are known to notch higher revenue per user. Investors have pushed Zynga shares more than 60% lower in the past year as the stock, at $3.40, languishes well below its IPO price of $10 per share.Īnalysts say it's clear that Zynga needs to quickly branch out into these popular game types to forge new revenue streams. Moving into midcore holds the promise of higher revenue for Zynga, which is facing mounting pressure from Wall Street to prove it can rebound.
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Zynga defines midcore as games that "blend the depth of hardcore games, traditionally played on a PC or console, with the approachability and accessibility of casual games that are mobile, free-to-play and social," says Steve Parkis, senior vice president of games, midcore, at Zynga. "We have really moved some of our vast and most seasoned game makers over to midcore and mobile." "We could probably say that we have more working against new games in midcore than any other category," CEO Mark Pincus said in an interview.
The spoils of battle in its next strategic shift could reshape the company's future. The social-gaming giant is enlisting more talent on so-called midcore combative games as it girds for war in a mobile arena dominated by new studio players. SAN FRANCISCO - Struggling game maker Zynga, confronted by player defections and revenue declines, is placing its biggest bet on an entirely new category that will have Wall Street watching closely.
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