Zynga, the creators of very popular Farmville and Cityville at Facebook is in murky waters. According to SEC filings for the fourth quarter reveal that year-on-year, Zynga’s profits are down 95%, going from $27.2M to $1.3M. Bookings are down for the first time ever for the company, dropping 4% from $286.6M to $274.7M. This also follows with a similar 4% in drop in Daily Active Users (DAU) from 62M to 59M. These numbers have been declining steadily as the competition is becoming fierce especially with Google + entering the stage.

Despite all this, Zynga still remains in the top spot on the AppData developer leaderboard, with 265,583,782 monthly active users across all its games compared to its nearest rival EA. CityVille is the largest game of Zynga on Facebook and is very popular with Facebook users. The game boasts of 72,037,895  monthly active users on Facebook. CityVille lets users build cities along with their friends.FarmVille lets players cultivate their farms by plowing, planting and harvesting crops and trees.FarmVille was the top game by daily active users on Facebook between August 2009 and December 2010, when CityVille claimed the top spot.

 

Google + Enters the social gaming :

I have never been a big fan of cartoonish looking 2D games that Zynga has created or the ones alike but I can understand the impact of this on the whole social gaming environment. Afterall, they have been the leaders of social gaming. I am more interested in the future of gaming and how it will all shape up. Facebook is definetly not alone anymore as Google + has joined the arena. Google+ currently has 18 games, including Angry Birds, CityVille, Crime City and Zynga Poker. It is too early to say that Zynaga is in trouble but I think they have strong competition to play up against. Zynga, has just launched earlier its most famous game CityVille on the Google+ game platform. Also recently Google+ has also launched various games like Angry Birds, Crime City, Edge World and Zynga’s very own Zynga Poker on its game platform.

Mobile is the future for Social Gaming :

Among all this, Zynga is looking to raise funds through an initial public offering so it can invest in driving further growth in mobile and in-game purchases.Last week, Zynga filed for an IPO with hopes of raising up to $1 billion. Mobile is the future: For Zynga it is no different-like any other social games the Mobile is the main market. One of the reasons Zynga did the IPO was to have enough resources to invest in mobile apps. Mobile will expand Zynga’s market and make them more competitive in the market. As you can see the Top-Grossing iOS Games: Smurfs’ Village, Zynga Poker Head App Store Earnings those in app purchases drive the market.

Zynga is becoming hot with Enrique Iglesias:

Zynga is launching a CityVille campaign next week that integrates singer Enrique Iglesias into the game to promote his Euphoria Tour. Starting October 4th, players over level 6 can interact with an Enrique Iglesias avatar within their city. The players will be rewarded by  collection items like clothing and a Miami high-rise  along with quests where  the player can win Enrique Iglesias posters.

Zynga will need something hotter then Enrique Iglesias to keep their success up and stop loosing the game!