Zynga's two latest games, Hidden Chronicles and the iOS-only Scramble With Friends, have failed to accumulate the same daily active user (DAU) totals as two of the social giant's previous releases, Castleville or Empires and Allies. This spells big trouble for the company's trading value and future growth, at least according to a report released by financial analysis group Cowen and Company.
Hidden Chronicles' 12 day post-launch DAU total of 710,000 is well below the over 5 million DAU figure reached by Empires and Allies and Castleville during their first 12 days of existence; similarly, Scramble With Friends has failed to penetrate the Top 20 barrier on the App Store. Historically, Zynga's DAU totals peak 3 months after a game has been released (according to the report), and while it's possible that both Hidden Chronicles and Scramble With Friends could slowly acquire a larger user base, there's nothing in Zynga's statistical history to make that extremely plausible.
Now, 710,000 daily users sounds like a ton of people, but Zynga has set the bar so high that it's not enough to keep the company's overall growth even: "The quarterly rate of DAU decline for Zynga's titles that are at least three months old has averaged 18.4 percent per quarter for the last two years," explained Doug Creutz of Cowen and Company. "Assuming Zynga averages a 20 percent quarterly rate of decline for titles beyond their launch windows in 2012, the company must add 9-10 million DAUs per quarter from new games just to keep total DAUs constant."
So basically, any game Zynga releases in 2012 has to achieve at least 5 million daily users in order for the company's user base to break even. In other news, Zynga has constructed a super-sonic ultra-high-altitude aircraft to recover the bar it's accidentally set for itself in the exosphere.
Reader Comments (31)
Posted: Jan 18th 2012 9:07PM CaptainProtonX said
Holy smokes! Zynga needs my help? Let me sound the Internet for backup!
INTERNET....GOOOOOOOOOOO!!!!
Reply
INTERNET....GOOOOOOOOOOO!!!!
Posted: Jan 18th 2012 9:15PM TylerDurden1027 said
Scramble is fun but it uses a coin system to play. While I have yet to have the need to buy them I don't like buying a game that I then could have to buy coins to play. Nice thing about Words was once I bought it I could always jump on and play without ads. Same with Hanging unless I felt the need for a new character or balloons.
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Posted: Jan 18th 2012 9:32PM Accessgranted said
That's what they get for not releasing frontierville on ios and I stopped "playing" their "games" about 2 years ago. Serves them right! :D
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Posted: Jan 18th 2012 10:02PM DarkNightRJ said
Oddly Hidden is the only game I play of theirs. Well, that and words.
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Posted: Jan 18th 2012 10:23PM neojames82 said
Guess I was wrong about this crashing and burning in five years!
Think its about two and half years now.
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Think its about two and half years now.
Posted: Jan 18th 2012 11:26PM OrangeGamer said
I think they just don't realize they're in the flash-in-a-pan market. Especially on the Facebook front. It's always going to be something new.:P
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Posted: Jan 18th 2012 11:32PM FreakSheet said
So the analyst recommends having more players to improve their financial situation?
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Posted: Jan 19th 2012 12:46AM VolcomStone32x said
"iOS-only" That's one of their problems. Multiplayer mobile games should be multiplatform if you want to reach the highest possible install base.
But it's Zynga. So I'm not expecting them to do anything that actually makes sense.
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But it's Zynga. So I'm not expecting them to do anything that actually makes sense.
Posted: Jan 19th 2012 10:52AM AxelSteelBMX said
Here's a novel concept, Zynga: Make games that go beyond the "Hey I can play this for five minutes and bug all my friends to play too so I can continue to play it and bug all my friends to play" mindset. The FaceSpace market is overflowing with those now, and Facebook gamers don't (from what I've seen) have any concept of brand loyalty.
You need a game that doesn't have a "-ville" title, that is compelling enough to keep people coming back without feeling like they are being forced to come back, that actually brings something interesting for gamers to the table. Believe it or not, game companies DO continue to innovate and make NEW stuff (even if they're using old stuff as a building block, which is why so many of them have been around for such a long time: they generally adapt to what their consumers what, instead of insisting that their consumers adapt to what THEY want.
Right now, you're making the mistake of doing that last part, and that stagnation is why you won't be around as a company for much longer unless you figure out how to appeal to the consumers again.
Reply
You need a game that doesn't have a "-ville" title, that is compelling enough to keep people coming back without feeling like they are being forced to come back, that actually brings something interesting for gamers to the table. Believe it or not, game companies DO continue to innovate and make NEW stuff (even if they're using old stuff as a building block, which is why so many of them have been around for such a long time: they generally adapt to what their consumers what, instead of insisting that their consumers adapt to what THEY want.
Right now, you're making the mistake of doing that last part, and that stagnation is why you won't be around as a company for much longer unless you figure out how to appeal to the consumers again.
Posted: Jan 19th 2012 11:46AM Xero Theory said
I guess the bubble burst huh? Honestly if the people at zynga didn't play for that inevitability they deserve it.
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Posted: Jan 20th 2012 7:09PM Terry mundt said
Lame Games with worse Support led me to delete all FB games and block them
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