Without Apple, Android, and now Facebook’s help, Zynga stock fell on Wall street again, Thursday July 27th to an all time low. Losing an estimated additional 1.5 Billion in value, bringing its value from 9 Billion when the stock opened last year to 2.2 Billion as of this article. While tons of parents, kids and all around cell phone and Facebook Gamer’s want to play their games on bigger video screen. And giving their phone a rest. It could be Ouya and android that bring these games off the phones and back to the big screens.
“Facebook recently tweaked the way users find games in its app center — giving prominence to newer titles and pushing down older games — making it difficult for users to find some of Zynga’s most popular titles.
“FarmVille”, which contributed 29 percent of Zynga’s second-quarter revenues, slid to 20 million users this month from a high of about 80 million in March, according to Appdata.com, a Facebook tracking service.”
A change in how Facebook promotes its new games over old and the influx of new more powerful games might spell doom for this software giants’ hold over small games over the next few years. Old blockbusters like FarmVille and Cafe World cannot keep them in the game forever. Ouya’s power and reported ease of access might make this the team up that puts Zynga back in the game. Providing a full force of fast and addictive games for adults and easy to play fun games for kids has been Zynga’s true hold over most small developers .
“Zynga’s weak outlook spooked Facebook investors who are waiting for the social networking company to report results for the first time on Thursday.
Zynga, which relies on Facebook for more than 90 percent of its revenue, was the most heavily traded stock on the Nasdaq on Thursday morning and the biggest percentage loser.
J.P. Morgan Securities, Citi Investment Research, Lazard Capital Markets, Stifel Nicolaus, Morgan Stanley and Goldman Sachs downgraded Zynga’s stock to “neutral,” or equivalent ratings.”
So all you New Yorkers who love games like Words With Friends and other Zynga apps may find it’s just another old fad by 2013. There is hope however, with the release of Ouya, Zynga might find new life. The Ouya and its ties to Android might be a great partner to bring back the zing in Zynga. All you strap hangers with kids might find it fun to take games to distract your kids on the go and in the home.
“At least six other brokerages slashed their price targets on the stock to as low as $3.00.On top of the drop in users for core money-making games such as “FarmVille” and “Hidden Chronicles”, a new game Zynga bought in March, “Draw Something”, has also not lived up to its hopes.
Prospects for games on Facebook have deteriorated as users tire of games where players manage farms, zoos and other environments, analysts say.
A shift by users to accessing Facebook through mobiles, which have less space for advertising, adds to the pressure.”
The only thing left for this developer is to wait and see if Zynga blows our minds or sinks in 2013.