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(Gawker) Dumbass Yes, building a company around FarmVille was dumb, and things were looking grim for Zynga's $1B IPO until they hit upon this key idea: Create more of their unique brand of crappy, boring games, only without Facebook dragging them down   (gawker.com) divider line 27
More: Dumbass, IPO, Zynga, Facebook  
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2225 clicks; posted to Business » on 12 Oct 2011 at 1:36 PM   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»   |    Get this fabulous T-Shirt and impress the methane out of your friends! shirt it!



27 Comments   (+0 »)
   

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2011-10-12 07:47:01 AM
Too little, too late!


/as Sheldon Cooper would say.....Bye-Zynga!
 
2011-10-12 09:57:30 AM
Facebook by launching its own gaming site, "Project Z" and nine other products that avoid Facebook's debilitating 30 percent tax on its revenue.


Like I wanna click on a link to THAT lame shiat.

I've never played any of those shiatty games.
 
2011-10-12 10:30:22 AM
Zynga, love or hate their games, popularized freemium game monetization. At Casual Connect this year, which is a conference for casual games companies, one of the big messages was "there are two people making money on FB games: FB and Zynga."

While me and others may hate their games and their model, (which essentially punishes you for playing the game for too long) the model has worked.

Now are they guilty of oversaturating a market that was already filled to the brim? Yes. But they didn't build a business around "Farmville" (which was hugely successful, mind you, and a year ago every company was trying to jump on the bandwagon as every independent analysis basically said "their profits will only continue to grow"), they built it around:
a) a sound monetization model
b) incredible analytics

It's also worth noting that their model is one of the few that is successful in China, as most other gaming companies simply have their games pirated over there, to such absurd degrees as the existence of an unlicensed Angry Birds theme park.

I don't like Zynga's games, nor do I like what the freemium model is doing to the industry, but to say they short-sightedly built an empire around a game you knew wouldn't work, because you don't like the game, is assinine.
 
2011-10-12 10:33:12 AM
"You will still need a Facebook account to play the games. Zynga... will utilize Facebook Connect."

What the hell?
 
2011-10-12 10:43:00 AM
I Said: freemium

Here's the problem.

People will pay small amounts to save time in a game on a whim.

For a game like WoW, where people sink YEARS of their life into it, not such a bad idea to let some stuff be sold for real monies.

But what Zynga did is make the base amount of game possible and then force you to pay money to derive any enjoyment.

They've sold you a free box of chocolates, but when you open the box, there's only wrappers in there and they charge for better colors of wrappers but they don't even OFFER chocolate.

I mean, mafia wars was cool when it was on a TI-82 and you could play it in math class. But we're not 13 anymore. I can and do play REAL games in my free time. Plenty of good free ones out there.
 
2011-10-12 11:04:05 AM
doglover: Here's the problem.

People will pay small amounts to save time in a game on a whim.

For a game like WoW, where people sink YEARS of their life into it, not such a bad idea to let some stuff be sold for real monies.

But what Zynga did is make the base amount of game possible and then force you to pay money to derive any enjoyment.

They've sold you a free box of chocolates, but when you open the box, there's only wrappers in there and they charge for better colors of wrappers but they don't even OFFER chocolate.

I mean, mafia wars was cool when it was on a TI-82 and you could play it in math class. But we're not 13 anymore. I can and do play REAL games in my free time. Plenty of good free ones out there.


I agree with you: Playing Mafia Wars today is retarded. It was fun on the TI-82 in math class. I also agree with you: Zynga games aren't fun and neither are games that use the monetization model.

BUT these are subjective opinions. Mafia Wars on a calculator was played by gamers with no alternative. FB exposed this type of game to millions of people who never knew any other version existed and have no interest in playing better mafia games. Zynga's model, while annoying to people traditionally viewed as "gamers", is very successful with casual gamings target audience: Mothers and older people. People who don't have much to compare it to, and even if they did they enjoy games where there's little monetary and time commitment. They buy solitaire when it's already pre-loaded onto their PC. They drop $5 on FB money and can pump another 5 hours out of their games that all use the same mechanic, so are all familiar to them, and there's enough "social elements" that they feel as though they're playing with friends.

The problem Zynga has is its model ONLY works on FB. These folks are not going to follow Zynga to another site. Social games work when you have a social network and introduce games later to it, not the other way around. And so if Zynga takes its ball and goes home, the people on FB will play Farmadia and the plethora of other games out there.

When you and I discuss these games, yeah, they aren't "Real games" by our definition. But these games were never meant for "real gamers" to begin with. Look at how well Hidden Object Adventure games do. I think they suck compared to almost any other genre, as they are essentuially "seek and find" games from the highlights magazine. But they do gangbusters business generating large profits for huge companies. That's the same audience. They want to spend maybe 20 minutes - 1 hour playing at a time and are often distracted. Mothers and older people.
 
2011-10-12 11:16:32 AM
I Said: But they do gangbusters business generating large profits for huge companies

Because no one's caught on. Zynga's already drying up.

It was an incidental hit for a time due to novelty.

But now that it's over, the market's contracting like the dead sea. Soon it will no longer support the life it once did.

Sure, some level of casual gamers will remain, but in order to succeed like Coca Cola, you have to have a product that's actually good. Farmville and the like are okay, but they're not great and their attempts to get real money for digital goods wears thin quickly. They're snake oil hucksters but it's not the old west. Facebook isn't just another mining town, Facebook is the ONLY town.
 
2011-10-12 12:09:24 PM
doglover: Because no one's caught on. Zynga's already drying up.

It was an incidental hit for a time due to novelty.

But now that it's over, the market's contracting like the dead sea. Soon it will no longer support the life it once did.

Sure, some level of casual gamers will remain, but in order to succeed like Coca Cola, you have to have a product that's actually good. Farmville and the like are okay, but they're not great and their attempts to get real money for digital goods wears thin quickly. They're snake oil hucksters but it's not the old west. Facebook isn't just another mining town, Facebook is the ONLY town.


I agree to a large extent, BUT iOS developers are already using model as well. And look at the proliferation of game add ons and DLC for sale for "real games".

Freemium is a model that's going nowhere, especailly as it's already de-valued games so this new billion dollar market sees a gaming experience as being worth anywhere for $0 - $4.99
 
2011-10-12 02:14:30 PM
Didn't Zynga just rip of some Chines facebook game when they created Farmville? A Chinese game that still has more players than farmville?

If your greatest success was a rip-off that never manged to become as successful as the thing it was imitating than maybe you have a problem.
 
2011-10-12 02:16:13 PM
I Said: doglover: Because no one's caught on. Zynga's already drying up.

It was an incidental hit for a time due to novelty.

But now that it's over, the market's contracting like the dead sea. Soon it will no longer support the life it once did.

Sure, some level of casual gamers will remain, but in order to succeed like Coca Cola, you have to have a product that's actually good. Farmville and the like are okay, but they're not great and their attempts to get real money for digital goods wears thin quickly. They're snake oil hucksters but it's not the old west. Facebook isn't just another mining town, Facebook is the ONLY town.

I agree to a large extent, BUT iOS developers are already using model as well. And look at the proliferation of game add ons and DLC for sale for "real games".

Freemium is a model that's going nowhere, especailly as it's already de-valued games so this new billion dollar market sees a gaming experience as being worth anywhere for $0 - $4.99


Playstation just did the same thing too. They offered a card game (think Magic the Gethering) free and I downloaded it only to find that past the first few levels it's hard to compete even with the AI if you don't buy the booster packs (different pack for each element) that goes for $2.49 each.

I kinda like the freemium model though. You can still play the game with little or no monetary outlay but you just can't compete with those that buy the in-game currency. For most casual players that works but sometimes they wanna compete if only for a short period of time so they fork over $50 or $100 and burn it in a month.
 
2011-10-12 02:19:29 PM
doglover: But we're not 13 anymore

You and I aren't 13 anymore, but there are plenty of people who are 13. Also bored housewives.

doglover: Sure, some level of casual gamers will remain, but in order to succeed like Coca Cola, you have to have a product that's actually good.

No you don't. The most successful media is often the dumbest, most droll, least challenging pablum. You know why? Because more people are idiots. If what you said was correct there would be no American Idol, Dancing with the Stars, Twilight Books, Twilight Movies, According to Jim, Two Men and a Fatter Kid who is a Man now, Miley Cyrus...need I go on?

The Season Finale of best show on Television didn't even get 2 million viewers, while a show with Sonny Bono's transgendered child and the Kardashian *brother* attempting to dance gets 10 times that on a bad night.

Video games are media. In Media, shiat sells.
 
2011-10-12 02:22:25 PM
The best part about FarmVille was reassembling the packets it used to communicate with the server and figure out all the commands.

Then writing a script to plant and harvest stuff automatically. Then I reached level 40(?) with a brazillion dollars. Nothing on my farm but plants and got bored.

/Nerd
 
2011-10-12 02:28:16 PM
The Homer Tax: Also bored housewives

Well damn it. This is what craigslist W4M section is for.
 
2011-10-12 02:56:59 PM
Marcus Aurelius: "You will still need a Facebook account to play the games. Zynga... will utilize Facebook Connect."

What the hell?


Of COURSE. Their entire business model is for your friends to browbeat you into playing with them.

/Hides all that shiat in my news feed.
 
2011-10-12 03:00:54 PM
I was going to invest in Zynga, but I was told I had to have 10 other people invest in me first. Fark it.
 
2011-10-12 03:15:35 PM
zombo.com
 
Juc
2011-10-12 03:26:39 PM
I Said: Zynga, love or hate their games, popularized freemium game monetization. At Casual Connect this year, which is a conference for casual games companies, one of the big messages was "there are two people making money on FB games: FB and Zynga."

I'm pretty sure that freemium monitization was along before Zynga, and that they didn't even really popularize it.
They were founded in 2007, Nexon has been around for over 10 years longer and nets around a third of a billion a year from their games, there's a number of other companies but Nexon's an easy one to recall off the top of my head.

I think what actually makes freemium popular is the vast improvement to revenue you see in a freemium vs paid game, and as you mentioned, it allows you to sell in regions that have high piracy without much worry about the black market bootlegs undercutting you.
 
2011-10-12 04:17:27 PM
All the FB games that are on g+ run better on G+

j/s
 
2011-10-12 04:45:30 PM
And if I see it's a Zynga game, I just say no.
 
2011-10-12 04:59:03 PM
karasoth: All the FB games that are on g+ run better on G+

j/s


All the little Facebook games with the micro transactions better run better run faster than a 30% Facebook tax.
 
2011-10-12 05:27:14 PM
There's nothing wrong with the freemium model. Look at Team Fortress 2. It's now Free 2 Play, but you get access to basically the entire game without paying for it. You just don't get cosmetic drops (hats, etc.), have a smaller backpack (you can only have 50 items instead of 300), and can't trade items with other players (they can give you items but you can't give them anything in return). But you get non-cosmetic drops (the actual weapons), can get other weapons via achievements and crafting, and have access to all game modes and maps. It is harder to get specific weapons without trading for them (plus you will run out of backpack space easily), and you can't get the hats that belong to the Polycount sets (which provide slight bonuses, although they force you to use certain weapon loadouts that sometimes aren't the best combos), but other than that, you have access to everything that affects gameplay, missing only the Hat Fortress portion of the game. You aren't crippled as a free player, unlike other games which are more Pay 2 Win.
 
2011-10-12 05:55:15 PM
Geotpf: There's nothing wrong with the freemium model. Look at Team Fortress 2. It's now Free 2 Play, but you get access to basically the entire game without paying for it. You just don't get cosmetic drops (hats, etc.), have a smaller backpack (you can only have 50 items instead of 300), and can't trade items with other players (they can give you items but you can't give them anything in return). But you get non-cosmetic drops (the actual weapons), can get other weapons via achievements and crafting, and have access to all game modes and maps. It is harder to get specific weapons without trading for them (plus you will run out of backpack space easily), and you can't get the hats that belong to the Polycount sets (which provide slight bonuses, although they force you to use certain weapon loadouts that sometimes aren't the best combos), but other than that, you have access to everything that affects gameplay, missing only the Hat Fortress portion of the game. You aren't crippled as a free player, unlike other games which are more Pay 2 Win.

TF2 is a really bad example. It was always "free-to-play". Now it is just Free to own. + it is an "add-on" for the premium game.
 
2011-10-12 06:10:29 PM
Kazrath: TF2 is a really bad example. It was always "free-to-play". Now it is just Free to own. + it is an "add-on" for the premium game.

I am so glad that monthly subscription fees to play FPS games never happened. I don't know what you mean by "+ it is an "add-on" for the premium game." though.
 
2011-10-12 11:01:32 PM
http://mashable.com/2011/10/11/zynga-offices/#29209Zyngas-New-Headquar ters

One last look.
 
2011-10-13 06:03:13 AM
doglover: I mean, mafia wars was cool when it was on a TI-82 and you could play it in math class. But we're not 13 anymore. I can and do play REAL games in my free time. Plenty of good free ones out there.

shiattons of my office coworkers from age 17 to 50 were playing mafia wars because it killed time at work, which is probably a big demographic of these dumb games.
 
2011-10-13 06:03:26 AM
Geotpf: There's nothing wrong with the freemium model. Look at Team Fortress 2.

True, and all it takes is one purchase in the store and you have a permanent premium account. Even one $0.49 item gets you full access to everything. Granted, you have to put money in your Steam wallet first and you have to add a minimum of $5, but this is Steam we're talking about. If you're a PC gamer, you're spending money there anyway.
 
2011-10-13 03:12:41 PM
Juc: I Said: Zynga, love or hate their games, popularized freemium game monetization. At Casual Connect this year, which is a conference for casual games companies, one of the big messages was "there are two people making money on FB games: FB and Zynga."

I'm pretty sure that freemium monitization was along before Zynga, and that they didn't even really popularize it.
They were founded in 2007, Nexon has been around for over 10 years longer and nets around a third of a billion a year from their games, there's a number of other companies but Nexon's an easy one to recall off the top of my head.

I think what actually makes freemium popular is the vast improvement to revenue you see in a freemium vs paid game, and as you mentioned, it allows you to sell in regions that have high piracy without much worry about the black market bootlegs undercutting you.


Zygna's revenues are in the billions. revenue growth has consistently topped 300% and 2012 shows no signs of change. Do with that information what you will.
 
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