March 2, 2012
Zynga To Offer Games Outside Of The Facebook Realm
Zynga, Facebook´s gaming partner, is partially dissecting itself from the realm of the social media giant. Zynga is launching its own website, Zynga.com, that offers a gaming service to customers who want to play their games but do not want to use the social media website.
Colin Sebastian, a Baird Research analyst told Reuters, “Zynga is building their own web-based platform, which makes them a bit more independent and creates a brand for them outside of Facebook. But it doesn´t really cut the cord with Facebook, and it won´t have a dramatic impact on their margins.”
But Zynga will still keep close ties to Facebook on Zynga.com. Reuters reports that users will still need to log in using their Facebook IDs and you still have to use Facebook Credits in order to purchase items for your games. According to Dan Ernst, a Hudson Square analyst, “You will still pay Facebook for buying an extra tractor.”
Not only will Zynga be offering their own games on the website, but they will be opening up their site to host games by other companies also. One new game “Woodland Heroes”, also available on Facebook, will help to generate the new revenue stream.
It is estimated that this move will also help Zynga to lower their operating costs. Last year they spent $500 million developing the technology and infrastructure to support hundreds of millions of players in social games. Zynga has a goal of having 1 billion users and hopes the new platform will help them reach their goal , it currently only has 240 million users.
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