Zynga’s Profits PLUMMET 95%
The Mafia Wars and FarmVille makers have posted their latest financials and things aren’t looking so good.
There are those of us in the gaming universe who are praying for the death of the Zynga franchise, I am not one of those people. I personally don’t give a crap about this company because I honestly don’t know or care about any of the games they put out but when a game company posts a 95% drop in profits from year-on-year projections…there might be something amiss.
Last year they made $27.2 million which has dropped to a paltry $1.3 million, not quite the F*** YOU cash they have normally made, but still respectable considering that is all profits after paying employees, R&D, and everything else required in business.
Interestingly enough, they DID see an increase in revenue of approximately 15% (which if you know the lingo, means that they made 15% more money than they did the quarter previous). It might have something to do with their swapping over to Facebook credits, or even the flooded market of micro-transaction games out there. There’s just more competition and therefore, less profits to be made.
Still…95%? Christ, I’d be looking to diversify before heading to an IPO cause that’s going to hurt your stock’s value pretty badly.