Zynga Inc (NASDAQ:ZNGA) is seeking to retain diversity, and keep to its social gaming roots, despite pressures pushing it towards online gambling as a solution to all of its woes. Today the company announced the launch of a new game from the team behind the company’s Draw Something game. The news was reported by Bloomberg earlier today.
The new game is called “What’s The Phrase?” It asks users to guess letters against each other in order to uncover a hidden well known phrase. The winner is the first to correctly guess the answer. The game clearly takes its inspiration from hang man, and seems like a less than exciting idea, but Draw Something was immensely popular, despite its clear association with Pictionary.
Zynga Inc (NASDAQ:ZNGA) has not yet given up on the world of simple social and mobile games. The company’s bottom line is not healthy, however, and its shareholders are anxious for a change. The firm’s plans to extend itself into online gambling, and poker in particular, have been greeted with enthusiasm.
Social gaming is a new industry and it is not yet well understood. Zynga Inc (NASDAQ:ZNGA) insiders, who sold their stock in an IPO before the vagaries of social gaming became clear, seem to have gotten out during the golden age. The market now seems unstable and unreliable. That does no mean that the only answer is Poker.
There is no guarantee that Zynga Inc (NASDAQ:ZNGA) can succeed in the gambling market. It will need something to back it up in case it has to back out of that industry, or if revenues from it are less than expected. Social gaming is the companies backbone. It cannot afford to pull out of that market in favor of one that came into existence last week.
Today’s news demonstrates that Zynga Inc (NASDAQ:ZNGA) does not have any intention of doing that. The company seems intent to continue producing its traditional social gaming products. They may not be considered particularly innovative or artistic, nor are they exceptionally lucrative on the whole, but they do make money. Zynga Inc (NASDAQ:ZNGA) will need solid revenue streams to keep it steady in trying times ahead.
The new game, “What’s That Phrase?” came into the iOS app store yesterday, and it will be available on Android in the future. Zynga Inc (NASDAQ:ZNGA) stock rose by more than 1.5% on Friday’s market.