How Zynga Inc (ZNGA) And NaturalMotion Can Help Each Other

zynga earnings

The marriage of Zynga Inc (NASDAQ:ZNGA) and NaturalMotion certainly makes sense. The two game makers are from opposite sides of the Pond, but they both have something the other needs. NaturalMotion has a leg up in mobile and rising numbers of users, while Zynga has expertise on Facebook Inc (NASDAQ:FB)’s platform.

Of course when you put it that way, it certainly seems like NaturalMotion has far more to offer Zynga Inc (NASDAQ:ZNGA) than the other way around.

Zynga shifts to mobile

Zynga Inc (NASDAQ:ZNGA) has been looking to shift away from Facebook Inc (NASDAQ:FB)’s platform, where it continues to bleed users, and over to mobile, which is where most users are going. AppData indicates that this year, Zynga’s monthly active users on Facebook has fallen more than 68%, while daily active users declined nearly 67%.

Meanwhile NaturalMotion has seen its number of monthly active users rise approximately 16%, while the number of its daily active users has shot up by 281% this year. In addition, engagement has risen by 11.5%. All of these numbers are exactly what Zynga Inc (NASDAQ:ZNGA) needs—as long as it plays the cards right.

Zynga needs luck

Writing on The Motley Fool, Chris Neiger reminds us of an article from The Guardian years ago in which songwriters talked about what it takes to make a hit song. The general consensus was that it takes a healthy dose of luck. Of course they did agree that there are certain do’s and don’ts when it comes to trying to write a hit, but no one can really predict what’s going to be a blockbuster.

Zynga Inc (NASDAQ:ZNGA) has been trying to make another hit, but so far, only FarmVille, Zynga Poker and Words with Friends have attracted significant amounts of users. Along with the acquisition of NaturalMotion, Zynga hopes to have acquired its next big hit. NaturalMotion’s games have been a hit more recently than Zynga’s has. However, Zynga itself shows us that just because a company has one or two blockbusters, it doesn’t mean that it will be able to continue writing games which attract big-time attention.

 

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

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