Zynga is excited with the recent revenue share contributed by its mobile platform and is hoping for better times ahead
Zynga announced that the majority of its revenue now is being contributed by mobile devices, suggesting that the company’s mobile strategy is working. The game maker said that for 2015, it will make further progress in mobile, which totaled 60% of the company’s sales in 2014, an increase from 27% in mid-2013.
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‘Mobile first’ strategy from Zynga
Zynga is aiming to raise the percentage to 75% this year and suggested that all of the six to ten new games to be launched will be on “mobile first.”
The maker of popular games such as Words With Friends and Farmville could not perform in line with Wall Street expectations in the fourth quarter, with sales totaling to $182 million compared to the consensus estimate of $201 million. Earnings per share were nil and in-line with the expectation of the Street, with a net loss of $2.4 million for the holiday quarter.
For the first quarter of 2015, the social game maker is expecting sales to come in between $155 million and $165 million–well below analysts’ expectations of $200 million. Additionally, between January and March, the company is expected to sustain a loss of between $52 million and $60 million, resulting in a net loss per share of 6 to 7 cents. Zynga China, an under-performing studio of the company, will be scrapped by the end of June, resulting in a loss of 71 jobs.
To compete in new segments
Apart from the new slot and football games launched last year, the company will enter new categories this year, including the Match-3 and action strategy categories.
In simple terms, it can be said that the company is looking forward to competing with Supercell, Machine Zone and King Digital. These three companies presently dominate the rankings in the app stores in various countries with top rated games like Clash of Clans (action-strategy), Game of War: Fire Age (action strategy) and Candy Crush Saga (match-3), according to a report from Re/code.
One of the games based on the strategy and developed by Clumsy Ninja and CSR Racing developer Natural Motion is in the works for launch in 2015. The game called Dawn of Titans was already in the pipeline when Zynga acquired Natural Motion last year, paying $527 million.