Poor game previews may be responsible for Zynga’s plummeting stock prices.
Zynga has experienced one of the biggest one-day drop in the company’s brief history. Zynga, the San Francisco-based online gaming company was at the top of the social gaming world with huge market shares and very popular games such as Zynga Texas Hold ‘Em poker slot and Farmville poker slot. But it seems that Zynga has run out of aces in just over a couple of days.
Recently, Zynga stock prices dropped by 16% after the company’s low Q4 2014 earnings was divulged. The many losses incurred by the company which operates under US gambling laws, has also been recovering from the flop of its football game show, NFL Showdown launched late last year. It’s Texas Hold ‘Em online poker slot also has been losing players.
Company accused of releasing games before being tested for public consumption.
How could Zynga, which was one of the earliest online poker sites in US social gaming breakouts, sink so low? According to Clive Downey, the Company’s COO, the set back has been mainly due to insufficient testing of its online poker games in the rush-to-market even though Zynga still controls a good size of the social poker market with about a 25% market share.
However, all is not lost. Downey says Zynga will be launching a more sophisticated version of the football game this autumn. Other good news are that the Farmville slot is picking up and that profits in the gaming industry rose by 35% over the previous year. Zynga, which was an internet gaming fore-runner, will have to keep a poker face as it hopes to become more innovative in the online poker business.