Farmville finally falling out of favour?
27th Sep 2011 | 12:24
Zynga profits dive 95%, no new games to blame
Zynga, creators of FarmVille and CityVille, has seen its profits drop by 95 per cent year on year, with the company's income at just $1.3 million (£836,000), compared to $27.2 million (£17.5 million) a year before.
This is according to Gamasutra, which notes that although revenues are increasing, profits have declined at a rapid rate.
It is not all doom and gloom, however, as Zynga is putting this profit drop down to the amount of staff it has hired over the course of the year and that it has had expanded internationally.
It also notes that it hasn't released any new games in the first half of 2011 and what games it had were hurt by the introduction of Facebook Credits – which sees 30 per cent of all game profits go straight to the social network.
Zynga is one of the darlings of social gaming, making an empire out of FarmVille and the like in a relatively short space of time.
There's estimates that if the company was to go public, it's IPO (initial public offering) would be set at a whopping $1 billion (£650 million).
If that's not an incentive to launch more titles for the company, we don't know what is.