By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales - Zynga Est. Worth up to $5 billion, Farmville $250 mil per year revenue

MontanaHatchet on 08 April 2010
SickleSigh said:
Farmville already peaked, Facebooks last update made half my friend list quit. These things never last long, there will be a new social networking site to take over (what ever happened to Myspace being on top? or AIM/AoL chatrooms) There will be always be new casual games to kill time. Still they're making great money for the time being but realistically I don't see the point in guessing how much money they will be worth in 2015 because I highly doubt they will be around then :)

Yeah, but none of those sites were ever as big as Facebook. Hell, Facebook is the 2nd most popular site in the entire world. Myspace never had that. 



 

 

Around the Network
Grimes on 08 April 2010
SickleSigh said:
Farmville already peaked, Facebooks last update made half my friend list quit. These things never last long, there will be a new social networking site to take over (what ever happened to Myspace being on top? or AIM/AoL chatrooms) There will be always be new casual games to kill time. Still they're making great money for the time being but realistically I don't see the point in guessing how much money they will be worth in 2015 because I highly doubt they will be around then :)

Bejeweled has been making money for a very long time. These things tend to stay around longer than you think.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

ssj12 on 08 April 2010
MontanaHatchet said:
SickleSigh said:
Farmville already peaked, Facebooks last update made half my friend list quit. These things never last long, there will be a new social networking site to take over (what ever happened to Myspace being on top? or AIM/AoL chatrooms) There will be always be new casual games to kill time. Still they're making great money for the time being but realistically I don't see the point in guessing how much money they will be worth in 2015 because I highly doubt they will be around then :)

Yeah, but none of those sites were ever as big as Facebook. Hell, Facebook is the 2nd most popular site in the entire world. Myspace never had that. 

i think it was at one point...



PC gaming is better than console gaming. Always.     We are Anonymous, We are Legion    Kick-ass interview   Great Flash Series Here    Anime Ratings     Make and Play Please
Amazing discussion about being wrong
Official VGChartz Folding@Home Team #109453
 
Chairman-Mao on 09 April 2010
famousringo said:
Chairman-Mao said:
I hate those online games. I used to play mafia wars but its such a dumb game. I never played farmville but I don't think it could be that great.

Anybody who pays $5 billion for Zynga is soooo dumb.

Yeah! Who the hell would want $500 million in revenue, with God only knows how much growth potential?

Chumps. That's who. Billionaire chumps.

1. The article said most of their games have peaked in popularity, so as for growth, well lets talk more about a possible decline.

2. Yeah $500 million "REVENUE". Not all of that is profit. Even if somehow that was profit (which it isn't) it would take 10 years to get your money back on your investment, what what's to say people still play any of these facebook games 10 years from now. Its a huge risk.



mai on 09 April 2010
Chairman-Mao said:

2. Yeah $500 million "REVENUE". Not all of that is profit. Even if somehow that was profit (which it isn't) it would take 10 years to get your money back on your investment, what what's to say people still play any of these facebook games 10 years from now. Its a huge risk.

Expenses of games on Facebook are very low, so that's almost $500M in profit.

 

@mrstickball

Well, I didn't say that 25c per MAU is bad, just stated the obvious - that's low-end compared to console and handheld gaming. I believe average is around 30c per MAU, so it's definitely decent especially for such a popular game like Farmville.



Around the Network
Justin on 09 April 2010

Nice to see the junior analysts in here. This isn't something that's gonna be here today, gone tomorrow type thing. There's so much growth potential in this segment it's ridiculous.



Epoch on 09 April 2010
mrstickball said:
I don't think some here understand how these companies work...

25 cents per MAU is decent. On the lower end of things (which could always be boosted with advertisements). Given the size of Zynga's presence, its a very good number, since they have the volume.

Zynga has a lot of other games to back it up if Farmville ever dies off. According to DeveloperAnalytics, of the top 10 Facebook apps, Zynga has 6 of them. The other 4 are mobile connect apps for FB.

@ssj12 - PopCap may have higher revenue, but unless they went public, we wouldn't know. Despite being major players in the casual field, PopCap is significantly smaller than Zynga on Facebook. Bejeweled Blitz has a fraction of the MAU's and DAU's that Farmville, or the other 5 Zynga games have that rank above it in terms of overall revenue.

Farmville has just about crested in terms of popularity, but even if this is the peak, it has another year or two before it fails to make Zynga good amounts of money.

You forgot to mention that they used to make around 1/3 of their income from questionable lead generation marketing and other shady income generation techniques.

Zynga CEO Mark Pincus: “I Did Every Horrible Thing In The Book Just To Get Revenues”

We'll see how their revenue generation goes now that they are no longer scamming people.

Regardless, they have quite a presence in the online gaming market and are doing unbelievably well for a 3 year old company.



mrstickball on 09 April 2010
Epoch said:
mrstickball said:
I don't think some here understand how these companies work...

25 cents per MAU is decent. On the lower end of things (which could always be boosted with advertisements). Given the size of Zynga's presence, its a very good number, since they have the volume.

Zynga has a lot of other games to back it up if Farmville ever dies off. According to DeveloperAnalytics, of the top 10 Facebook apps, Zynga has 6 of them. The other 4 are mobile connect apps for FB.

@ssj12 - PopCap may have higher revenue, but unless they went public, we wouldn't know. Despite being major players in the casual field, PopCap is significantly smaller than Zynga on Facebook. Bejeweled Blitz has a fraction of the MAU's and DAU's that Farmville, or the other 5 Zynga games have that rank above it in terms of overall revenue.

Farmville has just about crested in terms of popularity, but even if this is the peak, it has another year or two before it fails to make Zynga good amounts of money.

You forgot to mention that they used to make around 1/3 of their income from questionable lead generation marketing and other shady income generation techniques.

Zynga CEO Mark Pincus: “I Did Every Horrible Thing In The Book Just To Get Revenues”

We'll see how their revenue generation goes now that they are no longer scamming people.

Regardless, they have quite a presence in the online gaming market and are doing unbelievably well for a 3 year old company.

They will make the same amount of money, or more. They just changed out the offers - everyone does. Its not hard with their kind of size to build their own lead generation platform, and earn great CPA from users.

They aren't 'shady income generation techniques' they work very well for the companies that use them. The real question lied with the fact that (when this whole fiasco hit) SuperRewards wasn't blacklisting enough of the shady vendors.

Personally, I think Zynga should use more pre-roll ads at the start of their games. I'd imagine that one or two every 15-20 minutes would do them well provided it didn't hurt user engagement too much.



Back from the dead, I'm afraid.

valen200 on 09 April 2010

I used to play mafia wars on facebook. I know I spent some money on items. Those games can be crazy addictive. I got tired of the junk that it would publish on my page and of just how much time I was spending on it daily. Social games are fine, but I prefer more developed gaming experiences -- says a Wii gamer with a knowing smirk. Those things are honestly so addictive it does not surprise me to see their success. Congrats Zynga.



"But as always, technology refused to be dignity's bitch."--Vance DeGeneres

 

http://cheezburger.com/danatblair/lolz/View/4772264960

JaggedSac on 09 April 2010

This could be the start of a another bubble that bursts.