Let's not forget they have an exclusive agreement with facebook, the terms of which we don't know; not a very fair advantage.
Also, zynga and old gaming houses have different audiences, so i 'm not sure they're killing anyone
Let's not forget they have an exclusive agreement with facebook, the terms of which we don't know; not a very fair advantage.
Also, zynga and old gaming houses have different audiences, so i 'm not sure they're killing anyone
Look at McDonalds. McDonalds certainly didn't invent the hamburger. McDonalds probably never made the best hamburger. But it sure as hell found a way to make money off hamburgers like nobody before.
Those other companies, those are the less capable small fries with handfuls of loyal customers while Zynga is busy expanding its empire to every street corner.
The first is physical space - they are omnipresent. On the internet, everyone can be everywhere. The second is branding. People know FarmVille. Do they know Zynga? Probably not.
In Zynga's market, anyone could release a great game and have a massive success with little investment. McDonald's has serious momentum; it's utterly impossible to imagine a scenario where a competitor shows up and quickly puts them out of business. Same thing applies to Facebook. Does it apply to FarmVille? Again, I'd say no.
If you see this type of game as a fad, or a mere precursor to much better games that will be offered for the same price (free), Zynga's position is quite precarious.
You could play their games and probably never give two shits about the company behind it.
Even if people knew Zynga I get the sense it wouldn't make a huge difference; their games aren't quite immersive enough to inspire the type of brand loyalty you'd see with Nintendo/Blizzard/etc.
That's just the view i have of them. It would be nice if we could have the opinions of a Zynga employee.
It can be argued that Zynga invented the new freemium and social gaming model - ie. pay for the entertainment you get. They also pioneered a lot of the marketing and the in-game viral aspects.
This is why they can release average or even clone games and still find hits - in the same way McDonalds can release a bad burger but because of their model still be a success.
McDonalds just took efficiency to a whole new level. It used processes that pushed modern cooking equipment to its limits and invented a few new tools to fill the gaps. One store could serve and reach so many more customers every day for so much less than the competition. Combine that with repeatable best practices and an expansionist vision and you've got an empire.
By the same analogy, Zynga took that same social game model and jacked up conversion rates to the max. It pushed social networks to the limits and invented new tools to fill the gaps. It got more money from each user and had more users than anyone else. It took this formula and repeated it again and again with an expansionist vision.
Mob wars, farm town, etc looked the part, but the way those businesses operate isn't in the same league. Talk about physical presence, Zynga has multi-millions of users in 100% Zynga owned virtual real estate every day. All it needs to do is mention a new game to its millions of users and that game has an instant million user base. For a no-name competitor to do the same would require millions in marketing or a miracle.