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Finance

New Zynga titles struggle

Wed 18 Jan 2012 10:36am GMT / 5:36am EST / 2:36am PST
Finance

Hidden Chronicles and Scramble With Friends fail to repeat previous successes

Zynga's recent releases, Hidden Chronicles and Scramble With Friends, have failed to find the same success as Castleville and Empires And Allies.

A recent report from Cowen And Company shows that while Castleville and Empires And Allies could both boast 5 million daily active users ten days after release, Hidden Chronicles stands at just 710,000 after 12.

Scramble With Friends, the iOS title, currently stands at number 62 is Facebook's highest grossing charts. On day two of release, January 6, it only managed to reach 35.

Most Zynga titles peak within the three month period after release.

"We believe that Zynga's rich valuation can only be justified if Zynga is able to at least stabilise, if not grow, its overall social gaming audience," said the report authored by Doug Creutz and Jason Mueller.

It also identified a churn rate of around 20 per cent for Zynga's older titles, meaning the social gaming company will need to add between 9 million and 10 million DAUs per quarter from newer games to hold on to current levels.

"The quarterly rate of DAU decline for Zynga's titles that are at least three months old has averaged 18.4% per quarter for the last two years. Additionally, the rate of decline averaged 24.4% in 2H:11 as Zynga ramped its new title output, suggesting cannibalisation."

According to the figures, no Zynga titles released in 2011 exceeded 10 million DAUs.

"We believe Zynga will likely need several multiple-million DAU titles per quarter just to keep its overall Facebook DAUs from continued decline."

Cowen And Company maintained its Neutral rating for Zynga shares.

Zynga made an important hiring last week, snapping up EA's social executive Barry Cottle.

7 Comments

Alex Rigby Creative Director, Playdemic Ltd

5 0 0.0
Zynga aren't cross-promoing Scramble With Friends on their other 'With Friends' games yet - probably so they can tune the game before they put the full force of their marketing power behind it. It's far too early to be writing it off.

EDIT: They started advertising it in WWF today - expect growth!

Edited 1 times. Last edit by Alex Rigby on 18th January 2012 2:56pm

Posted:2 years ago

#1

Barrie Tingle Live Producer, Maxis

390 211 0.5
I thought Scramble With Friends and Words With Friends was the same thing just under a different name until I Google'd it this morning :/

Posted:2 years ago

#2
When zynga produce a really good game, i will honestly give it due priase. Until then...the jury is out

Posted:2 years ago

#3

Drew Napoli

1 0 0.0
I agree with Andreas. They just aren't cross promoting it yet. I had no idea it even existed until I haphazardly clicked on the zynga in the App Store. I've been telling all my friends about it, and we've all been pretty hooked. Zynga needs to do a better job at getting the word out, but once they do, I think they have another hit on their hands.

Posted:2 years ago

#4

Barrie Tingle Live Producer, Maxis

390 211 0.5
Apple has been promoting Zynga on the App Store this week. Should help them along a bit.

Posted:2 years ago

#5

Sam Maxted Journalist / Community / Support

155 65 0.4
Scramble With Friends crashes on my iPod on a regular basis, so hopefully they'll manage to get that fixed before they start cross-promoting it.

Posted:2 years ago

#6

Alex Rigby Creative Director, Playdemic Ltd

5 0 0.0
[link url=http://www.appdata.com/apps/facebook/161708230571741-scramble-with-friends
]http://www.appdata.com/apps/facebook/161...[/link]

See the meteoric growth since they started growing the app properly

Posted:2 years ago

#7

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