Mark Zuckerberg Crushed Zynga On Facebook's Earnings Call


Photo: Justin Sullivan / Getty Images

On Facebook’s third-quarter earnings call, CEO Mark Zuckerberg just said that payments revenue from Zynga dropped 20 per cent year over year in the third quarter.But that’s not because people aren’t playing games on Facebook. Other game publishers are doing well, in part because they’re delivering real-time, player-against-player gaming or other novel experiences.

Facebook’s cut of Zynga players’ spending dropped from 12 per cent in the third quarter of 2011 to 7 per cent in the most recent quarter.

So Zynga’s problems are specific to Zynga, not a proxy for how Facebook and its all-important app developers are faring.

No wonder Zynga’s laying people off.

One note: The third quarter doesn’t include the breakout growth of Zynga’s FarmVille 2 sequel, which launched too late in the quarter to affect results.

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