Zynga’s stock is tanking again today, down 3 per cent and trading at around $2.85.At the same time, reports surfaced late yesterday that its chief operating officer John Schappert is being removed from day-to-day game design activities.
This isn’t surprising, given the performance of Facebook games recently. Look no further than the company’s newest game, The Ville, for which we’ve included a chart of the game’s daily players.
As you can see, from AppData, the game has peaked at around 7 million daily users. This is the same level that the company’s last big flagship “Ville” game peaked at — around 7.5 million users.
CastleVille rose quickly to around the same level, but quickly fell to around 5 million daily players several months later and has drifted off since.
These games are critical to Zynga, because RPG-style games like this attract “whales” that are willing to pay thousands of dollars to advance more quickly in these games.
But no game has been as successful as FarmVille, which peaked at around 30 million daily players. Its last huge hit, CityVille, peaked at about 20 million players.
This is because fewer and fewer people are playing Facebook games, and the business is beginning to evaporate.
This is all the more apparent with The Ville, which appears to be once again levelling off at the same level CastleVille did — and may be poised to decline at the same rate without monetizing as well as a game like CityVille or FarmVille.
Photo: Sterne Agee and AppData
Again, Zynga is not the only company to suffer these problems.
But instead of just floundering, Zynga is shifting to becoming more of a mobile company, with chief mobile officer David Ko taking stage as nearly half of the company’s users play games on mobile.