Sunday, 26 February 2012

Zynga to launch a new platform to promote other game developers


To reduce its reliance on Facebook and diversify its revenue streams, Zyngais planning to launch a new publishing platform to promote games created by other developers.
According to the Bloomberg reports, the platform will be unveiled in March, and would allow other game developers to advertise their wares in Zynga games and on a separate Web portal. Zynga will keep a portion of the sales generated from these games, said people familiar with the matter.
The company has not officially announced the new service, though.
Shares of Zynga fell 18 percent on Wednesday, after the company reported in the earnings report that its user growth has slowed in the final three months of 2011. Zynga also added that it had lost $435 million, or $1.22 per share, in the fourth quarter on $311 million in revenue.
At present, Facebook accounts for more than 90 percent of Zynga sales. By selling services to other developers, the company can reduce its reliance on Facebook. Promoting apps made by other developers is also going to be less risky and would require less resources than Zynga’s main business of developing games.
During an event at the company’s San Francisco headquarters in October, Zynga also debuted Z cloud, its private cloud infrastructure.
“Z cloud is aimed at building a direct relationship with consumers whether they are on the Web or mobile,” CEO Mark Pincus said.

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