Despite having derived the vast majority of its income from Facebook during its lifetime, Zynga seems to be reconsidering its all eggs /one basket strategy. The company has announced it will be making its social and web offerings available on its own website and even invite third-party developers to join in.
“We’ve been a web/game company delivering content to our players and developing our own internal infrastructure and technology. And now we’re transforming into a gaming and platform company,” said Zynga’s John Schappert.
“We’ve listened to our players, to what they want from social gaming. They want a place where they can play together, they want a place that curates and delivers the best new social games for them, where they’ll always have a friend to play with.”
Expanding Beyond Facebook
Zynga’s decision to expand beyond Facebook is a significant shift in its business strategy. For years, the company has been synonymous with Facebook gaming, with popular titles like FarmVille and Words With Friends attracting millions of users. However, relying heavily on a single platform can be risky. By launching its own website, Zynga.com, the company aims to diversify its revenue streams and reduce its dependency on Facebook.
This move allows Zynga to have more control over its user experience and data. On Facebook, Zynga had to comply with the social media giant’s policies and share a portion of its revenue. By operating its own platform, Zynga can implement its own rules, offer exclusive content, and potentially increase its profit margins. Additionally, this strategy opens up new opportunities for advertising and partnerships.
Inviting Third-Party Developers
One of the most exciting aspects of Zynga’s new strategy is its invitation to third-party developers to join its platform. This move could transform Zynga.com into a hub for social gaming, similar to how Steam operates for PC games. By attracting a variety of developers, Zynga can offer a diverse range of games, catering to different tastes and preferences.
Third-party developers can benefit from Zynga’s established user base and marketing resources. For smaller developers, this partnership can provide much-needed exposure and support. Zynga, in turn, can enrich its platform with innovative and engaging games, keeping its audience entertained and loyal.
Moreover, this collaborative approach can foster a sense of community among developers and players. By creating a space where developers can share their creations and players can discover new games, Zynga.com can become a vibrant ecosystem for social gaming.
Challenges and Opportunities
While Zynga’s new strategy presents numerous opportunities, it also comes with challenges. Building and maintaining a successful gaming platform requires significant investment in technology, infrastructure, and customer support. Zynga will need to ensure that its platform is user-friendly, secure, and capable of handling large volumes of traffic.
Additionally, attracting and retaining third-party developers will be crucial. Zynga must offer competitive terms and support to entice developers to its platform. This includes providing robust development tools, marketing assistance, and a fair revenue-sharing model.
On the player side, Zynga will need to convince its existing Facebook users to transition to Zynga.com. This may involve offering exclusive content, rewards, and incentives to encourage users to make the switch. Effective communication and marketing will be key to ensuring a smooth transition.
The Future of Social Gaming
Zynga’s move to establish its own platform reflects broader trends in the gaming industry. As social gaming continues to grow in popularity, companies are seeking ways to innovate and differentiate themselves. By creating a dedicated platform for social games, Zynga is positioning itself at the forefront of this evolving landscape.
In the long term, Zynga’s success will depend on its ability to adapt to changing market dynamics and player preferences. By listening to its players and collaborating with developers, Zynga can create a dynamic and engaging platform that stands the test of time.
Source VentureBeat
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